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on Transition Economics |
| By: | Lehmann, Hartmut (University of Bologna); Muravyev, Alexander (IZA) |
| Abstract: | This paper offers a first comprehensive study of the relationship between labor market institutions and policies and labor market performance in the countries of Eastern Europe and Central Asia, which in the last two decades experienced radical economic and institutional transformations. Based on a new and unique hand-collected dataset, the paper first documents the evolution of labor market institutions and policies in the transition region. The data show a clear trend towards liberalization of labor markets, especially in the countries of the former Soviet Union, but also substantial differences across the countries studied. Second, the paper takes advantage of the large variation in the key economic and institutional variables to test several predictions concerning the role of institutions and polices in explaining labor market outcomes. The results of our econometric analysis are generally consistent with the view that institutions matter for labor market outcomes, and that deregulation of the labor markets improves their performance. The analysis also suggests several significant interactions between different institutions, which are in line with the idea of reform complementarity and broad reform packages. We also show that there are important advantages of focusing on a broader set of labor market outcomes, and not only on the unemployment rate, which until now has been the main approach in the empirical literature. |
| Keywords: | labor market institutions, unemployment, transition economies |
| JEL: | E24 J21 P20 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4673&r=tra |
| By: | Gabor Bekes; Jorn Kleinert; Farid Toubal |
| Abstract: | Technological and informational spillovers from multinational firms can be particularly beneficial to domestic firms especially in less developed economies. The technological superiority and management experience of foreign multinational firms yield various opportunities for learning. Yet, the importance of foreign firm’s spillovers might vary with respect to the different intensities of the linkage between the multinational and the domestic firm, the differences in firms’ absorptive capacity and their ability to face competition. We show using firm-level Hungarian data that positive spillovers from multinationals depend on the level of productivity and the exporting status of the domestic firm. Larger and more productive firms are more able to reap spillovers from multinationals than smaller and less productive firms. The export status, in contrast, is of minor importance. |
| Keywords: | FDI; multinationals; productivity; spillover; quantile regression |
| JEL: | F23 D21 D24 R12 R30 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2009-31&r=tra |
| By: | Muravyev, Alexander (IZA) |
| Abstract: | This paper uses a quasi-experimental framework provided by recent changes in Russian corporate law to study the effect of investor protection on the value of shares. The legal change analyzed involves the empowerment of preferred (non-voting) shareholders to veto unfavorable changes in their class rights. Based on a novel hand-collected dataset of dual class stock companies in Russia and using the difference-in-difference estimator, the study finds a statistically and economically significant effect of improved protection of preferred shareholders on the value of their shares. The result is robust to several changes in the empirical specification. |
| Keywords: | investor protection, company law, dual class stock, class rights, Russia |
| JEL: | G30 G38 K22 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4669&r=tra |
| By: | William Pyle; Laura Solanko |
| Abstract: | Why are some lobby groups less benign in their external effects than others? Olson (1982) proposed that those that are less encompassing in the sense that their constituents collectively represent a narrower range of sectors are more apt to seek the types of subsidies, tariffs, tax loopholes and competition-limiting regulations that impose costs on the rest of society. But his hypothesis has to our knowledge not been directly tested. Part of the reason, we suspect, relates to the absence of adequate data. By drawing on a unique pair of surveys, targeted to both business associations (lobby groups) and their constituents, we provide what we believe to be the first direct test of Olson’s hypothesis. Managers from a diverse array of Russian industrial firms and business associations were asked similar questions regarding their attitudes to policies that explicitly benefit well-defined sectoral or regional interests and, implicitly, impose external costs. The pattern of responses is striking. Managers of both the less encompassing associations and the firms that belong to such groups are much more apt to view such policies in a favorable light. More encompassing associations and the members of such organizations are relatively more skeptical of narrowly-targeted government interventions. The results, we believe, provide strong support for Olson’s hypothesis. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:mdl:mdlpap:0921&r=tra |
| By: | Avner Greif; Guido Tabellini |
| Abstract: | How to sustain cooperation is a key challenge for any society. Different social organizations have evolved in the course of history to cope with this challenge by relying on different combinations of external (formal and informal) enforcement institutions and intrinsic motivation. Some societies rely more on informal enforcement and moral obligations within their constituting groups. Others rely more on formal enforcement and general moral obligations towards society at large. How do culture and institutions interact in generating different evolutionary trajectories of societal organizations? Do contemporary attitudes, institutions and behavior reflect distinct pre-modern trajectories? |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:357&r=tra |
| By: | Sandra Poncet; Walter Steingress; Hylke Vandenbussche |
| Abstract: | This paper uses a unique micro-level data-set over the period 1998-2005 on Chinese firms to test for the existence of a "political-pecking order" in the allocation of credit. Our findings are threefold. Firstly, private Chinese firms are credit constrained while State-owned firms and foreign-owned firms in China are not; Secondly, the geographical and sectoral presence of foreign capital alleviates credit constraints faced by private Chinese firms. Thirdly, geographical and sectoral presence of state firms aggravates financial constraints for private Chinese firms (“crowding out”). Therefore it seems that ongoing restructuring of the state-owned sector and further liberalization of foreign capital inflows in China can help to circumvent financial constraints and can boost the investment of private firms. |
| Keywords: | Investment-cashflow sensitivity; China; firm level data; foreign direct investment |
| JEL: | E22 G32 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2009-29&r=tra |
| By: | Xuehua Shi; Alexander Nuetah; Xian Xin (College of Economics and Management, China Agricultural University Center for Rural Development Policy,China Agricultural University) |
| Abstract: | This article analyzes household income mobility in rural China between 1989 and 2006. The results indicate that incomes in rural China are highly mobile. The high degree of rank and quantity mobility implies re-ranking and mean convergence in income distribution, but the disparity between then also enlarged with leveling-up and Gini divergence brought about by economic growth. In addition, there exists considerable transitorily poor and rich in positional mobility. Though, transitory movement provides an opportunity for both poor and rich and decreases long-term inequality, it also causes considerable income fluctuations and economic insecurity. Moreover, the equalizing effect of income mobility on income inequality is weakening. |
| Keywords: | Income inequality; Income mobility; Rural Household; China |
| JEL: | D31 O15 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:cau:wpaper:0901&r=tra |
| By: | Joachim Jarreau; Sandra Poncet |
| Abstract: | We consider the effect of export sophistication on economic performance using regional variations within a single country (China) over the period 1997-2007. We confirm Hausmann, Hwang and Rodrik (2007)’s prediction that regions that engage in the cost discovery process of developing sophisticated goods grasp greater gains from globalization and grow faster. We find that these gains are limited to to export activities undertaken by domestic entities. Direct gains do not appear to derive from foreign entities typically engaged in processing trade even though they are the main contributors to the global upgrading of China’s exports. Our findings globally suggest that the expected gains from exporting higher productivity goods are not unconditional, they are greater for provinces already blessed by high incomes, better market centrality and higher trade performance and Foreign Direct Investment attractiveness. These features consistent with evidence of increasing returns to sophistication are unfortunately likely to contribute further to the current widening of spatial economic disparities across China. |
| Keywords: | Export sophistication; economic growth; outward orientation; China |
| JEL: | F1 O1 R1 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2009-34&r=tra |
| By: | Kang Yu; Xiaoyun Liu; Ping Guo; Xian Xin (College of Economics and Management, China Agricultural University Center for Rural Development Policy, China Agricultural University) |
| Abstract: | This article uses multivariate regression and decomposition analyses to assess household income mobility determinants and their contributions to income mobility in rural China from 1989 to 2006 using panel data from the China Health and Nutrition Survey (CHNS) database. The findings indicate that households with low initial income level, high share of wage income, high educational level of household members, high number of non-agricultural employed household members, and younger heads are more mobile. Moreover, besides initial income, change in the share of wage income, change in the share of non-agricultural employed household members, and change in average year of education of household members are the most important factors that account for income mobility. These findings necessitate more emphasis on policies that promote non-agricultural employment and education to enhance household income mobility in rural China. |
| Keywords: | Foreign Direct Investment, Income Inequality, Region |
| JEL: | F21 O18 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cau:wpaper:1003&r=tra |
| By: | Xuehua Shi; Xiaoyun Liu; Alexander Nuetah; Xian Xin (College of Economics and Management, China Agricultural University Center for Rural Development Policy, China Agricultural University) |
| Abstract: | This article uses multivariate regression and decomposition analyses to assess household income mobility determinants and their contributions to income mobility in rural China from 1989 to 2006 using panel data from the China Health and Nutrition Survey (CHNS) database. The findings indicate that households with low initial income level, high share of wage income, high educational level of household members, high number of non-agricultural employed household members, and younger heads are more mobile. Moreover, besides initial income, change in the share of wage income, change in the share of non-agricultural employed household members, and change in average year of education of household members are the most important factors that account for income mobility. These findings necessitate more emphasis on policies that promote non-agricultural employment and education to enhance household income mobility in rural China. |
| Keywords: | Income Mobility, Determinants, Rural Household, China |
| JEL: | D31 O15 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cau:wpaper:1002&r=tra |
| By: | Chen , Taotao (School of Economics and Management); Kokko, Ari (China Economic Research Center); Gustavsson Tingvall, Patrik (China Economic Research Center) |
| Abstract: | Using a fixed effect variance decomposition model, we estimate SUR models to analyze FDI spillovers from contagion and spillovers from competition on local firms in China. While the former type of spillover mainly depends on the degree of foreign presence in the local industry, the latter kind is related to how foreign and local firms interact. The main conclusion is that FDI has been beneficial for the Chinese economy, but that spillovers are not evenly distributed across firms and industries. Spillovers from contagion tend to exhibit an inverse U-shaped pattern with respect to the degree of foreign presence at the industry level, whereas spillovers from competition exhibit a more linear pattern with respect to the level of technological sophistication in foreign firms. Industries with high absorptive capacity and/or high efficiency are the ones best equipped to take advantage of spillovers from foreign-owned firms. Moreover, there are signs of substantial competition between foreign-owned firms: an increase in the foreign capital share in an industry seems to have a stronger effect on incumbent foreign-owned firms than on domestic firms. |
| Keywords: | Spillovers; China; FDI; Fixed effect variance decomposition |
| JEL: | C33 F21 F23 O53 |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hacerc:2010-012&r=tra |
| By: | Virginie Coudert; Cyril Pouvelle |
| Abstract: | Strong credit growth rates in transition countries may result from a normal catching-up process in a framework of financial development. However, as elsewhere, they can also pertain to a “credit boom”, paving the way to future “credit crunches”. We try to disentangle these two types of situation for the central and eastern European countries (CEECs) by applying a number of methods. First, we consider the gap between current credit and its longterm trend and we find some signs of credit booms, in several CEECs in 2005-2007. Second, we assess the “normal” growth of credit with regard to fundamentals through econometric estimations. Credit growth is also shown to have been excessive in several countries just before the 2008-2009 financial crisis. |
| Keywords: | Credit boom; transition; financial development |
| JEL: | E30 E51 G21 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2009-33&r=tra |
| By: | de la Rupelle, Maëlys (Paris School of Economics); Quheng, Deng (Chinese Academy of Social Sciences); Li, Shi (Beijing Normal University); Vendryes, Thomas (Paris School of Economics) |
| Abstract: | Like most other developing countries, China experiences huge migration outflows from rural areas. Their most striking characteristic is a high geographical and temporal mobility. Rural migrants keep going back and forth between origin villages and destination areas. In this paper, we show that this temporary feature of migration can be linked to land rights insecurity. As village land ownership remains collective and as land use rights can be periodically reallocated, individual out-migration can result in deprivation of those rights. Moreover, the intensity of this insecurity varies according to the village-level management of land and the contractual status of land plots. We use these variations to identify the effect of land rights insecurity on migration behavior. Empirical results based on representative 2002 rural data demonstrate substantial impact. |
| Keywords: | migration, land rights insecurity, China, semiparametric censored regression models |
| JEL: | C34 J61 P32 Q15 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4668&r=tra |
| By: | Victoria Dobrynskaya; Edouard Turkish |
| Abstract: | Despite impressive economic growth between 1999 and 2007, there is a fear that Russia may suffer the Dutch disease, which predicts that a country with large natural resource rents may experience a de-industrialisation and a lower long term economic growth. We study whether there are symptoms of the Dutch disease in Russia. Using Rosstat and CHELEM databases, we analyse the trends in production, wages and employment in the Russian manufacturing industries, and we study the behaviour of Russian imports and exports. We find that, while Russia exhibited some symptoms of the Dutch disease, e.g. a real appreciation of the rouble, a rise in real wages, a decrease in employment in manufacturing industries and the development of the services sector, manufacturing production nonetheless increased, contradicting the theory of the Dutch disease. These trends can be explained by the gains in productivity and the recovery after the disorganisation in the 1990s, by new market opportunities for Russian products in the European Union and in CIS countries, by a growing Chinese demand for some products and by a booming internal market. Finally, investments in many manufacturing industries were largely encouraged, whereas those in the energy sector were strongly regulated, which contributed to economic diversification. |
| Keywords: | Russia; Dutch disease; competitiveness; monetary policy |
| JEL: | E23 E58 F43 P24 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2009-20&r=tra |
| By: | Su, Dongwei; He, Xingxing |
| Abstract: | This paper combines artificial neural networks (ANN), fuzzy optimization and time-series econometric models in one unified framework to form a hybrid intelligent early warning system (EWS) for predicting economic crises. Using quarterly data on 12 macroeconomic and financial variables for the Chinese economy during 1999 and 2008, the paper finds that the hybrid model possesses strong predictive power and the likelihood of economic crises in China during 2009 and 2010 remains high. |
| Keywords: | Computational intelligence; artificial neural networks; fuzzy optimization; early warning system; economic crises |
| JEL: | C53 E17 |
| Date: | 2010–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:19962&r=tra |
| By: | Wan-Hsin LIU |
| Abstract: | This paper investigates whether knowledge transferred from different sources matter differently for carrying out different innovation outcomes, using a firm-level dataset collected in the Pearl River Delta (PRD) in China. It also investigates whether companies in the PRD in China tend to innovate in a similar way as companies in the Asian Newly Industrialised Economies (NIEs) did decades ago. Our estimation results suggest that companies in the PRD, as companies in the Asian NIEs, strongly rely on sourcing from their OEM customers but not on own R&D activities to implement innovative processes to increase production efficiency. In contrast, they engage in own R&D activities in order to develop innovative products, to realise higher innovation sales and to create new knowledge qualified for patenting. In addition to own R&D activities, they rely on sourcing knowledge from different sets of sources to support them to carry out the last three types of innovation outcomes |
| Keywords: | innovation, knowledge transfer, knowledge production function, flying geese model, China |
| JEL: | O1 O3 R1 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1578&r=tra |
| By: | Vlad Manole; Mariana Spatareanu |
| Abstract: | Many firms cite financial constraints as some of the most important impediments to their investment and growth. Using a unique data set from the Czech Republic this paper investigates the importance of financing constraints in the context of exporters. It finds that exporters are less financially constrained than non-exporters. However, after carefully correcting for possible endogeneity and selection issues, the evidence points to less constrained firms self-selecting into exporting rather than exporting alleviating firms' financial constraints. The analysis suggests that easing firms' credit constraints may play an important role in facilitating exporting and that welldeveloped financial markets that would decrease firms' cost of external finance may be needed in order to benefit from selling in foreign markets. |
| Keywords: | exporting, cash flow, financial constraints |
| JEL: | F21 F23 F36 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:25209&r=tra |
| By: | van Ark, Bart (The Conference Board); Hao, Janet X. (The Conference Board); Corrado, Carol (The Conference Board); Hulten, Charles (The Conference Board) |
| Abstract: | This study describes the state of the art in the measurement of intangible capital and its contribution to economic growth, with a focus on an international comparison of intangible capital deepening among eleven advanced economies. By employing a broad measure of intangibles, including computerized information, innovative property and economic competencies, we find a relatively large impact on growth. Intangible capital explains about a quarter of labour-productivity in the US and larger countries of the EU. The continental West-European countries show a distinction between countries with significant contributions from intangible capital deepening and a group of laggards. Catching-up countries such as the Czech Republic, Greece and Slovakia show much larger contributions from tangible capital deepening than from intangibles, and also larger multi-factor productivity (MFP) growth rates related to the restructuring of those countries. |
| Keywords: | Economic growth; productivity; capital; innovation |
| JEL: | O30 O40 |
| Date: | 2009–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2009_003&r=tra |
| By: | Petr Rozmahel (University of Brno) |
| Abstract: | The adoption of the Euro by Slovakia as of January 2009 and the current world economic crises revived a debate on timing of the Euro adoption in the Czech Republic and other CEECs. The purpose of the paper is to contribute to a discussion on the process of joining the Eurozone by the Czech Republic and other candidate countries. The paper provides an analysis of some business cycle similarity and convergence measures using different indicators and detrending techniques. Measures of business cycle similarity are ordinarily used to evaluate preparedness of candidate countries to join the Eurozone. The results indicate continuing convergence of the business cycle similarity between the candidate and Eurozone member countries. The paper also sheds some light on the possible influence of selected detrending techniques on the resulting correlations. It gives a recommendation to interpret the results of business cycle correlation measuring in the close context with used methodology. A short note on a regional approach to analyse the GDP cycles is also included in the text. |
| Keywords: | business cycle, convergence, correlation, eurozone, optimum currency area |
| Date: | 2009–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2009:i:346&r=tra |
| By: | Roland Beck; Geoff Barnard |
| Abstract: | In the years preceding the onset of the global financial crisis, the Central Bank of Russia (CBR) had two goals: to reduce inflation and limit the real appreciation of the rouble. Given the strength of Russia’s balance of payments during the ten years through the first half of 2008, the de facto tight management of the nominal exchange rate resulted in large interventions which were only partially sterilised. As a result, inflation remained persistently high. During the global financial crisis in 2008-09 Russia’s monetary policy was initially constrained by a large degree of private debt dollarisation. After a gradual adjustment of the exchange rate to the new oil price environment which was costly due to reserve losses, the CBR started to lower interest rates and to allow for a somewhat higher degree of exchange rate flexibility. Looking ahead, even greater exchange rate flexibility should be permitted since (i) commodity exporting countries can successfully run inflation targeting and (ii) we find that exchange rate pass-through has been limited and asymmetric and can be taken into account under inflation targeting. Preparations for inflation targeting should focus on a commitment to price stability as the primary goal of monetary policy. At the same time the authorities should enhance their understanding of how monetary developments affect inflation and financial stability and accelerate financial sector reforms aimed at financial deepening.<P>Vers une politique de taux de change plus flexible en Russie<BR>Pendant les années précédant le déclenchement de la crise financière mondiale, la banque centrale de Russie avait deux objectifs : réduire l’inflation et limiter l’appréciation réelle du rouble. Étant donné le solde très positif de la balance des paiements pendant la décennie se terminant à la première moitié de 2008, la gestion du taux de change nominal a eu pour résultat des interventions importantes qui n’ont été que partiellement stérilisées. L’inflation est donc restée élevée. Pendant la crise financière mondiale en 2008-09 la politique monétaire de la Russie a été contrainte par le niveau élevé de dollarisation de la dette privée. Après un ajustement graduel du taux de change à la situation nouvelle des prix du pétrole qui a été coûteux à cause des pertes de réserves, la banque centrale a commencé à baisser les taux d’intérêt et à permettre plus de flexibilité du taux de change. Dans le futur, la Russie devrait permettre davantage de flexibilité du taux de change puisque (i) les pays exportateurs de matières premières peuvent gérer un régime de ciblage de l’inflation ; et (ii) nous trouvons que la transmission des mouvements du taux de change à l’inflation n’a été que modérée et asymétrique et qu’on peut en tenir compte sous un tel régime. Les préparations pour le ciblage de l’inflation devraient être focalisées sur un engagement à la stabilité des prix comme objectif principal de la politique monétaire. En même temps, les autorités devraient améliorer leur compréhension de la façon dont les développements monétaires affectent l’inflation et la stabilité financière ainsi qu’accélérer les réformes financières visant un approfondissement du secteur financier. |
| Keywords: | economy, exchange rate policy, inflation targeting, inflation, interest rate, monetary policy, Russia, ciblage de l’inflation, économie, inflation, politique de taux de change, politique monétaire, Russie, taux de change, taux d'intérêt |
| JEL: | E31 E5 E52 E58 F31 |
| Date: | 2009–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:744-en&r=tra |
| By: | Andrén, Daniela (Department of Business, Economics, Statistics and Informatics) |
| Abstract: | Legally binding treaties or memorandums have been used over time to regulate the issue of national borders of many European countries. As a result, relatively large groups of people have become ethnic minorities in other countries. They may conserve their ethnic identities, and therefore their children may accumulate ethnic human capital (e.g., language, culture, and religion) in addition to the general human capital of the country. Therefore, they can get access to an appropriate occupation linked by tradition or other factors to their ethnic group. This paper uses estimates from a selection model with an endogenous switch among three broad types of occupational groups to analyze the composition of the wage gap between Romanians and ethnic Hungarians in Romania before and during the transition from a planned to a market economy. The results suggest that the institutional settings of the controlled economy allowed Romanians to work in occupations that gave them the best returns, while the changes during the transition years allowed ethnic Hungarians to work in occupations that gave them the best returns. |
| Keywords: | ethnic wage gap; occupation; selection model with an endogenous switch; wage gap decomposition |
| JEL: | J31 J38 J39 J71 P27 |
| Date: | 2010–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2010_001&r=tra |
| By: | Quan-Hoang Vuong (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels.); Tran Tri Dung (Dan Houtte, Vuong & Partners, Economic Research, Hanoi, Vietnam.) |
| Abstract: | Corporate bond appeared early in 1992-1994 in Vietnamese capital markets. However, it is still not popular to both business sector and academic circle. This paper explores different dimensions of Vietnamese corporate bond market using a unique, and perhaps, most complete dataset. State not only intervenes in the bond markets with its powerful budget and policies but also competes directly with enterprises. The dominance of SOEs and large corporations also prevents SMEs from this debt financing vehicle. Whenever a convertible term is available, bondholders are more willing to accept lower fixed income payoff. But they would not likely stick to it. On one hand, prospective bondholders could value the holdings of equity when realized favorably ex ante. On the other hand, the applicable coupon rate for such bond could turn out negative inflationadjusted payoff when tight monetary policy is exercised and the corresponding equity holding turns out valueless, ex post. Given the weak primary market and virtually nonexistent secondary market, the corporate bond market in Vietnam reflects our perception of the relationship-based and rent-seeking behavior in the financial markets. For the corporate bonds to really work, they critically need a higher level of liquidity to become truly tradable financial assets. |
| Keywords: | Vietnam; Corporate Bond; Interest Rate; Transition Economy; Debt Market |
| JEL: | G32 G38 O16 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:10-001&r=tra |
| By: | Matei, Lucica; Matei, Ani |
| Abstract: | Public management and civil servant's performance, productivity and quality of public service, flexibility and responsiveness to challenges of change in administration, autonomy and decentralising, the reduced costs of reform represent only a part of the characteristics and requirement of administration. Administration as structure is approached from organisational perspective.The principles of public administration are the following: local autonomy, decentralising civil services of local interest, electing local government authorities, legality, consulting the citizens on local problems of special interest |
| Keywords: | Local legislature; the role of political parties; specific issues |
| JEL: | H19 D73 H72 |
| Date: | 2002–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:18895&r=tra |
| By: | Xiaoqiang Cheng; Patrick Van Cayseele |
| Abstract: | Many contributions to the literature on competition in banking use the Panzar and Rosse test (1987). This test encompasses a variety of market outcomes assuming firms maximize profits. However, when applied to the banking industry, this assumption may not be always valid as banks sometimes may carry social objectives or aim to be systemic players so as to be "too big to fail". This then motivates different objective functions, departing from profit maximization. We present a reduced form model where banks can pursue other goals than profit maximization. This allows us to test for behavioral changes of banks over time. Our model provides a framework to evaluate whether moral hazard issues may plague banks receiving state aid, which concerns greatly the recent debate on government intervention in financial markets during the global financial crisis in 2008. To test the impact of state aid, we examine a natural experiment in the banking sector in China in the 1990s. We cannot reject that the possibility of receiving state aid triggers moral hazard prone conduct. |
| Keywords: | State Aid, banking industry, Panzar-Rosse model, Moral Hazard, To Big To Fail |
| JEL: | G21 G28 L21 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:25009&r=tra |
| By: | Iimi, Atsushi |
| Abstract: | Recent volatility in international energy prices has revealed South Eastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region’s energy-intensive industries are faced with the challenge of the weakening demand for their outputs. This paper casts light on the relationship between the price and the demand for energy. Based on firm level data, it is shown that the price elasticity of industrial energy demand is about -0.4 on average. There are a number of data issues to interpret the results correctly. But Albania and Macedonia are systematically found to have a relatively elastic demand for energy on the order of -0.7 to -0.8. In these countries, therefore, price adjustments would be one of the effective policy options to balance demand with supply during the period of energy crisis. In other countries, the demand response would be much weaker; pricing cannot be the only solution. Other policy measures, such as facilitation of firm energy efficiency and improvements in the quality of infrastructure services, may be required. |
| Keywords: | Energy Production and Transportation,Markets and Market Access,Economic Theory&Research,Energy Demand,Environment and Energy Efficiency |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5167&r=tra |