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Inflation-income inequality nexus in South Africa: the role of inflationary environment Journal of Applied Economics (IF 1.809) Pub Date : 2024-02-28 Eliphas Ndou
We estimate vector autoregressive models to examine the effect of the 3 to 6 per cent inflation target band in the inflation and income inequality nexus in South Africa. We use quarterly data spann...
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Economic freedom, institutional quality, and manufacturing development in African countries Journal of Applied Economics (IF 1.809) Pub Date : 2024-02-24 Zewdie Habte Shikur
The study examines the long and short-run impact of different explanatory variables on manufacturing development the time span from 1996 to 2021. The results indicated that economic freedom, FDI in...
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Have credit card services become important to monetary aggregation? An application of sign restricted Bayesian VAR Journal of Applied Economics (IF 1.809) Pub Date : 2024-02-24 William A. Barnett, Hyun Park
The purpose of this paper is to estimate the relationship among a primary set of economic variables, including two types of monetary aggregates: simple sum M2 and credit-card-augmented Divisia insi...
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Event-study approach: the case of Airbnb and hotel stocks Journal of Applied Economics (IF 1.809) Pub Date : 2024-02-16 Tchai Tavor, Sharon Teitler-Regev
This study investigates the impact of Airbnb announcements on hotel stock prices across ten countries, distinguishing between exact- and general-location announcements. We found that while general ...
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Green finance and green growth nexus: evaluating the role of globalization and human capital Journal of Applied Economics (IF 1.809) Pub Date : 2024-02-02 Muhammad Tufail, Lin Song, Zeeshan Khan
Green finance is one of the emerging research areas, particularly in academia and industries. However, its contribution to green growth remains relatively unexplored. Unlike previous studies, the c...
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Monetary policy, macroprudential policy, and bank risk-taking behaviour in the Indonesian banking industry Journal of Applied Economics (IF 1.809) Pub Date : 2023-12-26 Cep Jandi Anwar, Nicholas Okot, Indra Suhendra, Dwi Indriyani, Ferry Jie
There is a growing consensus on the translation of monetary policy actions into changes in credit demand on account of changes in interest rates. The study investigates monetary policy, macropruden...
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Corruption and government revenue: Evidence of a non-linear relationship driven by crises Journal of Applied Economics (IF 1.809) Pub Date : 2023-12-22 Željko Bogetić, Dominik Naeher
A large body of literature studies the relationship between corruption and economic outcomes, including government revenue mobilization, but there is little evidence on how this relationship change...
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A meta-regression analysis on judicial efficiency literature: the role of methodological and courts diversity Journal of Applied Economics (IF 1.809) Pub Date : 2023-12-21 Francesco Aiello, Graziella Bonanno, Francesco Foglia
This study presents a meta-regression analysis on the literature of courts efficiency. The metadata set comprises 264 efficiency scores retrieved from 36 papers published from 1992 to 2019. Our mod...
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M netary policy and inflation expectations: impact and causal analysis of heterogeneous economic agents’ expectations in South Africa Journal of Applied Economics (IF 1.809) Pub Date : 2023-12-06 Thobani Mlangeni, Eugene Msizi Buthelezi
This study employs a Vector Error Correction (VEC) model to investigate the dynamic relationship between changes in monetary policy and inflation expectations within various sectors. The analysis e...
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Ownership structure and corporate cash holdings in Jordan: the role of government ownership Journal of Applied Economics (IF 1.809) Pub Date : 2023-11-14 Ahmad Alkhataybeh, Safaa Adnan AlSmadi, Alaaeddin Al-Tarawneh, Mohammad A. Khataybeh, Mohammad Ziad Shakhatreh
Using a dataset of 107 listed firms in Jordan from 2009 to 2018, we employed the generalized method of moments (GMM) to examine the effect of ownership structure on the level of corporate cash hold...
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Optimal collective reputation Journal of Applied Economics (IF 1.809) Pub Date : 2023-11-08 Pu-Yan Nie, Hong-Xing Wen, Chan Wang
Collective reputation, such as watches “made in Switzerland”, affects the whole industry all over the world. This article highlights the relationship between competition and collective reputation. ...
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Spatial location and agglomeration economies in exports: empirical evidence by technological intensities in Brazil Journal of Applied Economics (IF 1.809) Pub Date : 2023-10-27 Antonio Carlos de Campos, Luís Lopes, Carlos Carreira
This study investigates spatial autocorrelation and the formation of spatial export clusters of Brazilian mesoregions based on technological intensity. It also analyzes how regional knowledge and a...
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Stock market reaction to the military conflict between Russia and Ukraine: an event study for the European tourism and hospitality industry Journal of Applied Economics (IF 1.809) Pub Date : 2023-09-22 António Miguel Martins, Pedro Correia, Susana Cró
This paper examines the short-term market reaction of European tourism and hospitality industry to the beginning of the military conflict between Russia and Ukraine (24 February 2022). Using an eve...
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Corporate life cycle and credit scoring Journal of Applied Economics (IF 1.809) Pub Date : 2023-09-05 Ala’a Adden Abuhommous
ABSTRACT This paper examines how the corporate life cycle affects credit scoring. Previous empirical studies have shown that the life cycle has an impact on financial policies, creditworthiness, risk and performance. This study utilizes panel data of U.S. listed companies for the period 1985–2017. The Dickinson model, which divides the life cycle into four stages (introduction, growth, mature, and
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World uncertainty and national fiscal balances Journal of Applied Economics (IF 1.809) Pub Date : 2023-08-04 Trang Thi Thuy Nguyen, Binh Thai Pham, Hector Sala
ABSTRACT The Great Recession and the COVID-19 pandemic shared two of its critical macroeconomic consequences: a major increase in world uncertainty and great stress on public finances. In this paper, we show that not only these are not independent phenomena but, on the contrary, world economic uncertainties are relevant in determining country-specific fiscal balances. We provide consistent evidence
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What drives income inequality? Bayesian evidence from the emerging market economies Journal of Applied Economics (IF 1.809) Pub Date : 2023-07-18 Shengquan Wang, Yuan Gao, Mingjin Luo
ABSTRACT What drives income inequality in emerging market economies? To end it, we approach this topic utilizing Bayesian model averaging and 27 emerging market economies panel dataset from 1990 to 2019. First, differently, we find a U-shaped Kuznets curve in emerging market economies rather than the notable inverted U-shaped curve. Besides, we find four strictly robust determinants of income inequality
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Effects of maternity on labor outcomes and employment quality for women in Chile Journal of Applied Economics (IF 1.809) Pub Date : 2023-07-06 Juan Pedro Eberhard, Javier Fernandez, Catalina Lauer
ABSTRACT Parenthood have a significant impact on engagement in the labor force. Parents may decide to look for jobs with specific characteristics, and in some cases, they may decide to not participate in the labor market. Using survey data from Chile, we use a propensity score matching estimation to compare various labor outcomes of women and men with and without children. We found that maternity has
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Legacy of the Czar: Complementarity between education and work in Russia Journal of Applied Economics (IF 1.809) Pub Date : 2023-07-03 Aigerim Zhangaliyeva, Masaki Nakabayashi
ABSTRACT Vocational school graduates enjoy a higher employment probability than other types of graduates across industrial economies. This may result from either the signaling effects of vocational school degrees or skill complementarity between vocational schooling and work experience. Regarding wage regressions, signaling effects should make the coefficient of the interaction term between years of
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An empirical analysis of e-cigarette addiction Journal of Applied Economics (IF 1.809) Pub Date : 2023-06-14 Xueting Deng, Yuqing Zheng, J.S. Butler
ABSTRACT This paper examines the role of addiction in influencing the demand for e-cigarettes using the Nielsen Retail Scanner Data and the Nielsen Consumer Panel Data between 2012 and 2017. With a comparison of a myopic addiction model, a forward-looking model, and a rational addiction model, this paper tests whether the consumption of e-cigarettes is addictive and rational. Results from both the
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Analyzing time-different connectedness among systemic financial markets during the financial crisis and conventional era: New evidence from the VARX-DCC-MEGARCH model Journal of Applied Economics (IF 1.809) Pub Date : 2023-05-15 Xiaoxing Liu, Khurram Shehzad
ABSTRACT This investigation utilized the VARX-DCC-MEGARCH model assimilated with skewed-t density to analyze the time-different (i.e., daytime, overnight, and daily) connectedness among S&P 500, DAX 30, FTSE-100, Nikkei 225, and Shanghai Composite Index. This investigation discovered that the current daytime returns transmission from the DAX 30, FTSE 100, and Nikkei 225 index to ensuing overnight returns
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Suicide and the economy: a regional analysis of italy Journal of Applied Economics (IF 1.809) Pub Date : 2023-05-10 Roberto Cellini
ABSTRACT This note investigates the empirical pattern of suicides across Italy over the last 15 years. Typically, a country shares similar basic cultural and social macro-features. Yet in Italy there are marked variations across the regions such that it provides a useful setting to examine the economic factors that influence suicidality. The results align with some earlier work positing an N-shaped
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How much should we trust R2 and adjusted R2: evidence from regressions in top economics journals and Monte Carlo simulations Journal of Applied Economics (IF 1.809) Pub Date : 2023-05-02 Qiang Chen, Ji Qi
ABSTRACT R2 and adjusted R2 may exaggerate a model’s true ability to predict the dependent variable in the presence of overfitting, whereas leave-one-out R2 (LOOR2) is robust to overfitting. We demonstrate this by replicating 279 regressions from 100 papers in top economics journals, where the median increases of R2 and adjusted R2 over LOOR2 reach 40.2% and 21.4% respectively. The inflation of test
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Welfare implications of overlapping ownership with endogenous quality Journal of Applied Economics (IF 1.809) Pub Date : 2023-03-23 Changying Li
ABSTRACT In the context of a vertically differentiated duopoly model with endogenous quality choice, we analyzes the welfare effect of overlapping ownership when the market is fully covered. The results show that overlapping ownership, while detrimental for consumer surplus, may increase or decrease social welfare and firms’ profits. In particular, when the overlapping ownership structure is such that
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The impact of active and passive investment on market efficiency: a simulation study Journal of Applied Economics (IF 1.809) Pub Date : 2023-03-15 Patrick Jaquart, Marvin Motz, Lutz Köhler, Christof Weinhardt
ABSTRACT We create a simulated financial market and examine the effect of different levels of active and passive investment on fundamental market efficiency. In our simulated market, active, passive, and random investors interact with each other through issuing orders. Active and passive investors select their portfolio weights by optimizing Markowitz-based utility functions. We find that higher fractions
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How to deal with missing observations in surveys of professional forecasters Journal of Applied Economics (IF 1.809) Pub Date : 2023-03-07 Constantin Rudolf Salomo Bürgi
ABSTRACT Survey forecasts are prone to entry and exit of forecasters as well as forecasters not contributing every period leading to gaps. These gaps make it difficult to compare individual forecasters to each other and raises the question of how to deal with the missing observations. This is addressed for the variables GDP, CPI inflation, and unemployment for the US. The theoretically optimal method
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Technical efficiency of U.S. Western Great Plains wheat farms using stochastic frontier analysis Journal of Applied Economics (IF 1.809) Pub Date : 2023-02-28 Inbae Ji, Jeffrey D. Vitale, Pilja P. Vitale, Brian D. Adam
ABSTRACT Technical efficiency (TE) is an important measure of farm performance. This study measured the TE of wheat farms across six states in the U.S. Western Great Plains based on production and farm management-specific variables. Significant factors positively influencing efficiency were insecticide use, farm size, and tillage. Alternatively, government payments, crop insurance, off-farm income
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Living in darkness: rural poverty in Venezuela Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-31 Leonardo Maldonado
ABSTRACT This paper uses nighttime lights imagery and gridded population datasets to estimate 2000–2020 rural poverty rates for Venezuela at the state and municipality levels. Then, I examine if there has been a significant change in rural poverty during the economic collapse ongoing since 2013–2014. The main finding reveals that most of the Venezuelan territory experienced a considerable increase
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Functional coefficient quantile regression model with time-varying loadings Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-30 Alev Atak, Gabriel Montes-Rojas, Jose Olmo
ABSTRACT This paper proposes a functional coefficient quantile regression model with heterogeneous and time-varying regression coefficients and factor loadings. Estimation of the model coefficients is done in two stages. First, we estimate the unobserved common factors from a linear factor model with exogenous covariates. Second, we plug-in an affine transformation of the estimated common factors to
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Gender wage and productivity gaps in the Ethiopian manufacturing sector Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-19 Melaku Abegaz, Gibson Nene
ABSTRACT The paper uses firm-level data to examine gender wage and productivity gaps in the Ethiopian manufacturing sector for the period 1996–2010. It investigates gender wage differentials between skilled and unskilled workers after controlling for factors affecting average wages. Our findings show significant gender wage and productivity gaps and the segregation of female workers into low-paying
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What are the main variables that influence the dynamics of Ecuador’s sovereign risk? Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-16 Paul Carrillo-Maldonado, Javier Díaz-Cassou, Miguel Flores
ABSTRACT This paper analyzes the determinants of Ecuador’s sovereign spreads as measured by the EMBI index. We use Bayesian algorithms to estimate a structural vector autoregressive model with three blocks (international, regional, and domestic). Global variables drive most of the dynamics of the Ecuadorian EMBI, also influenced by the evolution of sovereign risks in other Latin American countries
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Private investment and public stimulus: a bargaining model Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-12 Yingxian Tan, Yahui Wang
ABSTRACT Local governments often provide tax-subsidy programs to attract corporate investment. Using a game-theoretic real options model between a firm and a government, this paper aims to explore the interaction between the government’s tax-subsidy policy and the firm’s investment and financing decisions. The optimal incentive policies are derived for cooperative and non-cooperative bargaining settings
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School quality and labor market earnings: some new results on an old debate Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-12 Gumilang Aryo Sahadewo
ABSTRACT This study addresses an open debate in the literature about the direct effects of measures of school quality on workers’ earnings in the labor market. Card and Kureges (1996) argue that the young sample that Betts (1995) uses understates the effects of the measures of school quality on earnings. The main objective of this study is to investigate the effects of the measures of school quality
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Climbing the ladders of job satisfaction and employee organizational commitment: cross-country evidence using a semi-nonparametric approach Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-12 José A. C. Vieira, Francisco J. F. Silva, João C. A. Teixeira, António J. V. F. G. Menezes, Sancha N. B. de Azevedo
ABSTRACT Satisfied and committed employees play a major positive role in business performance in today’s globalized and competitive landscape. This paper contributes to the literature on the empirical determinants of job satisfaction and organizational commitment, drawing on a rich micro dataset for 36 countries, using a flexible semi-nonparametric approach, which nests and outperforms the standard
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Forecasting 2030 CO2 reduction targets for Russia as a major emitter using different estimation scenarios Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-11 Sarvar Gurbanov, Jeyhun I. Mikayilov, Shahriyar Mukhtarov, Sakit Yagubov
ABSTRACT This study firstly analyzes the impact of energy intensities and income on CO2 emissions in Russia, applying different estimation methods to the data period from 1990 to 2020. In addition, the study forecasts CO2 emissions considering 2030 targets under different assumptions and assesses the achievability of the set target. The estimation results concluded that the GDP and fossil fuel intensities
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Exports and long-run growth: The case of Spain, 1850-2020 Journal of Applied Economics (IF 1.809) Pub Date : 2023-01-01 Oscar Bajo-Rubio
ABSTRACT We analyse in this paper the relationship between international trade and economic growth from the point of view of one of the most traditional hypotheses within this field, namely, the export-led growth hypothesis, for the case of Spain in a long-term perspective of 170 years. Exports seem to have played a positive, though modest, role in promoting economic growth in the Spanish economy over
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Intraday Bitcoin price shocks: when bad news is good news Journal of Applied Economics (IF 1.809) Pub Date : 2022-12-28 José Luis Miralles-Quirós, María Mar Miralles-Quirós
ABSTRACT Since the formulation of the Efficient Market Hypothesis, countless studies have been developed that try to either prove or refute it. Event studies, analysing the impact of different events on asset prices, are one of the most important research fields but there is a lack of evidence on cryptocurrencies. For that reason, we analyse the existence of over- and under- reaction effects on Bitcoin
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Do psychopathic traits predict criminal activity? Journal of Applied Economics (IF 1.809) Pub Date : 2022-12-01 M. Antonella Mancino, Tarek Attia
ABSTRACT Psychopathy evidence is frequently used for court decisions involving young criminals, claiming that is it an important predictor of crime. We investigate the effect of psychopathy on crime using a unique panel dataset of young offenders, which allows to analyze several dimensions of psychopathy, controlling for a wide range of usually unobservable characteristics. We find that psychopathy
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Financial constraint and output pricing: the case of international sanctions against Iran Journal of Applied Economics (IF 1.809) Pub Date : 2022-10-18 Sajad Ebrahimi
ABSTRACT This paper examines whether financial constraints of firms influence their pricing behavior. To do so, a product-level dataset is used from Iranian-listed manufacturing companies. This study employs the imposition of international sanctions against Iran in 2012 as an exogenous shock to identify the effect of financial constraints. According to the results financially restricted firms keep
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Influences of various pricing points: an experimental study of plastic bags in Johannesburg, South Africa Journal of Applied Economics (IF 1.809) Pub Date : 2022-10-10 Johane Dikgang, Zafeer Ravat, Jugal Mahabir
ABSTRACT Policymakers have little experience regarding designing the right levels of pricing for plastic bags. The ineffectiveness of charging for bags, in countries such as South Africa, makes it imperative that we map the demand curve. Getting the charge “right” depends on the size of the externality. Charging for bags is therefore an effective intervention to encourage consumers to carry their own
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Income elasticity of demand for tanning bed usage: evidence from survey data Journal of Applied Economics (IF 1.809) Pub Date : 2022-09-21 Neil R. Meredith, Anne Macy, Amy Meredith
ABSTRACT Using data on U.S. adults from the National Health Interview Survey (NHIS), we estimate the causal income elasticity of tanning bed usage conditional upon use. While controlling for individual characteristics, we employ instrumented probit and count data estimation to show that tanning bed usage is a normal good that is a necessity for all adults, women and men alike. Results suggest an income
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Dynamic forecasting of banking crises with a Qual VAR Journal of Applied Economics (IF 1.809) Pub Date : 2022-09-19 Emile du Plessis
ABSTRACT This paper applies a Qual VAR approach to generate a continuous banking crisis indicator from an underlying latent variable using a Markov Chain Monte Carlo algorithm. Four decades of banking crises are assessed by accounting for the evolutionary nature of precursors, as measured through periodic, regional, and developmental effects using a representative sample of countries. Aggregate results
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The interrelationships between bank risk and charter value in ASIAN-5 Journal of Applied Economics (IF 1.809) Pub Date : 2022-09-13 Dat T Nguyen, Tu DQ Le
ABSTRACT This study examines the interrelationships between bank risk and charter value in five countries in Southeast Asia (ASEAN-5) from 2006 to 2019 using a simultaneous equations model. The findings show a two-way relationship between bank risk and charter value. More specifically, the positive relationship between charter value and bank risk implies that banks with a more excellent charter value
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Corporate social responsibility and trade credit during periods of monetary contraction Journal of Applied Economics (IF 1.809) Pub Date : 2022-09-01 Daxin Dong, Peng Liu
ABSTRACT This paper studies whether firms’ corporate social responsibility (CSR) affects their access to trade credit in response to monetary contraction shocks. Based on US firm-level data from 1995Q1 to 2014Q1, we find that after monetary contraction shocks, firms with higher levels of CSR receive more trade credit than firms with lower levels of CSR. Moreover, the beneficial impact of CSR is stronger
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Do non-performing loans matter for bank lending and the business cycle in euro area countries? Journal of Applied Economics (IF 1.809) Pub Date : 2022-08-22 Ivan Huljak, Reiner Martin, Diego Moccero, Cosimo Pancaro
ABSTRACT We estimate the impact of changes in non-performing loan (NPL) ratios on aggregate banking sector variables and the macroeconomy by estimating a panel Bayesian VAR model for twelve euro area countries. The main findings are as follows: i) An impulse response analysis shows that an exogenous increase in the change in NPL ratios tends to depress bank lending volumes, widens bank lending spreads
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Capital flows, EU integration and the global financial crisis: an empirical analysis Journal of Applied Economics (IF 1.809) Pub Date : 2022-07-25 Ahmet Ihsan Kaya, Jakob de Haan
ABSTRACT We investigate the impact of European Union (EU) integration on capital flows to prospective new EU member states. Using annual data between 1992 and 2020, our results suggest that although EU integration increased net capital flows before the Global Financial Crisis (GFC), it was not able to shield countries from the general decline in capital flows that occurred after the GFC. Furthermore
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The effects of contract-type mismatch and matching frictions on unemployment duration: evidence for Portugal Journal of Applied Economics (IF 1.809) Pub Date : 2022-07-22 Antonio Menezes, Dario Sciulli
ABSTRACT This paper analyses the impact of matching frictions in the Portuguese labour market on individual unemployment hazard rates and unemployment durations. The coexistence of permanent contracts and temporary contracts in the Portuguese (dual) labour-market is akin to a matching friction, with a contract-type mismatch between jobseekers who prefer permanent contracts, whereas firms, in turn,
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Does bitcoin hedge against the economic policy uncertainty: based on the continuous wavelet analysis Journal of Applied Economics (IF 1.809) Pub Date : 2022-07-21 Yuxin Cai, Zeqi Zhu, Qi Xue, Xinyu Song
ABSTRACT This article aims to test a causal nexus between bitcoin market and economic policy uncertainty. We use the continuous wavelet analysis to investigate lead-lag relationship between bitcoin market and economic policy uncertainty in different time-frequency domains. Our findings show the negative relationship between bitcoin returns and economic policy uncertainty around the period of bitcoin’s
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Optimising policies to achieve agricultural transformation objectives: an application for Ethiopia Journal of Applied Economics (IF 1.809) Pub Date : 2022-07-18 Marco V. Sánchez, Martín Cicowiez
ABSTRACT Policymakers seek objectives that can be conflicting under a budget constraint. Solving this problem requires a multi-criteria decision-making technique whereby equations of a dynamic computable general equilibrium model are constraints to a policy optimisation problem. We illustrate this approach in the framework of agricultural transformation objectives. Using data for Ethiopia we show the
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Dampen macroeconomic volatility: a useful role of capital controls on international trade Journal of Applied Economics (IF 1.809) Pub Date : 2022-06-08 Chokri Zehri
ABSTRACT Capital controls may adversely affect international trade. This study aims to demonstrate the usefulness of capital controls for reducing macroeconomic volatilities and then mitigating their negative effects on international trade. Using quarterly data, we applied a dynamic panel approach to a sample of 26 countries over the period 2010–2020. By diversifying the estimation techniques and using
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The effect of oil price fluctuation on the economy: what can we learn from alternative models? Journal of Applied Economics (IF 1.809) Pub Date : 2022-06-07 Gil Kim, David Vera
ABSTRACT Following the exisiting literature, we present the most up-to-date estimates of oil shocks and the response of the U.S. economy. Regardless of model specifications, oil supply shocks have a negative effect on the U.S. real GDP, albeit the magnitude of responses is different across models. Aggregate demand shocks and oil-market specific shocks appear to have a positive effect on CPI, while
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Asymmetric information, credential assessment services and earnings of new immigrants Journal of Applied Economics (IF 1.809) Pub Date : 2022-05-18 Stein Monteiro
ABSTRACT Based on the 2016 Canadian Census of Population, some immigrant groups have higher entry-earning returns on their ability than others, and experience a lot more variation in earnings given similar variations in ability compared to other groups. The uneven variance in earnings given similar variances in ability is an indication of statistically discriminated immigrant groups due to information
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On the economics of CO2 contracts in the enhanced oil recovery industry Journal of Applied Economics (IF 1.809) Pub Date : 2022-05-19 Shen Gao, Chenghan Hou, Long Zhao
ABSTRACT While Carbon Dioxide based Enhanced Oil Recovery (CO2 -EOR) is often regarded as one of the most economically viable methods of carbon capture, utilization and storage (CCUS), little is known about the existing CO2 supply contracts in the CO2 -EOR industry. By studying a sample of 103 CO2 sales contracts in the U.S. in the 1980s and 1990s, this paper aims to find out what drives the key terms
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The effect of international visitors on poverty alleviation in Mexico: an approach from the misery index Journal of Applied Economics (IF 1.809) Pub Date : 2022-05-18 Fernando Sánchez López
ABSTRACT The effectiveness of tourism as an instrument in combating poverty has emerged as an important subject of research. Tourism’s impact on poverty has traditionally been analyzed from the perspective of income or household consumption per capita. In contrast to these approaches, we analyzed the effect of the arrival of international visitors on poverty in Mexico by way of its impact on a modified
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Market integration and price transmission in the regional grain markets in Ethiopia Journal of Applied Economics (IF 1.809) Pub Date : 2022-05-17 Dejene Gizaw Kidane
ABSTRACT Persistent increases in basic food prices have become a critical challenge in Ethiopia since 2006. This paper assesses whether the structure of the grain market has contributed to the price increases. Traders having market power could create commodity price stickiness, implying that what goes up does not come down, leading to price increases. The study examines price linkages between principal
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Common and idiosyncratic components of Latin American business cycles connectedness Journal of Applied Economics (IF 1.809) Pub Date : 2022-05-09 Luciano Campos, Jesús Ruiz Andújar
ABSTRACT This paper investigates the evolution of business cycles synchronization in Latin America since the 1990ʹs. To do so, a Vector Autoregressive model is fed, alternatively, with the countries’ Industrial Production Indexes and with these series filtered by the US financial conditions index, which is considered a common component affecting business cycles in the region. Additionally, a Markov
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CEO confidence bias and strategic choice: a general framework Journal of Applied Economics (IF 1.809) Pub Date : 2022-05-07 Elizabeth Schroeder, Carol Horton Tremblay, Victor J. Tremblay
ABSTRACT An owner of a firm may choose to hire an unbiased CEO or one with confidence bias. We develop a model that demonstrates that the owner’s optimal choice depends on whether the firm and rival choice variables are strategic substitutes or strategic complements. When choice variables are strategic substitutes or strategic complements for both firms, owners optimize by hiring overconfident CEOs
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Modelling time and frequency connectedness among energy, agricultural raw materials and food markets Journal of Applied Economics (IF 1.809) Pub Date : 2022-04-27 Musefiu Adebowale Adeleke, Olabanji Benjamin Awodumi
ABSTRACT The study analyzes volatility connectedness of energy, agricultural raw materials and food markets for both time and frequency domains (January 1960 to August 2020). The DY and BK approaches are adopted at both commodity-group and sub-group levels. Time domain estimates indicate that the energy market produced more risk spillover in the food market than raw material market. Rubber contributes
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Role of bank competition in determining liquidity creation: evidence from GCC countries Journal of Applied Economics (IF 1.809) Pub Date : 2022-04-11 Shoaib Ali, Imran Yousaf, Sumayya Chughtai, Syed Zulfiqar Ali Shah
ABSTRACT This study aims to investigate the impact of banking-sector concentration on the banks’ liquidity creation in GCC countries over the period from 2012 to 2018 by using a dynamic GMM panel procedure. The results suggest that increased bank competition reduces banks’ liquidity creation across the GCC countries. The study’s findings are in line with the ‘financial fragility hypothesis” according
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Money demand under a fixed exchange rate regime: the case of Saudi Arabia Journal of Applied Economics (IF 1.809) Pub Date : 2022-04-11 Fakhri J. Hasanov, Moayad H. Al Rasasi, Salah S. Alsayaary, Ziyadh Alfawzan
ABSTRACT This paper reviews earlier studies and shows that the money demand (MD) relationship under a fixed exchange rate (ER) regime differs from that under a floating ER regime, mainly due to the limited role of monetary policy in the former regime. It then empirically demonstrates that an open-economy model augmented with country-specific factors is a better framework for characterizing the MD function
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How to become a cashless economy and what are the determinants of eliminating cash Journal of Applied Economics (IF 1.809) Pub Date : 2022-04-04 Josep Maria Raya, Claudia Vargas
ABSTRACT This paper aims to ascertain the determinants by which individuals decide to use credit cards as a payment method rather than cash; that is, to understand changes in socioeconomic factors on the long-term use of alternatives to cash. Using the data from the waves (2002–2017) of the Spanish Survey of Household Finances (SSHF) and a panel data estimation (static and dynamic), we identify education