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Government, taxation and economic complexity Applied Economics Letters (IF 1.287) Pub Date : 2024-03-18 Fernando Barros, Luiz Brotherhood, Fábio A. R. Gomes, Victor Rangel
This paper investigates the relationship between tax complexity, economic complexity, and government size. The findings are obtained through cross-country panel data and two-way fixed effects regre...
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Corporate leverage during COVID-19 Applied Economics Letters (IF 1.287) Pub Date : 2024-03-18 Tahsin Imtiazul Huq, M. Kabir Hassan, Dung Viet Tran
This article examines the impact of the health pandemic on global firm leverage from 2020 to 2021, and finds firms decrease their leverage during the pandemic, via long-, and short-term debt. As CO...
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Quality adjusted financial development and the Entrepreneurship-Growth Nexus Applied Economics Letters (IF 1.287) Pub Date : 2024-03-18 Hazwan Haini, Ly Slesman
The relationship between new business formation and economic growth can be supported by financial development. However, we argue that not all finance can spur entrepreneurial activity and that the ...
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U.S. monetary policy shocks and bank lending in Latin America: evidence of an international bank lending channel Applied Economics Letters (IF 1.287) Pub Date : 2024-03-18 Carlos Giraldo, Iader Giraldo, Jose Gomez-Gonzalez, Jorge Uribe
We examine the impact of U.S. monetary policy shocks on bank lending in five major Latin American countries where large U.S. banks have limited presence. Our analysis covers annual balance sheet da...
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Can the global financial cycle and economic conditions predict real estate market volatility? Applied Economics Letters (IF 1.287) Pub Date : 2024-03-18 Yunyi Zhang, Ting Hu, Shuang Xiao
This study examines the predictive power of the newly proposed global financial cycle (GFC) and global economic conditions (GECON) indicators for real estate market volatility. To this end, we exte...
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The impact of university energy research and development on CO2 emissions Applied Economics Letters (IF 1.287) Pub Date : 2024-03-18 Dierk Herzer
The primary objective of this study is to examine the impact of university energy R&D on CO2 emissions using an instrumental-variable approach. A secondary objective is to also examine whether and ...
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Drip irrigation in Bengaluru: evaluating gender’s moderating effect on the intention to adopt drip irrigation Applied Economics Letters (IF 1.287) Pub Date : 2024-03-13 Marius Michels, Oliver Mußhoff
This study investigates the intention to adopt drip irrigation in Bengaluru, India, in the year 2022, by applying the Technology Acceptance Model and incorporating gender as a moderator variable. W...
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Correction Applied Economics Letters (IF 1.287) Pub Date : 2024-03-04
Published in Applied Economics Letters (Ahead of Print, 2024)
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Exports vs. FDI under counterfeiting: implications for the IPR policy of an importing country Applied Economics Letters (IF 1.287) Pub Date : 2024-03-04 Yang-Ming Chang, Manaf Sellak
This paper analyzes how exports and foreign direct investment (FDI) differ in affecting the intellectual property rights (IPR) policy of an importing country faced with domestic counterfeiting prob...
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A farewell to Greenspan-Guidotti rule: has the role of short-term debt as a reserve adequacy indicator disappeared? Applied Economics Letters (IF 1.287) Pub Date : 2024-02-27 Suat Aydın, Cengiz Tunç
Central banks use mainly three indicators to measure the adequacy of reserves. These are the short-term debt-to-reserves ratio, reserves in months of imports, and broad money-to-reserves ratio. How...
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Economic policy uncertainty and banks’ portfolio adjustment: evidence from Japan Applied Economics Letters (IF 1.287) Pub Date : 2024-02-26 Karen Kailin Lai, Yukihiro Yasuda
We empirically examine the impact of Economic Policy Uncertainty (EPU) on banks’ portfolio adjustment under the capital requirement of Japanese banks from 2002–2019. We find that when EPU increases...
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Have countries accumulated enough capital? A non-parametric approach Applied Economics Letters (IF 1.287) Pub Date : 2024-02-25 Barnabé Walheer, Sousso Bignandi
In this paper, we analyse the effect of capital accumulation on economic growth and verify whether countries have accumulated enough capital. We make use of panel data for 92 countries from 1965–20...
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Does the impact of geopolitical risk on leverage vary based on executives’ cash compensation? Applied Economics Letters (IF 1.287) Pub Date : 2024-02-19 Mona Yaghoubi
This study explores how the relationship between geopolitical risk and firms’ debt ratio is moderated by the level of executives’ cash compensation. The study shows that firms with higher levels of...
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Green credit policy and the cost of equity: evidence from China Applied Economics Letters (IF 1.287) Pub Date : 2024-02-16 You Li, Yudie Shi, Qi Wang, Jian Zhang, Keao Zhao
This paper examines the impact of green credit policy on the cost of equity for firms by focusing on the 2012 Green Credit Guidelines (GCG2012) in China. Employing a standard difference-in-differen...
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Unfulfilled promises: reconsidering World Bank assistance projects as drivers of inclusive development in sub-Saharan Africa Applied Economics Letters (IF 1.287) Pub Date : 2024-02-12 Yuhang Zhuang, Liyunpeng Zhang, Michael Darko, Tianyang Liu
‘Urban bias’ has been a common criticism of World Bank (WB) assistance, but to what extent this will lead to non-inclusive development remains unclear. Measuring the multidimensional poverty gap of...
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Beyond the breach: Bitcoin’s response to exchange-related cyberattacks and closures Applied Economics Letters (IF 1.287) Pub Date : 2024-02-12 Seung Ah Lee, George Milunovich
We investigate the influence of digital exchange-related cyberattacks and closures on Bitcoin’s returns and volatility. We observe a negative impact on Bitcoin’s return of 1.368% on the days when t...
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Correction Applied Economics Letters (IF 1.287) Pub Date : 2024-02-11
Published in Applied Economics Letters (Ahead of Print, 2024)
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Policy-induced fertility decline and the unmet demand for old-age social support in rural China Applied Economics Letters (IF 1.287) Pub Date : 2024-02-09 Juerong Huang, Qiran Zhao, Juan Liu, Qihui Chen
This paper, exploiting exogenous variation in older females’ exposure to China’s family planning policies enacted in the early 1970s, estimates the effect of reduced fertility on the unmet demand f...
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Policy uncertainty and idiosyncratic volatility on Nikkei 225 stocks Applied Economics Letters (IF 1.287) Pub Date : 2024-02-07 Seungho Shin, Atsuyuki Naka, Lei Wang
The main purpose of this study is to empirically examine the relationship between policy uncertainty and idiosyncratic volatility in Nikkei 225 stocks. We conclude that there is a positive relation...
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Floods and local incumbency disadvantage: a regression discontinuity design Applied Economics Letters (IF 1.287) Pub Date : 2024-02-07 Felipe Livert, Xabier Gainza
Do voters punish political leaders in the aftermath of a natural disaster? Using a Regression Discontinuity Design, this article explores how floods affect local electoral results in Chile. Taking ...
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Clean protectionism? Coal mining and crime in India Applied Economics Letters (IF 1.287) Pub Date : 2024-02-01 Travis Roach, Saheli Nath, Chintamani Jog
Combating climate change requires new policies that may disrupt labour markets in mining-intensive areas and lead to unintended consequences. In this study, we use the universe of criminal cases fi...
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Macroeconomic shocks and stock market returns Applied Economics Letters (IF 1.287) Pub Date : 2024-02-01 Seungho Baek, Mina Glambosky, Sunil Mohanty
We examine how structural macroeconomic disturbances impact US stock market returns. Our analysis uncovers a significant negative correlation between stock market returns and both systematic and mo...
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The impact of economic policy uncertainty on insurance demand: the moderating effect of national culture Applied Economics Letters (IF 1.287) Pub Date : 2024-02-01 Yiming Lu, Yu Wang, Minglai Zhu
We scrutinize the influence of economic policy uncertainty on the demand for insurance and delve into the moderating effect of national culture. Using an OLS model with two-way fixed effects, we fi...
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Counterparty risk and contagion in financial networks Applied Economics Letters (IF 1.287) Pub Date : 2024-02-05 Xiaoyuan Zhang, Qi Hu
Based on the concept of multi-orbit contagion, we develop a network-based probabilistic model to illustrate the risk contagion among institutions and the stability of financial networks. Our examin...
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Quantifying the effects of religious distance on trade misinvoicing Applied Economics Letters (IF 1.287) Pub Date : 2024-02-02 Thang Ngoc Doan, Huong Giang Mai
This study investigates the impact of religious distance on trade misinvoicing, using bilateral data from 87 countries over the period 1990–2018. Trade misinvoicing refers to the combined occurrenc...
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Financial constraints, firm dynamics and productivity Applied Economics Letters (IF 1.287) Pub Date : 2024-02-01 Karim Foda, Yu Shi, Maryam Vaziri
This paper studies the relationship between financial constraints, firm dynamics and productivity. Using Lithuanian firm-level data from 2000 to 2018, we construct a measure of financial constraint...
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Quasi-experimental research and spillover effects on Ethereum Merge Applied Economics Letters (IF 1.287) Pub Date : 2024-01-31 Takeshi Tsuyuguchi, Haibo Wang
This article investigates the Ethereum Merge, which occurred on 15 September 2022, and we employ the time-series difference in differences (DiD) model and vector autoregression (VAR) models and ana...
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Bank stability and robot adoption Applied Economics Letters (IF 1.287) Pub Date : 2024-01-30 Ronit Mukherji
This paper argues that improving bank stability as measured by bank z-scores leads to greater adoption of automation technology. Empirical investigation finds that improving bank stability leads to...
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The effect of FDI regulatory barriers: evidence from OECD countries Applied Economics Letters (IF 1.287) Pub Date : 2024-02-01 Seung-Hwan Yoon, Jong-Hwan Ko
This study aims to analyse the impact of the OECD FDI Regulatory Restrictiveness Index on actual FDI (Foreign Direct Investment) flows into the 38 OECD member countries. Using PPML (Poisson Pseudo ...
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Uncertainty and structural reform in the long run Applied Economics Letters (IF 1.287) Pub Date : 2024-02-01 Michael Ryan
Recent research suggests that uncertainty has detrimental long-run effects on output. We provide empirical evidence that this is not always the case. We show that uncertainty can have positive long...
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Using a list experiment to measure intimate partner violence: cautionary evidence from Ethiopia Applied Economics Letters (IF 1.287) Pub Date : 2024-01-31 Daniel O. Gilligan, Melissa Hidrobo, Jessica Leight, Heleene Tambet
While indirect response methods are increasingly used in surveys to measure sensitive behaviours such as intimate partner violence, important questions persist around how respondents understand and...
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Affect labeling as a buffer: reducing anxiety in the face of violent news Applied Economics Letters (IF 1.287) Pub Date : 2024-01-31 Pedro Hemsley, Lynda Pavão
Affect labelling, the process of putting feelings into words, has been shown to have a calming effect on the brain. This study examines the impact of affect labelling on self-reported levels of anx...
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Forecasting VIX using realized EGARCH model with dynamic jumps Applied Economics Letters (IF 1.287) Pub Date : 2024-01-31 Xinyu Wu, Junlin Pu, Yuyao Wang
This paper proposes a realized EGARCH model with dynamic jumps (REGARCH-Jump) incorporating high-frequency information and time-varying jump intensity to forecast VIX. We derive the risk-neutral dy...
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Too close to the sun: solar farms’ impact on housing prices at subtropical latitudes Applied Economics Letters (IF 1.287) Pub Date : 2024-01-31 Will Georgic, Goran Skosples, David Wolf, Robert J. Gitter
While the transition from fossil fuels to renewable energy will benefit many constituencies, recent work suggests that newly activated solar panels may negatively impact nearby housing prices. Alth...
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Endogenous timing in a mixed duopoly when a public firm supplies its private competitor Applied Economics Letters (IF 1.287) Pub Date : 2024-01-30 Jorge Fernández-Ruiz
We examine endogenous timing in a quantity setting mixed duopoly where a public firm, in addition to selling a good in the retail market, manufactures an input required to produce this good and sup...
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A note on the dynamic effects of supply and demand shocks in the crude oil market Applied Economics Letters (IF 1.287) Pub Date : 2024-01-30 Hoang Nguyen, Pär Österholm
In this paper, we investigate whether key relations in the crude oil market have been stable over time. This is done by estimating hybrid time-varying parameter structural Bayesian VAR models using...
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The five-factor model analysed by machine learning classification techniques Applied Economics Letters (IF 1.287) Pub Date : 2024-01-30 Woojin Park, Yong Uk Song, Dohyun Chun, Jihun Kim
This study compares the classification performance of traditional factor models and ML to explore the assumption of linearity in risk premiums. We apply ML techniques to the variables used in the F...
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Audit committee-auditor interlocking and disclosure of key audit matters Applied Economics Letters (IF 1.287) Pub Date : 2024-01-24 Xuran Lu, Zige Wu, LingFeng Yu, Yong Shi
The key audit matters in audit report can improve the communication effect and narrow the information gap. The interlock relationship between audit committee and auditor based on cooperation and tr...
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The hidden cost of silence: How delayed cyberattack disclosure erodes firm profitability Applied Economics Letters (IF 1.287) Pub Date : 2024-01-26 Xinhui Huang, Balaji Janamanchi, Lukai Yang
Cybersecurity disclosure has garnered significant attention in the past decade. In this study, we observe that the disclosure delays are inversely correlated with firm profitability and we attribut...
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ESG ratings and macroeconomic risks in the Asian emerging stock markets Applied Economics Letters (IF 1.287) Pub Date : 2024-01-21 Seungho Baek, Minwoo Song
We examine how equity returns of ESG-rated firms in the emerging Asian market respond to the impact of macroeconomic shocks. By studying companies across nine emerging Asian countries, we find no e...
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The impact of labour unemployment insurance on entrepreneurial intention and new business creation Applied Economics Letters (IF 1.287) Pub Date : 2024-01-21 Thanh Cong Nguyen, Tien Ho Thuy
Based on a panel analysis of 50 US states over the period 2005–2022, we find that increased unemployment benefits, either by increasing the weekly unemployment benefit amount or the number of weeks...
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The role of national information technology investments in inventory efficiency and financial performance: evidence from manufacturing industry in Germany Applied Economics Letters (IF 1.287) Pub Date : 2024-01-19 Gülsen Dökmecìoğlu, Sami Fethì, Salih Katircioğlu
This study investigates the role of national information technology (IT) investments in inventory efficiency and financial performance. A total of 153 publicly listed manufacturing firms in Germany...
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Publication bias in export promotion impact on export market entry: evidence from a meta-regression analysis Applied Economics Letters (IF 1.287) Pub Date : 2024-01-19 Binyam Afewerk Demena
Export promotion policies and programmes (EPPs) serve as crucial governmental trade instruments, encouraging firms to explore the realm of exporting. These policies encompass various activities des...
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Digital regulation and multinational tax avoidance: evidence from Common Reporting Standard Applied Economics Letters (IF 1.287) Pub Date : 2024-01-17 Yanting Ye, Wentao Li
We adopt the implementation of the Common Reporting Standard (CRS) as a quasi-natural experiment to study the impact of digital regulation on multinational tax avoidance. Using a sample of Chinese ...
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Government expenditure and entrepreneurial activity: considering the types of entrepreneurial motivations Applied Economics Letters (IF 1.287) Pub Date : 2024-01-16 Wondwossen Kiflu Woldemichael, Younghwan Kim, Wonjoon Kim
As a cross-national study, we analyze the relationship between the functional-level government expenditure and the different types of entrepreneurship, that is, whether it is an opportunity- or nec...
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What factors are economically important in the capital structure decision of European firms? Applied Economics Letters (IF 1.287) Pub Date : 2024-01-16 Dennis Olson, Jan Bartholdy
Several factors previously identified in the finance literature are statistically significant in determining the long-term debt ratio of European firms. However, only age, size, current assets, and...
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Measurement of green development and influencing factors in emerging economies: the empirical evidence from BRICS Applied Economics Letters (IF 1.287) Pub Date : 2024-01-15 Yuanhong Hu, Shuyu Zhang, Jingjing Wan, Pengling Liu
This paper aims to construct a Green Development Index for emerging economies, focusing on the BRICS nations as the research subjects. The study measures the index of various indicators and explore...
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How congruent sentiment indices are to real investor beliefs? Applied Economics Letters (IF 1.287) Pub Date : 2024-01-17 Yuandong Mu, Kangyu Ren, Qian Li
We use survey data to investigate the relationship between widely used sentiment indices and real investor beliefs. We find a strikingly low congruency between sentiment indices and investor expect...
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The impact of adopting an energy information system on household energy consumption: a dynamic difference-in-differences approach Applied Economics Letters (IF 1.287) Pub Date : 2024-01-17 Jiyong Park, Hyung Bin Moon, Taeyoung Jin
This study analyzes effects of adopting an energy information system on energy use based on the advanced metering infrastructure (AMI) in South Korea. Adopting the AMI was randomly assigned by the ...
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The signals we send: math placement and business major persistence among male and female college students Applied Economics Letters (IF 1.287) Pub Date : 2024-01-16 Marissa Eckrote-Nordland, Mary K. Hamman, Maggie McDermott, Natalie Solverson, Cody N. Vaughn
We investigate large sex-based differences in persistence among business majors at a four-year institution. We follow students from admission through up to 10 semesters and examine the role of init...
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Guiltily indebted? How a word is linked to individual borrowing Applied Economics Letters (IF 1.287) Pub Date : 2024-01-14 Tamara Bogatzki, David Stadelmann, Benno Torgler
Using data from the World Values Survey, we show that individuals who speak a language in which the same word is used for both (financial) debt and (moral) guilt have a statistically significant an...
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Short-run participation effects of tournament success: the case of online bridge Applied Economics Letters (IF 1.287) Pub Date : 2024-01-16 Paul Holmes
We collected 330,180 observations of decisions by online contract bridge players of whether to play another tournament after just completing one. We compare the effect of the financial motive – the...
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Do network characteristics affect systemic risk? Evidence from the European banking system Applied Economics Letters (IF 1.287) Pub Date : 2024-01-16 Xin Yang, Cheng Jin, Jie Cao, Sheng Liu, Chuangxia Huang
Systemic risk is one of the main concerns for banks charged with maintaining overall financial stability. This paper adopts the minimum density method to construct an interbank lending network for ...
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Advanced manufacturing firms’ digital transformation and exploratory innovation Applied Economics Letters (IF 1.287) Pub Date : 2024-01-16 Xiaokai Li, Han Han, Huishuang He
The impact of digital transformation (DT) on exploratory innovation (EI) in advanced manufacturing firms (AMFs), particularly the influence of external knowledge search (EKS) and knowledge absorpti...
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Would OTT-contents satisfy people’s demand? The Korean OTT-services demand analysis Applied Economics Letters (IF 1.287) Pub Date : 2024-01-14 Eun Chul Choi, Joo Suk Lee
With the influence of the COVID-19 pandemic, Over-the-Top (OTT) services have gained considerable prominence in the traditional media market, generating increased interest in this domain. However, ...
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Robots: How bad could it be globally? Applied Economics Letters (IF 1.287) Pub Date : 2024-01-14 Carlos J. García, Wildo González
We show empirically that the global impact of robotization and similar technologies is heterogeneous at the aggregate level. Benefits are mostly concentrated in high-income countries. In contrast, ...
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Navigating the economic landscape: a comprehensive analysis of government spending, economic growth, and poverty reduction nexus in Tanzania Applied Economics Letters (IF 1.287) Pub Date : 2024-01-12 Felician Andrew Kitole, Liberati John Msoma, Jennifer Kasanda Sesabo
This study delves into the intricate nexus between government expenditure, GDP per capita, and poverty reduction in Tanzania. Employing Granger causality analysis, Vector Autoregressive (VAR) and V...
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Assessing Dubai’s housing market price cycles and bubble risk Applied Economics Letters (IF 1.287) Pub Date : 2024-01-11 Ahmed Rashad
This study investigates the presence of a real estate bubble in Dubai’s housing market, considering the recent surge in prices. Using monthly city-level housing price data and a recursive unit root...
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Does young firm growth persist? The role of firm age Applied Economics Letters (IF 1.287) Pub Date : 2024-01-13 Joan-Lluís Capelleras, Juan S. Federico
This study investigates serial correlation in growth rates of young firms. Specifically, we examine how past growth affects current growth and how this relationship is moderated by firm age. We use...
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The collapse of Silicon Valley Bank and Credit Suisse and their impact on other U.S. Banks Applied Economics Letters (IF 1.287) Pub Date : 2024-01-12 António Miguel Martins
This paper examines how US banking industry responded to the collapse of Silicon Valley Bank and Credit Suisse. The analysis of abnormal returns surrounding the announcement of the collapse of Sili...