scholarly journals The Politics of Related Lending

2016 ◽  
Vol 51 (1) ◽  
pp. 333-358 ◽  
Author(s):  
Michael Halling ◽  
Pegaret Pichler ◽  
Alex Stomper
Keyword(s):  
Local Governments ◽  
Natural Experiment ◽  
Competitive Environment ◽  
Data Set ◽  
Unique Data

AbstractWe analyze the profitability of government-owned banks’ lending to their owners, using a unique data set of relatively homogeneous government-owned banks; the banks are all owned by similarly structured local governments in a single country. Making use of a natural experiment that altered the regulatory and competitive environment, we find evidence that such lending was used to transfer revenues from the banks to the governments. Some of the evidence is particularly pronounced in localities where the incumbent politicians face significant competition for reelection.

The Unintended Costs and Unfulfilled Promises of Concurrent Elections: A Natural Experiment on Turnout and Invalid Voting

2021 ◽  
pp. 088832542198980
Author(s):  
Jakub Lysek ◽  
Karel Kouba
Keyword(s):  
Natural Experiment ◽  
Political Representation ◽  
Substantial Cost ◽  
Difference In Differences ◽  
Data Set ◽  
Unique Data ◽  
Null Effect ◽  
Subnational Elections ◽  
Matching Techniques ◽  
Modest Effect

Holding two second-order elections simultaneously is expected to increase electoral participation. We exploit a natural experiment in which one group of Czech precincts was “as if” randomly assigned to holding subnational elections concurrently with senatorial ones. Using a unique data set containing variables on more than thirteen thousand precincts in five elections between 2000 and 2016, we detect a modest effect of concurrency only in the first election but no or inconsistent effect in the four subsequent contests. Furthermore, we report a strong effect of concurrency on invalid voting. We check for robustness using difference-in-differences design and matching techniques. Incongruent with existing theories, concurrency does not deliver on its promises and may come at a substantial cost to political representation. The surprising null effect on turnout is attributable to analyzing the effect of concurrency of the less salient on more salient elections.

Does Government Activism Affect Second-hand Car Prices? Evidence from a Natural Experiment

2018 ◽  
Vol 12 (1) ◽  
pp. 1-18
Author(s):  
Saibal Ghosh
Keyword(s):  
Natural Experiment ◽  
Policy Changes ◽  
Data Set ◽  
Unique Data ◽  
Consumption Behaviour ◽  
Policy Experiment ◽  
The Impact

A significant body of literature has focused on the impact of policy changes on consumption behaviour. Most of this literature looks at the impact of anticipated and durable changes, thereby ignoring the impact of unanticipated changes. In this context, exploiting a unique data set for India, the article examines the impact of a temporary ‘odd–even’ policy experiment in Delhi on second-hand car prices. The findings suggest that car prices on average, declined by 2.7 per cent after the policy announcement, although these prices subsequently recouped the initial losses. A disaggregation of car prices in terms of costs indicates that these results are driven by low-priced cars and, additionally, that cars with odd-number ending registrations commanded a premium in the market.

scholarly journals Impacts of the 1918 flu on survivors’ nutritional status: a double quasi-natural experiment

2020 ◽  
Author(s):  
Alberto Palloni ◽  
Mary McEniry ◽  
Yiyue Huangfu ◽  
Hiram Beltran-Sanchez
Keyword(s):  
Nutritional Status ◽  
Natural Experiment ◽  
Adult Survivors ◽  
Adult Health ◽  
Data Set ◽  
Fetal Origins ◽  
Unique Data ◽  
Nationally Representative ◽  
Origins Research ◽  
Joint Occurrence

ABSTRACTA unique set of events that took place in Puerto Rico during 1918-1919 generated conditions of a “double “quasi-natural experiment. We exploit these conditions to empirically identify effects of exposure to the 1918 flu pandemic, those of the devastation left by an earthquake-tsunami that struck the island in 1918, and those associated with the joint occurrence of these events. We use geographic variation to identify the effects of the quake and timing of birth variation to identify those of the flu. In addition, we use markers of nutritional status gathered in a nationally representative sample of individuals aged 75 and older in 2002. This unique data set enables to make two distinct contributions. First, unlike most fetal-origins research that singles out early nutritional status as a determinant of adult health, we test the hypothesis that the 1918 flu had deleterious effects on the nutritional status on adult survivors who at the time of the flu were in utero or infants. Second, and unlike most research on the effects of the flu, we focus on markers of nutritional status set when the adult survivors were children or adolescents. We find that estimates of effects of the pandemic are sizeable primarily among females and among those who, in addition to the flu, were exposed to the earthquake-tsunami. We argue that these findings constitute empirical evidence supporting the conjecture that effects of the 1918 flu alone and the combined effects of the flu and the earthquake are associated not just with damage experienced during the fetal period but also postnatally.

scholarly journals Microfinance and Vulnerability to Seasonal Famine in a Rural Economy: Evidence from Monga in Bangladesh

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Claudia Berg ◽  
M. Shahe Emran
Keyword(s):  
Food Security ◽  
Rural Economy ◽  
Screening Process ◽  
Data Set ◽  
Estimation Strategy ◽  
Positive Effects ◽  
Unique Data ◽  
Primary Mechanism ◽  
Poor Households ◽  
Microfinance Institution

AbstractThis paper uses a unique data set on 143,000 poor households from Northern Bangladesh to analyze the effects of microfinance membership on a household’s ability to cope with seasonal famine known as Monga. We develop an identification and estimation strategy that exploits a jump and a kink at the 10-decimal land ownership-threshold driven by the Microfinance Institution screening process to ensure repayment by excluding the ultra-poor. Evidence shows that microfinance membership improves food security during Monga, especially for the poorest households who survive at the margin of one and two meals a day. The positive effects on food security are, however, not driven by higher income, as microcredit does not improve the ability to migrate for work, nor does it reduce dependence on distress sale of labor. The evidence is consistent with consumption smoothing being the primary mechanism behind the gains in food security of MFI households during the season of starvation.

scholarly journals Microfinance and Vulnerability to Seasonal Famine in a Rural Economy: Evidence from Monga in Bangladesh

2020 ◽  
Vol 20 (3) ◽  
Author(s):  
Claudia Berg ◽  
M. Shahe Emran
Keyword(s):  
Food Security ◽  
Rural Economy ◽  
Screening Process ◽  
Data Set ◽  
Estimation Strategy ◽  
Positive Effects ◽  
Unique Data ◽  
Primary Mechanism ◽  
Poor Households ◽  
Microfinance Institution

AbstractThis paper uses a unique data set on 143,000 poor households from Northern Bangladesh to analyze the effects of microfinance membership on a household's ability to cope with seasonal famine known as Monga. We develop an identification and estimation strategy that exploits a jump and a kink at the 10 decimal land ownership-threshold driven by the Microfinance Institution (MFI) screening process to ensure repayment by excluding the ultra-poor. Evidence shows that microfinance membership improves food security during Monga, especially for the poorest households who survive at the margin of one and two meals a day. The positive effects on food security are, however, not driven by higher income, as microcredit does not improve the ability to migrate for work, nor does it reduce dependence on distress sale of labor. The evidence is consistent with consumption smoothing being the primary mechanism behind the gains in food security of MFI households during the season of starvation.

How Much Do Consumers Value Fuel Economy and Performance? Evidence from Technology Adoption

2021 ◽  
pp. 1-45
Author(s):  
Benjamin Leard ◽  
Joshua Linn ◽  
Yichen Christy Zhou
Keyword(s):  
Fuel Economy ◽  
Cost Savings ◽  
Data Set ◽  
Fuel Savings ◽  
Unique Data ◽  
Consumer Benefit ◽  
Novel Approach ◽  
High Valuation ◽  
And Performance ◽  
Historical Periods

Abstract During historical periods in which US fuel economy standards were unchanging, automakers increased performance but not fuel economy, contrasting with recent periods of tightening standards and rising fuel economy. This paper evaluates the welfare consequences of automakers forgoing performance increases to raise fuel economy as standards have tightened since 2012. Using a unique data set and a novel approach to account for fuel economy and performance endogeneity, we find undervaluation of fuel cost savings and high valuation of performance. Welfare costs of forgone performance approximately equal expected fuel savings benefits, suggesting approximately zero net private consumer benefit from tightened standards.

scholarly journals The Persistent Effects of Place-Based Policy: Evidence from the West-German Zonenrandgebiet

2018 ◽  
Vol 10 (4) ◽  
pp. 344-374 ◽  
Author(s):  
Maximilian v. Ehrlich ◽  
Tobias Seidel
Keyword(s):  
Economic Activity ◽  
Local Governments ◽  
Natural Experiment ◽  
Public Investment ◽  
Spatial Regression ◽  
Regression Discontinuity Design ◽  
Tax Base ◽  
Agglomeration Externalities ◽  
Land Rents ◽  
Economic Density

Using a natural experiment, we show that temporary place-based subsidies generate persistent effects on economic density. The spatial regression discontinuity design controls for continuous local agglomeration externalities, so we attribute an important role to capital formation in explaining persistent spatial patterns of economic activity. This persistence is driven by higher local public investment levels, which local governments could maintain after the end of the program because of a persistently higher tax base. We also find evidence for significant local relocation of economic activity, which raises doubts that the net effect of the policy is positive. Finally, we show that transfers have capitalized in land rents such that pretreatment landowners have benefited from the program. (JEL H71, H76, O18, R11, R12, R51, R58)

scholarly journals Farm Gate Prices for Non-Varietal Wine in Argentina: A Multilevel Comparison of the Prices Paid by Cooperatives and Investor-Oriented Firms

2017 ◽  
Vol 16 (1) ◽  
Author(s):  
Agustina Malvido Perez Carletti ◽  
Markus Hanisch ◽  
Jens Rommel ◽  
Murray Fulton
Keyword(s):  
Multilevel Regression ◽  
Data Set ◽  
Unique Data ◽  
Market Shares ◽  
Price Effects ◽  
Theoretical Predictions ◽  
The One ◽  
The Cost ◽  
Price Differences ◽  
Multilevel Regression Model

AbstractIn this paper, we use a unique data set of the prices paid to farmers in Argentina for grapes to examine the prices paid by non-varietal wine processing cooperatives and investor-oriented firms (IOFs). Motivated by contrasting theoretical predictions of cooperative price effects generated by the yardstick of competition and property rights theories, we apply a multilevel regression model to identify price differences at the transaction level and the departmental level. On average, farmers selling to cooperatives receive a 3.4 % lower price than farmers selling to IOFs. However, we find cooperatives pay approximately 2.4 % more in departments where cooperatives have larger market shares. We suggest that the inability of cooperatives to pay a price equal to or greater than the one paid by IOFs can be explained by the market structure for non-varietal wine in Argentina. Specifically, there is evidence that cooperative members differ from other farmers in terms of size, assets and the cost of accessing the market. We conclude that the analysis of cooperative pricing cannot solely focus on the price differential between cooperatives and IOFs, but instead must consider other factors that are important to the members.

scholarly journals Awards

2008 ◽  
Vol 216 (4) ◽  
pp. 198-208 ◽  
Author(s):  
Bruno S. Frey ◽  
Susanne Neckermann
Keyword(s):  
Unique Combination ◽  
Data Set ◽  
For Profit ◽  
Unique Data ◽  
Private Organizations ◽  
Not For Profit ◽  
Nonmonetary Rewards ◽  
Scientific Attention ◽  
Vignette Experiment

Awards in the form of orders, decorations, prizes, and titles are ubiquitous in monarchies and republics, private organizations, not-for-profit, and profit-oriented firms. This paper argues that awards present a unique combination of different stimuli and that they are distinct and unlike other monetary and nonmonetary rewards. Despite their relevance in all areas of life, awards have not received much scientific attention. Employing a unique data set, we demonstrate that there are substantial differences in the frequency of awards across countries. Moreover, we present the results of a vignette experiment that quantifies and isolates the effects of different award characteristics such as the publicity associated with winning an award.

scholarly journals An Economic Examination of Collateralization in Different Financial Markets

2019 ◽  
Author(s):  
Tim Xiao
Keyword(s):  
Risk Factors ◽  
Credit Risk ◽  
Financial Markets ◽  
Counterparty Risk ◽  
Financial Contracts ◽  
Theoretical Justification ◽  
Data Set ◽  
Unique Data ◽  
Economic Significance ◽  
The Difference

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets.

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