scholarly journals Analytical approach to the influence of motivation on the dynamics of heterogeneous employees and expected average costs of efficient work

2021 ◽  
Vol 24 (2) ◽  
pp. 77-104
Author(s):  
Mirko Talajić ◽  
Ilko Vrankić ◽  
Robert Kopal
Keyword(s):  
Average Cost ◽  
Company Performance ◽  
Effective Work ◽  
Long Run ◽  
Principal Agent Problem ◽  
Effective Performance ◽  
Short Run ◽  
The Stability ◽  
Different Characteristics ◽  
Efficient Work

Abstract Motivating employees with different characteristics has a significant effect on company performance. This paper models the relationship between employer and heterogeneous employees working in pairs as a principal-agent problem. Every worker can encounter moral hazard with regard to the stimulation of the employer and the efficient work of co-workers. Employee behavior describes a reaction function based on which the equilibrium of appropriate pairs of employees and their overall effective performance is described. The employer determines the optimal stimulation that minimizes the expected average cost of effective work for each individual group of employees. The total expected average cost of efficient work of the entire company in the short run depends on the distribution of employees with different characteristics. How the attitude of employees towards work in the long run changes is described by replicative dynamics and shows that the stability of the employee population is achieved in two cases where the long-run total expected average cost of efficient work is differentiated by approximately eight percent. This paper describes a new conceptual framework for quantitative analysis of the effects of motivation on the short and long run financial results of an enterprise.

scholarly journals Persistent Liquidity Effects and Long-Run Money Demand

2014 ◽  
Vol 6 (2) ◽  
pp. 71-107 ◽  
Author(s):  
Fernando Alvarez ◽  
Francesco Lippi
Keyword(s):  
Interest Rates ◽  
Money Demand ◽  
Asset Markets ◽  
Propagation Mechanism ◽  
Monetary Model ◽  
Long Run ◽  
Short Run ◽  
The Stability ◽  
Two Parameters

We present a monetary model with segmented asset markets that implies a persistent fall in interest rates after a once-and-for-all increase in liquidity. The gradual propagation mechanism produced by our model is novel in the literature. We provide an analytical characterization of this mechanism, showing that the magnitude of the liquidity effect on impact, and its persistence, depend on the ratio of two parameters: the long-run interest rate elasticity of money demand and the intertemporal substitution elasticity. The model simultaneously explains the short-run “instability” of money demand estimates as well as the stability of long-run interest-elastic money demand. (JEL E13, E31, E41, E43, E52, E62)

scholarly journals Non-performing Loan and its Effects on Banking Stability: Evidence from National and International Licensed Banks in Nigeria

2019 ◽  
pp. 43-74
Author(s):  
Ngozi, V. Atoi
Keyword(s):  
Weighted Average ◽  
Market Theory ◽  
Vector Autoregressive ◽  
Long Run ◽  
Lending Rate ◽  
International Banks ◽  
Efficient Market Theory ◽  
Short Run ◽  
Banking Stability ◽  
The Stability

This study examines Non-Performing Loan (NPL) and its effects on the stability of Nigerian banks with national and international operational licenses from 2014:Q2 to 2017:Q2. A "restricted" dynamic GMM is employed to estimate the macroeconomic and bank specific drivers of NPL for each licensed category. Z-Score is constructed to proxy banking stability, and its response to shocks NPLs is examined in a panel vector autoregressive framework. The results reveal that drivers of NPLs vary across the two categories of banks, but, weighted average lending rate is a vital macroeconomic driver of NPLs for both. The results also confirm the moral hazard hypothesis and risk-return tradeoff of efficient market theory. Furthermore, international banks withstand NPLs shocks in the long run, despite temporary flux in the short horizon, while the stability of national banks is susceptible to NPLs shocks in the long run. The study recommends that weighted average lending rate, anchored on monetary policy rate should be the focus of banks' regulators when addressing issues of NPLs. Again, strategies for mitigating short run impacts of NPLs on the stability of international licensed banks should be incorporated in the offsite regulatory framework to ensure banking stability.

scholarly journals Testing the stability of money multupliers for Croatia

2020 ◽  
Author(s):  
Manuel Benazić ◽  
◽  
Daniel Tomić ◽  
Keyword(s):  
Money Supply ◽  
Bounds Testing ◽  
Monetary Base ◽  
Monetary Aggregates ◽  
Money Multiplier ◽  
Multiplication Process ◽  
Long Run ◽  
Monetary Authorities ◽  
Short Run ◽  
The Stability

This paper analyses the stability of monetary multiplication process in Croatia and its forecasting ability. The money multiplier approach assumes that the monetary authorities are able to control the monetary base through money multipliers by affecting the money supply and the rate of inflation. Thus, by controlling the monetary base, monetary authorities can achieve price stability. For implementing an effective and accurate monetary policy, money multipliers should be stable. The stability of money multipliers implies that different measures of money supply (i.e. different monetary aggregates) and reserve money are stationary or that different measures of money supply and reserve money are cointegrated. Therefore, the purpose of this paper is to test for the stationarity of money multipliers and to determine the long-run relationship between different monetary aggregates and reserve money for Croatia using monthly data in the period from 2011 to 2019 and the bounds testing (ARDL) approach for cointegration. The results of the unit-root tests indicate that money multipliers are nonstationary, therefore unstable and inappropriate for the short-run policy purpose. On the other side, the existence of stable cointegration relationships suggests the validity of the money multiplier model in the long-run

Price Transmission along the European Food Supply Chain in Selected Northern-Southern Countries

2016 ◽  
Vol 1 (2) ◽  
pp. 31-48
Author(s):  
Wael Chouayet ◽  
Anthony Rezitis
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Price Transmission ◽  
Food Supply Chain ◽  
Small Magnitude ◽  
Food Supply Chains ◽  
Use Of Time ◽  
Long Run ◽  
Short Run ◽  
Different Characteristics

This study intends to estimate the different characteristics of price transmission and aims to test the hypothesis of price transmission asymmetry based on agricultural, processor and consumer monthly series of price indexes from 2005 to 2012 in 8 European countries from both Southern and Northern Europe and via the use of time series as well as econometric approaches such as co-intergation and error correction models. The results obtained reveal that price transmission has very small magnitude. Indeed, just 10 to 12% of price shocks at one level are corrected in the long-run by prices at another level both downstream and upstream of the food supply chain. The results also show that prices are transmitted mutually in both directions downstream and upstream the food supply chain in the two European groups. Furthermore, they indicate that in the long-run prices are transmitted symmetrically both downstream and upstream of the food supply chains in Northern as well as in Southern Europe. Finally, in the short-run different conclusions are found depending on the region.

scholarly journals Short Term Portfolio Investment and BI Rate: Do They Determine the Stabilization of Rupiah Exchange Rate in Indonesia?

2019 ◽  
Vol 8 (1) ◽  
pp. 18
Author(s):  
Chenny Seftarita ◽  
Fitriyani Fitriyani ◽  
Cut Zakia Rizki ◽  
Diana Sapha ◽  
Abd. Jamal
Keyword(s):  
Exchange Rate ◽  
Stock Price ◽  
Short Term ◽  
Private Debt ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Stability ◽  
Portfolio Investments

This study aims to investigate the influence of short-term portfolio investments and BI interest rate on fluctuation of rupiah exchange rate in Indonesia. The data used is quarterly data from 2010 to 2016 collected from Indonesia Central Bank. Using the Autoregressive Distributed Lag (ARDL) method, the result showed that rupiah exchange rate was strongly influenced by shocks in the private debt securities, joint stock price index, and BI Rate, both in the long run and short run. Moreover, it is found that there was a short-run and long-run balance relationship between Short Term Portfolio Investments and BI rate against the rupiah exchange rate. Thus, it is recommended that in order to stabilize the exchange rate, it is necessary to maintain the stability of short-term portfolio investments.  

scholarly journals Macroeconomic Variables Affecting Fish Production in Nigeria

2019 ◽  
Vol 9 (2) ◽  
pp. 216-230
Author(s):  
Edet Joshua Udoh ◽  
Sunday Brownson Akpan
Keyword(s):  
Exchange Rate ◽  
Fish Production ◽  
Demand Shocks ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Short Run ◽  
Total Fish ◽  
Food Imports ◽  
The Stability ◽  
Aquaculture Production

The study is an attempt to examine the influence of macroeconomic variables on the growth of fishery sub-sector in Nigeria. The study covers the period from 1961 and 2017. The results apparently revealed that aquaculture production, artisanal fish production, and total fish production, grew exponentially at the rate of 8.90%, 3.75%, and 4.25% respectively. To be more precise, various other factors like, demand shocks, food imports, and variable exchange rate, affected artisanal fish production in the long-run; while exchange rate and demand shocks were significant in the short-run period. For the aquaculture production, demand shocks, credit potential, inflation, food imports, and exchange rate were some significant policy variables in the long-run; whereas demand shocks and exchange rate were also significant in the short-run period. Finally, as far as the total fish production is concerned, demand shocks, food imports, and exchange rate were significantly trending variables, both in the short and long-run periods. To promote fish production in Nigeria, fish imports should be gradually restricted and the economic system regulated to ensure the stability of naira exchange for the US dollar.

Policy Coordination in the Euro Area

2009 ◽  
pp. 5-31
Author(s):  
Carlo Panico ◽  
Vŕzquez Suŕrez Marta
Keyword(s):  
Euro Area ◽  
Policy Coordination ◽  
Institutional Arrangements ◽  
Fiscal Policies ◽  
Stability And Growth Pact ◽  
Growth Pact ◽  
Long Run ◽  
Short Run ◽  
The Stability

The paper deals with the problems of coordination between monetary and fiscal policies in the Euro area. It examines how the existing institutions handle these problems and how the literature evaluates their working, deriving from these evaluations a proposal to reorganise them. The paper points out that there is a need for coordination between monetary and fiscal policies when both cyclical (short-run) and structural (long-run) problems are dealt with. Then it assesses how coordination is carried out under the existing institutional arrangements and identifies which parts of them, according to the existing literature, are in need of modification. Finally, on the basis of the content of this literature, it formulates a proposal to reform the institutional arrangements and the economic content of the Stability and Growth Pact, which aims at making them work effectively.

THE IMPACT OF EXCHANGE RATE, FISCAL DEFICIT AND TERMS OF TRADE ON EXTERNAL DEBT OF PAKISTAN: A Cointegration and Causality Analysis

2011 ◽  
Vol 01 (03) ◽  
pp. 10-24
Author(s):  
Asma Awan ◽  
Nabeela Asghar ◽  
Hafeez ur Rehman
Keyword(s):  
Exchange Rate ◽  
Foreign Debt ◽  
External Debt ◽  
Terms Of Trade ◽  
Fiscal Deficit ◽  
Causality Analysis ◽  
Long Run ◽  
Short Run ◽  
The Stability ◽  
The Impact

The massive debt burden of Pakistan calls for a detailed analysis of trends in the foreign debt levels, its causative factors and implications for economic growth. The present study is an attempt to analyze the relationship between external debt and exchange rate, fiscal deficit and deterioration of terms of trade for the period 1974-2008. Using Johansen approach, the study found significant long-run relationship between external debt and exchange rate and deterioration of terms of trade. The results of the study revealed that fiscal deficit had no significant impact on external debt. In the short-run all the variables failed to establish relationship with external debt. However, the existence of long-run causality was observed and three channels of uni-directional causalities were found actively running from (i) fiscal deficit to external debt, (ii) terms of trade to exchange rate, and (iii) fiscal deficit to terms of trade. Diagnostic test confirmed the validity of the model and CUSUM and CUSUMSQ test revealed the stability of the model.

Sectoral Loan Portfolio Concentration and Bank Stability: Evidence from an Emerging Economy

2019 ◽  
Vol 19 (1) ◽  
pp. 66-99
Author(s):  
Baah Aye Kusi ◽  
Lydia Adzobu ◽  
Alex Kwame Abasi ◽  
Kwadjo Ansah-Adu
Keyword(s):  
Fixed Effects ◽  
Banking Sector ◽  
Expert Knowledge ◽  
Generalized Method Of Moments ◽  
Shape Effect ◽  
Loan Portfolio ◽  
Bank Stability ◽  
Long Run ◽  
Short Run ◽  
The Stability

In this study, the effect of sectoral loan portfolio concentration on bank stability is investigated in the Ghanaian banking sector between 2007 and 2014. Specifically, we investigate the linearity and non-linearity effects of sectoral loan concentration on bank stability given the limited exploration of this nexus. Employing a two-step generalized method of moments (GMM) robust random and fixed effects panel models of 30 banks, the study provides evidence showing that sectoral loan concentration weakens the stability of banks. This confirms the concentration-fragility hypothesis and the diversification theory of traditional banking but may promote bank stability beyond a certain threshold point. This implies that bank sectoral loan concentrate has a direct non-linear U-shape effect on bank stability in Ghana. We argue that although sectoral loan concentration may weaken stability of banks in the short run, it may however enhance the stability of banks in the long run through prolonged expert knowledge, experience and understanding of sectors. From these findings, policymakers, regulators and bank managers must not only develop and design policies and regulations that prohibit sectoral loan concentration but should also incorporate plans and policies that encourage banks to develop core competence and competitive advantage to take advantage of advancing bank stability through sectoral loan concentration. JEL Codes: G10; G18; G41

Sign in / Sign up

Export Citation Format

Share Document