Economics Commons^™

Capital Structure And Political Connections: Evidence From Gcc Banks And The Financial Crisis, Fatma Ahmed, David Macmillan

Economics

Abstract Purpose – This paper investigates the effect of political connections on the capital structure of banks before and after the financial crisis in Gulf Cooperation Council (GCC) countries. Design/methodology/approach – This paper employs the natural experiment that the financial crisis offers and uses a difference-in-differences model to investigate the effect of political connections on capital structure. Capital structure is measured by the total debt to total assets ratio. Control variables include bank size, growth, profitability, coverage ratio and volatility. The research sample includes all the banks in the GCC from 2005 to 2016. Findings – The authors find that …

Socioecological Factors And Farmer Perceptions Impacting Pesticide Use And Pollinator Conservation On Cucurbit Farms, Elias H. Bloom, Dana Marie Bauer, Abigail Kaminski, Ian Kaplan, Zsofia Szendrei

Economics

While research suggests that pollinator decline is linked with agricultural practices, it is unclear whether farmers share this view and adapt management to promote pollinators based on their understanding of these threats. To address these issues, we surveyed farmers of pollinator-dependent cucurbit crops across four states in the Midwest, USA. We grouped farmers by their perceptions of pollinator declines and routes of pesticide exposure and used statistical models to evaluate if farmers manage pests and pollinators based on these perceptions. Out of 93 completed surveys, 39% of farmers believed pollinators were in decline. When grouped, 17% of farmers were classified …

The Federal Funds Rate Effect On Subprime Mortgage Crisis Management: An Ardl Approach, Mostafa Aboelsoud, Anas Alqudah, Dimitrios Paparas, Ahmed Bani-Mustafa

Economics

Purpose: This research empirically investigated the effectiveness of the interest rate policy of the Federal Reserve (Fed) on managing the subprime mortgage crisis.

Design/methodology/approach: The study employed the autoregressive distributed lag model (ARDL) to analyze the stability of the Fed’s monetary policy, thereby providing an alternative analysis tool.

Findings: Correlation analysis results showed a strong positive and statistically significant relationship between Fed funds rate and the labor market, a strong negative and statistically significant relationship between Fed funds rate and the housing market, and a strong negative and statistically significant relationship between Fed funds rate and price stability. In contrast, …

Airline Price Dispersion Before And After The Pandemic, Caesar Garduno

Economics

This paper explores price dispersion in the United States airline industry before and after the pandemic. Using data from the Airline Origin and Destination Survey and Herfindahl-Hirschman Index the data was aggregated to the carrier-route-quarter level and combined together. While the findings were inconclusive, further research is strongly recommended due to the increasing data.

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 …

Import Restrictions By Eco-Certification: Quantity Effects On Tropical Timber Production, Matthew T. Cole, Jacqueline M. Doremus, Stephen F. Hamilton

Economics

Eco-certification standards are increasingly used by industrial countries to restrict imports of foreign goods produced using unsustainable practices. Import restrictions on eco-certified goods limit the trade of goods to the home country, but also serve to segment global demand into separate regions for conventional goods and certified goods, altering market structure and equilibrium prices in a manner that can work against sustainability goals. In this paper, we examine the effect of recent import restrictions in the US, EU, Canada, and Japan that require tropical timber products produced in Central Africa to be eco-certified. Using panel data of timber production in …

Does Foreign Direct Investment And Trade Promote Economic Growth? Evidence From Albania, Sam Hobbs, Dimitrios Paparas, Mostafa Aboelsoud

Economics

Purpose: Albania has experienced a rapid transition from a centrally planned economy to a mixed economy since the fall of communism in 1989. Policy changes, trade liberalization, and privatization have come about at a rapid pace, allowing foreign direct investment (FDI) and international trade to become key components of Albania’s economy. Against this backdrop, this study investigates the relationships among FDI, trade, and economic growth in Albania.

Methodology: Annual time-series data were obtained from the World Bank. Then, the following econometric tests were performed on the variables representing FDI inflows, exports, and GDP as proxies for FDI, trade, and economic …

Evaluating The Economic Impact Of Covid-19 Pandemic, John Adams, Mostafa Aboelsoud

Economics

No abstract provided.

Generalized Trust And Economic Growth: The Nexus In Mena Countries, Rania Miniesy, Mariam Abdelkarim Ms.

Economics

This study mainly examines the relationship between generalized/horizontal/social trust and economic growth in countries in the Middle East and North Africa (MENA) region, considering the substantial decline in their trust values since 2005. The study utilizes a multiple linear regression model based on panel data comprising 104 countries over the period from 1999 to 2020. Trust data were obtained from the last four waves of the World Values Survey (WVS). A Pooled Ordinary Least Squares (POLS) estimation technique was used, and interaction terms between trust and several dummy variables were employed. The results show an overall positive and significant relationship …

Gender Differences In The Mental Health Of Parents During The Covid-19 Pandemic, Lucia Regina Gomes

Economics

The global COVID-19 pandemic has impacted the mental health of many in the world. With stay-at-home orders and schools transitioning to remote learning, the mental health of parents specifically has become an important topic for research. This paper utilizes Ordinary Least Squares Regression to examine the effect of gender on depleted mental health among U.S. parents. The results indicate an association between mothers and worsened mental health during the onset of the pandemic in the U.S.

How Does Eco-Label Competition Affect Environmental Benefits? The Case Of Central Africa’S Forests, Jacqueline M. Doremus

Economics

Increasingly, non-governmental organization (NGO) and industry eco-labels compete. Environmental benefits may increase or decrease with entry by an industry label, depending on the shape of consumers’ willingness to pay and the shape of the distribution of forest compliance costs. Using geospatial data from forests in Cameroon and Gabon to proxy for compliance costs, I test whether lower compliance cost forests are more likely to participate in stricter labels. Next, I use a semi-nonparametric estimator to estimate parameters for willingness to pay and the distribution of forest compliance costs to calculate benefits with and without label competition. I find that, in …

Evaluation Of Health Intervention: A Case Of Preschool Children In Egypt, Rania Megally, Hebatallah Ghoneim

Economics

“Good health and well-being” is the third of the Sustainable Development Goals, but it cannot be achieved without achieving goal two, “No Hunger.” Nutrition status is the foundation for healthy individuals, especially children. Developing countries have to set policies to solve malnutrition in order to ensure better health and well-being. This led the researchers to evaluate the impact of nutrition intervention on health outcomes in preschool children in Egypt, a lower middle-income country with high levels of poverty, food insecurity, and anemia. The prevalence of anemia represents a major public health problem in the country; reaching 39.6%.The analysis is based …

Using Meta-Analysis For Large-Scale Ecosystem Service Valuation: Progress, Prospects, And Challenges, Robert J. Johnston, Dana Marie Bauer

Economics

This article discusses prospects and challenges related to the use of meta-regression models (MRMs) for ecosystem service benefit transfer, with an emphasis on validity criteria and post-estimation procedures given sparse attention in the ecosystem services literature. We illustrate these topics using a meta-analysis of willingness to pay for water quality changes that support aquatic ecosystem services and the application of this model to estimate water quality benefits under alternative riparian buffer restoration scenarios in New Hampshire's Great Bay Watershed. These illustrations highlight the advantages of MRM benefit transfers, together with the challenges and data needs encountered when quantifying ecosystem service …

Off-Label Use Of Recreational Cannabis: Acid Reflux In Colorado, Jacqueline M. Doremus, Sarah S. Stith, Jacob M. Vigil

Economics

Medical cannabis access has been shown to affect clinical health outcomes and health care spending. Unlike medical access, which requires a doctor's recommendation for treatment and only applies to the limited conditions approved under the state's medical cannabis program, recreational access makes cannabis available over-the-counter (OTC). This may create additional benefits through off-label cannabis use to treat unlisted conditions, such as acid reflux, which affects two out of three Americans. Using the roll out of recreational dispensaries in Colorado in 2014, we estimate the change in retailers' market share of antacid medications using a difference-in-differences design. Antacid market share decreases …

Effectiveness Of Interest Rate Policy On The Management Of Macroeconomic Stability: Evidence From The United Kingdom, Mostafa Aboelsoud

Economics

This study examines the dynamic relationship between the London Interbank Offered Rate (LIBOR), the inflation rate, the unemployment rate and economic growth in the context of the UK, for the period 1992: Q1 to 2016: Q4. The study aims to evaluate the impact of the LIBOR on the management of macroeconomic stability in the UK during the period under review. The study employs a vector autoregressive (VAR) model to examine the dynamic relationship between interest rates, unemployment and GDP. A co-integration test evaluates the long-run relationship between these variables, and the VAR Granger-causality tests the direction of causation among the …

Does A Change In Immigration Affect The Unemployment Rate In Host Countries? Evidence From Australia, Mostafa Aboelsoud, Anas Alqudah, Eman Elish

Economics

is study examines and evaluates the dynamic causality relationship between immigration, unemployment, wages and GDP per capita in host countries with a focus on Australia. Previous research has indicated that the economic impact of immigration is significant; nonetheless, its effect on the labour market being positive or negative is inconclusive. This study uses a Vector Error Correction Model (VECM) to examine the dynamic short- and long-run nexus between these variables in Australia over the period 1980–2016. The paper provides clear evidence to policymakers on the positive spillover effect of immigration policies developed by the Australian government.

Towards Sustainable Development: Measuring Environmental Total Factor Productivity In Egypt, Hoda Hassaballa, Iman Al-Ayouty

Economics

Egypt’s heavy reliance on energy and capital-intensive industries currently hinders its drive towards achieving sustainable development goals. This paper studies environmental total factor productivity (ETFP) for ten energy-intensive industries using the Malmquist index and data envelopment analysis (DEA) for the period 2002-2014. Through incorporating CO2 emissions by energy intensive industries, DEA helps identify both environmentally-efficient and inefficient industries. Findings indicate that: i) ETFP has remained almost unchanged for the 10 industries, with ‘technical progress’ improvement almost fully outweighed by an efficiency deterioration, ii) excluding the environmental component indeed yields overestimated total factor productivity (TFP). In its estimation of ETFP, the …

Consumer Choice Of Counterfeits Or Generic Products: The Case Of Egypt, Mostafa Aboelsoud, Kenzy Seireg

Economics

The counterfeiting market is increasing at an alarming rate because consumers are often unwilling to pay for brand names. This study investigates the factors that influence consumers’ preferences toward counterfeit and generic products by studying Egyptian consumers. By surveying a sample of 271 consumers, our study concluded that demographic variables, perceived risk, and prior experience are insignificant factors in choosing counterfeits or generics, while price, taste and preferences, quality, the price of related products, subjective norms, and expected prices are variables that significantly affect consumer preferences and demand. The research concludes that consumers who care about the quality, expected prices, …

Valuing Non-Market Economic Impacts From Natural Hazards, Abbie A. Rogers, Fiona L. Dempster, Jacob I. Hawkins, Robert J. Johnston, Peter C. Boxall, John Rolfe, Marit E. Kragt, Michael P. Burton, David J. Pannell

Economics

Prioritising investments to minimise or mitigate natural hazards such as wildfires and storms is of increasing importance to hazard managers. Prioritisation of this type can be strengthened by considering benefit and cost impacts. To evaluate benefits and costs, managers require an understanding of both the tangible economic benefits and costs of mitigation decisions, and the often intangible values associated with environmental, social and health-related outcomes. We review the state of non-market valuation studies that provide monetary equivalent estimates for the intangible benefits and costs that can be affected by natural hazard events or their mitigation. We discuss whether managers can …

Using Recreational Cannabis To Treat Insomnia: Evidence From Over-The-Counter Sleep Aid Sales In Colorado, Jacqueline M. Doremus, Sarah S. Stith, Jacob M. Vigil

Economics

This study seeks to understand whether people substitute between recreational cannabis and conventional over-the-counter (OTC) sleep medications. UPC-level grocery store scanner data in a multivariable panel regression design were used to compare the change in the monthly market share of sleep aids with varying dispensary-based recreational cannabis access (existence, sales, and count) in Colorado counties between 12/2013 and 12/2014. We measured annually-differenced market shares for sleep aids as a portion of the overall OTC medication market, thus accounting for store-level demand shifts in OTC medication markets and seasonality, and used the monthly changes in stores’ sleep aid market share to …

Unintended Impacts From Forest Certification: Evidence From Indigenous Aka Households In Congo, Jacqueline M. Doremus

Economics

Does Forest Stewardship Council (FSC) certification of “responsible” commercial forestry change nutrition, health and wealth for indigenous peoples, like the Aka of the Congo Basin? Using hand-collected data from the boundary of a certified and an uncertified forest in the Republic of Congo five years after certification, I compare nutrition, health, and wealth using questions that are locally salient and survey timing designed to reach seminomadic hunter-gatherers. Though I only observe outcomes after certification, using a spatial regression discontinuity design I find suggestive evidence that activities to satisfy forest certification may cause increased food insecurity and illness frequency for Aka …

Préférences Économiques Mesurées Par Des Jeux Expérimentaux Au Burkina Faso : Confiance, Bien Public, Risque Et Patience, Michael J. Kevane, Alain Joseph Sissao, Félix Compaoré

Economics

Certaines préférences économiques pourraient être très importantes pour le développement : la coopération pour le bien public, la confiance via à vis des étrangers, les attitudes de prise de risques calculés, et la patience du retour des investissements sont des enjeux importants pour toute société. Ces préférences peuvent être mesurées sur la base de questionnaires et de jeux expérimentaux. Cet article présent les résultats de trois séances de jeux expérimentaux avec 557 jeunes lettrés ruraux de 15 à 24 tenus en mai 2013, août 2013, et mai 2014 au Burkina Faso. Les résultats des jeux sont assez normaux, si on …

Simpler Is Better: Predicting Consumer Vehicle Purchases In The Short Run, Jacqueline M. Doremus, Gloria Helfand, Changzheng Liu, Marie Donahue, Ari Kahan, Michael Shelby

Economics

When agencies such as the US Environmental Protection Agency (EPA) establish future greenhouse gas emissions standards for new vehicles, forecasting future vehicle purchases due to changes in fuel economy and prices provides insight into regulatory impacts. We compare predictions from a nested logit model independently developed for US EPA to a simple model where past market share predicts future market share using data from model years 2008, 2010, and 2016. The simple model outperforms the nested logit model for all goodness-of-prediction measures for both prediction years. Including changes in vehicle price and fuel economy increases bias in forecasted market shares. …

Walled Cities And Urban Density In China, Rui Du, Junfu Zhang

Economics

We analyse a sample of nearly 300 prefectural-level cities in China, among which about half historically had city walls. We document that cities that had walls in late imperial China have higher population and employment density today, despite that their walls have long gone. Using data from various sources, we test whether a historically walled city's higher density can be explained by a historical urban core, a different industry composition, a different local geography, a compact urban shape, or more valuable rural land in surrounding areas. We find that historically walled cities still have higher density after taking into account …

Systematic Risk-Factors Among U.S. Stock Market Sectors, Maksim V. Papenkov

Economics

The Capital Asset Pricing Model (CAPM) and its extensions are a family of empirical asset pricing models which partition risk as either "systematic" (market-wide) or "idiosyncratic" (stock-specific). Examples of systematic risk-factors include the market return, company size, and company value. Within the framework of the CAPM-family of models, it is assumed that the effects of these systematic risk-factors are homogenous among sectors. This paper develops an extension to the CAPM relaxing this assumption, by directly comparing these systematic risk-factors at the sector-level. Utilizing CRSP and Compustat data, systematic risk-factor premiums are estimated for each sector, which demonstrates heterogeneity, with respect …

Effects The 2014 Medicaid Expansion On Seat Belt Use: An Investigation Into Moral Hazard, Paul Pangburn

Economics

Under the Patient Protection and Affordable Care Act, signed into law by President Obama in 2010, health insurance coverage was expanded to 20 million previously uninsured people. Of these, 14.5 million were Medicaid eligible. Moral Hazard, a common research topic in insurance, is defined as when the private actions of an individual in a risk-sharing situation influence the probability of the outcome. There are two types of moral hazard, called ex-post moral hazard and ex-ante moral hazard. In the case of health insurance, ex-post moral hazard is when a health behavior changes after an individual becomes insured. Ex-ante moral hazard, …

The Effects Of The Affordable Care Act Medicaid Expansion On Breast And Cervical Cancer Screening Rates On Low-Income Childless Women, Michelle Raissa Kobou Wafo

Economics

In 2010, the Obama administration passed the Patient Protection and Affordable Care Act (ACA) commonly known as Obamacare. However, it is in 2014 that several key parts of the ACA went into effect. Among those key parts is the Medicaid expansion program. States that chose to adopt the policy, expanded Medicaid access to everyone under 138 percent of the federal poverty line. This extension had the largest impact on childless adults who previously were not covered by the program. Moreover, ACA made it mandatory for all health plans (private and public) to include the ten essential health benefits in their …

Classifying Private Landowners To Improve Understanding Of Management Decisions And Conservation Opportunities In Urbanizing Forested Landscapes, Jessica A. Balukas, Kathleen P. Bell, Dana Marie Bauer

Economics

Viewed as coupled natural and human systems, urbanizing forested landscapes exhibit fascinating and complex dynamics, where landowner decisions and biophysical processes together influence conservation and development outcomes. To improve understanding of land management decisions and conservation opportunities on private lands in these landscapes, we developed a landowner typology that accounts for heterogeneity among landowners that goes beyond ownership objectives and investigated its usefulness in predicting individual private landowners' stated intentions to implement diverse land management actions. Using survey responses collected from private landowners in two metropolitan areas in Maine, USA, we focused on understanding differences in owners' stated likelihood of …

Comparative Advantage As A Success Factor In Football Clubs: Evidence From The English Premier League (Epl), Bojan Georgievski, Lasha Labadze, Mostafa Aboelsoud

Economics

As in international trade, football clubs can benefit more if they specialize in what they have or can create a comparative advantage. In a world of scarce resources, clubs need to identify what makes them successful and invest accordingly.

The main objective of this study is to understand what influences the success of football teams in the English Premier League (EPL) championship games. Based on Ricardo’s model of comparative advantage and applying Factor analysis as well as Panel data approach, this study investigates the need for specialization and tradeoffs between defensive and offensive patterns of the game in order for …

Monte-Carlo Simulation Study Of Two-Stage Quantile Regression For Dynamic Panel Data, Hossameldin Ahmed, Alaa Ahmed Prof, Aya Afify Ms

Economics

No abstract provided.