scholarly journals Government Borrowing and Crowding Out

2021 ◽  
Author(s):  
Yasin Kürşat Önder ◽  
Maria Alejandra Ruiz-Sanchez ◽  
Sara Restrepo-Tamayo ◽  
Mauricio Villamizar-Villegas
Keyword(s):  
Welfare Analysis ◽  
Quantitative Model ◽  
Crowding Out ◽  
Firm Investment ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Banking Relationships ◽  
The Cost ◽  
Lending Behavior ◽  
The Impact

We investigate the impact of fiscal expansions on firm investment by exploiting firms that have multiple banking relationships. Further, we conduct a localized RDD approach and compare the lending behavior of banks that barely met and missed the criteria of being a primary dealer, as well as barely winners and losers at government auctions. Our results indicate that a 1 percentage point increase in banks’ bonds-to-assets ratio decreases loans by up to 0.4%, which leads to significant declines in firm investment, profits and wages. Our findings are grounded in a quantitative model with financial and real sectors with which we undertake a welfare analysis and compute the cost of government borrowing on the overall economy.

scholarly journals Bank Capital and the Cost of Equity

2019 ◽  
Vol 19 (265) ◽  
Author(s):  
Mohamed Belkhir ◽  
Sami Ben Naceur ◽  
Ralph Chami ◽  
Anis Semet
Keyword(s):  
Capital Requirements ◽  
Equity Capital ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Cost Of Equity ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Negative Effect ◽  
The Cost ◽  
The Impact

Using a sample of publicly listed banks from 62 countries over the 1991-2017 period, we investigate the impact of capital on banks’ cost of equity. Consistent with the theoretical prediction that more equity in the capital mix leads to a fall in firms’ costs of equity, we find that better capitalized banks enjoy lower equity costs. Our baseline estimations indicate that a 1 percentage point increase in a bank’s equity-to-assets ratio lowers its cost of equity by about 18 basis points. Our results also suggest that the form of capital that investors value the most is sheer equity capital; other forms of capital, such as Tier 2 regulatory capital, are less (or not at all) valued by investors. Additionally, our main finding that capital has a negative effect on banks’ cost of equity holds in both developed and developing countries. The results of this paper provide the missing evidence in the debate on the effects of higher capital requirements on banks’ funding costs.

The Effect of Taxation and Corruption on Firm Growth: An Empirical Investigation for Vietnam

2016 ◽  
pp. 5-29
Author(s):  
Bich Le Thi Ngoc
Keyword(s):  
International Development ◽  
Firm Growth ◽  
Empirical Investigation ◽  
Manufacturing Firms ◽  
Economic Management ◽  
Tax Rate ◽  
Percentage Point Increase ◽  
Percentage Points ◽  
Point Increase ◽  
The Impact

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.

scholarly journals Planning prompts to promote uptake of HIV services among men: a randomised trial in rural Uganda

2020 ◽  
Vol 5 (11) ◽  
pp. e003390
Author(s):  
Nolan M Kavanagh ◽  
Elisabeth M Schaffer ◽  
Alex Ndyabakira ◽  
Kara Marson ◽  
Diane V Havlir ◽  
...  
Keyword(s):  
Hiv Testing ◽  
Community Health ◽  
Control Group ◽  
Health Campaign ◽  
Percentage Point Increase ◽  
Percentage Points ◽  
Point Increase ◽  
Cost Planning ◽  
Testing Uptake ◽  
The Impact

IntroductionInterventions informed by behavioural economics, such as planning prompts, have the potential to increase HIV testing at minimal or no cost. Planning prompts have not been previously evaluated for HIV testing uptake. We conducted a randomised clinical trial to evaluate the effectiveness of low-cost planning prompts to promote HIV testing among men.MethodsWe randomised adult men in rural Ugandan parishes to receive a calendar planning prompt that gave them the opportunity to make a plan to get tested for HIV at health campaigns held in their communities. Participants received either a calendar showing the dates when the community health campaign would be held (control group) or a calendar showing the dates and prompting them to select a date and time when they planned to attend (planning prompt group). Participants were not required to select a date and time or to share their selection with study staff. The primary outcome was HIV testing uptake at the community health campaign.ResultsAmong 2362 participants, 1796 (76%) participants tested for HIV. Men who received a planning prompt were 2.2 percentage points more likely to test than the control group, although the difference was not statistically significant (77.1% vs 74.9%; 95% CI –1.2 to 5.7 percentage points, p=0.20). The planning prompt was more effective among men enrolled ≤40 days before the campaigns (3.6 percentage-point increase in testing; 95% CI –2.9 to 10.1, p=0.27) than among men enrolled >40 days before the campaigns (1.8 percentage-point increase; 95% CI –2.3 to 5.8, p=0.39), although the effects within the subgroups were not significant.ConclusionThese findings suggest that planning prompts may be an effective behavioural intervention to promote HIV testing at minimal or no cost. Large-scale studies should further assess the impact and cost-effectiveness of such interventions.

scholarly journals Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital Structure, and the Low-Risk Anomaly

2015 ◽  
Vol 105 (5) ◽  
pp. 315-320 ◽  
Author(s):  
Malcolm Baker ◽  
Jeffrey Wurgler
Keyword(s):  
Capital Structure ◽  
Stock Returns ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Capital Requirements ◽  
Structure Theory ◽  
Treasury Bills ◽  
Percentage Point Increase ◽  
Point Increase ◽  
The Cost

Traditional capital structure theory predicts that reducing banks' leverage reduces the risk and cost of equity but does not change the weighted average cost of capital, and thus the rates for borrowers. We confirm that the equity of better-capitalized banks has lower beta and idiosyncratic risk. However, over the last 40 years, lower risk banks have not had lower costs of equity (lower stock returns), consistent with a stock market anomaly previously documented in other samples. A calibration suggests that a binding ten percentage point increase in Tier 1 capital to risk-weighted assets could double banks' risk premia over Treasury bills.

scholarly journals The tradeoffs between safety and alert fatigue: Data from a national evaluation of hospital medication-related clinical decision support

2020 ◽  
Vol 27 (8) ◽  
pp. 1252-1258 ◽  
Author(s):  
Zoe Co ◽  
A Jay Holmgren ◽  
David C Classen ◽  
Lisa Newmark ◽  
Diane L Seger ◽  
...  
Keyword(s):  
Clinical Decision ◽  
Evaluation Tool ◽  
Order Entry ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Fatigue Data ◽  
Overall Performance ◽  
The Mean ◽  
The Cost ◽  
Physician Order Entry

Abstract Objective The study sought to evaluate the overall performance of hospitals that used the Computerized Physician Order Entry Evaluation Tool in both 2017 and 2018, along with their performance against fatal orders and nuisance orders. Materials and Methods We evaluated 1599 hospitals that took the test in both 2017 and 2018 by using their overall percentage scores on the test, along with the percentage of fatal orders appropriately alerted on, and the percentage of nuisance orders incorrectly alerted on. Results Hospitals showed overall improvement; the mean score in 2017 was 58.1%, and this increased to 66.2% in 2018. Fatal order performance improved slightly from 78.8% to 83.0% (P < .001), though there was almost no change in nuisance order performance (89.0% to 89.7%; P = .43). Hospitals alerting on one or more nuisance orders had a 3-percentage-point increase in their overall score. Discussion Despite the improvement of overall scores in 2017 and 2018, there was little improvement in fatal order performance, suggesting that hospitals are not targeting the deadliest orders first. Nuisance order performance showed almost no improvement, and some hospitals may be achieving higher scores by overalerting, suggesting that the thresholds for which alerts are fired from are too low. Conclusions Although hospitals improved overall from 2017 to 2018, there is still important room for improvement for both fatal and nuisance orders. Hospitals that incorrectly alerted on one or more nuisance orders had slightly higher overall performance, suggesting that some hospitals may be achieving higher scores at the cost of overalerting, which has the potential to cause clinician burnout and even worsen safety.

Savings Groups Reduce Vulnerability, but Have Mixed Effects on Financial Inclusion

2020 ◽  
Author(s):  
Verónica Frisancho ◽  
Martín Valdivia
Keyword(s):  
Financial Inclusion ◽  
Access To Credit ◽  
Administrative Records ◽  
Labor Allocation ◽  
Percentage Point Increase ◽  
Cluster Randomized Control Trial ◽  
Point Increase ◽  
Idiosyncratic Shocks ◽  
Cluster Randomized ◽  
The Impact

This paper evaluates the impact of the introduction of savings groups on poverty, vulnerability, and financial inclusion outcomes in rural Peru. Using a cluster randomized control trial and relying on both survey and administrative records, we investigate the impact of savings groups after more than two years of exposure. We find t hat savings groups channel expensive investments such as housing improvements and reduce households' vulnerability to idiosyncratic shocks, particularly among households in poorer districts. The treatment also induces changes in households labor allocation choices: access to savings groups increases female labor market participation and, in poorer areas, it fosters greater specialization in agricultural activities. Access to savings groups also leads to a four-percentage point increase in access to credit among women, mainly driven by access to the groups loans. However, the introduction of savings groups has no impact on the likelihood of using formal financial services.On the contrary, it discourages access to loans from formal financial institutions and microfinance lenders among the unbanked.

scholarly journals Costs and Cost Effectiveness of a Health Care Provider–Directed Intervention to Promote Colorectal Cancer Screening

2009 ◽  
Vol 27 (32) ◽  
pp. 5370-5375 ◽  
Author(s):  
Veena Shankaran ◽  
Thanh Ha Luu ◽  
Narissa Nonzee ◽  
Elizabeth Richey ◽  
June M. McKoy ◽  
...  
Keyword(s):  
Colorectal Cancer ◽  
New York ◽  
Cost Effectiveness ◽  
The United States ◽  
Sensitivity Analyses ◽  
Academic Detailing ◽  
Crc Screening ◽  
Percentage Point Increase ◽  
Point Increase ◽  
The Cost

Purpose Colorectal cancer (CRC) screening remains underutilized in the United States. Prior studies reporting the cost effectiveness of randomized interventions to improve CRC screening have not been replicated in the setting of small physician practices. We recently conducted a randomized trial evaluating an academic detailing intervention in 264 small practices in geographically diverse New York City communities. The objective of this secondary analysis is to assess the cost effectiveness of this intervention. Methods A total of 264 physician offices were randomly assigned to usual care or to a series of visits from trained physician educators. CRC screening rates were measured at baseline and 12 months. The intervention costs were measured and the incremental cost-effectiveness ratio (ICER) was derived. Sensitivity analyses were based on varying cost and effectiveness estimates. Results Academic detailing was associated with a 7% increase in CRC screening with colonoscopy. The total intervention cost was $147,865, and the ICER was $21,124 per percentage point increase in CRC screening rate. Sensitivity analyses that varied the costs of the intervention and the average medical practice size were associated with ICERs ranging from $13,631 to $36,109 per percentage point increase in CRC screening rates. Conclusion A comprehensive, multicomponent academic detailing intervention conducted in small practices in metropolitan New York was clinically effective in improving CRC screening rates, but was not cost effective.

scholarly journals Inflation Expectations and Readiness to Spend: Cross-Sectional Evidence

2015 ◽  
Vol 7 (1) ◽  
pp. 1-35 ◽  
Author(s):  
Rüdiger Bachmann ◽  
Tim O. Berg ◽  
Eric R. Sims
Keyword(s):  
Lower Bound ◽  
Inflation Expectations ◽  
Zero Lower Bound ◽  
Cross Sectional ◽  
Percentage Point Increase ◽  
Expected Inflation ◽  
Percentage Points ◽  
Point Increase ◽  
The Impact ◽  
The Relationship

There have been suggestions for monetary policy to engineer higher inflation expectations to stimulate spending. We examine the relationship between expected inflation and spending attitudes using the microdata from the Michigan Survey of Consumers. The impact of higher inflation expectations on the reported readiness to spend on durables is generally small, outside the zero lower bound, often statistically insignificant, and inside of it typically significantly negative. In our baseline specification, a one percentage point increase in expected inflation during the recent zero lower bound period reduces households' probability of having a positive attitude towards spending by about 0.5 percentage points. (JEL D12, D84, E21, E31, E52)

scholarly journals Research on the Trade Effects of China’s Direct Investment in ASEAN

2019 ◽  
Vol 1 (2) ◽  
pp. p175
Author(s):  
Shuang-lin LUO ◽  
Min ZHOU ◽  
Yu-feng Huang
Keyword(s):  
Direct Investment ◽  
Variable Parameter ◽  
The Philippines ◽  
Mechanical Equipment ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Import And Export ◽  
Asean Countries ◽  
Investment In China ◽  
The Impact

Based on the data of China’s direct investment and trade in ASEAN countries from 2004 to 2018, this paper established a variable parameter model, variable intercept model and constant coefficient model with panel data, and investigated the heterogeneous impact of China’s direct investment in ASEAN countries on their import and export trade and the impact mechanism. It is found that China’s direct investment in ASEAN will be deposited in the trade between China and 10 ASEAN countries, creating effects for trade, and the size of the effect varies with the host country. On average, when other factors remain unchanged, every 1 percentage point increase in China’s direct investment flows to ASEAN countries will increase exports to ASEAN countries by 0.54%, imports will increase by 0.44%. Further studies have found that our country to Brunei, Indonesia, the Philippines, Singapore and Thailand’s export create effect is greater than the imported create effect, on the whole, China’s investment in the five countries promoted the net exports, mainly on its investment in China, led to many mechanical equipment and other related products exports, and imports mainly import countries have their comparative advantages of products, variety is less.

scholarly journals Government debt-interest rate nexus in G7 countries over a long horizon

2016 ◽  
Vol 63 (5) ◽  
pp. 603-625
Author(s):  
Lena Malesevic-Perovic
Keyword(s):  
Interest Rates ◽  
Government Debt ◽  
Crowding Out ◽  
Government Bond ◽  
Bond Yields ◽  
G7 Countries ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Government Deficit ◽  
Output Gaps

The goal of this paper is to investigate the influence of government fiscal positions on long-term interest rates in G7 countries during the period 1948-2012. Our results suggest that a one percentage point increase in the stock of government debt in GDP is associated with an increase in government bond yields of 2.27-6.28 basis points, while an increase in government deficit in GDP of one percentage point is associated with an increase in government bond yields of 3.15-14.3 basis points. In addition, our results indicate that under reasonable assumptions and in the presence of widening output gaps, the neoclassical growth model predicts a rather low degree of crowding-out (around 36 percent), while the narrowing of the output gap leads to a complete crowding-out.

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