scholarly journals Accelerator or Brake? Cash for Clunkers, Household Liquidity, and Aggregate Demand

2020 ◽  
Vol 12 (4) ◽  
pp. 178-211
Author(s):  
Daniel Green ◽  
Brian T. Melzer ◽  
Jonathan A. Parker ◽  
Arcenis Rojas
Keyword(s):  
Aggregate Demand ◽  
Loan Repayment ◽  
Cash For Clunkers ◽  
Down Payments ◽  
Large Response

This paper evaluates the Car Allowance Rebate System (CARS ) by comparing the vehicle purchases and disposals of households with eligible “clunkers” to those of households with similar but ineligible vehicles. CARS caused roughly 500,000 purchases during the program period. The provision of liquidity, through a rebate usable as a down payment, was critical in generating this large response. Participation was rare among households that owned clunkers with outstanding loans, which required loan repayment. This decline in participation is attributed to households’ preference for lower down payments and distinguished from the effects of income, other indebtedness, and the program subsidy. (JEL E23, E62, G51, H24, H31)

scholarly journals Accelerator or Brake? Cash for Clunkers, Household Liquidity, and Aggregate Demand

2016 ◽  
Author(s):  
Daniel Green ◽  
Brian Melzer ◽  
Jonathan Parker ◽  
Arcenis Rojas
Keyword(s):  
Aggregate Demand ◽  
Cash For Clunkers

Economic effects of monetary policy in Russia: What do large datasets tell us?

2020 ◽  
pp. 31-53 ◽  
Author(s):  
Anna A. Pestova ◽  
Natalia A. Rostova
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
Exchange Rate Regime ◽  
Aggregate Demand ◽  
Economic Effects ◽  
Theoretical Concepts ◽  
Empirical Estimates

Is the Bank of Russia able to control inflation and, at the same time, manage aggregate demand using its interest rate instruments? In other words, are empirical estimates of the effects of monetary policy in Russia consistent with the theoretical concepts and experience of advanced economies? This paper is aimed at addressing these issues. Unlike previous research, we employ “big data” — a large dataset of macroeconomic and financial data — to estimate the effects of monetary policy in Russia. We focus exclusively on the period after the 2008—2009 global financial crisis when the Bank of Russia announced the abandoning of its fixed ruble exchange rate regime and started to gradually transit to an interest rate management. Our estimation results do not confirm standard responses of key economic activity and price variables to tightening of monetary policy. Specifically, our estimates do not reveal a statistically significant restraining effect of the Bank of Russia’s policy of high interest rates on inflation in recent years. At the same time, we find a significant deteriorating effect of the monetary tightening on economic activity indicators: according to our conservative estimates, each of the key rate increases occurred in March and December 2014 had led to a decrease in the industrial production index by about 0.2 percentage points within a year.

Determinant Factors of Student's Perception Toward Educational Loan Repayment

2018 ◽  
Vol 15 (1) ◽  
pp. 73-83
Author(s):  
Siti Zulaika Zolkeplee ◽  
Abu Bakar Hamed ◽  
Ahamad Faosiy Ogunbado
Keyword(s):  
Parental Influence ◽  
Student Loan ◽  
Influential Factors ◽  
Ministry Of Education ◽  
Loan Repayment ◽  
Education Fund ◽  
Relationship Of ◽  
The Relationship ◽  
Universiti Utara Malaysia ◽  
Survey Approach

The issue of unpayable educational loan that lead to student’s defaults has become a worrying trend all over the world. This research aims to examine the relationship of anxiety, parental influence, media awareness, and religiosity on student’s perception on educational loan repayment. A survey approach has been adopted to investigate student’s perception on educational loan repayment in Universiti Utara Malaysia. The data for this study were collected via structured questionnaires which were completed by 359 undergraduate Muslim’s students who acquire their financial loan from National Higher Education Fund Corporation (NHEFC). The data were then quantitatively analyzed using SPSS program. The findings of Pearson’s correlation showed a positive correlation between student’s perception towards educational loan repayment and religiosity, parental influence, media awareness, and anxiety. Further analysis using a multiple regression indicated that all independent variables explained 32.9 per cent of student’s perception on educational loan repayment. The result again indicated that religiosity and parent’s influence are most influential factors on student’s perception towards educational loan repayment. Whilst, media awareness slightly contributed to student’s perception towards educational loan repayment and anxiety gave no impact. The result implied that the Ministry of Education may design the syllabus in school and university curricular by adding the value of responsibility in loan repayment especially in religious and moral subjects. Besides, the Ministry Education of Malaysia are also urged to use media to disseminate the information regarding the importance for students to make loan repayment to parents as well as students. The collection of student loan then can be used for the next generation in financing their study which could result the prosperity of nation.

Inclusive Growth with Zakat

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 997-1010
Author(s):  
Muhammad Mazhar Iqbal
Keyword(s):  
Economic Growth ◽  
Aggregate Demand ◽  
Economic Consequences ◽  
Poor People ◽  
Kuznets Curve ◽  
Inclusive Growth ◽  
Marginal Productivity ◽  
The Social

Zakat is an annual religious levy that is collected from rich Muslims and its proceeds are disbursed among poor people of the society. It has many spiritual and social merits. For example, it purifies the hearts of zakat-givers as they give away a part of their wealth, one of the most precious things in their lives, seeking the pleasure of God without requiring any worldly gains whatsoever. It bridges the social gap between „haves‟ and „have-nots.‟ This study analyses, however, only economic consequences of Zakat for economic growth. They cannot be appreciated duly unless one understands the following concepts of modern economics; various theories of consumption, aggregate demand, stagnation thesis, consumption puzzle, marginal productivity of capital and Kuznets curve.

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