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on Investment |
| By: | Jeong Lee, So; Jin Seo, Su |
| Abstract: | The rapid evolution of digital technologies has reshaped global business, forcing not only large but also small and medium-sized enterprises (SMEs) to embrace digital trade. Nevertheless, many SMEs are struggling to fully implement digital technologies. Against this backdrop, the Republic of Korea has bolstered its support for SMEs, with a focus on human capital development, financing, and research and development. Furthermore, the country has revised its trade regulations and frameworks, placing significant emphasis on digital capacity-building and the alignment of regulations with international standards. Despite the disparities in digital infrastructure and skills, the experience of the Republic of Korea is a useful model for Latin America and the Caribbean, offering invaluable insights for policymakers, businesses and stakeholders seeking to navigate the evolving digital landscape and facilitate SME growth and internationalization. In addition, deeper collaboration could be pursued between the Republic of Korea and the region, in particular in the realms of expanding and enhancing access to information and communications technologies (ICTs), upskilling the workforce, strengthening data protection and broadening the scope of trade to include digital services. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68876&r=inv |
| By: | Samuel Bryson; Evaristo Mwale; Kwabena Adu-Ababio |
| Abstract: | This paper explores two policy interventions in Zambia, a minimum wage hike in 2018 and an upward revision in the first kink in the progressive income tax schedule in 2017, to examine and compare the impact of minimum wage and tax kink changes on wages and the earnings distribution in the formal and informal sectors. The analysis builds on two thus far separate strands of literature that investigate the effects of minimum wages and bunching around tax kinks in developing countries using Zambian personal income tax data and data from the ILO Labour Force Surveys over the period 2012-21. |
| Keywords: | Personal income tax, Minimum wage, Informality, Zambia |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-10&r=inv |
| By: | Tasso Adamopoulos; Fernando Leibovici |
| Abstract: | We study the role of international trade risk for food security, the patterns of production and trade across sectors, and its implications for policy. We document that food import dependence across countries is associated with higher food insecurity, particularly in low-income countries. We provide causal evidence on the role of trade risk for food security by exploiting the exogeneity of the Ukraine-Russia war as a major trade disruption limiting access to imports of critical food products. Using micro-level data from Ethiopia, we empirically show that districts relatively more exposed to food imports from the conflict countries experienced a significant increase in food insecurity by consuming fewer varieties of foods. Motivated by this evidence, we develop a multi-country multi-sector model of trade and structural change with stochastic trade costs to study the impact and policy implications of trade risk. In the model, importers operate subject to limited liability and trade off the production cost advantage against the risk of higher trade costs when sourcing goods internationally. We find that trade risk can threaten food security, with substantial quantitative effects on trade flows and the sectoral composition of economic activity. We study the desirability of trade policy and production subsidies in partially mitigating exposure to trade risk and diversifying domestic economic activity. |
| Keywords: | food security; trade; risk; structural change; productivity |
| JEL: | E10 F10 F60 I30 O11 O41 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:97907&r=inv |
| By: | Daron Acemoglu |
| Abstract: | Does capital accumulation increase labor demand and wages? Neoclassical production functions, where capital and labor are q-complements, ensure that the answer is yes, so long as labor markets are competitive. This result critically depends on the assumption that capital accumulation does not change the technologies being developed and used. I adapt the theory of endogenous technological change to investigate this question when technology also responds to capital accumulation. I show that there are strong parallels between the relationship between capital and wages and existing results on the conditions under which equilibrium factor demands are upward-sloping (e.g., Acemoglu, 2007). Extending this framework, I provide intuitive conditions and simple examples where a greater capital stock leads to lower wages, because it triggers more automation. I then offer an endogenous growth model with a menu of technologies where equilibrium involves choices over both the extent of automation and the rate of growth of labor-augmenting productivity. In this framework, capital accumulation and technological change in the long run are associated with wage growth, but an increase in the saving rate increases the extent of automation, and at first reduces the wage rate and subsequently depresses its long-run growth rate. |
| JEL: | C65 O31 O33 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32190&r=inv |
| By: | Brandtjen, Roland |
| Abstract: | Spain has been known for several years for its ethnic and separatist debate. This work aims to examine the extent to which the potential for conflict in Spain as a whole can also be found on a small scale, i.e. in one of Spain's autonomous communities. The largest autonomous community in terms of area, Castilla y León, which also consists of the most provinces, was chosen for this purpose. It is questionable whether such strong autonomy movements exist not only in Spain but also in Castilla y León. Do certain isms exist or are they just purely theoretical scientific concepts? This paper attempts to examine and fill a scientific gap on this topic by means of an adapted quantitative survey. From 2020 and 2023, these surveys have been conducted in Castilla y León. They are analysed by descriptive statistics. The paper concludes with a Conclusion and the bibliography. |
| Keywords: | Identity, Autonomy, Castilianism, Leonesism, Survey |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhbm:284390&r=inv |
| By: | Goldberg, Amir (Stanford U); Singell, Madison H. (Stanford U) |
| Abstract: | Recent years have seen a growing sociological interest in meaning. In fact, some argue that sociology cannot confront its foundational questions without addressing meaning. Yet sociologists mean many things when they talk about meaning. We propose a practical approach that conceptualizes meaning as an instance of an actor interpreting a stimulus. Reviewing existing literature, we find that most sociological accounts understand interpretation either as categorization or as semantic association. We show that an integrated approach is analytically useful for conceptualizing shared interpretation and the process by which people coordinate their interpretations. This provides a framework for addressing interpretative heterogeneity when studying attitudinal or behavioral variance. We conclude by highlighting how recent advances in computational linguistics have opened exciting new possibilities for the study of interpretation, and suggest several avenues for future research. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4118&r=inv |
| By: | Hanchao Liu; Dena Firoozi |
| Abstract: | This paper presents a comprehensive study of Hilbert space-valued Linear-Quadratic-Gaussian (LQG) mean field games (MFGs), generalizing the classic LQG mean field game theory to scenarios where the state equations are driven by infinite-dimensional stochastic equations. In this framework, state and control processes take values in separable Hilbert spaces. Moreover, the state equations involve infinite dimensional noises, namely $Q$-Wiener processes. All agents are coupled through the average state of the population appearing in their linear dynamics and quadratic cost functional. In addition, the diffusion coefficient of each agent involves the state, control, and the average state processes. We first study the well-posedness of a system of coupled infinite-dimensional stochastic evolution equations, which forms the foundation of MFGs in Hilbert spaces. Next, we develop the Nash Certainty Equivalence principle and obtain a unique Nash equilibrium for the limiting Hilbert space-valued MFG. Finally, we establish the $\epsilon$-Nash property for the finite-player game in Hilbert space. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.01012&r=inv |
| By: | Santiago Pereda-Fern\'andez |
| Abstract: | This paper addresses computational challenges in estimating Quantile Regression with Selection (QRS). The estimation of the parameters that model self-selection requires the estimation of the entire quantile process several times. Moreover, closed-form expressions of the asymptotic variance are too cumbersome, making the bootstrap more convenient to perform inference. Taking advantage of recent advancements in the estimation of quantile regression, along with some specific characteristics of the QRS estimation problem, I propose streamlined algorithms for the QRS estimator. These algorithms significantly reduce computation time through preprocessing techniques and quantile grid reduction for the estimation of the copula and slope parameters. I show the optimization enhancements with some simulations. Lastly, I show how preprocessing methods can improve the precision of the estimates without sacrificing computational efficiency. Hence, they constitute a practical solutions for estimators with non-differentiable and non-convex criterion functions such as those based on copulas. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.16693&r=inv |
| By: | Josef Bajzik; Jan Janku; Simona Malovana; Klara Moravcova; Ngoc Anh Ngo |
| Abstract: | We synthesized 3, 175 estimates (454 impulse responses) of the semi-elasticity of credit with respect to changes in the monetary policy rate from 91 vector autoregression studies. We found that monetary policy tightening consistently yields a negative and long-lasting response in both credit volume and credit growth. Several factors contribute to the substantial heterogeneity of the effect sizes in this literature. First, publication selectivity significantly exaggerates the mean reported estimate, because insignificant results are under-reported. Second, researchers' choice of estimation design has a significant impact on the estimated response. Studies using Bayesian methods and including house prices report a smaller decline in credit, while studies with sign restrictions show a larger drop than those using recursive identification. |
| Keywords: | Bayesian model averaging, credit, interest rates, meta-analysis, monetary policy transmission, publication bias |
| JEL: | C83 E52 R21 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cnb:wpaper:2023/19&r=inv |
| By: | Ethan Ilzetzki (London School of Economics (LSE); Centre for Macroeconomics (CFM)) |
| Abstract: | The UK government’s “mini-budget” announcement on September 23, 2022 sent yields on UK government bonds soaring at a daily rate not seen since November 1988, brought the value of the pound to all-time lows, lead some mortgage providers to suspend lending, and dropped the UK pension system to a liquidity crisis. The worst pressures on the UK economy and financial system appear to have subsided. Nevertheless, risks still remain and some problems — particularly with mortgage affordability - are likely to persist at currently projected interest rates. This note begins with a diagnosis of the causes and nature of the crisis and continues with policy recommendations for current circumstances and groundwork that should be set pre-emptively, in case interest rates rise again beyond current expectations. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2408&r=inv |
| By: | ZHANG Meilian; YIN Ting; USUI Emiko; OSHIO Takashi; ZHANG Yi |
| Abstract: | Overemployment and underemployment being widely existing phenomena, much less is known about their determinants for older workers. We innovatively employ machine learning methods to determine the important factors driving overemployment and underemployment among older workers in Japan. Those with better economic conditions, worse health, less family support, and unfavorable job characteristics are more likely to report overemployment, whereas increasing age, less disposable income, shorter current work hours, holding a job with a temporary nature, and low job and pay satisfaction are predictive to underemployment. Cluster analysis further shows that reasons for having work hour mismatches can be highly heterogeneous within both overemployed and underemployed groups. Subgroup analyses suggest room for pro-work policies among 65+ workers facing financial stress and lacking family support, female workers with unstable jobs and low spousal income, and salaried workers working insufficient hours. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24034&r=inv |
| By: | International Monetary Fund |
| Abstract: | Since completion of the last reviews, Argentina’s imbalances and distortions have become dangerously acute, while the program has gone significantly off-track, reflecting highly expansionary and inconsistent policies of the previous administration. The fiscal deficit rose further, international reserves were depleted and reliance on interventionist measures intensified, leading to triple digit inflation, a further deterioration of the central bank’s balance sheet and a sharp rise in importers’ commercial debt. The new administration has begun to take bold actions to restore macroeconomic stability and address many of the long-standing impediments to growth and investment. These initial actions are starting to bear fruit, although the path to stability will be challenging. Efforts are underway to build the social and political support for the stabilization plan, with a divided Congress and a fragile social situation presenting important implementation challenges. |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2024/037&r=inv |
| By: | Alfred Galichon; Antoine Jacquet |
| Abstract: | Matching problems with linearly transferable utility (LTU) generalize the well-studied transferable utility (TU) case by relaxing the assumption that utility is transferred one-for-one within matched pairs. We show that LTU matching problems can be reframed as nonzero-sum games between two players, thus generalizing a result from von Neumann. The underlying linear programming structure of TU matching problems, however, is lost when moving to LTU. These results draw a new bridge between non-TU matching problems and the theory of bimatrix games, with consequences notably regarding the computation of stable outcomes. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.12200&r=inv |
| By: | Ziyaeva, Diora; Anthony, Cody |
| Abstract: | The International Seabed Authority recently concluded its yearly meeting without finalizing a formal Mining Code for the deep seabed. This Perspective considers the impact of the lack of a Mining Code and provides recommendations for developing countries seeking to conduct deep sea mining projects. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:colfdi:284732&r=inv |
| By: | Tom Boot; Didier Nibbering |
| Abstract: | In theory, two-stage least squares (TSLS) identifies a weighted average of covariate-specific local average treatment effects (LATEs) from a saturated specification without making parametric assumptions on how available covariates enter the model. In practice, TSLS is severely biased when saturation leads to a number of control dummies that is of the same order of magnitude as the sample size, and the use of many, arguably weak, instruments. This paper derives asymptotically valid tests and confidence intervals for an estimand that identifies the weighted average of LATEs targeted by saturated TSLS, even when the number of control dummies and instrument interactions is large. The proposed inference procedure is robust against four key features of saturated economic data: treatment effect heterogeneity, covariates with rich support, weak identification strength, and conditional heteroskedasticity. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.12607&r=inv |