scholarly journals Consumption Response to Credit Expansions: Evidence from Experimental Assignment of 45,307 Credit Lines

2022 ◽  
Vol 112 (1) ◽  
pp. 1-40
Author(s):  
Deniz Aydin
Keyword(s):  
Field Experiment ◽  
Precautionary Saving ◽  
Buffer Stock ◽  
Liquid Asset ◽  
The Third ◽  
Credit Lines ◽  
Long Run ◽  
Short Run

In a field experiment that constructs a randomized credit limit shock, participants borrow to spend 11 cents on the dollar in the first quarter and 28 cents by the third year. Effects extend to those far from the limit, those who had the new limits as available credit, and those with a liquid asset buffer. In the short-run, flexible and installment contracts are used in tandem, with unconstrained using installments more. Long-run borrowing is predominantly using installments. Near limits, participants borrow when credit expands but save out of constraints when limits are tight. Findings support a buffer-stock interpretation emphasizing precautionary saving. (JEL C93, E21, G21, G51, O12, O16)

Buffer-Stock Money: Interpreting Short-Run Dynamics Using Long-Run Restrictions

1994 ◽  
Vol 26 (1) ◽  
pp. 34 ◽  
Author(s):  
William D. Lastrapes ◽  
George Selgin
Keyword(s):  
Buffer Stock ◽  
Long Run ◽  
Short Run

scholarly journals Economic Determinants of Nigeria’s Trade with China: A Cointegration Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 214
Author(s):  
Nnanna P. Azu ◽  
Eche Abu-obe
Keyword(s):  
Bilateral Trade ◽  
Real Exchange Rates ◽  
Trade Openness ◽  
Business Environment ◽  
Positive Influence ◽  
Trade Relations ◽  
The Third ◽  
Long Run ◽  
Domestic Prices ◽  
Short Run

The China-Nigeria trade volume has been increasing over the years with no signs of slowing down any time soon. This work examined the long-and-short run economic catalysts that stimulate this trade relation with focus on Nigeria’s economic factors as well as the Third Country’s Factors. Japan’s REER was adopted as a Third Country’s Factor and Johansen and Juselius cointegration technique was used to determine the result. The outcome revealed that GDP, trade openness and FDI inflow possess significant positive influence on China-Nigeria trade relations while bilateral exchange rate and Third Country’s Factor are negative determinants, suggesting that improvement in domestic prices and increased real exchange rates of Japan could undermine China-Nigeria bilateral trade, howbeit, in the long-run. So, both countries should gear towards improving domestic prices, efficiency and competitiveness relative to the Third Country’s Effect to curtail its excessive influence on bilateral trade and particularly, Nigeria should focus on redefining its business environment politically and otherwise to attract further FDI and ameliorate its trading sector.

scholarly journals The Relationship between Government Size and Economic Growth in Iran; Bivariate and Trivariate Causality Testing

2012 ◽  
Vol 4 (5) ◽  
pp. 268-276
Author(s):  
Salma Keshtkaran ◽  
Farzane Bagheri .
Keyword(s):  
Economic Growth ◽  
Government Size ◽  
Causality Test ◽  
The Third ◽  
Oil Revenue ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Causality Relationship ◽  
The Relationship

The aim of this study is to demonstrate the relationship between government size and economic growth in Iran within bivariate and trivariate causality framework. For this purpose, Vector Auto Regressive Model, Johansen Test and Auto Regressive Distributed Lag Model were used for analyzing the long run relationship, whereas Error Correction Model was considered for the short run. Moreover Wald Coefficient was used for bivariate and trivariate causality test. The results show that the relationship between government size and economic growth in Iran is negative. Furthermore there is a one-way causality relationship for the long run and the short run-from government size to economic growth. Inclusion of unemployment and oil revenue (separately) as the third variable causes the relationship to remain negative. However the direction of causality depends on the choice of the third variable. If unemployment rate is considered as the third variable instead, there will be no causality between the two variables in the long run. Although in the short run government size is still the cause of economic growth. However, consideration of oil revenue as the third variable results in a two-way causality relationship between the government size and the economic growth in the long run and the short run.

scholarly journals HUMAN DEVELOPMENT, UNEMPLOYMENT AND INDONESIAN MIGRANT WORKERS

2019 ◽  
Vol 18 (2) ◽  
pp. 81
Author(s):  
FARIASTUTI DJAFAR
Keyword(s):  
Time Series ◽  
Human Development ◽  
Migrant Workers ◽  
Time Series Data ◽  
Series Data ◽  
Vector Autoregressive ◽  
The Third ◽  
Long Run ◽  
Short Run

Three objectives are proposed by this study. The first objective is to examine the long-run relationship among human development, unemployment and the Indonesian Migrant Workers (IMWs). This is followed by examining the causality between the human development and unemployment respectively and the IMWs in the second objective. The extent to which the human development and unemployment determine the IMWs is examined in the third objective. The study is based on time series data and utilizes a Vector Autoregressive (VAR) framework. The findings show that the human development, unemployment and the IMWs are co-integrated. The human development and unemployment respectively causes the IMWs in the short run and in the long run.  Human development has a negative significant effect on the IMWs while unemployment has a positive significant effect on the IMWs.

scholarly journals Beyond Cycles of Hegemony: Economic, Social, and Military Factors

2015 ◽  
Vol 1 (1) ◽  
pp. 388
Author(s):  
Walter L. Goldfrank
Keyword(s):  
Third World ◽  
National Development ◽  
Welfare States ◽  
Political Movements ◽  
The Third ◽  
Political Opportunities ◽  
Long Run ◽  
Short Run ◽  
Closing The Gap ◽  
The Third World

As we survey the changing world on the eve of the 21st century, scholars confront empirical puzzles and interpretive uncertainties. Those of us who identify with worldwide social and political movements seeking more democracy, more equality, more justice, and more rationality find ourselves at once free and daunted. We are free, finally, from the albatross of repressive party-states calling themselves "socialist," from the illusion that social-democratic welfare states are trending toward perfection, from the myth that national development in the Third World is closing the gap. And we are daunted by the double task of (1) reconstructing a strategy of global transformation and (2) making a viable movement out of the multiple oppositional fragments scattered about the global landscape. This paper attempts to confront some puzzles and interpret some uncertainties about the future. If it thereby contributes to understanding our responsibilities and political opportunities, so much the better. Using familiiar world-system concepts and findings, I sketch visions of the short-run, the medium-run, and the long-run, after first rehearsing the basic premises from which this interpretation follows.

scholarly journals Trade and Economic Growth: The Case of India

2017 ◽  
Vol 4 (01) ◽  
Author(s):  
Simran Sethi
Keyword(s):  
Economic Growth ◽  
Granger Causality Test ◽  
Annual Data ◽  
Short Term ◽  
Causality Test ◽  
The Third ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

The objective of this paper is to investigate the short run as well as long run relationship between GDP, exports and imports for India using annual data from 1982 to 2016. Through this paper, I examine the four main hypotheses regarding the relation between exports, imports and economic growth. The first one is export-led growth hypothesis, the second one is the import-led growth hypothesis, the third one is the growth-led exports and lastly, the growth-led imports hypothesis. The Johansen’s cointegration is used to examine the long term relationship and empirical results indicate that there is a long run relationship between GDP, exports and imports. The short term relationship is measured using the Granger causality test and the statistical results suggest unidirectional causality from GDP to exports and GDP to imports in conformity with the growth-led exports and growth-led imports hypothesis respectively.

scholarly journals Incentives, Commitments, and Habit Formation in Exercise: Evidence from a Field Experiment with Workers at a Fortune-500 Company

2015 ◽  
Vol 7 (3) ◽  
pp. 51-84 ◽  
Author(s):  
Heather Royer ◽  
Mark Stehr ◽  
Justin Sydnor
Keyword(s):  
Health Behaviors ◽  
Field Experiment ◽  
Financial Incentives ◽  
Large Scale ◽  
Fortune 500 ◽  
Time Inconsistency ◽  
Incentive Programs ◽  
Incentive Program ◽  
Long Run ◽  
Short Run

Financial incentives have shown strong positive short-run effects for problematic health behaviors that likely stem from time inconsistency. However, the effects often disappear once incentive programs end. This paper analyzes the results of a large-scale workplace field experiment to examine whether self-funded commitment contracts can improve the long-run effects of an incentive program. A four-week incentive program targeting use of the company gym generated only small lasting effects on behavior. Those that also offered a commitment contract at the end of the program, however, showed demand for commitment and significant long-run changes, detectable even several years after the incentive ended. (JEL D03, I10, J32)

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