On inequality, growth and trust: some evidence from the lab

2021 ◽  
pp. 1-16
Author(s):  
Marcello D'Amato ◽  
Niall O'Higgins ◽  
Marco Stimolo
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Experimental Design ◽  
Observational Studies ◽  
Initial Endowment ◽  
Order Of Magnitude ◽  
Aggregate Effects ◽  
The Impact ◽  
The Relationship

Abstract In a novel experimental design, we investigate the impact of exogenous variation in economic growth and inequality on trusting behaviour. In addition to a control with uniform endowment, three treatments were implemented where the initial endowment is exogenously changed to produce inequality and three growth scenarios where average endowments increase (boom), decrease (recession) or remain unaltered (steady state). We find that aggregate trust and trustworthiness both decrease due to the induced heterogeneity in endowments. Also, trust (but not trustworthiness) decreases (increases) due to recessions (booms). The impact of inequality on trust is greatest in a recession and absent in a boom. These aggregate effects are driven mainly by the reactions of those who, after treatment, end up at the bottom of the endowment distribution. These findings are close in sign and in the order of magnitude to those reported in observational studies on the relationship between growth, inequality and trust.

Pound Wise and Penny Foolish? Weight Loss and The Dynamics of Health Care Spending

2011 ◽  
Vol 14 (2) ◽  
Author(s):  
Thomas G Koch
Keyword(s):  
Weight Loss ◽  
Cost Savings ◽  
Cost Effective ◽  
Economic Consequences ◽  
Health Care Spending ◽  
Order Of Magnitude ◽  
Dynamic Measures ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Current estimates of obesity costs ignore the impact of future weight loss and gain, and may either over or underestimate economic consequences of weight loss. In light of this, I construct static and dynamic measures of medical costs associated with body mass index (BMI), to be balanced against the cost of one-time interventions. This study finds that ignoring the implications of weight loss and gain over time overstates the medical-cost savings of such interventions by an order of magnitude. When the relationship between spending and age is allowed to vary, weight-loss attempts appear to be cost-effective starting and ending with middle age. Some interventions recently proven to decrease weight may also be cost-effective.

scholarly journals The Relationship between Economic Growth and Pollution in Some New European Union Member States: A Dynamic Panel ARDL Approach

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2363
Author(s):  
Mihaela Simionescu ◽  
Carmen Beatrice Păuna ◽  
Mihaela-Daniela Vornicescu Niculescu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Ghg Emissions ◽  
Kuznets Curve ◽  
Renewable Energy Consumption ◽  
Panel Ardl ◽  
Domestic Credit ◽  
The Impact ◽  
The Relationship

Considering the necessity of achieving economic development by keeping the quality of the environment, the aim of this paper is to study the impact of economic growth on GHG emissions in a sample of Central and Eastern European (CEE) countries (V4 countries, Bulgaria and Romania) in the period of 1996–2019. In the context of dynamic ARDL panel and environmental Kuznets curve (EKC), the relationship between GHG and GDP is N-shaped. A U-shaped relationship was obtained in the renewable Kuznets curve (RKC). Energy consumption, domestic credit to the private sector, and labor productivity contribute to pollution, while renewable energy consumption reduces the GHG emissions. However, more efforts are required for promoting renewable energy in the analyzed countries.

The Impact of Rural Finance on Rural Economic Development from the Perspective of Efficiency of Discrete Differential Algorithm

2021 ◽  
Vol 7 (5) ◽  
pp. 4358-4365
Author(s):  
Mingxu Peng ◽  
Jiawen Huang
Keyword(s):  
Economic Growth ◽  
Rural Economy ◽  
Choice Model ◽  
Influence Factors ◽  
Maximum Flow ◽  
Pso Algorithm ◽  
Significant Degree ◽  
Theoretical Research ◽  
The Impact ◽  
The Relationship

Objectives: Finance is the core of the national economy. The development of modern rural economy is inseparable from financial support. The relationship between finance and economic growth has always been one of the hot topics in theoretical research and empirical analysis. Methods: Under the background of the development of Internet e-commerce, the maximum flow algorithm was based on the empirical research on the relationship between China’s financial development and economic growth. Results: Based on this, the two-element discrete choice model of Probit and Logistic for economic growth was constructed. Discrete particle swarm optimization (PSO) algorithm was used to estimate the parameters of the model. The significant degree of the influence factors was calculated. Conclusion: Finally, it was calculated that concurrent business was the decisive factor of economic growth.

ISSUES OF THE RELATIONSHIP BETWEEN THE STATE BUDGET AND ECONOMIC GROWTH IN UZBEKISTAN

2021 ◽  
Vol 4 (7) ◽  
pp. 4-19
Author(s):  
Akmal Baltayevich Allakuliev ◽  
Keyword(s):  
Economic Growth ◽  
The State ◽  
Rate Of Return ◽  
State Budget ◽  
Macroeconomic Shocks ◽  
Dynamic Correlations ◽  
Short And Long Term ◽  
The Impact ◽  
The Relationship

The article examines the interaction of the country's GDP with the state budget in the short and long term, the impact of the macro-fiscal mechanism on the country's economic growth on the example of Uzbekistan.The aim of the study is to identify dynamic correlations between the country's state budget expenditures and the economic growth of the macro-fiscal mechanism in the short and long term, as well as to analyze the approximation or rate of return of GDP and the state budget to equilibrium during various macroeconomic shocks. and hesitation.The scientific novelties of the research are:

scholarly journals Informality and Economic Growth in Nigeria: 1980-2014

2017 ◽  
Vol 3 (3) ◽  
pp. 405 ◽  
Author(s):  
Mohammed Yelwa ◽  
A. J. Adam
Keyword(s):  
Economic Growth ◽  
Informal Sector ◽  
Informal Economy ◽  
Data Series ◽  
Formal Sector ◽  
Female Population ◽  
Demand Deposit ◽  
The Impact ◽  
Adf Test ◽  
The Relationship

<p><em>The paper examines the impact of informal sector activities on economic growth in Nigeria between 1980-2014. The contributions of informal sector activities to the growth of Nigerian economy cannot be over emphasized. It is the source of livelihood to the majority of poor, unskilled, socially marginalized and female population and is the vital means of survival for the people in the country lacking proper safety nets and unemployment insurance especially those lacking skills from formal sector jobs. The relationship between informality and economic growth is not clear because the sector is not regulated by the law also there is no concrete evidence that this sector enhances growth because the sector’s contributions to growth is not measured. The use of endogenous growth model becomes relevant in this study. The theory emphasizes the role of production on the long-run via a higher rate of technological innovation. The variables that were tested are official economy nominal GDP, informal economy nominal GDP, currency in circulation, demand deposit, ratio of currency in circulation to demand deposit, narrow money, informal economy as percentage of official economy. ADF test was conducted to establish that the data series of all variables are stationary t levels. Having established the stationarity test we also, conducted causality test of the response of official economy nominal GDP to informal economy nominal GDP. In conclusion, the impact of informal sector economy on economic growth in Nigeria is quiet commendable. Even though, the relationship between informality and economic growth is not straight. The paper recommended thus, the need for the government to integrate the activities of the informal economy into formal sector and size of the sector is measured and regulated because their roles are commendable. As it will improve tax collection and enhance fiscal policy.</em></p>

scholarly journals Moderating Effect of Political Instability on ICT and Economic Growth Nexus in Kenya: ARDL Bound - Co-Integration Approach

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Matundura Erickson ◽  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Moderating Effect ◽  
High Interest ◽  
Long Run ◽  
The Government ◽  
The Impact ◽  
Adf Test ◽  
The Relationship

The government has attempted to target specific macroeconomic factors in order to stimulate economic growth in Kenya through monetary and fiscal policies. Despite these efforts, Kenya's GDP growth is hampered by high interest rates and high interest rate volatility. Kenya's ability to address macroeconomic instability hinges on its ability to increase economic growth. Auxiliary evidence shows that perspectives on the relationship between ICT and economic growth are segmented. The goal of this study was to determine the impact of ICT on economic growth in Kenya, as well as the moderating effect of political instability on the relationship. The research was based on Solow's theory of growth. An explanatory research design was used, with data spanning from 1990-2020 obtained from Kenya Bureau of Statistics. In the empirical analysis, the study used the bound test to test for a long-run relationship and the Autoregressive Distributed Lag model (ARDL) to evaluate the relationship between the variables. The data was subjected to an Augmented Dickey Fuller (ADF) test to determine stationarity.The long run ARDL results indicated that the coefficients of; ICT rate were insignificant . However with the introduction of political instability as the moderator ICT was significant and positively affected economic growth. Political instability moderated the relationship between ICT ( and economic growth. As a result, promoting effective governance should help to improve political stability. The findings of this study will help the government figure out how to address the problem of low economic growth. According to the study, the government should invest in the ICT sector to improve its accessibility and affordability. Additionally, the government should work to improve political stability and good governance by gradually establishing institutions that uphold the rule of law and provide security.

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

scholarly journals Modeling the Impact of Inflation Uncertainty on Food Sector Growth

2020 ◽  
Author(s):  
Mohammad Reza Eslami ◽  
Ali Akbar Baghestany
Keyword(s):  
Economic Growth ◽  
Policy Decision ◽  
Macroeconomic Policies ◽  
Inflation Uncertainty ◽  
Causality Test ◽  
Agricultural Growth ◽  
Growth Variability ◽  
Augmented Dickey Fuller ◽  
The Impact ◽  
The Relationship

Background: One of the most fundamental objectives of the macroeconomic policies is to realize the relationship between economic growth and inflation. According to some monetary policy advisors, inflation reflects erosion in consumer’s purchasing power. Inflation as an important economic variable, affect the economic growth and its impact on economic growth has been proposed in various theories. Agriculture plays an important role in providing the food security in Iran. Methods: A Bivariate GARCH model was employed to investigate the relationship between inflation uncertainty and agricultural growth. Results: The Augmented Dickey Fuller and Phillips Perron tests indicated all variables were stationary. Estimated models were utilized to generate the conditional variances of inflation and agriculture growth as proxies of inflation and growth variability. During the entire period 1990-2012, Bivariate Granger Causality test indicated that inflation uncertainty was the cause of growth in agriculture. This finding was in line with the hypothesis presented by (Logue and Sweeney, 1981). Conclusion: Due to the causality relation of inflation uncertainty and growth in agriculture, macro policy decision-makers are recommended to consider the price policies for improving agricultural production.

scholarly journals The Impact of the Interaction of Financial and Industrial Structure on Economic Growth – Evidence from China

2021 ◽  
Vol 251 ◽  
pp. 01101
Author(s):  
Yiqian Tan ◽  
Fan Jiang
Keyword(s):  
Economic Growth ◽  
Industrial Structure ◽  
Financial Structure ◽  
Growth Speed ◽  
Matching Effect ◽  
Industrial Upgrading ◽  
Slowing Down ◽  
Using Data ◽  
The Impact ◽  
The Relationship

In recent years, China’s economic growth speed has been slowing down, leading to the problems of overcapacity and unbalanced regional economic development, and the mismatch between industrial and financial structure is becoming intense. This paper, starting with the relationship among economic growth, industrial structure and financial structure, summarizes the research by the former scholars. On this basis, by using data of 31 provincial panel data in China from 2007 to 2016, the article aims to find out the relationship between the industrial structure and economic growth, the relationship between the financial structure and economic growth and the relationship between the interaction of financial and industrial structure and economic growth. Finally, the conclusions of this paper are obtained that the interaction between the financial structure and the industrial structure can promote the economic growth significantly. However, the matching effect of the financial structure and industrial structure in China has not been completely formed, and the industrial upgrading should be guided to be structurally reformed through the policy.

The mediating effects of program loyalty in loyalty rewards programs: an experimental design in coffee shops

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pınar Başgöze ◽  
Yaprak Atay ◽  
Selin Metin Camgöz ◽  
Lydia Hanks
Keyword(s):  
Experimental Design ◽  
Customer Loyalty ◽  
Perceived Value ◽  
Deep Understanding ◽  
Loyalty Program ◽  
Content Type ◽  
Value Perception ◽  
Study Results ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to evaluate the impact of reward structure on the customer's value perception of the program, loyalty to the program and loyalty to the firm.Design/methodology/approachA 2 (type of reward) x 2 (timing of redemption) between subjects experimental design was conducted. In addition, the indirect effect of the customer's value perception of the program on loyalty to the firm via loyalty to the program is tested with Hayes and Preacher's mediation procedure.FindingsStudy results indicated that type of reward has a positive impact on the perceived value of a loyalty program. Program loyalty mediates the relationship between the perceived value of the loyalty program and customer loyalty, as well as the relationship between type of reward and customer loyalty.Originality/valueThe findings of this study demonstrate the importance of the type and timing of loyalty program rewards on customer perceptions of the value of the loyalty program. In addition, this study is a step forward in providing a deep understanding of the impact of such perceptions on loyalty. These findings fill a number of research gaps and provide tangible guidance for practitioners.

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