scholarly journals The economic consequences of Covid in Spain and how to deal with them

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Angel de la Fuente
Keyword(s):  
Economic Impact ◽  
Design Methodology ◽  
Economic Consequences ◽  
Content Type ◽  
Policy Strategy ◽  
Severe Effect ◽  
Long Run

Purpose This paper aims to review the economic impact of Covid in Spain and propose policies to deal with them. Design/methodology/approach Not relevant. Findings The pandemic is having a very severe effect, which varies across sectors and regions. Given the severity of the problem, a comprehensive policy strategy is needed. Specific proposals about such a strategy are made, distinguishing between the short and the long run. Originality/value You tell me.

scholarly journals Economic fluctuations and crime: temporary and persistent effects

2016 ◽  
Vol 43 (4) ◽  
pp. 609-623 ◽  
Author(s):  
Keith Bender ◽  
Ioannis Theodossiou
Keyword(s):  
Design Methodology ◽  
Economic Fluctuations ◽  
Strong Positive Correlation ◽  
Dynamic Interactions ◽  
Content Type ◽  
Persistent Effect ◽  
Long Run ◽  
Unemployment And Crime ◽  
Ambiguous Effect ◽  
Almost All

Purpose Since the literature on the effect of the unemployment rate as reflection of economic fluctuations on crime shows an empirically ambiguous effect, the purpose of this paper is to argue that a new way of modeling the dynamics of unemployment and crime by focussing on the transitory and persistent effect of unemployment on crime helps resolve this ambiguity. Design/methodology/approach Panel data for US states from 1965 to 2006 are examined using the Mundlak (1978) methodology to incorporate the dynamic interactions between crime and unemployment into the estimation. Findings After decomposing the unemployment effect on crime into a transitory and persistent effect, evidence of a strong positive correlation between unemployment and almost all types of crime rates is unearthed. This evidence is robust to endogeneity and the controlling for cross-panel correlation and indicators for state imprisonment. Originality/value The paper is the first to examine the dynamics of the interaction of crime and economic fluctuations using the temporary and persistent effects framework of Mundlak (1978). In one set of estimates, one can evaluation both the short- and long-run effects of changes of unemployment on crime.

Tax aggressiveness and sustainable welfare: the roles of corruption and tax allocation inefficiency

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Astrid Rudyanto ◽  
Sidharta Utama ◽  
Dwi Martani ◽  
Desi Adhariani
Keyword(s):  
Public Choice ◽  
Design Methodology ◽  
Empirical Studies ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Long Run ◽  
Sustainability Issue ◽  
Private Investments ◽  
Positive Effect ◽  
Practical Implications

Purpose This paper aims to investigate the roles of corruption and tax allocation inefficiency in moderating the effect of tax aggressiveness on sustainable welfare. Design/methodology/approach This research uses a fixed-effect multiple regression analysis for 55,438 firm-year observations covering 22 countries from 2007 to 2017. Findings For less (more) tax-aggressive observations, corruption and tax allocation inefficiency strengthen the negative (positive) effect of tax aggressiveness on sustainable welfare. The results are in line with public choice and functionalism theories that suggest that private investments can increase welfare when governments are dysfunctional. Practical implications This paper shows that the effect of tax aggressiveness on sustainable welfare depends on tax aggressiveness, corruption and tax allocation inefficiency. Social implications This paper implies that governments should reduce their corruption levels and increase tax allocation efficiency because private investments are ineffective in the long run. Originality/value Because of increasing awareness of sustainability issue, sustainable welfare is considered more relevant than traditional welfare. Hence, empirical studies on the effect of tax aggressiveness on sustainable welfare are crucial. This paper adds the literature by combining public choice and functionalism theories to investigate the moderating roles of corruption and tax allocation inefficiency in this issue.

scholarly journals On the predictability of economic structural change by the Poincaré–Bendixson theory

foresight ◽  
2019 ◽  
Vol 21 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Denis Stijepic
Keyword(s):  
Structural Change ◽  
Design Methodology ◽  
Economic Structure ◽  
Content Type ◽  
Geometrical Properties ◽  
Modeling Methods ◽  
Modeling And Prediction ◽  
Long Run ◽  
Topological Modeling

Purpose The three-sector framework (relating to agriculture, manufacturing and services) is one of the major concepts for studying the long-run change of the economic structure. This paper aims to discuss the system-theoretical classification of the structural change in the three-sector framework and, in particular, its predictability by the Poincaré–Bendixson theory. Design/methodology/approach This study compares the assumptions of the Poincaré–Bendixson theory to the typical axioms of structural change modeling, the empirical evidence on the geometrical properties of structural change trajectories and the methodological arguments referring to the laws of structural change. Findings The findings support the assumption that the structural change phenomenon is representable by a dynamical system that is predictable by the Poincaré–Bendixson theory. This result implies, among others, that in the long run, structural change is either transitory or cyclical and can be used in further geometrical/topological long-run structural change modeling and prediction. Originality/value Although widespread in mathematics, geometrical/topological modeling methods have not been used in modeling and prediction of long-run structural change, despite the fact that they seem to be predestined for this purpose owing to their global, system-theoretical nature, allowing for a reduction of ideology content of predictions and greater robustness of results.

Corporate diversification

2018 ◽  
Vol 17 (3) ◽  
pp. 405-424 ◽  
Author(s):  
Garrett C.C. Smith ◽  
Jeffrey M. Coy
Keyword(s):  
Design Methodology ◽  
Negative Relationship ◽  
Corporate Diversification ◽  
Diversification Discount ◽  
Firm Level ◽  
Content Type ◽  
Long Run ◽  
Fundamental Value ◽  
Diversified Firms ◽  
Investor Preference

Purpose The purpose of this study is to compare two theories that relate the proportion of diversified firms in the economy and the implied discount for diversified firms: the first is a real-options model predicting a positive relationship between the discount and management’s choice to operate a diversified firm; the second is based on catering theory, in which a negative relationship is predicted, as management is attentive to investor preference concerning diversified firms. Design/methodology/approach This study proposes a new aggregate measure of the diversification discount. The authors’ measure allows for decomposition of the discount into firm-level mispricing, industry-level mispricing and long-run fundamental value components. Findings Results support a catering theory of diversification. The discount appears to be the result of firm-level mispricing. Thus, providing an explanation for why, in light of the observed discount, a large number of diversified firms persist. Originality/value To the authors’ knowledge, this is the first study to provide evidence that firm-level mispricing may drive the observed diversification discount.

scholarly journals Contra trading in Bursa Malaysia Securities Berhad: a Sharīʿah and legal appraisal

2017 ◽  
Vol 9 (2) ◽  
pp. 200-204 ◽  
Author(s):  
Noor Suhaida Kasri ◽  
Burhanuddin Lukman
Keyword(s):  
Design Methodology ◽  
Common Law ◽  
Critical Examination ◽  
Quantitative Investigation ◽  
Content Type ◽  
The Public ◽  
Research Areas ◽  
Legal Literature ◽  
Long Run ◽  
Qualitative Research Methodology

Purpose The purpose of this paper is to analyze the practice of contra trading in Bursa Malaysia Securities Berhad. Through a critical examination of the practice, it aims to discuss the issues from the angles of Sharīʿah and Malaysian common law. Design/methodology/approach The paper uses a qualitative research methodology. The information on the practice of contra trading is obtained through the Bursa Malaysia Securities Berhad’s website and literature as well as series of meetings and discussions held with Bursa Malaysia Securities Berhad. In comprehending and dissecting the Sharīʿah and legal issues, classical along with contemporary Sharīʿah literature including local and international Sharīʿah advisory bodies’ resolutions and standards have been referred to. The Sharīʿah analysis of these issues is further supported by reference to the statute and by-laws of Bursa Malaysia Securities Berhad as well as other related legal literature. Findings This paper finds that contra trading involves a real sale and purchase of shares; the shares are not taken into the possession of the contra trader, neither physically nor constructively; the liability of shares is not transferred to the contra trader; though the practice of profiting in contra trading may contradict the prohibition on profiting without bearing liability, the permissibility of contra trading could still be argued from the contextual approach of public interest (maṣlaḥah) and needs (hājah); and contra trading is not gambling. Research limitations/implications This paper is limited in its analysis to only Sharīʿah and legal perspectives. It does not cover a thorough empirical and quantitative investigation that would measure the extent of the public needs for contra trading and the real benefits that contra trading brings about to the society in the long run. Such studies will further demonstrate whether contra trading deserves a relaxation from the strict Sharīʿah ruling thus affirming the issue of permissibility of contra trading. Moving forward, this paper recommends ways to address the predicaments faced in the contra trading practices as well important research areas that could be taken up in future. Originality/value This paper provides an in-depth investigation of the practice of contra trading at the Bursa Malaysia Securities Berhad from the angles of Sharīʿah and common law.

Phillips curve and long-run inflation under commitment

2020 ◽  
Vol 47 (1) ◽  
pp. 21-35
Author(s):  
Dario Pontiggia
Keyword(s):  
Steady State ◽  
Design Methodology ◽  
Inflation Rate ◽  
Phillips Curve ◽  
Monetary Authority ◽  
New Keynesian ◽  
Content Type ◽  
Rule Of Thumb ◽  
Long Run ◽  
Forward Looking

PurposeThe purpose of this paper is to study the optimal long-run rate of inflation in the presence of a hybrid Phillips curve, which nests a purely backward-looking Phillips curve and the purely forward-looking New Keynesian Phillips curve (NKPC) as special limiting cases.Design/methodology/approachThis paper derives the long-run rate of inflation in a basic New Keynesian (NK) model, characterized by sticky prices and rule-of-thumb behavior by price setters. The monetary authority possesses commitment and its objective function stems from an approximation to the utility of the representative household.FindingsCommitment solution for the monetary authority leads to steady-state outcomes in which inflation, albeit small, is positive. Rising from zero under the purely forward-looking NKPC, the optimal long-run rate of inflation reaches its maximum under the purely backward-looking Phillips curve. In this case, inflation bias arises, while, under the hybrid Phillips curve, positive long-run inflation is associated with an output gain.Research limitations/implicationsThis paper serves as a clarification against the misperception that log-linearized models take as given the steady-state inflation rate rather than being capable of determining it. Analysis is sensitive to the basic NK setting, with the assumed rule-of-thumb behavior by price setters and price staggering.Originality/valueThe results are the first to quantify the optimal long-run rate of inflation in a fully microfounded model that nests different Phillips curves.

Markets need morality: perspectives from Islam, Christianity, and China

2019 ◽  
Vol 36 (1) ◽  
pp. 73-86
Author(s):  
Jonathan Edward Leightner
Keyword(s):  
Economic Theory ◽  
Design Methodology ◽  
Social Implications ◽  
Religious Institutions ◽  
Ethical Theories ◽  
Content Type ◽  
Long Run ◽  
The World ◽  
Islam And Christianity ◽  
Practical Implications

Purpose This paper aims to argue that markets need a foundation of morality to promote the long-run success of an economy. Design/methodology/approach Three types of ethical theories are discussed and compared with what the sacred scriptures of Islam and Christianity say and with what economic theory says. Examples from China are provided. Findings Markets need morality. Research limitations/implications There are more religions in the world than just Islam and Christianity; however, space limitations force me to only consider those two religions. Furthermore, there are more countries in the world than just China. However, space limitations force me to only pull examples from China. Practical implications Economists should recognize that markets need morality, and they should start teaching that to their students. Social implications If markets are built on a foundation of ethics, then society prospers. In the absence of that foundation, societies falter. When a government, business and religious institutions see each other as complementary forces, then ethics can evolve. Originality/value The author knows of no other studies that explain the three types of ethical theories, compares those theories to what the sacred scriptures of Islam and Christianity say and to what economic theory says, and then uses examples from China to illustrate the need for morality.

scholarly journals The long run relationship between fish production, marine trade balance and foreign direct investment

2020 ◽  
Vol 5 (3) ◽  
pp. 271-280
Author(s):  
Naseem H. Jamei ◽  
Mira Nurmakhanova ◽  
Shahbaz Mustafa ◽  
Alloysius Egbulonu ◽  
Wagdi Hadidan
Keyword(s):  
Foreign Direct Investment ◽  
Trade Balance ◽  
Direct Investment ◽  
Design Methodology ◽  
Fish Production ◽  
Content Type ◽  
Gulf Countries ◽  
Long Run ◽  
Short Run ◽  
The Impact

Purpose This paper aims to focus on testing the long-run relationship between fish production and two main variables, the foreign direct investment inflow and the marine trade balance in Oman, which is one of the Arab Gulf countries, during the period 1985-2016. Design/methodology/approach This study uses what known as the two-step Engle–Granger cointegration test to give evidence for the long-run relationship among the variables. Findings The results show that there are a negative long- and short-run relations between fish production and marine trade balance; moreover, any shocks will be corrected within two periods at the most.  Originality/value This study is one of few studies in using the econometric models to study the impact of fish production on marine trade balance and foreign direct investment.

Abnormal investment, changes in institutional ownership, and SEO long-run performance

2017 ◽  
Vol 43 (8) ◽  
pp. 842-864 ◽  
Author(s):  
Weiju Young ◽  
Ching-Chih Wu
Keyword(s):  
Design Methodology ◽  
Institutional Ownership ◽  
Seasoned Equity Offerings ◽  
Good Growth ◽  
Quadratic Relation ◽  
Equity Offerings ◽  
Managerial Incentive ◽  
Content Type ◽  
Empire Building ◽  
Long Run

Purpose The purpose of this paper is to investigate that how firms’ pre-issue investment levels and changes in institutional ownership (IO) affect their long-run performance after seasoned equity offerings (SEOs). Design/methodology/approach The authors use Richardson’s (2006) method to measure firms’ pre-issue investment levels and then divide the SEO firms into the under-, normal-, and overinvesting groups. The study examines the relation between the pre-issue abnormal investment and long-run post-issue performance. In addition, the authors examine whether changes in IO around SEOs affects SEO firms’ performance. Findings The authors find a quadratic relation between the pre-issue abnormal investment and the long-run post-issue performance. In other words, the underinvesting and overinvesting groups tend to underperform. The authors also find that changes in IO around SEOs positively associate with firms’ long-run performance. Research limitations/implications The authors ascribe the underperformance of underinvesting firms to the deficiency of good growth opportunities; for overinvesting firms, the authors link to the misalignment problem of managerial incentive (i.e. empire building). Originality/value The results suggest that long-run investors should be cautious of buying new-issue shares of underinvesting and overinvesting firms, especially those with insignificant increases in IO.

The effect of social spending on reducing poverty

2017 ◽  
Vol 44 (5) ◽  
pp. 620-632
Author(s):  
Ferdi Celikay ◽  
Erdal Gumus
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
Negative Relationship ◽  
Social Spending ◽  
Social Expenditure ◽  
Education Expenditure ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Purpose The purpose of this paper is to provide new empirical evidence on the relationship between social expenditure and poverty in Turkey. Design/methodology/approach There are voluminous studies in the literature and many of which contain condradictory results. The authors use panel error correction models and employ Turkish statistical territorial units data (26 regions) covering the period 2004-2011 in the analysis. Findings The authors have found that in the short run, there is a negative relationship between social expenditure and poverty, as expected. In the long run, however, there exists a positive relation between them. The authors utilize expenditure on education as one component of social expenditure, and the authors obtain a negative relationship between education expenditure and poverty, both in the short run and in the long run. Social implications Poverty is an important social problem that more studies on this subject should examine various aspects and find policies to alleviate it. Originality/value Literature on poverty and social spending are growing and their results are contradictory. However, this paper clearly and significantly provides new empirical evidence on the effect of social spending on reducing poverty using Turkish data. This kind of study is hardly found for developing countries like Turkey. It contributes to the literature.

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