scholarly journals Asset Liquidity and Fiscal Consolidation Programs

2020 ◽  
pp. 69-89
Author(s):  
Tiago Bernardino
Keyword(s):  
Wealth Distribution ◽  
Balance Sheet ◽  
Negative Relationship ◽  
Wealth Inequality ◽  
Underlying Mechanism ◽  
Fiscal Consolidation ◽  
Fiscal Multipliers ◽  
Distribution Of Wealth ◽  
Asset Liquidity ◽  
The Relationship

We argue that the relationship between wealth inequality and fiscal multipliers depends crucially on the type of fiscal experiment used, and on the measure of wealth distribution. We calibrate an overlapping generations model with incomplete markets for different European economies and use Household Finance and Consumption Survey (HFCS) data to compare fiscal multipliers when models are calibrated to match the distribution of gross vs. net wealth. We find a negative relationship between fiscal multipliers and wealth inequality when considering fiscal consolidation programs, in contrast to fiscal expansion experiments which are standard in the literature. The underlying mechanism relies on the relationship between the distribution of wealth and the share of credit‑ constrained agents. We examine the role of household balance sheet compositions regarding asset liquidity and find that when calibrating the model to match liquid wealth, the relationship between wealth inequality and fiscal multipliers is much stronger.

Bank soundness and liquidity creation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Sahyouni ◽  
Mohammad A.A. Zaid ◽  
Mohamed Adib
Keyword(s):  
Balance Sheet ◽  
Negative Relationship ◽  
Capital Adequacy ◽  
Rating System ◽  
Content Type ◽  
Mena Countries ◽  
Earning Ability ◽  
Asset Quality ◽  
The Relationship ◽  
Bank Soundness

PurposeThe purpose of this paper is to investigate how much liquidity banks create and how liquidity creation changed over time in the MENA countries and to examine the soundness of banks in these countries based on the CAME rating system, in addition to investigating the relationship between CAME ratios and liquidity creation of these banks.Design/methodology/approachThe study regresses the CAME ratios together with other control variables to model liquidity creation. The robustness of the results is evaluated by using a different measure of liquidity creation and by excluding the observations of the Islamic banks.FindingsThe results show that the CAME rating system, as an indicator of bank soundness, is negatively related to bank liquidity creation. Specifically, capital adequacy, management efficiency and earning ability ratios affect the on-balance sheet components of liquidity creation, while asset quality ratio affects its off-balance sheet component.Practical implicationsThe paper offers insights to regulators and banks managers in terms of better understanding of the negative relationship between CAME rating system and bank liquidity creation.Originality/valueThis paper sheds more light on the relationship between bank soundness and liquidity creation by using the ratios of the CAMEL rating system as an indicator of bank strength and soundness.

scholarly journals The Distribution of Wealth and the MPC: Implications of New European Data

2014 ◽  
Vol 104 (5) ◽  
pp. 107-111 ◽  
Author(s):  
Christopher D. Carroll ◽  
Jiri Slacalek ◽  
Kiichi Tokuoka
Keyword(s):  
Wealth Distribution ◽  
Wealth Inequality ◽  
Income Shocks ◽  
Income Dynamics ◽  
Aggregate Consumption ◽  
Distribution Of Wealth ◽  
Marginal Propensity To Consume ◽  
Transitory Shocks ◽  
Transitory Income ◽  
Marginal Propensity

Using a standard, realistically calibrated model of buffer-stock saving with transitory and permanent income shocks, we study how cross-country differences in the wealth distribution and household income dynamics affect the marginal propensity to consume out of transitory shocks (MPC). Across the 15 countries in our sample, we find that the aggregate consumption response ranges between 0.1 and 0.4 and is stronger (i) in economies with large wealth inequality, where a larger proportion of households has little wealth, (ii) under larger transitory income shocks, and (iii) when we consider households only use liquid assets (rather than net wealth) to smooth consumption.

scholarly journals R&D activity and financing constraints: Evidence from Turkey

2020 ◽  
Vol 67 (4) ◽  
pp. 557-571 ◽  
Author(s):  
Armağan Gezici ◽  
Özgür Orhangazi ◽  
Cihan Yalçın
Keyword(s):  
Balance Sheet ◽  
Negative Relationship ◽  
Capital Intensity ◽  
Export Market ◽  
Financing Constraints ◽  
Time Varying ◽  
Firm Level ◽  
Data Set ◽  
Income Statement ◽  
The Relationship

We analyze the relationship between financing constraints and firms? R&D activity using a rich and comprehensive firm-level balance sheet and income statement data set of manufacturing firms in Turkey for the period 1996 to 2013. Using a firm-specific, time-varying financing constraints index, we find that financing constraints have a negative relationship with firms? R&D activity, after controlling for other determinants of R&D such as firm size, capital intensity and export market participation.

scholarly journals Monetary policy and wealth inequality in South Africa: Evidence from tax administrative data

2020 ◽  
Author(s):  
Goodness C. Aye ◽  
Laurence Harris ◽  
Junior T. Chiweza
Keyword(s):  
South Africa ◽  
Monetary Policy ◽  
Administrative Data ◽  
Random Effects ◽  
Wealth Distribution ◽  
Wealth Inequality ◽  
Panel Model ◽  
Fixed And Random Effects ◽  
The Relationship ◽  
Effect Of Age

This paper examines the relationship between monetary policy and wealth inequality in South Africa. We employed a unique database of tax administrative data which allowed us to account for individual heterogeneity. These tax data span from 2011 to 2017 and include over 3 million individual taxpayers in South Africa after data cleaning. Results based on fixed- and random-effects panel model estimates show that monetary policy generally increases wealth Gini inequality while it decreases the wealth 90–10 percentile differential. Increasing asset prices and gross domestic product per capita generally increases wealth inequality, while inflation reduces wealth inequality. The effect of age on wealth distribution varies depending on whether a fixed- or random-effects panel model is considered. Based on the estimates and observed data, being male tends to increase wealth inequality.

scholarly journals Malaysia Household Wealth Distribution: Current Evidence and Future Prospects

2012 ◽  
Author(s):  
Muhammed Abdul Khalid
Keyword(s):  
Higher Education Policy ◽  
Household Income ◽  
Wealth Distribution ◽  
Wealth Inequality ◽  
Household Wealth ◽  
Current Evidence ◽  
Future Prospects ◽  
Distribution Of Wealth ◽  
Per Capita ◽  
Real Estate Assets

The paper studies the distribution and inequality of wealth among the household per capita in Malaysia, using the 2007 Malaysia’s Household Income Survey (HIS) data. Consistent with findings from other countries, the distribution of wealth is more skewed than that of income. The distribution of wealth shows that the top 10% of Malaysian households per capita control 35% of the country’s wealth, while the bott om 40% own 8%. The decomposition of wealth shows that the Gini coefficient for savings is 0.98, while the figure for investment assets and real estate assets are 0.90 and 0.52 respectively. It is expected that wealth inequality will widen in the future due to several factors such as liberalization of the higher education policy and pro-rich tax treatment.   Keywords: Inequality, Malaysia, wealth.

The Association between Wealth Inequality and Socioeconomic Outcomes

2021 ◽  
Vol 111 ◽  
pp. 211-215
Author(s):  
Omer Ali ◽  
William A. Darity ◽  
Avra Janz ◽  
Marta Sánchez
Keyword(s):  
Negative Correlation ◽  
Wealth Distribution ◽  
Institutional Quality ◽  
Wealth Inequality ◽  
Negative Association ◽  
The Other ◽  
Socioeconomic Outcomes ◽  
Substantial Body ◽  
Data Limitations ◽  
The Relationship

We investigate whether inequality in wealth distribution is broadly associated with adverse socioeconomic outcomes across countries. There are few studies that investigate these relationships, likely due to data limitations. On the other hand, a substantial body of work suggests that income inequality correlates with undesirable outcomes. This paper evaluates the relationship between measures of wealth inequality and a number of outcomes across countries in a unified estimation framework that circumvents publication bias. While we fail to find support for a broad negative association, we do find a negative correlation between wealth inequality and institutional quality.

Does Egalitarianism Come at a Price? Inequality and Economic Performance in Late-Nineteenth-Century Ontario

2017 ◽  
Vol 41 (4) ◽  
pp. 615-644 ◽  
Author(s):  
Livio Di Matteo
Keyword(s):  
Economic Performance ◽  
Wealth Distribution ◽  
Wealth Inequality ◽  
Regional Level ◽  
Late Nineteenth Century ◽  
County Level ◽  
Confounding Factors ◽  
Late Nineteenth ◽  
The Relationship ◽  
Over Time

The relationship between economic performance and wealth inequality at a regional level is examined using county-level wealth for Ontario in 1892 and 1902. The results find that after controlling for confounding factors, declining wealth inequality was generally accompanied by slower economic performance as measured by changes in wealth levels and manufacturing output over time. This suggests that a more egalitarian wealth distribution came perhaps at the price of less robust economic performance.

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

Relationship of Organizational Citizenship Behavior and Production Deviance: Role of Perceived Organizational Politics

2019 ◽  
Vol 34 (2) ◽  
pp. 367-382
Author(s):  
Irsa Fatima Makhdoom ◽  
Mohsin Atta ◽  
Najma Iqbal Malik
Keyword(s):  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Negative Relationship ◽  
Civic Virtue ◽  
Organizational Politics ◽  
Work Behavior ◽  
Citizenship Behavior ◽  
Production Deviance ◽  
Relationship Of ◽  
The Relationship

The present study was an endeavor to extend the literature of perceived organizational politics by examining its moderating role between the relationship of organizational citizenship behavior and production deviance. Organizational Citizenship Behavior Scale (Mackenzie, Podsakoff, & Paine, 1999), Production Deviance sub-scale of Counterproductive Work Behavior Checklist-32 (Spector et al., 2006), and Perception of Organizational Politics Scale (Kacmar & Carlson, 1997) were used in present study. Hierarchical regression analyses revealed that low levels of perceived organizational politics moderated the relationship between courtesy and production deviance by strengthening the negative relationship of these behaviors while perceived organizational politics did not act as a moderator for the relationship of civic virtue and conscientiousness with production deviance. High level of go-along-to-get-ahead as a moderator strengthened the relationship of civic virtue and conscientiousness with production deviance and its low level was found to be moderating the relationship between courtesy and production deviance. Future implications of the study were also discussed.

Work Stress and Organisational Citizenship Behaviours (OCBs) in Call Centers Employees

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Sunita ◽  
Urvashi Singh ◽  
Shalini Singh ◽  
Rajnee Sharma
Keyword(s):  
Negative Impact ◽  
Call Centers ◽  
Negative Relationship ◽  
Married Couples ◽  
Call Centre ◽  
Simple Correlation ◽  
Nuclear Families ◽  
Set Up ◽  
Stress At Work ◽  
The Relationship

The present study was conducted to examine the relationship between organisational stress and organisational citizenship behaviours (OCBs) in employees of call centers. The study also further explored as how stress at work set-up has negative impact on OCBs. A sample of 250 employees working in call centre of Gurgaon belonging to an age group of 25-30 years were selected on availability basis. All were working married couples living in nuclear families. Job stress survey (Spielberger & Vagg, 1999) and Organisational Citizenship Behaviour (Bateman & Organ, 1983) were administered. Data was analysed by using simple correlation and multiple regression. Results showed the negative relationship between organisational stress and OCBs. Results of regression analysis also exhibited the negative impact of stress on OCBs. The implications for the employees are discussed.

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