scholarly journals The Effects of Changes in Local Bank Health on Household Consumption

2020 ◽  
pp. 1-45
Author(s):  
Daniel Cooper ◽  
Joe Peek
Keyword(s):  
Economic Activity ◽  
Financial Sector ◽  
Household Consumption ◽  
Demand And Supply ◽  
Credit Availability ◽  
Negative Income ◽  
Novel Approach ◽  
Income Shock ◽  
Credit Demand ◽  
The Relationship

This study investigates the relationship between credit availability and household consumption using a novel approach to separate credit demand and supply. We find that a deterioration in local-bank health reduces household consumption, with the strongest effects occurring for households that are more likely to need credit—especially those experiencing a negative income shock and having limited liquid assets. The main contributions of the study are the use of an arguably exogenous measure of local-bank health and multifaceted indicators of constrained households. Our findings contribute to the discussion of the linkages between the financial sector and real economic activity.

scholarly journals Cabo Verde

2016 ◽  
Vol 2016 (367) ◽  
Author(s):  
Keyword(s):  
Economic Development ◽  
Private Sector ◽  
Credit Market ◽  
Financial Sector ◽  
Business Environment ◽  
Banking Supervision ◽  
Credit Growth ◽  
Demand And Supply ◽  
Cabo Verde ◽  
Credit Demand

This Selected Issues paper examines whether the recent slowdown in private sector credit growth in Cabo Verde is demand or supply driven. Although in the late 2000s, demand factors have been the main drivers in Cabo Verde’s credit market, supply dynamics’ role has increased in recent years. For Cabo Verde to promote private sector-led growth and sustainable economic development, reforms aiming at strengthening both credit demand and supply will be essential. These include improving the business environment for the private sector as well as strengthening the financial sector by ensuring prudent banking supervision and an effective resolution of the nonperforming loan overhang.

The link between financial stress index and economic activity: prominent Granger causalities across frequencies in Luxembourg

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pejman Bahramian ◽  
Andisheh Saliminezhad ◽  
Şule Aker
Keyword(s):  
Granger Causality ◽  
Time Domain ◽  
Economic Activity ◽  
Financial Stress ◽  
Financial Sector ◽  
Stress Index ◽  
Content Type ◽  
Financial Stress Index ◽  
The Time Domain ◽  
The Relationship

PurposeIn spite of the certain risk imposed by financial stress on the real economy, the relationship between financial stress and economic activity is complicated and underresearched, meaning that important gaps still remain in the authors’ understanding of this critical relationship. Therefore, the current study aims to answer the significant question regarding whether a stressful financial sector has predictive power on the real sector and vice versa. Hence, the study examines the causal interrelationship between financial stress index (FSI) and economic activity in Luxembourg as a sample country.Design/methodology/approachIn this study, accompanying the time domain Granger causality framework of Hacker and Hatemi-J (2012), the authors utilize the spectral causality technique of Breitung and Candelon (2006), which is based on the study of Geweke (1982) and Hosoya (1991). This method enables the researcher to measure the degree of a particular variation in time series. Moreover, it allows considering the nonlinearities and causality cycles. The authors further apply the recent method of Farné and Montanari (2018) that is a bootstrap framework on Granger-causality spectra, which allows for disambiguation in causalities.FindingsThe time-domain approach finds evidence of bidirectional causation between the variables. However, the spectral causality results indicate the causal linkages between the series are only valid under the medium-run frequency. This study’s findings emphasize covering the frequency causality to deliver a more comprehensive picture of the interrelationship between the variables.Originality/valueThere are many studies in this area that examine the nexus between financial stress and economic activity. However, the authors believe this paper is the first study in the context of Luxemburg. The authors focus on this country since its financial sector is designated as the most important pillar for the economy. Thus, a careful and reliable examination of the relationship between the financial sector and economic activity is likely to be of considerable interest to policymakers and researchers in this field.

Anti-Ideology of Entrepreneurship as an Attribute of Entrepreneurial Projects

2020 ◽  
Vol 26 (8) ◽  
pp. 830-839
Author(s):  
E. Ya. Litau
Keyword(s):  
Economic Development ◽  
Economic Activity ◽  
Creative Destruction ◽  
Innovative Activity ◽  
Entrepreneurial Activity ◽  
Methodological Principle ◽  
Historical Period ◽  
Professional Literature ◽  
Efficient System ◽  
The Relationship

Aim. The presented study examines and develops theoretical and methodological foundations that make it possible to distinguish innovative entrepreneurship among other economic phenomena.Tasks. The author identifies the specific features of entrepreneurship and its qualitative differences from other types of economic activity aimed at obtaining benefits, specifies the relationship between creative destruction and economic development, determines the attributes of innovative entrepreneurship.Methods. This study uses systematic analysis of professional literature on entrepreneurship to highlight the main attributes of entrepreneurial activity. The methodology of dialectical contradiction in its original Hegelian interpretation plays an important role in elaborating and substantiating the definition of entrepreneurship. The author considers innovative activity as creation of new values, which, according to the logic of dialectical development, destroy the old ones, triggering the process of economic development.Results. An approach to understanding the phenomenon of entrepreneurship is proposed, making it possible to distinguish this type of activity as significantly different from other types of economic activity, which may be externally similar but have different content. During the development of this approach, the concept of “anti-ideology” of entrepreneurship is introduced, which reflects the essence of innovative activity as a process of creative destruction. The necessary and sufficient attributes of entrepreneurial innovation are identified, making it possible to reflect the meaning of this phenomenon and verify this complex defining structural element in the system of economic relations. The study substantiates that the level of anti-ideology and public benefit can be used as criteria for assessing the significance of an entrepreneurial idea. A progressive model of anti-idea realization (PMA) is proposed based on the methodological principle. It can be used to develop an efficient system for evaluating startups within the framework of venture capitalism.Conclusions. Specification of the relationship between creative destruction and economic development is crucial to understanding the importance of innovative entrepreneurship. Each historical period creates its own demand for a specific type of entrepreneurs. The principle of anti-ideology, which lies at the heart of the PMA model, is key in identifying competitive commercial ideas, making it possible to focus resources and attention on projects that can make a significant contribution to economic development.

scholarly journals Blending in: A Case Study of Transitional Ambidexterity in the Financial Sector

2021 ◽  
Vol 13 (4) ◽  
pp. 1690
Author(s):  
Beniamino Callegari ◽  
Ranvir S. Rai
Keyword(s):  
Financial Sector ◽  
Economic Sustainability ◽  
Organizational Ambidexterity ◽  
Management Literature ◽  
Innovative Capabilities ◽  
Financial Firm ◽  
The Relationship

Organizational ambidexterity is widely recognized as necessary for the economic sustainability of firms operating in the financial sector. While the management literature has recognized several forms of ambidexterity, the relationship between them and their relative merits remain unclear. By studying a process of implementation of ambidextrous capabilities within a large Scandinavian financial firm, we explore the role of top-down reforms and bottom-up reactions in determining the development of sector-specific innovative capabilities. We find that blended ambidexterity follows naturally from the attempt to correct the tensions arising from harmonic ambidextrous blueprints. The resulting blended practice appears to be closely related to the reciprocal model of ambidexterity, which appears to be a necessity rather than a choice, for large firms attempting to develop innovative capabilities. Consequently, we suggest to re-interpret current taxonomies of ambidexterity not as alternative blueprints, but rather as stages in a long-term process of transition.

Relating Household Consumption Expenditures to Road Traffic Fatalities: A Rural–Urban Study

2021 ◽  
pp. 036119812110332
Author(s):  
Ruchika Agarwala ◽  
Vinod Vasudevan
Keyword(s):  
Developing Countries ◽  
Traffic Safety ◽  
Rural Areas ◽  
Urban Areas ◽  
Household Consumption ◽  
Household Expenditure ◽  
Traffic Fatality ◽  
Rural And Urban Areas ◽  
Rural And Urban ◽  
The Relationship

Research shows that traffic fatality risk is generally higher in rural areas than in urban areas. In developing countries, vehicle ownership and investments in public transportation typically increase with economic growth. These two factors together increase the vehicle population, which in turn affects traffic safety. This paper presents a study focused on the relationship of various factors—including household consumption expenditure data—with traffic fatality in rural and urban areas and thereby aims to fill some of the gaps in the literature. One such gap is the impacts of personal and non-personal modes of travel on traffic safety in rural versus urban areas in developing countries which remains unexplored. An exhaustive panel data modeling approach is adopted. One important finding of this study is that evidence exists of a contrasting relationship between household expenditure and traffic fatality in rural and urban areas. The relationship between household expenditure and traffic fatality is observed to be positive in rural areas and a negative in urban areas. Increases in most expenditure variables, such as fuel, non-personal modes of travel, and two-wheeler expenditures, are found to be associated with an increase in traffic fatality in rural areas.

P. vortex-mediated strategies for polysaccharides decomposition

TECHNOLOGY ◽  
2015 ◽  
Vol 03 (02n03) ◽  
pp. 80-83
Author(s):  
Mark Polikovsky ◽  
Eshel Ben-Jacob ◽  
Alin Finkelshtein
Keyword(s):  
Degradation Products ◽  
Cellulose Degradation ◽  
Cellulose Hydrolysis ◽  
Industrial Applications ◽  
Biofuel Production ◽  
E Coli ◽  
Novel Approach ◽  
Textile Manufacture ◽  
Hydrolysis Of Cellulose ◽  
The Relationship

Cellulose hydrolysis has many industrial applications such as biofuel production, food, paper and textile manufacture. Here, we present a novel approach to cellulose hydrolysis using a consortium of motile bacteria, Paenibacillus vortex, that can swarm on solid medium carrying a non-motile recombinant E. coli cargo strain expressing the β-glucosidase and cellulase genes that facilitate the hydrolysis of cellulose. These two species cooperate; the relationship is mutually beneficial: the E. coli is dispersed over long distances, while the P. vortex bacteria gain from the supply of cellulose degradation products. This enables the use of such consortia in this area of biotechnology.

scholarly journals A Novel Approach to the Analysis of the Soil Consolidation Problem by Using Non-Classical Rheological Schemes

2021 ◽  
Vol 11 (5) ◽  
pp. 1980
Author(s):  
Kazimierz Józefiak ◽  
Artur Zbiciak ◽  
Karol Brzeziński ◽  
Maciej Maślakowski
Keyword(s):  
Constitutive Models ◽  
Organic Soil ◽  
Organic Soils ◽  
Soil Consolidation ◽  
Flexible Tool ◽  
One Dimensional ◽  
Novel Approach ◽  
Soil Skeleton ◽  
The One ◽  
The Relationship

The paper presents classical and non-classical rheological schemes used to formulate constitutive models of the one-dimensional consolidation problem. The authors paid special attention to the secondary consolidation effects in organic soils as well as the soil over-consolidation phenomenon. The systems of partial differential equations were formulated for every model and solved numerically to obtain settlement curves. Selected numerical results were compared with standard oedometer laboratory test data carried out by the authors on organic soil samples. Additionally, plasticity phenomenon and non-classical rheological elements were included in order to take into account soil over-consolidation behaviour in the one-dimensional settlement model. A new way of formulating constitutive equations for the soil skeleton and predicting the relationship between the effective stress and strain or void ratio was presented. Rheological structures provide a flexible tool for creating complex constitutive relationships of soil.

Analysis of the Relationship between Currency Redenomination and Financial Transaction Costs in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 59-68
Author(s):  
Hassana Aliyu MOHAMMED ◽  
◽  
Abdurrahman ISIK ◽  
Paul Terhemba IOREMBER ◽  
◽  
...  
Keyword(s):  
Transaction Costs ◽  
Financial Institutions ◽  
Financial Sector ◽  
Chi Square ◽  
User Costs ◽  
Inflationary Pressure ◽  
Cash Payment ◽  
Chi Square Test ◽  
The Cost ◽  
The Relationship

The study analyses the relationship between currency redenomination and financial sector transaction costs in Nigeria using a sample of 200 respondents from ten financial institutions. Applying the Chi-square test, the study reveals that high currency redenomination removes wasteful transactions removes user costs (difficulties arising from memorizing, calculating and carrying large sum of lowest denominations: coins and smaller notes). The results also show that currency redenomination influences inflationary pressure and currency liberalization in Nigeria. Based on the findings the study recommends the introduction of currency redenomination to facilitate the consumers' cash payment and reduce the cost incurred by producers and issuing authorities, and also make payment system more efficient and effective.

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