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Scientific And Methodogical Aspects Of The Formation Of An Innovative Set Of Services, Dilnoza Davron Kizi Djurayeva

Scientific reports of Bukhara State University

Introduction. This article considers the methodological aspects of innovative development and research of the service sector at the current stage of economic development, scientifically based proposals and recommendations for the balanced development and diversification of service enterprises, improving the efficiency of the service sector of the economy. Methodological issues of improving the practical mechanisms of application of innovative technologies and tools in the field have been studied. Research methods. Ensuring the rapid growth of the service sector in the country, further support of entrepreneurship and the creation of new jobs for the population, as well as the balanced development and …

Human Capital And Black-White Earnings Gaps, 1996–2017, Owen Thompson

Upjohn Institute Working Papers

This paper estimates the contribution of human capital to the Black-white earnings gap in three separate samples of men spanning from 1966 through 2017, using both educational attainment and performance on standardized tests to measure human capital. There are three main findings. First, the magnitude of reductions in the Black-white earnings gap that occur after controlling for human capital has become much larger over time, suggesting a growing contribution of human capital to Black-white earnings disparities. Second, these increases are almost entirely due to growth in the returns to human capital, which magnify the impact of any racial differences in …

Occupancy, Oil Prices, And Stock Returns: Evidence From The U.S. Airline Industry, Andre V. Mollick, Md Ruhul Amin

School of Economics and Finance Faculty Publications

This paper examines whether occupancy of seats affects stock returns of airline companies and how this relationship is affected by WTI oil prices. Our approach combines revenues (occupancy) and costs (oil prices) for 33 U.S. airline companies from 1990 to 2019. Using travel capacity utilization data from U.S. carriers at monthly frequency and exploiting fixed-effects regression models, we document a positive relation between occupancy and stock returns, which is attenuated by oil prices. The role of oil becomes larger with asymmetries: the effects of oil prices are higher when moving up than down. Airline stocks always respond by more than …

Japanese Monetary Policy And Its Impact On Stock Market Implied Volatility During Pleasant And Unpleasant Weather, Marinela Adriana Finta

Research Collection Lee Kong Chian School Of Business

We investigate the effect of Japan’s Monetary Policy Meeting releases on the intraday dynamics of the Nikkei Stock Average Volatility Index and its futures during pleasant and unpleasant weather. We show that at the time of a monetary policy release when the temperature is pleasant, there is a significant decline in Japanese equities’ implied volatility and futures, which lasts for about 10 minutes and 5 minutes, respectively. This decline is longer and exhibits a greater variation when releases occur during cold days. Finally, we emphasize the achievable economic profits and losses, given the reaction of Nikkei VI futures to the …

Kant And Lindahl, John E. Roemer, Joaquim Silvestre

Cowles Foundation Discussion Papers

Wicksell (1896) and Lindahl (1919) analyzed the public provision of public goods through parliamentary negotiation. Roemer (2010, 2019) applied Kant’s (1785) categorical imperative to the private provision of public goods by voluntary contributions. They coincide in yielding efficient outcomes. Our focal equilibrium notions are the Multiplicative Kantian Equilibrium in the Kant-Roemer modelling and the Balanced Linear Cost Share Equilibrium for the Wicksell-Lindahl approach. It turns out that both are defined by the same individual optimization problem, and that costs are distributed according to marginal valuation, what we call the Lindahl Ratio. More general versions of the Wicksell-Lindahl and Kant-Roemer models …

Short-Term Institutions, Analyst Recommendations, And Mispricing: The Role Of Higher Order Beliefs, Martijn Cremers, Ankur Pareek, Zacharias Sautner

Department of Finance Faculty Research

We document that stocks that have optimistic (pessimistic) consensus recommendations and are currently held by many short-term institutions exhibit large stock-return reversals: Their large past outperformance (underperformance) is followed by large negative (positive) future alphas. The predictable return reversals originate from overreaction to past recommendation releases and the correction of these overreactions around future releases. Results are stronger when earnings news is released and at firms with higher fundamental uncertainty. Further, firms with more short-term institutions show stronger announcement returns and price drift after recommendation changes. Our results are consistent with models of higher order beliefs where short-term institutions coordinate …

Legal Financial Obligations & Rehabilitation: How The Ability To Pay Fines And Fees Disproportionately Affects Citizens Based On Socioeconomic Status, Bailey R. Code

University Honors Theses

In the United States, legal financial obligations (LFO's), also known as monetary sanctions or criminal justice financial obligations, refer to the fines and fees that result from an individual’s involvement in the criminal justice system. Today, these fines and fees have become the most common form of punishment used by the United States' legal system. This paper answers the following research question: How can the ability to pay legal financial obligations shape the rehabilitation of incarcerated people in the United States?

Legal Financial Obligations are harmful to those entangled within the justice system, as shown by their cyclical nature and …

The Determinants Of House Prices In Malaysia, Hazmi Hamizan Bin Mohd Zaki

International Journal of Management, Finance and Accounting

This paper studied how house prices were affected by macroeconomic factors from Q1 2009 to Q4 2018. The short and long-run effects of real income, nominal interest rates, inflation rate and stock prices on house prices in Malaysia were examined with the autoregressive distributed lag (ARDL) of a restricted error correction model (ECM). It was discovered that the selected macroeconomic factors were cointegrated with house prices. Income, represented by real Gross Domestic Product (GDP), significantly affected house prices in the short and long-run. Inflation and interest rate, proxied by Consumer Price Index (CPI) and Overnight Policy Rate (OPR), respectively, affected …

Factors Affecting Accumulation Of Household Debts In Malaysia, Yvonne Lean-Ee Lee, Vanisa Sukhavudh Charun, Hazmi Hamizan Mohd Zaki

International Journal of Management, Finance and Accounting

Since 2000, the ratio of debt to income among Malaysian households has been showing an upward trend. This paper examines the factors affecting accumulation of household loans into two main categories, housing loans and consumption loans. The purpose of this separation is to study the impact of savings on housing loans and consumption loans individually, which has not been researched in a Malaysian context prior to this. By adopting the Vector Error Correction Model (VECM), we found that cost of living, house prices and savings impacts accumulation of housing loans and consumption loans differently. There is a positive relationship between …

Driving Inclusiveness From The Grassroots: The Tambunan Inventors, Kamarulzaman Abdul Aziz, Jule Ashikin Julai Poh

International Journal of Management, Finance and Accounting

Reviews of recent studies indicated the growing importance of development and attainment of inclusive societies via inclusive innovations. This is especially relevant for addressing the disenfranchised or those at the base of the economic pyramid (BOP). Gaps in the literature pointed to; l) the need for understanding of inclusive innovation processes among small, medium and micro enterprises vis-à-vis among local entrepreneurs, ll) there is a lack of studies on inclusive innovation movement in Malaysia. Specifically under the SME Masterplan 2012-2020, there are a number of high impact programmes defined to drive numerous aims. Specifically, for driving inclusive innovation among Small …

Aurora: The Pandemic Within, Nahariah Jaffar, Haslin Johari

International Journal of Management, Finance and Accounting

Aurora Layar Group (Aurora) had been experiencing losses for three consecutive years since 2017. Among factors contributing to these losses were high depreciation due to high capital expenditure and recognition of impairment losses. However, Aurora managed to reduce its losses from RM252 billion in 2017 to RM79.5 billion in 2019. Unfortunately, the Covid-19 pandemic had hammered many industries worldwide including Aurora, in the travel, leisure and hospitality sector. The implication from the restrictions on business operations due to the Covid-19 pandemic on Aurora was evidenced by its reported losses of RM371.3 billion in the first six months to June 2020 …

Hemp Production Network Effects: Are Producers Tipped Toward Suboptimal Varietal Selection By Their Neighbors?, Tanner Mccarty, Jeffrey Young

Journal of Applied Farm Economics

The 2018 farm bill removed industrial hemp from the Schedule 1 Controlled Substance List. In response, states scrambled to enact hemp legislation. Some hemp flower producers report their hemp fields were cross- pollinated by a neighbor growing a different hemp cultivar. For hemp flower crops, cross- pollination reduces cannabinoid concentration levels within the flower; these concentration levels dictate flower price. We show that in a repeated game, once a sufficiently large percentage of growers decide to plant hemp fiber/seed crops, cross-pollination forces flower growers to convert to fiber/seed to avoid the negative network externality. Over time, a stable, suboptimal Nash …

Are Stock Returns And Output Growth Higher Under Democrats?, Ray C. Fair

Cowles Foundation Discussion Papers

Recent literature suggests that both stock returns and economic growth are significantly higher under Democratic presidential administrations. This is a puzzle in that persistent differences in stock returns seem unlikely in efficient markets, and it is not obvious why Democrats should do better. Often these kinds of results go away upon further analysis or more data, and this appears to be true in the present case. In this paper the sample is extended to 27 administrations, from Wilson-1 through Trump. While the mean stock return under the Democrats is generally higher, none of the differences in means are significant at …

Cost Countries Pay For High Homicide Rates, Brittany Lowe

Grawemeyer Colloquium Papers

This research finds the economic cost, in terms of GDP per capita, to countries for increased violence using typical econometric models, and then makes recommendations to decision makers about funding allocation of violence prevention programs based off its findings.

Strategically Making Your Farm Or Ranch Profitable, Matthew Stockton

Cornhusker Economics

The word ‘strategically’ sounds sophisticated and is often used to imply the presence of some secret idea that will always work to increase profit. The word seems to suggest that to be strategic requires special knowledge or an almost magical method of accomplishing something. In truth, however, strategy is simply a plan of action or policy designed to achieve something desired, and it can be complex or basic, as each occasion requires. Strategy can be good or bad, a successful endeavor or a disaster. The key to good strategy is to have clear understanding of desired out-come, as well as …

Information Perception And Climate Change Adaptation, Ji Won Sung

Undergraduate Economic Review

Despite 97% of scientists believing that climate change is occurring, a far smaller proportion of ordinary citizens agree with this statement and the proportion of those who do greatly diverge by political affiliation. This paper lays out a dynamic information updating model with adaptation choice as the final outcome, linking information perception, belief perception, and behavioral implementation. Furthermore, this paper examines how various behavioral and environmental factors affect the agent’s adaptation choices by means of such cognitive processes. This research has implications for further research on climate change preference formation and effective communication strategies, such as informative or normative nudges.

Welfare Comparisons For Biased Learning, Mira Frick, Ryota Iijima, Yuhta Ishii

Cowles Foundation Discussion Papers

We study robust welfare comparisons of learning biases, i.e., deviations from correct Bayesian updating. Given a true signal distribution, we deem one bias more harmful than another if it yields lower objective expected payoffs in all decision problems. We characterize this ranking in static (one signal) and dynamic (many signals) settings. While the static characterization compares posteriors signal-by-signal, the dynamic characterization employs an “efficiency index” quantifying the speed of belief convergence. Our results yield welfare-founded quantifications of the severity of well-documented biases. Moreover, the static and dynamic rankings can conflict, and “smaller” biases can be worse in dynamic settings.

Welfare Comparisons For Biased Learning, Mira Frick, Ryota Iijima, Yuhta Ishii

Cowles Foundation Discussion Papers

We study robust welfare comparisons of learning biases, i.e., deviations from correct Bayesian updating. Given a true signal distribution, we deem one bias more harmful than another if it yields lower objective expected payoffs in all decision problems. We characterize this ranking in static (one signal) and dynamic (many signals) settings. While the static characterization compares posteriors signal-by-signal, the dynamic characterization employs an “efficiency index” quantifying the speed of belief convergence. Our results yield welfare-founded quantifications of the severity of well-documented biases. Moreover, the static and dynamic rankings can disagree, and “smaller” biases can be worse in dynamic settings.

Financial Contagion During Stock Market Bubbles, Diego Escobari, Shahil Sharma

School of Economics and Finance Faculty Publications

We investigate the role of bubbles on financial contagion using a set of developed economies. First, using the recursive flexible window right-tailed ADF-based procedure, we date stamp bubble periods in stock index series. Second, we capture contagion with a DCC multivariate GARCH framework. In a third step, we construct a panel by pooling across the time-series dynamic conditional correlations and bubbles to estimate various dynamic panel specifications that consider the endogenous nature of bubbles. We find statistically significant decreases in the dynamic correlations during periods of bubbles, which shows that the financial contagion between pair of countries diminishes when any …

The Impact Of Covid-19 On The Standard & Poor 500 Index Sectors: A Multivariate Generalized Autoregressive Conditional Heteroscedasticity Model, Maha Elhini, Rasha Hammam

Economics

Purpose – This paper aims to examine the impact of the daily growth rate of COVID-19 cases in the USA (COVID), the Federal Fund Rate (FFR) and the trade-weighted US dollar index (USDX) on S&P500 index daily returns and its 11 constituent sectors’ indices for the time period between January 22, 2020, until June 30, 2020. Design/methodology/approach – The study uses the multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) model to gauge the impacts over the whole period of study, as well as over two sub-periods; first, January 22, 2020, until March 30, 2020, reflecting uncertainty in the US markets and …

Gender Differences In Ncaa Non-Revenue Sports: An Examination Of Men’S And Women’S Soccer Coaching Salaries, David Eaton, Martin Milkman

Faculty & Staff Research and Creative Activity

This paper examines the determinants of head coaching salaries in men’s and women’s collegiate soccer. Both of these sports are considered non-revenue sports, and thus differences in sports revenues should not impact coaching salaries. We analyze salaries of head coaches in these sports to determine if i) coaches in women’s soccer earn systematically less than coaches of men’s soccer, and ii) whether there is a difference in salaries between male and female coaches of women’s soccer. We find that salaries for coaches of women’s soccer are lower than those for men’s soccer. We also find that there is no statistically …

Credit Risk Modelling For Assessing Creditworthiness For Homeowners Who Can Avail Solar On Finance At Peacock Solar, Gurugram, Niraj Kishore Chimote, Aaditya Anil Srivastava

International Review of Business and Economics

Peacock Solar is a household solar installation company based in Gurugram, Haryana. It provides hassle free installation of solar power. In an era of rising demand for renewable energy, solar power is seen as a future of energy. The markets are becoming more competitive as better technologies increase the efficiency and lower the cost of solar power. In India, solar power is in its nascent stage of development and being price sensitive markets, cost remains the bottom line of competition. The present study is an attempt to showcase the strategy adopted by Peacock solar to enhance its sales by making …

Thailand’S Trade Policies: Short Review Of Successes And Shortcomings, Nash Herman

International Review of Business and Economics

While Thailand is often considered a bastion of free trade, the Southeast Asian country has deployed a multitude of different policies that has led to Thailand’s current economic success. Thailand has generally always sought to be a modern, liberal country. Before the Asian Financial Crisis of the 1990’s Thailand saw unprecedented economic growth before the crisis and has since focused on even more liberalization measures. The paper aims to explore some of the different parts of economic theory that Thailand has implemented (both liberal and protectionist), in order to explain some of Thailand’s economic success and some possible shortcomings. The …

Efficiency Ranking Of It Service-Producing Firms: Case Of Indian Multinationals, H. D. Vinod, P. M. Rao

International Review of Business and Economics

Production functions often study the output of physical products with capital and labor inputs. Instead, we use 2004 to 2016 data for 55 In- dian multinational companies to assess the production of services. Our estimates of flexible production functions yield estimates of scale elasticity (SCE) and elasticity of substitution (EOS) for pooled data. A subset of 31 companies with relatively complete data yields their individual SCE and EOS values, revealing their heterogeneity. Sorting the 31 companies by their SCE help name scale-efficient (high SCE) and scale inefficient (low SCE) multinationals. Similarly, a listing of 31 companies sorted by EOS allows …

Institutions And Opportunistic Behavior: Experimental Evidence, Antonio Cabrales, Irma Clots-Figueras, Roberto Hernán-González, Praveen Kujal

ESI Working Papers

Risk mitigating institutions have long been used by societies to protect against opportunistic behavior. We know little about how they are demanded, who demands them or how they impact subsequent behavior. To study these questions, we run a large-scale online experiment where insurance can be purchased to safeguard against opportunistic behavior. We compare two different selection mechanisms for risk mitigation, the individual and the collective (voting). We find that, whether individual or collective, there is demand for riskmitigating institutions amongst high-opportunism individuals, while low-opportunism individuals demand lesser levels of insurance. However, high-opportunism individuals strategically demand lower insurance institutions when they …

Trust And Retirement Preparedness: Evidence From Singapore, Benedict S. K. Koh, Olivia S. Mitchell, Joelle H. Fong

Research Collection Lee Kong Chian School Of Business

Trust is an essential component of any financial system, and distrust can undermine savings and economic growth. Our study draws on the Singapore Life Panel to assess how trust ties to older respondents’ (1) pension plan participation and withdrawals; (2) life, health, and long-term care insurance holdings; and (3) stock market engagement. We show that the widely-used ‘trust in people’ question is uncorrelated with household behaviours related to retirement preparedness. Instead, trust in private and public financial representatives is positively associated with pension savings, investments, and insurance holdings. Financial literacy also plays an important and consistent role in retirement decision-making.

The Dark Side Of Transparency In Developing Countries: The Link Between Financial Reporting Practices And Corruption, Tingting Liu, Yu Liu, Barkat Ullah, Zuobao Wei, Lixin Colin Xu

School of Economics and Finance Faculty Publications

This paper examines the impact of financial reporting practices on corruption obstacles for about 150,000 firms across 143 mostly developing countries from 2006 to 2019. We document a strong positive relationship between the production of audited financial statements (AFS) and corruption obstacles (CO) faced by the firm. We argue that in a corrupt business environment, rent-seeking bureaucrats use the credible financial information to optimize their bribe demands. Our baseline results remain robust after addressing endogeneity concerns. We further show that country-level institutional quality has a moderating effect on the AFS-CO relation. The evidence from surveying entrepreneurs also …

Identifying Latent Group Structures In Nonlinear Panels, Wuyi Wang, Liangjun Su

Research Collection School Of Economics

We propose a procedure to identify latent group structures in nonlinear panel data models where some regression coefficients are heterogeneous across groups but homogeneous within a group and the group number and membership are unknown. To identify the group structures, we consider the order statistics for the preliminary unconstrained consistent estimators of the regression coefficients and translate the problem of classification into the problem of break detection. Then we extend the sequential binary segmentation algorithm of Bai (1997) for break detection from the time series setup to the panel data framework. We demonstrate that our method is able to identify …

Reimagining Post-Secondary Training, Community College, And Welfare Supports, Aaron Azerad

Dissertations, Theses, and Capstone Projects

This paper seeks to study the income patterns at the sub-bachelorette level through community colleges and workforce training programs. Using 2018 U.S. Census PUMA microdata, this thesis not only explores which fields of study, industries, and occupations have a sufficient number of observations to determine whether they provide incomes which are commensurate with a middle class livelihood but, also whether these jobs are plentiful in number.

The second goal is to evaluate the effects of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (the Clinton era welfare reform) and how it has influenced Giuliani era ‘work requirement’ initiatives tied …

In-Group Versus Out-Group Preferences In Intergroup Conflict: An Experiment, Subhashish M. Chowdhury, Anwesha Mukherjee, Roman M. Sheremeta

ESI Working Papers

Individuals participating in a group conflict have different preferences, e.g., maximizing their own payoff, maximizing the group’s payoff, or defeating the rivals. When such preferences are present simultaneously, it is difficult to distinctly identify the impact of those preferences on conflict. In order to separate in-group and out-group preferences, we conduct an experiment in which human in-group or out-group players are removed while keeping the game strategically similar. Our design allows us to study (i) how effort in a group conflict vary due to in-group and out-group preferences, and (ii) how the impact of these preferences vary when the two …