nep-inv New Economics Papers
on Investment
Issue of 2023‒06‒12
43 papers chosen by
Daniela Cialfi
Università degli Studi di Teramo

  1. Revisiting the Returns to Higher Education: Heterogeneity by Cognitive and Non-Cognitive Abilities By Oliver Cassagneau-Francis
  2. Moving Policies Toward Racial and Ethnic Equality: The Case of the Supplemental Nutrition Assistance Program By Flores-Lagunes, Alfonso; Jales, Hugo B.; Liu, Judith; Wilson, Norbert L.
  3. Political institutions, financial liberalisation, and access to finance: firm-level empirical evidence By Olayinka Oyekola; Sofia Johan; Rilwan Sakariyahu; Oluwatoyin Esther Dosumu; Shima Amini
  4. Minimum wage and tolerance for high incomes By Fazio, Andrea; Reggiani, Tommaso
  5. A Turning Point in Wage Growth? By Richard Audoly; Martín Almuzara; Davide Melcangi
  6. Management and Performance in the Public Sector: Evidence from German Municipalities By Florian Englmaier; Gerd Muehlheusser; Andreas Roider; Niklas Wallmeier
  7. Distribution regression with sample selection and UK wage decomposition By Victor Chernozhukov; Ivan Fernandez-Val; Siyi Luo
  8. The Impacts of Industry Wage Premiums and Education Levels on Gender Inequality: Evidence from Five Developed Countries By Yao Yao; Zheng Li
  9. Estimation of Nonlinear Exchange Rate Dynamics in Evolving Regimes By Jeffrey Frankel
  10. Assessing the Outlook for Employment across Industries By Thomas Klitgaard; Ethan Nourbash
  11. The Value of Early-Career Skills By Simon Wiederhold; Christina Langer
  12. The Long-Run Real Effects of Banking Crises: Firm-Level Investment Dynamics and the Role of Wage Rigidity By Carlo Wix
  13. Firm Exit and Liquidity: Evidence from the Great Recession By Fernando Leibovici; David Wiczer
  14. Following a new tax leader: the urge to implement Formulary Apportionment in the European Union By Joana Andrade Vicente
  15. The Role of Wages in Trend Inflation: Back to the 1980s? By Michael T. Kiley
  16. Report on valuation methods By Jens Abildtrup; Anne Stenger
  17. The unequal consequences of job loss across countries By Antoine Bertheau; Edoardo Maria Acabbi; Cristina Barceló; Andreas Gulyas; Stefano Lombardi; Raffaele Saggio
  18. Playing Politics with Periods: Why the Abolition of the ‘Tampon Tax’ is Spreading Across the World By Byrne, Maisie-Rose
  19. Same-Sex Couples and the Child Earnings Penalty By Barbara Downs; Lucia Foster; Rachel Nesbit; Danielle H. Sandler
  20. Decizia, factor determinant în procesele manageriale și în activitatea de cercetare By Corbu, Ion
  21. KIET Manufacturing Business Survey Index (BSI) for the 1st Quarter 2023 By Hong, Sung Wook
  22. Bank presence and health By Cramer, Kim Fe
  23. The optimal reinsurance strategy with price-competition between two reinsurers By Liyuan Lin; Fangda Liu; Jingzhen Liu abd Luyang Yu
  24. Internet use and agricultural productivity: Evidence from rural Vietnam By Thanh-Tung Nguyen; Trung Thanh Nguyen; Ulrike Grote
  25. Integración espacial de mercados lácteos y su efecto sobre la agroindustria en el departamento del Atlántico By Sadán de la Cruz Almanza
  26. Does Combating Corruption Reduce Clientelism? By Gustavo J. Bobonis; Paul J. Gertler; Marco Gonzalez-Navarro; Simeon Nichter
  27. Films to connect: introducing affect into the business school By Jean-Luc Moriceau; Isabela Paes; Robert Earhart
  28. Land Resource Regions and Major Land Resource Areas of the United States, the Caribbean, and the Pacific Basin By Natural Resources Conservation Service
  29. How Interest Rates Redistribute Income By Fix, Blair
  30. Suriname: Technical Assistance Report-Medium-Term Macro-Fiscal Forecasting By International Monetary Fund
  31. Exploring the Gig Economy in Japan: A bank data-driven analysis of food delivery gig workers By KURODA Sachiko; ONISHI Koichiro
  32. Monitoring Banks’ Exposure to Nonbanks: The Network of Interconnections Matters By Nicola Cetorelli; Mattia Landoni; Lina Lu
  33. The Great Pandemic Mortgage Refinance Boom By Andrew F. Haughwout; Donghoon Lee; Daniel Mangrum; Joelle Scally; Wilbert Van der Klaauw
  34. Monetary Policy Uncertainty in Mexico: An Unsupervised Approach By Carlos Moreno Pérez; Marco Minozzo
  35. Social learning under ambiguity - an experimental study By Fabian Bopp; Sara le Roux
  36. Energy News Shocks and their Propagation to Renewable and Fossil Fuels Use By Guinea, Laurentiu; Ruiz, Jesús; Puch, Luis A.
  37. Quantifizierung aktueller und zukünftiger Nährstoffeinträge und Handlungsbedarfe für ein deutschlandweites Nährstoffmanagement – AGRUM-DE By Zinnbauer, Maximilian; Eysholdt, Max; Henseler, Martin; Herrmann, Frank; Kreins, Peter; Kunkel, Ralf; Nguyen, Hanh; Tetzlaff, Björn; Venohr, Markus; Wolters, Tim; Wendland, Frank
  38. Fiscal Impoverishment in Rich Democracies By Manuel Schechtl; Rourke L. O'Brien
  39. The Economic Characteristics of the Hydrogen Industry By Lee, Sul-Ki
  40. Scaling up circular economy initiatives in Latin America and the Caribbean By Van Hoof, Bart; Núñez Reyes, Georgina; De Miguel, Carlos J.
  42. Asymmetric information, strategic transfers and the design of long-term care policies By Chiara Canta; Helmuth Cremer
  43. Monetary Policy with Racial Inequality By Makoto Nakajima

  1. By: Oliver Cassagneau-Francis (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Recent work has highlighted the significant variation in returns to higher education across individuals. We develop a novel methodology-exploiting recent advances in the identification of mixture models-which groups individuals according to their prior ability and estimates the wage returns to a university degree by group. We prove the non-parametric identification of our model. Applying our method to data from a UK cohort study, our findings reflect recent evidence that skills and ability are multidimensional. Our flexible model allows the returns to university to vary across the (multi-dimensional) ability distribution, a flexibility missing from commonly used additive models, but which we show is empirically important. The returns to higher education are 3-4 times larger than the returns to prior cognitive and non-cognitive abilities. Returns are generally increasing in ability for both men and women, but vary non-monotonically across the ability distribution.
    Keywords: Mixture models, Distributions, Treatment effects, Higher education, Wages, Human capital, Cognitive and non-cognitive abilities
    Date: 2022–05–19
  2. By: Flores-Lagunes, Alfonso; Jales, Hugo B.; Liu, Judith; Wilson, Norbert L.
    Abstract: We analyze the role played by the Supplemental Nutrition Assistance Program (SNAP) in alleviating or exacerbating inequality across racial and ethnic groups in food expenditures and in the resources needed to meet basic food needs (the "food resource gap"). To do this, we propose a simple framework that decomposes differences across groups in SNAP benefit transfer levels into three components: eligibility, participation, and generosity. This decomposition is then linked to differences in food expenditures and the food resource gap. Our results reveal that among the three components, differences in eligibility contribute the most to SNAP benefits differentials for Black and Hispanic households relative to White households. Given that SNAP is often a target of policy changes, we employ the framework to provide counterfactual analyses of how selected SNAP policy changes can impact group differences in benefits and, ultimately, disparities in food expenditures and the food resource gap. The proposed framework can be applied to analyze other safety net programs.
    Keywords: decomposition, inequality, race and ethnicity, supplemental nutrition assistance program
    JEL: D12 D63 I38 J15
    Date: 2023
  3. By: Olayinka Oyekola (Department of Economics, University of Exeter); Sofia Johan (College of Business, Florida Atlantic University); Rilwan Sakariyahu (Business School, Edinburgh Napier University); Oluwatoyin Esther Dosumu (Alliance Manchester Business School, University of Manchester); Shima Amini (Department of Finance, University of Leeds)
    Abstract: Worldwide, lack of access to finance has been identified by many firms as the most detrimental obstacle facing business entities. This article studies how political institutions and financial liberalisation alleviate or deepen financial constraints faced by firms. We hypothesise that a complementarity exists between political institutions and financial liberalisation in constructing barriers to firms securing bank financing. Evidence from an international sample of over 63, 000 firms in 75 countries, establishes that political institutions, proxied by democracy level in a country, and financial liberalisation, proxied by entry and participation of foreign banks, are significant factors in explaining cross-country disparities in firm-level credit accessibility. Importantly, we find a strong support for our proposition, documenting a remarkably significant and sizeable positive interaction effect between foreign bank presence and the level of democracy for access to finance. These results are robust against various forms of sensitivity checks. Overall, our study provides fresh insights into the financing effects of foreign bank activities interacted with democracy on firms. We conclude that these results may be of considerable benefit to policymakers, especially within developing, and emerging, economies, who are searching for economic growth, to re-evaluate what are the primary lending obstacles for their small and medium-sized enterprises.
    Keywords: financial liberalisation, foreign banks, political institutions, access to finance, credit constraints, firm-level data
    JEL: G21 G23 G32 O16
    Date: 2023–05–15
  4. By: Fazio, Andrea; Reggiani, Tommaso (Cardiff Business School)
    Abstract: We suggest that stabilizing the baseline income can make low-wage workers more tolerant towards high income earners. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally sets a baseline pay reducing the risk of income losses and providing a clear reference point for British workers at the lower end of the income distribution. Based on data from the British Household Panel Survey (BHPS), we show that workers who benefited from the NMW program became relatively more tolerant of high incomes and more likely to support and vote for the Conservative Party. As far as tolerance for high incomes is related to tolerance of inequality, our results suggest that people advocate for equality also because they fear income losses below a given reference point.
    Keywords: Inequality, Redistribution, Minimum wage, Loss aversion, Reference Point, UK
    JEL: H10 H53 D63 D69 Z1
    Date: 2023–05
  5. By: Richard Audoly; Martín Almuzara; Davide Melcangi
    Abstract: The surge in wage growth experienced by the U.S. economy over the past two years is showing some tentative signs of moderation. In this post, we take a closer look at the underlying data by estimating a model designed to isolate the persistent component—or trend—of wage growth. Our central finding is that this trend may have peaked in early 2022, having experienced an earlier rise and subsequent moderation that were broad-based across sectors. We also find that wage growth seems to be moderating more slowly than the trend in services inflation.
    Keywords: wage growth; persistence; sectors; Services Inflation
    JEL: E31 J0
    Date: 2023–02–23
  6. By: Florian Englmaier (LMU Munich); Gerd Muehlheusser (University of Hamburg); Andreas Roider (University of Regensburg); Niklas Wallmeier (University of Hamburg)
    Abstract: We study management practices and performance in a representative sample of German municipalities, which provide the bulk of direct administrative services for citizens and firms in Germany. Surveyed municipalities differ substantially in their use of structured management practices, and this heterogeneity is also pronounced within all federal states, regional types, and population size brackets. Moreover, we document a systematic positive relationship between the degree of structured management and a diverse set of performance measures capturing municipalities' attractiveness for citizens and firms. Topic modelling (LDA) of survey responses suggests that the predominant management style is to use relatively little structured management.
    Keywords: management practices; public sector organizations; local government; municipal performance; state capacity; World Management Survey (WMS);
    JEL: D20 D73 H11 H73 R50
    Date: 2023–05–14
  7. By: Victor Chernozhukov; Ivan Fernandez-Val; Siyi Luo
    Abstract: We develop a distribution regression model under endogenous sample selection. This model is a semi-parametric generalization of the Heckman selection model. It accommodates much richer effects of the covariates on outcome distribution and patterns of heterogeneity in the selection process, and allows for drastic departures from the Gaussian error structure, while maintaining the same level tractability as the classical model. The model applies to continuous, discrete and mixed outcomes. We provide identification, estimation, and inference methods, and apply them to obtain wage decomposition for the UK. Here we decompose the difference between the male and female wage distributions into composition, wage structure, selection structure, and selection sorting effects. After controlling for endogenous employment selection, we still find substantial gender wage gap – ranging from 21% to 40% throughout the (latent) offered wage distribution that is not explained by composition. We also uncover positive sorting for single men and negative sorting for married women that accounts for a substantive fraction of the gender wage gap at the top of the distribution.
    Date: 2023–04–26
  8. By: Yao Yao; Zheng Li
    Abstract: In contrast to most prior studies of gender inequality focusing on a specific country or a specific year, this paper uses cross-nationally comparable data from the Luxembourg Income Study (LIS) to examine the impacts of wage premiums in male- and female-dominated industries and education levels on gender inequality in five developed countries- the United States, the United Kingdom, Germany, Ireland, and Belgium from 2004 to 2017. To the best of our knowledge, there are no attempts in the prior empirical literature studying the effects of wage premiums in male- and female-dominated industries on gender inequality. To guarantee continuity and stability, we run the regression year by year separately for 14 consecutive periods for each of five advanced countries. The timeline covers the before, during, and after the great recession to rule out the possible effects of historical contingency. Thus, this is the first empirical paper to investigate the causal relationship between male- and female-dominated industries and gender inequality across counties over a continuous period. We raise and answer three research questions: (1) Do the wage premiums among male- and female-dominated industries affect the gender wage gap? (2) Is there a cross-country variation in the relationship between education levels and the gender wage gap? (3) Is there an impact of education levels on the gender employment gap? As for empirical analysis, for the first two questions, we run the multivariate linear regression; for the third question, we estimate the probit model, marginal effects, and the delta method standard errors. We find that: 1) There is a significant correlation between the wage premiums in female- and male-dominated industries and gender wage gap; 2) There is a crosscountry variation in the relationship between education levels and the gender wage gap; 3) There is also a cross-country variation in the relationship between education levels and the gender employment gap.
    Date: 2022–03
  9. By: Jeffrey Frankel
    Abstract: This paper develops a new econometric framework to estimate and classify exchange rate regimes. They are classified into four distinct categories: fixed exchange rates, BBC (band, basket and crawl), managed floating, and freely floating. The procedure captures the patterns of exchange rate dynamics and the interventions by authorities under each of the regimes. We pay particular attention to the BBC and offer a new approach to parameter estimation by utilizing a three-regime Threshold Auto Regressive (TAR) model to reveal the nonlinear nature of exchange rate dynamics. We further extend our benchmark framework to allow the evolution of exchange rate regimes over time by adopting the minimum description length (MDL) principle, to overcome the challenge of simultaneous two-dimensional inference of nonlinearity in the state dimension and structural breaks in the time dimension. We apply our framework to 26 countries. The results suggest that exchange rate dynamics under different regimes are well captured by our new framework.
    Keywords: Exchange rate regime, MDL, Minimum Description Length, structural breaks, TAR, Threshold Autoregression
    JEL: F33
    Date: 2023–03
  10. By: Thomas Klitgaard; Ethan Nourbash
    Abstract: Job gains exceeded output growth in 2022, bringing GDP per worker back down to its trend level after being well above for an extended period. Employment is consequently set to grow slower than output going forward, as it typically does. Breaking down the GDP per worker by industry, though, shows a significant divergence between the services and goods-producing sectors. Productivity in the services sector was modestly above its pre-pandemic path at the end of last year, suggesting room for relatively strong employment growth, with the gap particularly large in the health care, professional and business services, and leisure and hospitality sectors. Productivity in goods-producing industries, though, was depressed, implying that payroll growth is set to lag that sector’s GDP growth.
    Keywords: Payroll; employment; Gross Domestic Product (GDP)
    JEL: E2 J0
    Date: 2023–05–10
  11. By: Simon Wiederhold; Christina Langer
    Abstract: We develop novel measures of early-career skills that are more detailed, comprehensive, and labor-market-relevant than existing skill proxies. We exploit that skill requirements of apprenticeships in Germany are codified in state-approved, nationally standardized apprenticeship plans. These plans provide more than 13, 000 different skills and the exact duration of learning each skill. Following workers over their careers in administrative data, we find that cognitive, social, and digital skills acquired during apprenticeship are highly – yet differently – rewarded. We also document rising returns to digital and social skills since the 1990s, with a more moderate increase in returns to cognitive skills.
    Keywords: returns to skills, apprenticeship plans, labor market, earnings, early-career skills
    JEL: I21 I26 J24
    Date: 2023–02
  12. By: Carlo Wix
    Abstract: I study the long-run effects of credit market disruptions on real firm outcomes and how these effects depend on nominal wage rigidity at the firm level. Exploiting variation in firms' refinancing needs during the global financial crisis, I trace out firms' investment and growth trajectories in response to a credit supply shock. Financially shocked firms exhibit a temporary investment gap for two years, resulting in a persistent accumulated growth gap six years after the crisis. Shocked firms with rigid wages exhibit a significantly steeper drop in investment and an additional long-run growth gap relative to shocked firms with flexible wages.
    Keywords: Financial Crises; Bank Lending; Real Effects; Firm Investment; Wage Rigidity
    JEL: E22 E24 E51 G01 G21 G31
    Date: 2023–04–11
  13. By: Fernando Leibovici; David Wiczer
    Abstract: This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to credit, are more likely to default than firms with more access to credit. This difference widened substantially in the Great Recession while, in contrast, default rates did not vary much by size, age, or productivity. We identify conditions under which standard models of firms subject to financial frictions can be consistent with these facts.
    Keywords: firm exit; credit constraints; financial distress; Great Recession; financial frictions
    JEL: E32 G01 G33 L25
    Date: 2023–05
  14. By: Joana Andrade Vicente
    Abstract: In this paper we analyse the United States’ role as the current international tax leader, acting as an institutional leader uncapable of pushing forward towards a new, more suitable international corporate tax regime, due to the particularities of its international taxation system and economic preferences. After assessing United States multinationals’ activity in the Single Market, we find evidence of artificial profit shifting across Member States under the current method to allocate multinational enterprises’ profits. Such actions challenge a fair international taxation in the European Union, distorting European internal competition and hampering tax revenues collection. Although it may not be (yet) the time for a worldwide unitary taxation approach, the analysis performed highlights the urge for the European Union to overcome the United States political power and to unilaterally adopt the Formulary Apportionment approach, overhauling a century-old set of global tax rules based in the separate entity approach.
    Keywords: Country-by-Country Reporting; European Union; Formulary Apportionment; United States multinationals enterprises; tax havens.
    JEL: F23 H25 H26
    Date: 2023–05
  15. By: Michael T. Kiley
    Abstract: This paper examines whether the measurement of trend inflation can be improved by using wage data in a dynamic factor model of disaggregated prices and wages for the United States. The model features time-varying coefficients and stochastic volatility. An estimate of trend inflation is a time-varying distributed lag of prices and wages, where the weight on a series depends on its time-varying volatility, persistence, and comovement with other series. The results show that wages inform estimates of trend inflation. The weight on wages was highest around 1980, drifted down through the 2000s, and returned to its 1980s value by 2022. In addition, inflation in the 2020s appears to have unmoored moderately from the 2 percent range that prevailed for decades, as the role of the persistent component of inflation increased in recent year. However, accounting for wages lowers the model's view of the increase in the volatility of trend inflation.
    Keywords: Price Inflation; Wage Inflation; Unobserved Components Model; Factor Model
    JEL: E37 E31 C32
    Date: 2023–04–17
  16. By: Jens Abildtrup (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Anne Stenger (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: The demand for non-marketed forest ecosystem services, like for example, carbon sequestration has been increasing the last decades and this has been accompanied by attempts to establish new market for such services. This development is an opportunity for forest owners to increase their rentability of their forest management. It will also provide the beneficiaries of the services an instrument to influence the forest owners to increase their supply of services which, without new markets, would be considered as externalities and therefore often ignored in their management. This concerns both governmental funded payment schemes, crowd-funding projects, or companies use of forest project in their corporative social responsibility activities. To increase the transparency of transactions between forest owners and buyers of services and to better assess the potential of such new markets, it is important to estimate the demand for services. Likewise, it is also important to assess the cost of increasing the supply of services to increase the transparency and also to assess additionality of projects. In this report we present and discuss different methods which have typically been used in assessing the preferences for forest ecosystem services or to estimate the costs of provision. Besides a brief introduction to the methods the report also makes references to more detailed technical guidelines and key scientific references. Finally, the report also gives an example of how a change in forest management may influence the values of carbon sequestration and recreational use of a forest project in the French NOBEL pilot demonstrator.
    Keywords: Economic valuation, Forest ecosystem services, Valuation methods
    Date: 2022–09–09
  17. By: Antoine Bertheau (University of Copenhagen); Edoardo Maria Acabbi (Universidad Carlos III de Madrid); Cristina Barceló (Banco de España); Andreas Gulyas (University of Mannheim); Stefano Lombardi (VATT Institute for Economic Research Helsinki, Ifau Uppsala, Iza and Uppsala Center for labor studies); Raffaele Saggio (VATT Institute for Economic Research Helsinki, Ifau Uppsala, Iza and Uppsala Center for labor studies)
    Abstract: We document the consequences of losing a job across countries using a harmonized research design applied to seven matched employer-employee datasets. Workers in Denmark and Sweden experience the lowest earnings declines following job displacement, while workers in Italy, Spain, and Portugal experience losses three times as high. French and Austrian workers face earnings losses somewhere in between. Key to these differences is that Southern European workers are less likely to find employment following displacement. Loss of employer-specific wage premiums explains a substantial portion of wage losses in all countries.
    Keywords: job loss effects, wage dynamics, labor turnover, layoffs, matched employer-employee dataset
    JEL: J30 J63 J64
    Date: 2022–07
  18. By: Byrne, Maisie-Rose
    Abstract: From pet food to sunscreen, proposals to cut value-added tax (VAT) on a range of products and services are ever increasing. One of the best-known and far-reaching campaigns of this type has been the fight to abolish VAT on feminine hygiene products. More popularly known as the ‘tampon tax’, this issue has united campaigners from across to globe, contributing to policymakers in up to 25 countries removing or reducing taxes on menstrual products since Kenya’s landmark decision in 2004. Framed through a simple and evocative lens of fairness and equality, the campaign to end the ‘tampon tax’ has caught the attention of the public, press and policymakers alike, catapulting the oft-taboo issue of menstrual health to the top of the political agenda. Whilst social, economic, and menstrual health contexts vary per adopting country, the core message of the political announcements has stayed the same: abolishing the ‘tampon tax’ will address gender equality by resulting in more accessible and affordable menstrual products for women and girls.
    Keywords: Finance, Health, Politics and Power,
    Date: 2023
  19. By: Barbara Downs; Lucia Foster; Rachel Nesbit; Danielle H. Sandler
    Abstract: Existing work has shown that the entry of a child into a household results in a large and sustained increase in the earnings gap between male and female partners in opposite-sex couples. Potential reasons for this include work-life preferences, comparative advantage over earnings, and gender norms. We expand this analysis of the child penalty to examine earnings of individuals in same sex couples in the U.S. around the time their first child enters the household. Using linked survey and administrative data and event-study methodology, we confirm earlier work finding a child penalty for women in opposite-sex couples. We find this is true even when the female partner is the primary earner pre-parenthood, lending support to the importance of gender norms in opposite-sex couples. By contrast, in both female and male same-sex couples, earnings changes associated with child entry differ by the relative pre-parenthood earnings of the partners: secondary earners see an increase in earnings, while on average the earnings of primary and equal earners remain relatively constant. While this finding seems supportive of a norm related to equality within same-sex couples, transition analysis suggests a more complicated story.
    Date: 2023–05
  20. By: Corbu, Ion
    Abstract: Prezenta lucrare abordează un segment al problematicii complexe cu privire la procesul de luare a deciziilor. Odată cu dezvoltarea tehnologiilor informațioanle s-au dezvoltat și implementat sistemele suport de decizie (DSS) care au devenit din ce în ce mai performante și au fost iplementate în cele mai variate domenii. În lucrarea de față sunt prezentate aspecte privind cercetarea științifică, decizia și clasificarea deciziilor, algoritmul de luare a deciziei, situația privind stadiul domeniului cu exemple de lucrări care atestă implementarea DSS în diferite sectoare de activitate. De asemenea, au fost abordate aspecte privind proiectarea, algoritmi și scheme bloc pentru derularea proiectării și luarea deciziilor în cazul unor situații complexe de proiectare care se desfășoară în cadrul SC Setko Impex și care necesită transfer tehnologic pentru asistarea deciziilor și, prin urmare, implementarea unui sistem DSS în cadrul companiei care are activitatea de bază, cercetarea științifică iar ca activitate secundară proiectarea, în principal, sisteme de asigurare a unor localități cu apă, canalizare, gaze etc.
    Keywords: decizie, cercetare științifică, decizie asistată, SSD, (sisteme suport ale deciziei), riscuri
    JEL: D58 D81 E17 E27 H84 I31 I32 J08 J20 J30 J88 K10 K40 L16 L21 L22 L23 L24 L25 L26 L33 L50 L51 L52 L53 M11 M12 M15 M31 M51 O21 O22 O31 O32 O33 Y10 Z18
    Date: 2023–05–11
  21. By: Hong, Sung Wook (Korea Institute for Industrial Economics and Trade)
    Abstract: The first quarter (Q1) 2023 manufacturing overall composite index remains below the baseline (100), indicating that conditions remain unfavorable. In addition, indexes for all indicators dropped significantly from the previous quarter. Business conditions (77), sales (75), domestic demand (78), exports (81), ordinary profit (79), and financial conditions (79) in the manufacturing sector all posted decreases, while inventory (101) remained above the baseline. The BSI outlook for Q2, however, indicates that manufacturers expect the business environment to be more favorable compared to the first quarter. Most indices for the manufacturing sector are project to increase compared to Q1, while all feeder indices are expected to remain below the baseline; only inventory (100) and employment (100) are projected to maintain baseline levels over the next quarter. Head to for more industrial projections and data.
    Keywords: Business Survey Index; BSI; Korea; industrial outlook; economic outlook; industrial projections; economic projections; macroeconomics; macroeconomic outlook; manufacturing; exports
    JEL: E10 E17 E21 E22 E23 E24 E27 E30 E31 E32 E51 E52 E58 E60 E62
    Date: 2023–04–30
  22. By: Cramer, Kim Fe
    Abstract: This paper demonstrates that increasing bank presence in underserved areas can substantially improve households’ health. I apply a regression discontinuity design to a policy of the Reserve Bank of India. Six years after the policy introduction, treatment districts have 19% more branches than control districts. Households’ probability of suffering from a non-chronic disease in a given month is 36% lower. I show evidence that two understudied aspects of banking play a role: banks provide health insurance to households and credit to hospitals. In equilibrium, I observe an increase in health care demand and supply.
    Keywords: financial development; banks; health; insurance; credit
    JEL: G21 O16 I10
    Date: 2023–04–19
  23. By: Liyuan Lin; Fangda Liu; Jingzhen Liu abd Luyang Yu
    Abstract: We study optimal reinsurance in the framework of stochastic game theory, in which there is an insurer and two reinsurers. A Stackelberg model is established to analyze the non-cooperative relationship between the insurer and reinsurers, where the insurer is considered as the follower and the reinsurers are considered as the leaders. The insurer is a price taker who determines reinsurance demand in the reinsurance market, while the reinsurers can price the reinsurance treaties. Our contribution is to use a Nash game to describe the price-competition between two reinsurers. We assume that one of the reinsurers adopts the variance premium principle and the other adopts the expected value premium principle. The insurer and the reinsurers aim to maximize their respective mean-variance cost functions which lead to a time-inconsistency control problem. To overcome the time-inconsistency issue in the game, we formulate the optimization problem of each player as an embedded game and solve it via a corresponding extended Hamilton-Jacobi-Bellman equation. We find that the insurer will sign propositional and excess loss reinsurance strategies with reinsurer 1 and reinsurer 2, respectively. When the claim size follows exponential distribution, there exists a unique equilibrium reinsurance premium strategy. Our numerical analysis verifies the impact of claim size, risk aversion and interest rates of the insurer and reinsurers on equilibrium reinsurance strategy and premium strategy, which can help to understand competition in the reinsurance market
    Date: 2023–04
  24. By: Thanh-Tung Nguyen; Trung Thanh Nguyen; Ulrike Grote
    Abstract: The use of the internet is growing rapidly and has become an engine for economic development. However, few studies have examined the impact of internet use on agricultural production, and the results are not yet conclusive. Employing a dataset of more than 2, 000 observations in rural Vietnam, our study analyses the impact of internet use on agricultural productivity using the heteroskedasticity-based instrument approach suggested by Lewbel (2012) and examines the heterogeneity and distribution of the impact using quantile regressions. Our results show that internet use has significant and positive effects on agricultural productivity. However, these effects are heterogeneous across population groups. The positive effects of internet use are stronger for households with a lower level of education, with a young and female head, and from ethnic minorities. The benefits are also found to be skewed towards the group of farmers at the bottom of the productivity distribution. Therefore, we propose facilitating the diffusion of the internet, since it not only boosts agricultural productivity, but also reduces productivity inequality. In addition, we recommend promoting rural education, supporting local markets, investing more in irrigation systems, and facilitating farm mechanisation.
    Keywords: Rural household, Instrumental variable, Quantile regression, Vietnam
    JEL: Q11 D63 O30
    Date: 2023–03
  25. By: Sadán de la Cruz Almanza
    Date: 2021–06–01
  26. By: Gustavo J. Bobonis; Paul J. Gertler; Marco Gonzalez-Navarro; Simeon Nichter
    Abstract: Does combating corruption reduce clientelism? We examine the impact of a prominent anti-corruption program on clientelism using a novel representative survey of rural Brazilians. Randomized audits reduce politicians’ provision of campaign handouts, decrease citizens’ demands for private goods, and reduce requests fulfilled by politicians. With regards to mechanisms, audits undermine clientelist relationships by reducing citizens’ interactions with politicians and their knowledge of incumbents. Furthermore, audits significantly deteriorate citizens’ perceptions of politician reciprocity in a hypothetical trust game. Results also offer novel insights into audits’ dynamic effects: they have more pronounced effects in the short run, especially during electoral periods.
    Keywords: political clientelism; audits; transparency
    JEL: D72 D73 H83
    Date: 2023–05–17
  27. By: Jean-Luc Moriceau (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]); Isabela Paes (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]); Robert Earhart (AUP - The American University of Paris)
    Abstract: Screening films in business school courses makes it possible to reintroduce affect and emotion, which are too often absent. Through consideration of the theories of Rancière, Deleuze, Cavell and Stiegler, we propose that, contrarily to abstract and unambiguous models, the films connect to the world and to life in its diversity and fragility. They shift, affect, question, set in motion, bring life into the classroom and encourage people to contribute, speak out and to care. Rather than learning to manage life and the world, films invite people to bring the world and life into management.
    Abstract: La proyección de películas en la escuela de negocios permite reintroducir los afectos, que, con demasiada frecuencia, están ausentes. Basándonos en Rancière, Deleuze, Cavell y Stiegler, proponemos que, en contra de los modelos abstractos y unívocos, el cine conecta con el mundo y con la vida en su diversidad y fragilidad. Desplazan, afectan, cuestionan, ponen en marcha, dan vida a las clases y animan a la gente a contribuir, habitar y preocuparse. En lugar de aprender a gestionar la vida y el mundo, invitan que el mundoy la vida entren en la gestión.
    Abstract: Projeter des films dans la business school permet de réintroduire les affects, qui y sont trop souvent absents. En nous appuyant sur Rancière, Deleuze, Cavell et Stiegler, nous proposons qu'à l'inverse des modèles abstraits et univoques les films relient au monde et à la vie dans sa diversité et sa fragilité. Ils décalent, affectent, interrogent, ils mettent en mouvement, font entrer la vie dans la salle de classe et incitent à contribuer, prendre la parole et prendre soin. Plutôt qu'apprendre à manager la vie et le monde, ils invitent à faire entrer le monde et la vie dans le management.
    Keywords: Affect, Business school, Cinema, Pedagogy, Afectos, Escuela de negocios, Cine, Pedagogía, Affects, Cinéma, Pédagogie
    Date: 2022
  28. By: Natural Resources Conservation Service
    Abstract: Excerpts from the report Introduction: United States Department of Agriculture Handbook 296 is a broadscale synthesis of current knowledge about land areas based on patterns of physiography, geology, climate, water resources, soils, biological resources, and land use. These patterns were used to establish the unique central concept and boundaries for each land resource region (LRR) and major land resource area (MLRA). This handbook is designed primarily for use in developing soil and water conservation programs at the continental scale (using the LRR concept) and the inter-State scale (using the MLRA concept). The three previous editions of Agriculture Handbook 296 were published in 1965, 1981, and 2006. This update of Agriculture Handbook 296 was driven by the need to improve the usability of the land resource hierarchy system so that a more consistent application of soil-ecological-landscape concepts could provide more accurate and efficient application of conservation on the ground. It involved innovations to the current system through incorporation of updated climate, elevation, soil, and land use data and improvement in linework accuracy based on advances in remote sensing and geographic information systems (GIS).
    Keywords: Crop Production/Industries, Land Economics/Use, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy
    Date: 2022–05
  29. By: Fix, Blair
    Abstract: When I read about monetary policy, I have a rule of thumb. Every time I see the phrase interest rate, I replace it with the term wage rate. Then I ask myself whether the discussion still makes sense. Often, it does not. The reason I make this substitution is that in conceptual terms, the interest rate and the wage rate are similar: they are both rates of return. Wages are the return on employment. Interest rates are the return on credit. Now, the important thing about rates of return is that when we change them, we are toying with the distribution of income. Hike wages and we send more income to workers. Hike the rate of interest and we send more income to creditors. Sure, the specifics of this redistribution are open for inquiry. But by definition, rates of return are ‘distributional variables’ — they determine how the income pie gets divvied up. Back to my word substitution. When it comes to wages, the issue of distribution is typically front and center. That’s why talk of a minimum-wage hike prompts businesses (and many economists) to complain about reduced profits. But when creditors hike the rate of interest, talk of income distribution is curiously absent. Instead, we get a barrage of macroeconomic jargon — terms like the ‘natural rate of interest’ and the ‘non-accelerating inflation rate of unemployment’. Why the discrepancy? One possibility is that economists know something that we don’t. Perhaps they’ve looked at the evidence and concluded that interest rates have a ‘neutral’ effect on the distribution of income. Another possibility is that the macroeconomic jargon is mostly a distraction. In other words, like wages, the rate of interest is a ‘distributional variable’. But it’s one that mainstream economists prefer to ignore. So which option is true? In this post, I let the evidence speak for itself. Looking at cross-country evidence, I find that interest rates are decidedly non-neutral. As interest rates rise, three things happen: (1) the interest share of income increases; (2) the labor share of income decreases; (3) income inequality increases. In short, the evidence suggests that interest rates play a key role in the game of class warfare. And that makes sense. Interest, after all, is a rate of return. And when it comes to divvying up the income pie, rates of return are always zero sum.
    Keywords: credistors, distribution, interest rates, labour, wages
    JEL: E5 J3 E4
    Date: 2023
  30. By: International Monetary Fund
    Abstract: This TA report summarizes the context, mission findings, and way forward for CARTAC’s provision of TA support to Suriname’s Economic Affairs Department (within the Ministry of Finance and Planning). A new medium-term macro-fiscal forecasting framework (MTFF) will be developed via several TA missions, and will focus on linking high-level revenue and expenditure projections to projections of macroeconomic determinants. In addition, a clear and transparent method of entering the effect of policy changes on these projections, and the contribution of any ‘one-off’ factors to projected revenues or expenditures, will be a key feature of the tool. Finally, training, through hands-on exercises using Surinamese data, will play an important role in supporting the development and ultimate adoption of the MTFF.
    Keywords: EAD staff; staff time; Suriname debt management office; EAD forecast; MFP staff; Macroeconomic and fiscal forecasts; Revenue forecasting; Caribbean
    Date: 2023–04–20
  31. By: KURODA Sachiko; ONISHI Koichiro
    Abstract: This research endeavors to examine the trends that emerged within the Japanese gig economy from 2016 to 2021 by utilizing confidential bank account information obtained from a prominent Japanese megabank. Specifically, this study employs payment records from platform service companies to identify gig workers and subsequently analyzes their characteristics, reasons for starting gig work, and likelihood of continuing to perform gig jobs, with a specific focus on food delivery gig workers. The key findings of the analysis indicate that the number of food delivery gig workers increased significantly following the first declaration of a state of emergency in April 2020; however, this trend was not as pronounced among non-food delivery gig workers, which suggests that food delivery gig work was a driving force behind the expansion of the gig market during the COVID-19 pandemic in Japan. Additionally, it is found that the liquidity balance of food delivery gig workers in the month they began gig work was lower than that for those who had never engaged in gig work; moreover, this balance gradually declined over the four months prior to starting gig work. Surprisingly, however, this decline in liquidity before the start of gig work slowed during the post-COVID-19 period. This finding indicates that the increase in gig workers after the COVID-19 pandemic may have been driven by job insecurity and/or an increase in leisure time due to stay-at-home orders and telecommuting, leading to an influx of people with less pronounced drops in liquidity into the gig market. Finally, it was revealed that the probability of continued gig work was not particularly high, with approximately half of the workers being inactive six months after entering the gig market; this suggests that the gig economy can be viewed as a source of temporary income supplementation.
    Date: 2023–03
  32. By: Nicola Cetorelli; Mattia Landoni; Lina Lu
    Abstract: The first post in this series discussed the potential exposure of banks to the open-end funds sector, by virtue of commonalities in asset holdings that expose banks to balance sheet losses in the event of an asset fire sale by these funds. In this post, we summarize the findings reported in a recent paper of ours, in which we expand the analysis to consider a broad cross section of non-bank financial institution (NBFI) segments. We unveil an innovative monitoring insight: the network of interconnections across NBFI segments and banks matters. For example, certain nonbank institutions may not have a meaningful asset overlap with banks, but their fire sales could nevertheless represent a vulnerability for banks because their assets overlap closely with other NBFIs that banks are substantially exposed to.
    Keywords: nonbank financial institutions (NBFIs); fire sale; network; monitoring
    JEL: G1 G2
    Date: 2023–04–18
  33. By: Andrew F. Haughwout; Donghoon Lee; Daniel Mangrum; Joelle Scally; Wilbert Van der Klaauw
    Abstract: Total debt balances grew by $148 billion in the first quarter of 2023, a modest increase after 2022’s record growth. Mortgages, the largest form of household debt, grew by only $121 billion, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. The increase was tempered by a sharp reduction in both purchase and refinance mortgage originations. The pandemic boom in purchase originations was driven by many factors – low mortgage rates, strong household balance sheets, and an increased demand for housing. Homeowners who refinanced in 2020 and 2021 benefitted from historically low interest rates and will be enjoying low financing costs for decades ­to come. These “rate refinance” borrowers have lowered their monthly mortgage payments, improving their cash flow, while other “cash-out” borrowers extracted equity from their real estate assets, making more cash available for consumption. Here, we explore the refi boom of 2020-21–who refinanced, who took out cash, and how much potential consumption support these transactions provided. In this analysis, as well as the Quarterly Report, we use our Consumer Credit Panel (CCP), which is based on anonymized credit reports from Equifax.
    Keywords: mortgage; Consumer Credit Panel; refinance; pandemic
    JEL: D14 G21
    Date: 2023–05–15
  34. By: Carlos Moreno Pérez (Banco de España); Marco Minozzo (University of Verona)
    Abstract: We study and measure uncertainty in the minutes of the meetings of the board of governors of the Central Bank of Mexico and relate it to monetary policy variables. In particular, we construct two uncertainty indices for the Spanish version of the minutes using unsupervised machine learning techniques. The first uncertainty index is constructed exploiting Latent Dirichlet Allocation (LDA), whereas the second uses the Skip-Gram model and K-Means. We also create uncertainty indices for the three main sections of the minutes. We find that higher uncertainty in the minutes is related to an increase in inflation and money supply. Our results also show that a unit shock in uncertainty leads to changes of the same sign but different magnitude in the inter-bank interest rate and the target interest rate. We also find that a unit shock in uncertainty leads to a depreciation of the Mexican peso with respect to the US dollar in the same period of the shock, which is followed by appreciation in the subsequent period.
    Keywords: Central Bank of Mexico, central bank communication, Latent Dirichlet Allocation, monetary policy uncertainty, Structural Vector Autoregressive model, Word Embedding
    JEL: C32 C45 D83 E52
    Date: 2022–08
  35. By: Fabian Bopp (Paderborn University); Sara le Roux (Oxford Brookes Business School)
    Abstract: The social media age has meant that many behaviours spread through contact with others. The extent to which people adopt/imitate behaviour they observe, can critically affect whether policymakers are successful when introducing new initiatives. In many situations people can either make decisions based on their own intuitive signals or follow a social signal. Depending on the quality of the signals one might be more informative than the other. This project aims to better understand how people use social information to learn and imitate others in ambiguous situations, when both the private and the social signal are not perfectly informative. We conduct an experimental study that observes whether people are prone to imitate others in risky and ambiguous environments, and in gain and loss domain settings. We find that individuals do significantly learn from social information, independent of the framing. Social learning behaviour is not significantly affected by ambiguity. (abstract of the paper)
    Keywords: risk; ambiguity; imitating; social learning
    JEL: C91 D81 D82 D83
    Date: 2023–04
  36. By: Guinea, Laurentiu; Ruiz, Jesús; Puch, Luis A.
    Abstract: This paper investigates the impact of anticipated (news) shocks on renewable and fossil energy use on the US economy. Using structural vector autoregressions (SVARs), we identify the news shocks captured in energy stock market indexes. Our findings show that renewable and fossil energy news shocks significantly affect economic activity, revealing the tensions between the traditional fossil fuel-based industries and the emerging green technology-based ones. We further identify news shocks on Economic Policy Uncertainty (EPU) index, as policy is a key factor driving the changes in the energy mix. First, we show that the identified anticipated shocks have very different propagation mechanisms from traditional surprise shocks. Then, we find that the combination of news shocks to energy stock prices and economic policy uncertainty jointly account for about 90% of the variability of output, job openings and house prices. To interpret our findings, we use a DSGE model that incorporates fossil and renewable energy sectors and news shocks as a driving force, and we show that the propagation mechanisms of news shocks in the model are consistent with our empirical observations. Our study illustrates on the critical interaction between energy news and economic policy uncertainty in affecting the real economy in the transition from dirty to clean energy technologies.
    Keywords: News Shocks; Renewable Energy; Economic Policy Uncertainty; Expectations
    JEL: E2 E6 E32 E44 Q42 Q43 Q58
    Date: 2023–05–24
  37. By: Zinnbauer, Maximilian; Eysholdt, Max; Henseler, Martin; Herrmann, Frank; Kreins, Peter; Kunkel, Ralf; Nguyen, Hanh; Tetzlaff, Björn; Venohr, Markus; Wolters, Tim; Wendland, Frank
    Abstract: The aim of the project was to create a nationwide, uniform, spatially high- resolution nutrient model together with agricultural and water management authorities of the federal states in order to create information bases that can contribute to fulfilling the reporting obligations of the Water Framework Directive (WFD), among other things. The aim was to map inputs of nitrogen and phosphorus from agriculture, the wastewater sector and the air pathway into groundwater, surface waters and the tributaries in the North Sea and Baltic Sea or the transfer levels to neighbouring countries, taking into account the respective most important conversion and degradation processes. The AGRUM-DE model network consists of the agricultural-economic model RAUMIS (operated at the Thünen Institute) and the hydrological models mGROWA-DENUZ- WEKU-MePhos (Jülich Research Centre, FZJ) and the model MONERIS (Institute of Freshwater Ecology and Inland Fisheries, IGB): • Using the RAUMIS model, the Thünen Institute calculated nitrogen balances of agriculture on municipal areas and an analysis of the effect of the amended Fertiliser Ordinance (DüV) on achieving the management objectives for groundwater, inland waters and coastal waters. • Using the mGROWA-WEKU-DENUZ-MEPhos models of the Jülich Research Centre, the water balance and diffuse nutrient inputs into groundwater and surface waters were determined separately according to the most important input pathways. The model calculations were carried out for the entire area of Germany in a grid of 100 m × 100 m. • The MONERIS model was developed and applied by the IGB in Berlin to calculate N and P inputs from point sources and urban systems into surface waters at the municipal level and the retention and degradation of N and P compounds in surface waters at the sub-basin level. Through an as-is analysis, the different origins and levels of nutrient inputs were first determined. This made it possible to spatially identify pollution hot-spots and thus priority areas for the implementation of measures. Based on this, the regional N and P action requirement to achieve the protection goals for groundwater and surface waters to achieve the marine protection goals was determined and the effects of the amended Fertiliser Ordinance on nutrient inputs were analyzed. The project was accompanied by a working group of around 50 experts from the federal states in the field of agriculture and water management, in which all project steps – from the definition of the data basis to the presentation of the results – were presented, discussed and agreed in detail.
    Keywords: Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Land Economics/Use
    Date: 2023–05–23
  38. By: Manuel Schechtl; Rourke L. O'Brien
    Abstract: This article introduces fiscal impoverishment as a novel framework for comparative poverty research. We invert standard analyses of welfare state policy and household poverty by focusing not on poverty alleviation but poverty creation and exacerbation. Using harmonized household survey data, we show how the income and payroll taxes most rich countries rely on to finance the public sector serve to push households (further) into poverty. We estimate that across rich democracies on average about 1 in 4 households in poverty are made poorer on net after taxes and transfers; with fiscal impoverishment levels ranging from less than 10% in some countries to more than 70% in others, revealing extreme cross-national variation in how the pocketbooks of poor households are impacted by national tax and transfer policy. We show that fiscal impoverishment is relatively more common in continental and southern European welfare states and relatively less common in Anglo-liberal and Nordic countries but for different reasons. Counterfactual simulations show that reducing income tax liability would increase disposable income and substantially reduce household poverty in many welfare states. We consider the implications of fiscal impoverishment for assessing welfare state performance and for comparative poverty research.
    Date: 2022–03
  39. By: Lee, Sul-Ki (Korea Institute for Industrial Economics and Trade)
    Abstract: Korea lacks an abundance of natural resources, and has not traditionally been recognized as a major player in the energy industry. Accordingly, Korean energy policy has focused on the national power generation mix, rather than on industrial development. This trend has continued until very recently; only now is there growing momentum for expanding the proportion of renewable energy in the energy mix. However, there is an increasing need to cultivate new and renewable energy industries such as hydrogen, wind power, and solar power individually. We see this manifest in the new organizational re-composition of government ministries. To enhance the competitiveness of the domestic hydrogen industry during the transition to a hydrogen economy, it is essential to implement successful industrial policies. The purpose of this study is to examine the development of Korean hydrogen industry from an industrial research prospective. Specifically, the works outlines a strategy for fostering the hydrogen industry to facilitate a quick transition to a hydrogen economy.
    Keywords: hydrogen; hydrogen energy; renewable energy; alternative energy; energy policy; renewables policy; energy development strategy; renewables strategy; Korea
    JEL: Q40 Q41 Q42 Q43 Q48 Q49 Q53 Q54 Q55 Q56 Q58
    Date: 2023–04–30
  40. By: Van Hoof, Bart; Núñez Reyes, Georgina; De Miguel, Carlos J.
    Abstract: This document analyses the possibility of scaling up the potential of the circular economy through financial instruments in Latin America and the Caribbean. It reviews progress in the circular economy in four business cases, selected based on priorities and representativeness for the Latin American and Caribbean region, and assesses the prospect of scaling them up using financial mechanisms and environmental, social and governance (ESG) schemes. The findings show that investment in circular economy business models has multiple benefits for companies, such as profitable operating margins and improved corporate reputation, thereby lowering the cost of debt and of financing circular economy projects. Various financial mechanisms are applied to scale up circular economy initiatives and circular economy indicators are aligned with broader ESG frameworks. To unlock the full potential of the circular economy in the region, new —and cheaper— financing alternatives should be considered. ESG funding has proven to be a reliable source of funding, even for circular economy projects, and has attracted the attention of investors the world over.
    Date: 2023–04–21
  41. By: Wirjoadikusumo, Shannon
    Abstract: Tax amnesty adalah program pemerintah yang memberikan kesempatan kepada wajib pajak untuk melaporkan dan membayar pajak yang belum dilaporkan dan belum dibayar tanpa dikenakan sanksi administratif dan pidana. Sedangkan penghindaran pajak adalah suatu skema penghindaran pajak untuk tujuan meminimalkan beban pajak dengan memanfaatkan celah ketentuan perpajakan. Salah satu bentuk kontribusi perusahaan dalam CSR adalah dengan membayar pajak sesuai dengan ketentuan yang berlaku. GCG adalah tata kelola perusahaan yang baik dan transparan, yang mencakup hubungan antara pemegang saham, dewan direksi, manajemen, dan stakeholders lainnya. Earnings management dan penerapan prinsip-prinsip GCG mempengaruhi expense stickiness pada perusahaan. Kedua faktor, yaitu karakteristik multi nasionalitas dan thin capitalization, memiliki pengaruh yang signifikan terhadap effective tax rate pada perusahaan-perusahaan di Indonesia. Terdapat hubungan positif antara pengungkapan CSR dan harga saham perusahaan. Dalam mengukur kepatuhan pajak, moral pajak dan tax evasion intention adalah konsep yang penting. Kepribadian conscientiousness dan agreeableness mempengaruhi perilaku seseorang terhadap pajak.
    Date: 2023–05–03
  42. By: Chiara Canta (TBS - Toulouse Business School); Helmuth Cremer (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: We study the optimal design of social long-term care (LTC) insurance when the utility of informal caregivers is taken into account. Informal care is exchange-based. Children's cost of providing care is continuously distributed over some interval and is not observable. Parents choose a rule specifying transfers conditional on the level of informal care. We study first uniform provision of LTC and then a nonlinear policy depending on family transfers. In both cases, informal care increases with the children's welfare weight. Our theoretical analysis is completed by calibrated numerical solutions. Uniform public care should represent up to 40% of total care but its share decreases to about 30% as the weight of children increases. In the nonlinear case, public care increases with the children's cost of providing care at a faster rate when children's weight in social welfare is higher. It represents 100% of total care for families with high-cost children.
    Keywords: Long-term care, Informal care, Strategic bequests, Asymmetric information.
    Date: 2023–01
  43. By: Makoto Nakajima
    Abstract: I develop a heterogeneous-agent New-Keynesian model featuring racial inequality in income and wealth, and studies interactions between racial inequality and monetary policy. Black and Hispanic workers gain more from accommodative monetary policy than White workers mainly due to higher labor market risks. Their gains are larger also because of a larger proportion of them are hand-to-mouth, while wealthy White workers gain more from asset price appreciation. Monetary and fiscal policies are substitutes in providing insurance against cyclical labor market risks. Racial minorities gain even more from an accommodative monetary policy in the absence of income-dependent fiscal transfers.
    Keywords: Business cycle; Marginal Propensity to Consume; Monetary policy; Labor market; Heterogeneous agents; Hand-to-mouth; Unemployment; Wealth distribution; Racial inequality
    JEL: J64 J15 E52 E21
    Date: 2023–04–19

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