Crowding out agricultural insurance and the subsidy system in Italy: empirical evidence of the charity hazard phenomenon

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pier Paolo Miglietta ◽  
Donatella Porrini ◽  
Giulio Fusco ◽  
Fabian Capitanio
Keyword(s):  
Scientific Progress ◽  
Annual Data ◽  
Crowding Out ◽  
Insurance Policy ◽  
Agricultural Insurance ◽  
Content Type ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Time Period ◽  
Italian Regions

PurposeThe term “charity hazard” refers to the issue of the crowding out of insurance by co-existing relief programs in the context of different institutional governmental disaster schemes. In this context, the aim of this paper is to verify if the charity hazard phenomenon exists in the Italian agricultural insurance scheme.Design/methodology/approachAnnual data regarding crop insurance, subsidies and farm structure were extracted from ISMEA, ISTAT and FADN databases. A SYS-GMM dynamic panel model was estimated, considering the 2010–2017 time period and the Italian Regions as units of the analysis.FindingsThe empirical results highlight a negative relation between crop subsidies and the farmers' policies and total premium paid. The disincentive and crowd-out effects of public aid and subsidies on the choice of whether or not to take out an agricultural insurance policy ends up being one of the key factors for the low level of penetration of the agricultural insurance in Italy.Practical implicationsSince the diffusion of agricultural insurance can contribute to the general objective of sustainability and resilience, the implementation of alternative solutions to subsidies could be needed (e.g. the introduction of mandatory insurance against adversities or financial support for a geographically specific insurance tool).Originality/valueInvestigating empirically the determinants of the agricultural insurance policy diffusion among the Italian Regions, this study ensures an original contribution to the scientific progress in the field, demonstrating the existence of charity hazard caused by the public subsidies provision.

Determinants of money laundering: evidence from Italian regions

2018 ◽  
Vol 21 (3) ◽  
pp. 402-413 ◽  
Author(s):  
Filippo Reganati ◽  
Maria Oliva
Keyword(s):  
Money Laundering ◽  
Crime Rate ◽  
Negative Relationship ◽  
Central Area ◽  
Generalized Least Squares ◽  
Annual Data ◽  
Economics Of Crime ◽  
Content Type ◽  
Italian Regions ◽  
Criminal Behaviors

Purpose The main purpose of this paper is to analyze the determinants of money laundering in Italy. Given the high heterogeneity in terms of economic, social and institutional characteristics, Italy is a compelling case study. Design/methodology/approach By using annual data over the period 2008 to 2013, the authors estimate a balanced panel data linear model using feasible generalized least squares. Following the main literature on the economics of crime, the authors regress the crime rate in each region-year against a set of determinants that include socio-economic, enforcement and crime-specific factors. Findings The authors’ findings reveal that, in most Italian regions, enforcement activities do exert significant deterrence on criminal behaviors: and a negative relationship between enforcement and money laundering can be identified only when there are high levels of enforcement efforts. Moreover, the authors find that the major determinants influencing the rate of money laundering differ between northern, central and southern regions, confirming the existence of regional dualism. In particular, the crime rate in the northern and central area is positively related to the level of corruption and the incidence of mafia-type crimes and negatively related to educational attainment, whereas in the southern regions, money laundering is positively related to the size of the gaming and gambling sector. Originality/value The present paper contributes to the extant literature on the economics of crime in several ways. First, it explicitly analyzes a specific type of financial crime, which presents the higher degree of sanctioning regime in the Italian legislation. Second, Italy offers an important country study because of the forceful presence of mafia clans and organized crime systems operating in the illegal market.

Does foreign aid help alleviate income inequality? New evidence from African countries

2019 ◽  
Vol 46 (4) ◽  
pp. 549-561
Author(s):  
Moheddine Younsi ◽  
Hasna Khemili ◽  
Marwa Bechtini
Keyword(s):  
Income Inequality ◽  
Foreign Aid ◽  
Trade Openness ◽  
African Countries ◽  
Critical Question ◽  
System Gmm ◽  
Content Type ◽  
Dynamic Panel Model ◽  
Time Period ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between foreign aid and income inequality (IIQ) reduction for 16 African countries using unbalanced panel data covering the period 1990–2011. This paper attempts to answer the critical question: does foreign aid lead to IIQ reduction? Design/methodology/approach To examine the effect of foreign aid on IIQ, this paper uses an RE model with robust OLS regression and system-GMM estimator, which are useful in dealing with the endogeneity problems. Findings Results of RE model indicate that foreign aid, foreign direct investment, trade openness as well as corruption have a positive and statistically significant effect on IIQ. Government spending and inflation have a negative and statistically significant effect on IIQ, while GDP per capita growth has a negative but statistically insignificant relationship with IIQ. The results are robust by using system-GMM dynamic panel model which confirms that the coefficients of all considered variables remain same sign and significance. Research limitations/implications This study implies that an increase in foreign aid is associated with an increase in IIQ. As an effective strategy to foreign aid, this paper suggests that improving of financial sector development, and institutional quality and policies can reduce income inequalities and stimulate economic growth. Originality/value This paper is the first of its kind to empirically explore the relationship between IIQ and foreign aid measured here by net aid transfers as a share of GDP in African countries, using modern econometric techniques, time period and a variety of control variables.

Relationship between crime and economic affluence in India: an empirical study from 1982 to 2013

2017 ◽  
Vol 3 (1) ◽  
pp. 27-37 ◽  
Author(s):  
Avijit Debnath ◽  
Sujoy Das
Keyword(s):  
Design Methodology ◽  
Unit Root Test ◽  
Least Square ◽  
Annual Data ◽  
Content Type ◽  
Long Run ◽  
Time Period ◽  
Short Run ◽  
The Relationship ◽  
Analyze Data

Purpose There have been limited studies which investigate the interlinkage between crime and economic affluence. The purpose of this paper is to investigate the linkage between crime and economic affluence in India. Design/methodology/approach The study is based on annual data spans over the time period 1982-2013. Standard econometric tools like unit root test, co-integration and two stage least square technique have been used to analyze data and to draw inferences. Findings The study finds that crime and economic affluence are interlinked in India. However, the nature of the linkage is not uniform over the time span. It is observed that economic affluence affects violent crime positively in the long run, but crime effects affluence negatively. In the short run, however, the relationship between crime and economic affluence is observed to be reversed. Originality/value This study is first of its nature to investigate the bi-directional linkage between crime and economic affluence in India. This study helps us to understand that controlling the crime rate is the urgent need of the hour to alleviate the pace of long run economic affluence in India.

Changes of base-year and Indian GDP growth: an agnostic look

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manisha Chakrabarty ◽  
Partha Ray
Keyword(s):  
Growth Rates ◽  
Fixed Time ◽  
Gdp Growth ◽  
Annual Data ◽  
True Nature ◽  
Content Type ◽  
Growth Series ◽  
Time Period ◽  
Data Generating Process ◽  
A Chain

Purpose World over, change of base year in the gross domestic product (GDP) is a standard practice of GDP estimation. However, unless a consistent series of GDP is released with respect to the new base for the earlier period, the existence of multiple growth rates creates problems for applied researchers, policymakers and the general public alike. Faced with such a menu of GDP series researchers often try to interpolate a consistent series of GDP. The main purpose of this paper is to analyses the nature of the data generating process of such multiple interpolated series of quarterly growth rates and tries to discern the consistency of such processes. Design/methodology/approach The present paper tries to look into the statistical implications and complications of such interpolated quarterly GDP/growth series in India in terms of three series of GDP, namely, with 1999–2000, 2004–2005 and 2011–2012 as its bases. Findings The analysis reveals that as a result of a change of base year, the nature of the data generating process of the old and new GDP series could undergo changes and experience different breakpoints. While all these conclusions seem to be valid for GDP growth at quarterly intervals, taking the data at annual frequency is less problematic. Practical implications The observation suggests that in most applied work, researchers may not have the luxury of only working with annual data and certain consistency checks will be necessary to check the veracity of the results based on quarterly data with those based on annual data. Second, moving forward it may be useful for the Authorities to make a transition to a chain-based linking method rather than fixed time-period-based bases as is currently done. Originality/value The analysis of Indian GDP in this paper is, perhaps, indicative of the fact that usage of quarterly GDP data is to be handled with caution and it is preferable that any serious empirical analysis uses annual GDP data whenever it is available/feasible. The comparison of GDP growth rates at different frequencies and examining the true nature of the process are quite unique in their contribution towards empirical macroeconomic research.

scholarly journals Accommodation Capacity, Trade Openness and International Tourism Demand in Croatia

Tourism ◽  
2021 ◽  
Vol 70 (1) ◽  
pp. 28-42
Author(s):  
Nataša Erjavec ◽  
Kristina Devčić
Keyword(s):  
Trade Openness ◽  
International Tourism ◽  
Annual Data ◽  
Tourism Demand ◽  
Relative Prices ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Lagged Dependent Variable ◽  
The Difference ◽  
The Impact

This paper investigates the determinants of international tourism demand in Croatia, a country whose economy is heavily dependent on tourism. A particular focus is placed on the role of accommodation capacity and trade openness, two demand drivers that have been rarely examined in combination. Using the difference GMM estimator, a dynamic panel model of international tourism demand in Croatia is estimated, employing annual data for 16 tourism generating countries from 2007 to 2019. The results show that the lagged dependent variable, income, accommodation capacity, and exchange rate have a positive effect on international tourism demand, while the impact of relative prices and trade openness prove to be irrelevant in the Croatian context.

scholarly journals Regional differences in the capitalisation of first and second pillar payments of the CAP into land rental prices

2020 ◽  
Author(s):  
Klaus Salhofer ◽  
Paul Feichtinger
Keyword(s):  
Agricultural Policy ◽  
Regional Differences ◽  
Dynamic Panel ◽  
Accounting Data ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Land Rental ◽  
Part Time ◽  
High Yields ◽  
Large Farms

Abstract Nearly 80 per cent of Common Agricultural Policy (CAP) expenditures are spent on three different measures: first pillar payments (FPPs), agri-environmental payments (AEPs) and less favoured area payments (LFAPs). Based on a dynamic panel model and farm accounting data for Bavaria, we find that, on average, 30 per cent of FPPs, 40–50 per cent of LFAPs, but no relevant share of AEPs are capitalised into land rental prices. The capitalisation ratio varies considerably across regions. Above average capitalisation ratios for FPPs are observed in more favourable areas with high yields, a low grassland share and large farms. The same is true for LFAPs for areas with high yields, large farms and a greater share of part-time farmers.

The impact of labor freedom on geographic cost of living differentials

2017 ◽  
Vol 6 (3) ◽  
pp. 385-395
Author(s):  
Richard Cebula ◽  
James E. Payne ◽  
Donnie Horner ◽  
Robert Boylan
Keyword(s):  
Labor Market ◽  
State Level ◽  
The State ◽  
Annual Data ◽  
Significant Finding ◽  
Cost Of Living ◽  
Content Type ◽  
The Usa ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of labor market freedom on state-level cost of living differentials in the USA using cross-sectional data for 2016 after allowing for the impacts of economic and quality of life factors. Design/methodology/approach The study uses two-stage least squares estimation controlling for factors contributing to cost of living differences across states. Findings The results reveal that an increase in labor market freedom reduces the overall cost of living. Research limitations/implications The study can be extended using panel data and alternative measures of labor market freedom. Practical implications In general, the finding that less intrusive government and greater labor freedom are associated with a reduced cost of living should not be surprising. This is because less government intrusion and greater labor freedom both inherently allow markets to be more efficient in the rationalization of and interplay with forces of supply and demand. Social implications The findings of this and future related studies could prove very useful to policy makers and entrepreneurs, as well as small business owners and public corporations of all sizes – particularly those considering either location in, relocation to, or expansion into other markets within the USA. Furthermore, the potential benefits of the National Right-to-Work Law currently under consideration in Congress could add cost of living reductions to the debate. Originality/value The authors extend the literature on cost of living differentials by investigating whether higher amounts of state-level labor market freedom act to reduce the states’ cost of living using the most recent annual data available (2016). That labor freedom has a systemic efficiency impact on the state-level cost of living is a significant finding. In our opinion, it is likely that labor market freedom is increasing the efficiency of labor market transactions in the production and distribution of goods and services, and acts to reduce the cost of living in states. In addition, unlike previous related studies, the authors investigate the impact of not only overall labor market freedom on the state-level cost of living, but also how the three sub-indices of labor market freedom, as identified and measured by Stansel et al. (2014, 2015), impact the cost of living state by state.

Building insurance through an NGO

2016 ◽  
Vol 76 (1) ◽  
pp. 119-139 ◽  
Author(s):  
Marie-Christine Bélanger
Keyword(s):  
Design Methodology ◽  
Smallholder Farmers ◽  
Crop Insurance ◽  
Specific Training ◽  
Close Collaboration ◽  
Agricultural Insurance ◽  
Content Type ◽  
Level Of Education ◽  
Challenges And Opportunities

Purpose – This paper is based on a crop insurance implementation currently undergoing in Haiti. The purpose of this paper is to present the development of a program tailored to rice production in the Artibonite Valley, the challenges and opportunities that are arising from the exercise as well as pitfalls and ways to avoid them. Design/methodology/approach – The Système de Financement et d’Assurances Agricoles en Haïti’s approach for the development of crop insurance is in accordance with 13 concepts considered essential in the implementation of agricultural insurance programs. The case study is presented through each of these 13 fundamental concepts. Findings – The paper provides an insight on challenges any organization will face when implementing crop insurance for smallholder farmers. It points out notably that close collaboration of executing agencies with local partners is essential from data collection through insurance development and delivery and that all participants should receive a specific training tailored to their level of education and understanding. Social implications – Haiti is one of the poorest countries on the planet. Smallholder farmers could benefit a lot from crop insurance. It could help them stabilize their income when facing crop losses due to natural hazards or uncontrollable natural events. Originality/value – This paper fulfills an identified need to share real case studies exposing challenges faced when implementing crop insurance for smallholder farmers.

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