scholarly journals Estimation of Government Spending Multiplier in EU Economies

2019 ◽  
Vol 65 (1) ◽  
pp. 16-29
Author(s):  
Marko Senekovič ◽  
Alenka Kavkler ◽  
Jani Bekő
Keyword(s):  
Government Spending ◽  
Trade Openness ◽  
Empirical Literature ◽  
Var Model ◽  
Panel Var ◽  
Short Term ◽  
Fiscal Multiplier ◽  
Model Following ◽  
Country Specific

AbstractThe aim of this paper is to estimate government consumption multiplier and to examine the effect of various characteristics of countries on the size of fiscal multiplier. We apply a panel VAR model following Ilzetzki et al. (2013) for a sample of 28 EU countries covering the period from 1995 to 2017. Key findings are, first, the estimated average fiscal multiplier is larger than unity. Second, the size of fiscal multiplier is larger in the cases of lower public indebtedness, for more developed European countries and for more financially open economies, which is also in line with relevant empirical literature. Regarding the role of trade openness, the results are inconclusive. In addition to this, membership of countries in the European integrations positively affects the size of fiscal multiplier. Therefore, fiscal policymakers should use fiscal stimuli as the instrument of boosting short-term economic growth selectively and consider country-specific characteristics. This paper contributes to the ongoing discussion in two ways, it examines the effect of additional characteristics of countries on the size of fiscal multiplier and updates existing empirical literature.

scholarly journals Linkage of Credit on BI Rate, Funds Rate, Inflation and Government Spending on Capital

JEJAK ◽  
2017 ◽  
Vol 10 (1) ◽  
pp. 1-11
Author(s):  
Mangasa Augustinus Sipahutar ◽  
Rina Oktaviani ◽  
Hermanto Siregar ◽  
Bambang Juanda
Keyword(s):  
Government Spending ◽  
Commercial Banks ◽  
Inflation Rate ◽  
Monetary Transmission ◽  
Var Model ◽  
Credit Channel ◽  
Transmission Channel ◽  
Credit Portfolio

Linkage of credit on BI rate, funds rate, inflation, and government spending on capital provides evidence from Indonesia. This paper found advance explanation about banks credit as monetary transmission channel and its role on Indonesian economy. We used credit depth as a ratio of banks credit to GDP nominal, to explain the role of credit in Indonesian economy. We developed a VAR model to measure the response of credit to BI rate, funds rate and inflation rate, and OLS method to find out how banks credit response to government spending on capital. This paper revealed bi-direction causality between credit and BI rate, credit and funds rate, and credit and inflation. There is trade-off between credit and BI rate, credit and funds rate, and credit and inflation, but government spending on capital promotes credit depth. We found that Indonesian banking is bank view, allocated their credit based on their performance, not merely on the monetary policy determined by central bank. For bank view perspectives, we analyzed the link between LDR as an indicator of credit channel mechanism to NPLs and CAR. We found that there is no significant effect of CAR to LDR, but has a strong negatively relationship between NPLs to LDR. This evidence indicates that commercial banks in Indonesia allocated their credit do not related to their capital but merely to the quality of their credit portfolio.

scholarly journals THE DETERMINANTS OF INCOME INEQUALITY: THE ROLE OF EDUCATION

2019 ◽  
Vol 66 (4) ◽  
pp. 451-464
Author(s):  
Anna Hovhannisyan ◽  
Ramon Castillo-Ponce ◽  
Rolando Valdez
Keyword(s):  
Foreign Direct Investment ◽  
Income Inequality ◽  
Direct Investment ◽  
Elderly Population ◽  
Trade Openness ◽  
Developed Countries ◽  
Shed Light ◽  
Country Specific ◽  
Developing And Developed Countries

The economics literature reports mixed evidence on the importance of education as a determinant of income inequality. In this document we shed light on the debate by testing this relationship for a sample of developing and developed countries from 1990 to 2014. We control for country specific characteristics including trade openness, unemployment, foreign direct investment, and the share of elderly population. The results of robust panel data estimations unequivocally find that education is negatively and significantly associated with income inequality.

scholarly journals Economic implications of energy security in the short run

Ekonomika ◽  
2015 ◽  
Vol 94 (3) ◽  
pp. 119-138 ◽  
Author(s):  
Vaidotas Šumskis ◽  
Vincentas Giedraitis
Keyword(s):  
European Union ◽  
Energy Policy ◽  
Energy Security ◽  
Energy Resources ◽  
Var Model ◽  
Current Account Balance ◽  
Panel Var ◽  
The European Union ◽  
Short Term ◽  
Short Run

Energy security is one of the primary goals of the European Union energy policy as the region relies mostly on imports to meet its energy resources demand. In 2013, the share of the net imported energy resources was as high as 54.5% of total energy consumption in the 28 member states of the European Union. Research on energy security involves a detailed analysis of economic, technological, and socio-political factors. The main objective of this study is to find out the economic consequences in the short run due to changes in the level of the security of energy resources supply. In order to acquire quantitative measures of the research object, the energy security index calculation methodology proposed by Jansen et al. (2004) is applied. To explore what effects, if any, energy security has on the economy of the EU, five economic indicators, with which the probable short-term impact of energy security is the most likely, are distinguished: real GDP, inflation, current account balance, foreign direct investment, and employment. Granger causality tests of the panel VAR model reveal that in the short run employment may be negatively affected by energy security. The effect itself is relatively small and short-lived. No short term causality is observed running from energy security towards the remaining macroeconomic variables of the panel VAR model. Such conclusions would suggest making the European Union energy policy decisions without prioritizing possible swings of the energy security level in the short run.

scholarly journals Centrality in Trade Networks and Investment in Security

2016 ◽  
Vol 22 (1) ◽  
pp. 27-39 ◽  
Author(s):  
Vincenzo Bove ◽  
Leandro Elia ◽  
Marco Pelliccia
Keyword(s):  
Trade Openness ◽  
Military Spending ◽  
Optimal Investment ◽  
Global Network ◽  
Empirical Literature ◽  
Network Centrality ◽  
Trade Networks ◽  
Network Building ◽  
Structure Of Trade

AbstractThe contemporary empirical literature on military spending has focused on institutional and conflict factors, and although has acknowledged the role of trade openness, it has not taken into account the position of a state in the trade network. Building on the concept of network centrality, we claim that the structure of trade networks affects the optimal investment in security, and that a country’s level of military spending is a function of its strategic position in the global network of a critical commodity, such as oil. Our empirical results show that network centrality constrains military spending.

Role of affect in short-term memory for paired associates.

1968 ◽  
Vol 78 (3, Pt.1) ◽  
pp. 494-501 ◽  
Author(s):  
Calvin F. Nodine ◽  
James H. Korn
Keyword(s):  
Short Term Memory ◽  
Short Term ◽  
Term Memory ◽  
Paired Associates

The Impact of Quantitative Easing on Emerging Markets – Literature Review

e-Finanse ◽  
2018 ◽  
Vol 14 (4) ◽  
pp. 67-76
Author(s):  
Piotr Bartkiewicz
Keyword(s):  
Emerging Markets ◽  
Large Scale ◽  
Empirical Literature ◽  
Quantitative Easing ◽  
Methodological Choices ◽  
The Subject ◽  
Methodological Approaches ◽  
The Impact ◽  
Sufficient Precision

AbstractThe article presents the results of the review of the empirical literature regarding the impact of quantitative easing (QE) on emerging markets (EMs). The subject is of interest to policymakers and researchers due to the increasingly larger role of EMs in the world economy and the large-scale capital flows occurring after 2009. The review is conducted in a systematic manner and takes into consideration different methodological choices, samples and measurement issues. The paper puts the summarized results in the context of transmission channels identified in the literature. There are few distinct methodological approaches present in the literature. While there is a consensus regarding the direction of the impact of QE on EMs, its size and durability have not yet been assessed with sufficient precision. In addition, there are clear gaps in the empirical findings, not least related to relative underrepresentation of the CEE region (in particular, Poland).

Improving the questions we ask, with Psychology and Cognitive Conflict.

2018 ◽  
Author(s):  
Brett Buttliere
Keyword(s):  
Problem Solving ◽  
Scientific Method ◽  
Meaning Making ◽  
Cognitive Conflict ◽  
Empirical Literature ◽  
Present Evidence ◽  
Scientific Papers ◽  
Science In Society

Over the last decade, there have been many suggestions to improve how scientists answer their questions, but far fewer attempt to improve the questions scientists are asking in the first place. The goal of the paper is then to examine and summarize synthesize the evidence on how to ask the best questions possible. First is a brief review of the philosophical and empirical literature on how the best science is done, which implicitly but not explicitly mentions the role of psychology and especially cognitive conflict. Then we more closely focus on the psychology of the scientist, finding that they are humans, engaged in a meaning making process, and that cognitive conflict is a necessary input for any learning or change in the system. The scientific method is, of course, a specialized meaning making process. We present evidence for this central role of cognitive conflict in science by examining the most discussed scientific papers between 2013 and 2017, which are, in general, controversial and about big problems (e.g., whether vaccines cause autism, how often doctors kill us with their mistakes). Toward the end we discuss the role of science in society, suggesting science itself is an uncertainty reducing and problem solving enterprise. From this basis we encourage scientists to take riskier stances on bigger topics, for the good of themselves and society generally.

The capacity of short term memory from an evolutionary perspective

2019 ◽  
Author(s):  
Majid Manoochehri
Keyword(s):  
Short Term Memory ◽  
Memory Span ◽  
Critical Role ◽  
Experimental Studies ◽  
Cognitive System ◽  
Evolutionary Approach ◽  
Evolutionary Perspective ◽  
Short Term ◽  
Term Memory

Memory span in humans has been intensely studied for more than a century. In spite of the critical role of memory span in our cognitive system, which intensifies the importance of fundamental determinants of its evolution, few studies have investigated it by taking an evolutionary approach. Overall, we know hardly anything about the evolution of memory components. In the present study, I briefly review the experimental studies of memory span in humans and non-human animals and shortly discuss some of the relevant evolutionary hypotheses.

Impact of FII’s and FDI’s on Indian Stock Market

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Global Economy ◽  
Short Term ◽  
Earnings Growth ◽  
The Past ◽  
Bull Market ◽  
Indian Stock Market

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.

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