ABSTRACT This paper proposes new tests for financing constraints on R&D investment by directly examining the role played by working capital in smoothing the R&D expenditures of firms listed on the Tel Aviv stock exchange. It emphasizes the importance of working capital, not only for use but also as a source of funds. The findings offer new evidence for why levels of liquidity are important for R&D-intensive

ABSTRACT Habit persistence across six U.S. tourism sub-industries is estimated using a dynamic forward looking model. Estimates show that habits largely determine current expenditure for air transportation, shopping, accommodation, and other transportation. Estimated uncompensated price elasticities find that air transport and accommodation are price elastic in the short-run and long-run. Shopping

ABSTRACT The process of system implementation could be the key to determining system performance. This paper discusses this issue by using empirical methods to analyze Shanghai labor dispute cases. Although the labor dispute settlement system is designed to protect workers, empirical analyses show that government intervention will inhibit workers in labor disputes. Further analysis reveals that government

ABSTRACT Using GMM framework on the data of the US commercial banks spanning over 2002 to 2018, this study shows that banks adjust their regulatory capital ratios faster than traditional capital ratios. Our results show that the speed of adjustment of regulatory capital ratios and traditional capital ratios increases in bank capital adequacy and bank liquidity, respectively. We also find that the speed

ABSTRACT Using experiments in which participants play the role of polluting firms, we study compliance behavior with emissions limits under two types of fines and two different regulatory instruments. We find that the market price of pollution permits and the probability of violating permits holdings are higher with a fine that is convex in the level of violation than with one that is linear. This

ABSTRACT This article investigates the post-1990 link between broad money growth and inflation in 16 full-fledged inflation-targeting regimes and four benchmark non-inflation-targeting regimes. This study employs the Christiano-Fitzgerald band-pass filter and continuous wavelet transform to analyze the co-movements across operational horizons and time. According to the band-pass filtering techniques

ABSTRACT The aim of this article is to provide a quantification of the territorially varied relation between socioeconomic factors and share of people perceived their own health as good or very good in European countries in years 2005–2018. The preliminary data analysis shows that, to model health status at the country level, it is necessary to consider the age structure of inhabitants, country specifics

ABSTRACT We study a large intervention intended to reduce hospital readmission rates in Israel. Since 2012, readmission risk was calculated for patients aged 65 and older, and high-risk patients were flagged to providers upon admission and after discharge. Analyzing 171,541 admissions during 2009–2016, we find that the intervention reduced 30-day readmission rates by 5.9% among patients aged 65–70

ABSTRACT The purpose of this paper is to address whether province-level income inequality is associated with household savings, as well as investigate how this relationship varies across different subgroups. The paper uses a unique balanced panel survey on access to resources of 2181 rural households between 2008 and 2014 in twelve provinces of Vietnam. An instrumental variablegeneralized method of

ABSTRACT We propose a model of excess commuting based on search costs in the labor market and show how the equilibrium rate of excess commuting is determined by the degree of geographical job concentration – without neglecting the importance of the size of the labor market and commuting costs. We test – and largely confirm – the main predictions of our model using Belgian population data on commuting

ABSTRACT This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows. The results show

ABSTRACT This paper presents new evidence on wage and price setting based on a survey of more than 300 Uruguayan firms in 2013. Most of the firms set prices considering costs and adding a profit margin; therefore, they have some degree of market power. The evidence indicates that price increases appear quite flexible in Uruguay (prices are downward rigid). Most of the firms adjust their prices on an

ABSTRACT Using branch-level licensing data for 13 states, we examine cross-border effects of state-level payday-lending policies on new and operating branches within border counties from January 2005 to December 2010. We hypothesize branch counts are higher in border counties adjacent to states that restrict payday lending through prohibitive fee limits due to decreased competition and higher excess

ABSTRACT Recently, modeling and forecasting of high-frequency data (such as daily price) volatility using GARCH-MIDAS attract the attention of many researchers. Thus, the objective of this study is to model the average daily coffee price volatility from 1 January 2010 to 30 June 2019. The GARCH-MIDAS component model decomposes the conditional variance into short run component which follows a mean-reverting

ABSTRACT Risk-related gender differences such as risk perception and risk aversion are widely discussed, whereas gender differences in self-risk evaluations are unknown. Using a sample of more than 310,000 individual loan applications from the Renrendai online lending platform, this study uses a hedonic model to examine gender differences in self-risk evaluations. We find that males are more likely

ABSTRACT This study investigates the relationship between demography and inflation using panel cointegration for 24 countries during 1961–2014. It shows that the age structure of the population affects inflation. The answer to the question “is population aging inflationary or disinflationary?” depends on the stage of the demographic process and, particularly, on the consideration that the share of

ABSTRACT In this paper we derive a new model on exchange rate response to a lasting higher interest rate level. Contemporary models do not provide a convincing explanation for this relationship, but recent research suggests that models based on demand-pull effects to be somewhat confined to small funding cost increases. This would make cost-push effects more relevant when the interest rate differential

ABSTRACT The significant role of government consumption in affecting economic conditions raises the necessity for monetary policy to take into account the behaviour of fiscal policy and to also take into account how the presence of the fiscal sector might affect the transmission mechanism of monetary policy in the economy. To test for this, we build an otherwise standard New Keynesian model that incorporates

ABSTRACT This paper analyzed the welfare effects of price changes over categories of farm households in Nigeria taking into consideration the dual role of farm households as both consumer and producer of food between 2010–2016. This study attempts to shed some light on the differences between the direct approach and indirect. Estimated Compensating Variation reveals that 79.0% of farm households were

ABSTRACT Focusing on the Italian judicial system as our case study, we use Data Envelopment Analysis to estimate technical efficiency scores and reference values for policy makers. In detail, this work presents a comparative analysis of different model definitions to identify the most appropriate one, emphasizing the key role of case matters in this production process. According to our results, the

ABSTRACT Research and development expenditure (R&D) generate innovation and contribute significantly to the economic development. Previous studies emphasized the role of public R&D to encourage the technological innovation in the private sector. However, the effect of global economic crisis with respect to the public and private R&D link has been somewhat neglected in the empirical literature. Based

ABSTRACT This paper re-examines the stochastic time series behaviour of the monthly unemployment rate in 50 states of the United States (US) for the period 1976–2017 using a number of state-of-the-art unit root tests. The new developments incorporate structural break, nonlinearity, asymmetry, and cross-sectional correlation within panel-data estimation including the use of a sequential panel selection

ABSTRACT The recent rise of digital technology has enabled the development of various online platforms that gave rise to the so-called sharing economy. Academics suggest that this economy is causing a switch in consumer behaviour. This paper attempts to test this hypothesis by fitting a smooth transition autoregressive model to the cycle of the proportion of e-commerce to personal consumption in the

ABSTRACT This article examines whether an increase in political participation biased toward low-income voters – and concentrated in legislative elections – impacts federal representatives’ allocation of resources from the federal budget to Brazilian municipalities. We use a regression discontinuity design that exploits the assignment of electronic voting to municipalities based on population size to

ABSTRACT By taking firm heterogeneity in productivity into account in a monopolistic competition market in a general-equilibrium model setting, this paper investigates whether a stricter local content requirements (LCRs) can increase both productivity and production in the domestic intermediate-goods industry. The result shows that stricter LCRs policy cannot simultaneously increase both. The initial

ABSTRACT We explore the effects of fiscal and monetary policy shocks on key debt management variables and provide empirical evidence supporting the notion of a strict separation of economic policy from the debt management agenda. We find that a tighter monetary policy coupled with fiscal expansion increases the risk that government debt will have to be rolled over at unusually high cost. This is especially

ABSTRACT Using the Colombian Annual Manufacturing Survey (AMS) between 2000 and 2014, this paper investigates the effect of labor contract modalities on firm productivity within the industrial sector through a structural model. We find that the elasticity of revenue with respect to temporary workers is often lower than that with respect to permanent workers, but not in small firms, where some forms

ABSTRACT This paper examines the validity of the export-led growth (ELG) hypothesis in the United Arab Emirates (UAE) over the period 1975–2012, using a neoclassical production function augmented with merchandise exports and imports of goods and services. The study applies the Johansen cointegration technique and dynamic ordinary least squares (DOLS) regression to confirm the existence of a long-run

ABSTRACT This article mainly examines the effect(s) of legal drug misuse on work absenteeism, which has a connecting influence to work productivity. Also, the analysis compares the effects of legal drug use (e.g., tranquilizers) on work absences to that of a commonly used, but illegal drug, marijuana. Utilizing a large dataset from the NSDUH (National Survey on Drug Use and Health), and controlling

ABSTRACT The domestic saving and investment correlation as posited by Feldstein and Horioka is revisited for Turkey and tested over the whole period (1950–2017) and the two subperiods (1950–1989 and 1990–2017). The time-series properties of the data and the presence of structural breaks are properly addressed by the bounds testing procedure. Although, the investment and savings are positively correlated

ABSTRACT Understanding the Stock Return-Inflation Nexus is a continuing concern among scholars. The main goal of the current study was to critically examine the view that the relation between stock return and inflation is potentially asymmetric. To capture the possibility of dynamic nonlinearity and, in turn, asymmetry, the nonlinear Autoregressive Distributed lag model (NARDL) was deployed. This study