Economics Commons^™

Account Guarantee Survey, Christian M. Mcnamara, Adam Kulam, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

This paper surveys 27 account guarantee (AG) programs across 14 Key Design Decisions. The main themes that emerge are: (a) the importance of considering the effects of AG programs on other parts of the financial system or other jurisdictions, (b) the ability to address moral hazard through heightened supervision, which removes a potential obstacle to adopting AG programs in response to the acute phase of crises, (c) the necessity of developing guarantees that are credible and timely, and (d) the need to design standing AG programs with an eye toward how they will function during crises.

Dividends And Bank Capital In The Global Financial Crisis Of 2007–2009, Viral V. Acharya, Irvind Gujral, Nirupama Kulkarni, Hyun Song Shin

Journal of Financial Crises

The headline numbers appear to show that even as banks and financial intermediaries suffered large credit losses in the Global Financial Crisis of 2007–2009, they raised substantial amounts of new capital, both from private investors and from government-funded capital injections. However, on closer inspection, the composition of bank capital shifted radically from one based on common equity to that based on debt-like hybrid claims such as preferred equity and subordinated debt. The erosion of common equity was exacerbated by large-scale payments of dividends, in spite of widely anticipated credit losses. Dividend payments represent a transfer from creditors (and potentially taxpayers) …

Inflation Variations In Egypt: An Asymmetrical Analysis Of Pass-Through Effects, Yassmina Rashad Helmi Abouelhassan

Theses and Dissertations

Inflation variations has become an issue that impedes efficient resource allocation and inclusive growth in Egypt. High inflationary pressures negatively affect standards of living, poverty alleviation and finally markets’ efficiency. For the past decade, Research on the causes of inflation in emerging markets has been closely linked to exchange rates pass-through (ERPT). This is due to its perceived impacts on import prices and terms of trade shocks, which lead to a pass-through effect to domestic inflation. This research aims to contribute to the literature by investigating ERPT in Egypt with a nonlinear Autoregressive distributed lag model (NARDL). Recent research on …

Essays In Macroeconomic Policy, Meng-Ting Chen

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters that cover topics on macroeconomic policies.

Chapter 1 - Markups, Labor Share, and Wage Dispersion.

Increasing market power has an impact on labor market behavior. This paper argues that the decline in the aggregate wage after 1980 comes from both increasing aggregate product markup and decreasing aggregate labor markdown. Most of the decline is driven by the sharp decline in lower wage percentiles, which also contributes to the increasing wage dispersion. Further, both firms’ monopoly and monopsony power play important roles in explaining the decline in the aggregate labor share. I build a heterogeneous …

Financial Openness And Economic Growth, Doo Kyun Wang

Dissertations, Theses, and Capstone Projects

An ongoing controversy in economics relates to the effect of financial openness on economic growth. Despite their longstanding nature, these questions are not easily resolved. Theoretically, capital market liberalization can lower the cost of capital. Given perfect international capital mobility, this can cause factor price equalization and finally accelerate economic growth. In contrast with the strong theoretical argument, empirical studies on the effect financial openness have on growth are still inconclusive.

Given the diverse perspective, the goal of this paper is to further investigate the role and effect of financial openness on economic growth in different time periods and at …

Constructing Indonesian Digital Economy Index In Determining Economic Policy Priorities Amidst The Covid-19 Pandemic, Diah Rukmana Sari, Nasrudin Nasrudin

Economics and Finance in Indonesia

The constant increase in the number of internet users in Indonesia amid a sluggish economy caused by the Large-Scale Social Restriction (PSBB) policy is a great opportunity for a digital-based economy. However, the unavailability of relevant macroeconomic statistical measurements inhibits the digital economy from being determined as a policy priority amidst the Covid-19 pandemic. This study offers an alternative measurement of the digital economy of Indonesia by establishing Digital Economy Index (DEI). This study discovers that digital economic activities in Indonesia have grown rapidly with an average growth of almost nine percent quarterly. On the other hand, this study also …

Assessing The Nexus Among Energy Consumption, Foreign Direct Investment And Economic Growth In Sub-Saharan Africa, Olanrele1 Iyabo A., Awode Segun S.

CBN Journal of Applied Statistics (JAS)

This study examines the dynamic relationship among energy consumption, foreign direct investment, and economic growth in Sub-Sahara Africa. Beyond assessing the tripartite causal relationship, the study investigates the extent of impacts among energy consumption, foreign direct investment, and economic growth using the Generalised Method of Moments. The study utilises data from 42 Sub-Saharan African countries spanning 1991 to 2018. Findings from the study show that a percentage increase in energy consumption engenders economic growth by 1.3 percent. Conversely, economic growth increases energy consumption by 0.004 percent. Also, there is a significant one-way causality running from foreign direct investment (FDI) to …

Effect Of Monetary Policy Rate On Market Interest Rates In Nigeria: A Threshold And Nardl Approach, Oluwafemi E. Awopegba, Joseph O. Afolabi, Lydia T. Adeoye, Godwin O. Akpokodje

CBN Journal of Applied Statistics (JAS)

This study examines the effect of monetary policy rate (MPR) on market interest rates in Nigeria. For parsimony, we develop two indexes called the short-term interest rate (SINT) and Lending interest rate (LINT) to represent deposit and lending rates respectively. The nonlinear autoregressive distributed lag (NARDL) and threshold regression models are adopted. The study uses monthly data from 2002:M1 to 2019:M12. The results of the threshold regression model indicate that the degree of the effect of MPR on SINT and LINT above the estimated threshold of 11 and 13 percent respectively is greater and significant than if MPR were to …

Social Dimension Of Inclusive Growth In Ecowas: Implication For Poverty Reduction, Toriola K. Anu, Goerge O. Emmanuel, Ajayi O. Felix

CBN Journal of Applied Statistics (JAS)

This study investigates the implication of the social dimension of inclusive growth on poverty reduction in Economic Community of West African States (ECOWAS) countries. It specifically examines how social indices of inclusive growth comprising of income inequality, education, and health outcomes affect poverty reduction. The study uses a panel dataset of the six (6) lower-middle income countries in ECOWAS which was analysed via panel Difference Generalised Method of Moment (D-GMM). The results show that GDP per capita exerts significant negative effect on poverty while inequality, education and health outcomes do not show significant effect on poverty. Although, the estimates of …

Effect Of Fdi Inflows On Employment Generation In Selected Ecowas Countries: Heterogeneous Panel Analysis, Timothy A. Aderemi, Olawunmi Omitogun, Bukonla G. Osisanwo

CBN Journal of Applied Statistics (JAS)

The aim of this study is to examine the effect of FDI on employment in ECOWAS sub region between 1990 and 2019. The study utilizes a panel autoregressive distributed lag model to analyse the short run and long run relationship between FDI and employment across ECOWAS sub region. In the short run, the impact of FDI on employment is negative and statistically not significant. Meanwhile, in the long run FDI has a positive and statistically significant impact on employment rate. This implies that FDI has the capacity to generate employment in countries in ECOWAS sub region. Therefore, this study recommends …

Impact Of Covid-19 Pandemic On The Nigeria Stock Market: A Sectoral Stock Prices Analysis, Peter A. Adekunle, Yakubu A. Bello, Udochukwu G. Nwachukwu

CBN Journal of Applied Statistics (JAS)

This study examines the impact of the COVID-19 pandemic on sectoral stock prices in Nigeria stock market using daily data covering from February 28, 2020 to June 26, 2020. Applying the autoregressive distributed lag (ARDL) bounds test, the study finds that COVID-19 pandemic had adverse impact on the stock market indices in the short run. Furthermore, the study documents negative response of sectoral stock prices to the pandemic while the stock prices of the banking sub-sector are the worst hit. Compared to the consumer goods, and industrial subsector indices, the speed of adjustment to long run equilibrium is faster for …

Yearly Changes In Education Expenditure And Changes In Student Performance, Dale A. Manzo

Undergraduate Economic Review

Using data from the state of Florida in the 2000s, we dispute the findings of the Coleman report. We find that there is a positive relationship between changes in expenditure per pupil and changes in academic performance. This study takes advantage of changes in expenditure resulting from the Great Recession to formulate a quasi-experimental analysis of the relationship between expenditure per pupil and academic performance. Our conclusion is consistent with the theory of decreasing marginal returns to expenditure on education.

Inaccessible Interpolated Imagery: How Coffee Farmers In The State Of Chiapas Might Access Political Economic Opportunity Through Representation, Paolo Fiann Bicchieri

Master's Theses

Here is a useful parable to boil down the idea of this project and set the tone: when one goes to the bar to tell a story about a fight at the bar, they would never venture to place themselves as the hero of the brawl, taking out three drunkards in a single punch, unless they were really in the bar, at that time, fighting a good fight. One would never do this as the bartender, locals, and regulars would all know if this were the case or not. Yet transnational corporations, governments, and even consumers do this all the …

The Effect Of Quantitative Easing On The U.S. Stock Market And Wealth Inequality, Griffin Phillips

Undergraduate Theses and Capstone Projects

My thesis will investigate and attempt to find a causal relationship between Quantitative Easing (QE) and the U.S. stock market since 2003. The secondary effects will then be explored to see if stock prices impact wealth inequality. To find the causal relationship between the QE and the stock market, a regression model will be used. It predicts the magnitude of effects of QE and other variables that may impact stock prices. Since 2007-2009, the Federal Reserve has used QE as a means to spur economic growth. This expansionary monetary policy has impacted many financial markets, including the U.S. stock market. …

Assessing The Impact Of Inequality On Political Activity And Class Consciousness, Matthew Prouty

Thinking Matters Symposium

Since 1980, the United States has experienced stagnating wages, higher levels of inequality, and intensifying political polarization. Despite this, U.S. domestic economic policy has not undergone the fundamental transformation needed to combat these systemic challenges. Why have these policies remained in place when they have a negative impact on the aggregate working class, and why has the working class not used American Democracy to change these policies? Could it be that the rising inequality has led to reduced political engagement with the remaining voters being more devout participants to their ideology than effective policy? Although there is an abundance of …

Natural Disasters And Government Size: A Cross-Country Analysis, Justin Hainse

Honors Projects in Economics

re have been multiple studies within the field of economics concerning the various effects that natural disasters have on countries. The goal of the present study is to address the seemingly forgotten area of how natural disasters affect the size of a government. Using data from both the Emergency Events Database and the World Bank, a cross-country panel data analysis is performed to test the impact of natural disasters on government size. The results show that more deaths from a natural disaster is associated with countries having a larger government. These results aim to be useful for allowing governments to …

Modern Monetary Theory: Merits, Critiques, And Contemporary Implications, Rebecca Singleton, Thomas Herndon

Honors Thesis

The study of macroeconomics is a diverse field, with conflicting opinions and numerous camps of thought. The election of 2016 brought this to the public attention, as the appointment of Stephanie Kelton as Senator Bernie Sanders’s campaign economic advisor brought Dr. Kelton’s heterodox school of macroeconomic policy to the attention of mass media. In particular, Modern Monetary Theory became a public discussion, particularly in the wake of stimulus spending during the COVID-19 pandemic. Modern Monetary Theory (MMT), a heterodox macroeconomic theory most discussed in far-left and post-Keynesian academic circles, has faced backlash from a centrist mass media. I investigate the …

A Garch Approach To Modeling Chilean Long-Term Swap Yields, Tanweer Akram, Khawaja Mamun

WCBT Working Papers

This paper econometrically models the dynamics of the Chilean interbank swap yields based on macroeconomic factors. It examines whether the month-over-month change in the short-term interest rate has a decisive influence on the long-term swap yield after controlling for other factors, such as the change in inflation, change in the growth of industrial production, change in the log of the equity price index, and change in the log of the exchange rate. It applies the generalized autoregressive conditional heteroskedasticity (GARCH) approach to model the dynamics of the long-term swap yield. The change in the short-term interest rate has an economically …

The Great Resignation: A Content Analysis Of News Sources' Portrayals Of The Covid-19 Labor Shortage., Mackenzie Williams

College of Arts & Sciences Senior Theses

When workers left the labor market in large numbers during the COVID-19 pandemic, proclamations of a labor shortage emerged extensively throughout the news. In this study, I analyze the coverage of the worker shortage among three news sources with different political orientations. Several themes emerged from analyzing a total of 75 articles. The findings showed that the perspective shown in the article, the cause of the labor shortage, restaurant worker portrayal, support of solutions, and opinion of the labor shortage all differed based on the political identity of the news source. This research supports previous findings that show there is …

Monetary Policy And Banking Sector Stability In Nigeria, Didigu Chizoba E., Joshua Nsikak J., Okon Joel I., Eze Annette O., Gopar Jurbe Y., Oraemesi Charles N., Udofia Blessing-Oxford U., Yisa Daniel N., Ejinkonye Jude C., Ette Victoria E.

CBN Journal of Applied Statistics (JAS)

This study investigates the impact of monetary policy on banking sector stability in Nigeria, utilizing quarterly data for the period 2007Q1 to 2021Q4. The study employs the autoregressive distributed lag (ARDL) bounds testing approach to cointegration. Results show that a long run relationship exist between banking sector stability and monetary policy in Nigeria. Furthermore, monetary policy rate, liquidity ratio, and cash reserve ratio are found to enhance banking sector stability. The study recommends, among others, that cash reserve and liquidity ratios should be kept at levels that will prevent excess liquidity in the system.

‘Vox Populi?:’ Assessing Nato Popularity Relative To Political And Economic Indicators In Selected Member Nations, Zachary W. Cheek

Undergraduate Economic Review

This paper seeks to identify the impact of political and economic conditions on a nation’s popularity/favorability ratings towards North Atlantic Treaty Organization, the world’s most powerful military alliance. It is found that in random-effect models there exists a significant positive relationship between a country’s democratic strength and favorability, as well as a negative relationship regarding unemployment. In fixed-effect models, however, there is slight evidence of a positive relationship with per-capita GDP, as well as negative relationships with the unemployment rate and the trade index. Overall, differences in member-nations largely account for whether democratic or macroeconomic conditions influence support.

Infrastructure Investment And European Economic Growth, John Ziolo

Global Tides

As the global economy continues to recover from the impacts of Covid-19, there is significant discussion among policymakers as to the best mechanisms to stimulate recovery. One of those mechanisms is infrastructure investment. There is a large contingent of policymakers who believe that large, immediate spending on infrastructure will lead to significant economic growth. While another group is concerned about the secondary effects of such large government spending packages. With global economies still digging out of the covid shock and supply chains struggling to keep up with demand, there is no better time to explore the topic. This paper then …

Does It Pay To Be Good? The Performance Of Indonesian Green Companies From 2009 - 2018, Ega Annisa Rizti, Berli Martawardaya

Economics and Finance in Indonesia

In Indonesia, KEHATI Sustainable and Responsible Investment (SRI) Index, hereafter referred to as SKI, aims to raise public awareness and help pro-environmental investors by selecting 25 highly rated public companies that adhere to the internationally accepted green business standard. This paper compared the financial performance of the companies listed in SKI and their counterparts between the period of January 2009 and December 2018 by predicting their future opening price of stock, comparing the performance of SKI to JKSE market index, and examining their financial performance using ROA and ROE as dependent variables. The findings suggest that being included in SKI …

The Impact Of Foreign Investment On Firm Performance: Indonesia After The 2007 Fdi Reform, Nauval Hafiluddin, Arianto Arif Patunru

Economics and Finance in Indonesia

Foreign Direct Investment (FDI) plays a crucial role in the economy of Indonesia. The new FDI law passed in 2007 serves as a new milestone in the FDI regime in Indonesia. As the country implements the new regulation, the impact of foreign investment on firm performance becomes an interesting subject. This paper aims to estimate the effect of foreign investment on the productivity and contribution of firms in relation to the new FDI law in Indonesia. This study employed a combination of Propensity Score Matching (PSM) and Difference-in-Differences (DiD) methods to eliminate endogeneity problems and to examine causality. We discover …

Why The Rate Of Return Of Religious School (Madrasah) Is Too Low: The Case In Indonesia, Elfindri Elfindri, Edi Ariyanto, Sri Maryati, Delfia Tanjung Sari

Economics and Finance in Indonesia

Religious schools (madrasah) in Indonesia have contributed to fulfilling the equity goals of education. Up to this point, studies on the rate of return of madrasah and its relation to general or vocational education remain limited. In contrast to the previous studies that omit madrasah from their analysis, this study pay greater attention to this particular type of education. By adopting the Mincerian model of the human capital and applying the semi-log earnings function to the 2012 data of the National Socioeconomic Survey (SUSENAS) of Indonesia, this study discovers that the rate of return of graduates from madrasah is considerably …

The Effect Of Quantitative Easing On U.S. Stock Prices And Wealth Inequality, Griffin W. Phillips

Student Scholar Showcase

My thesis will investigate and try to find a casual relationship between Quantitative Easing, or “QE”, and the U.S. stock market since 2003. The secondary effects will then be investigated to see if stock prices impact wealth inequality. To find the causal relationship between the two a regression model will be used. It predicts the magnitude of effects for QE and other variables that may impact stock prices. Since 2007-2009, the Federal Reserve has used QE as a means to spur economic growth. This expansionary monetary policy has impacted many financial markets including the U.S. stock market. Finding the extent …

The Productivity And Future Growth Potential Of Indonesia, Mohamad Ikhsan, Sri Mulyani Indrawati, I Gede Sthitaprajna Virananda, Zihaul Abdi

Economics and Finance in Indonesia

The output per worker of Indonesia has been on a downtrend since 2010, with total factor productivity (TFP) and capital stock largely stagnant if not declining. This paper discusses stylized facts that may explain recent trends in the productivity and growth potential of Indonesia. The decomposition of output per worker reveals the declining contribution of human capital, which is also most negative among peer countries. The growth in labor productivity has been concentrated within sectors, implying room for gains from labor reallocations. A substantial share of employment and credit in Indonesia has shifted to the relatively unproductive service sectors, particularly …

Stuck In The Middle: An Analysis Of Economic Growth And The Technological Intensity Of Exports, Aya Abdel Halim

Theses and Dissertations

Driven by the persistence of some economies’ lower-middle-income status, also known as the middle-income trap, this research aims to identify the relationship between exports and their growth rates. A Cobb-Douglass model augmented by the different types of exports is employed, and the relationship is estimated for a panel of 77 lower-middle-income economies using multiple two-step system Generalized Method of Moments (GMM) model. This research’s contribution to the literature is two-fold: First, it analyzes exports from both an aggregated level (i.e., total exports) as well as at a disaggregated level by the technological intensity of exports. To add, the panel of …

Financial Inclusion And Monetary Policy - Investigating The Relationship Between Financial Inclusion And Monetary Policy: The Case Of Egypt, Salma Maher

Theses and Dissertations

In the past decade, financial inclusion has become an issue of increasing importance to developing nations. This is due to its perceived effects on poverty alleviation, sustainable growth and enhancing monetary policy effectiveness. Unfortunately, there is little empirical research on the effects of financial inclusion. The thesis hopes to contribute to the literature by inspecting the relationship between financial utilization indices and monetary policy in Egypt. The thesis utilizes quarterly data on outstanding deposits and loans from 2004 to 2020 as well as a VAR model – supplemented with an ARDL model – to test the aforementioned relationship. The thesis …

Inflation: Just How Bad Is It?, Timothy Meyer

Cornhusker Economics

Amidst the chaotic news cycle of politics, the pandemic, and global affairs, a new topic is making headlines – inflation. To some, rising inflation causes greater fear than the other headlines combined; to others, it is nothing more than a minor nuisance. This article will explain why people’s divisive attitudes toward inflation are likely justified.