Economics Commons^™

Simple Nonparametric Estimators For The Bid-Ask Spread In The Roll Model, Xiaohong Chen, Oliver B. Linton, Stefan Schneeberger

Cowles Foundation Discussion Papers

We propose new methods for estimating the bid-ask spread from observed transaction prices alone. Our methods are based on the empirical characteristic function instead of the sample autocovariance function like the method of Roll (1984). As in Roll (1984), we have a closed form expression for the spread, but this is only based on a limited amount of the model-implied identification restrictions. We also provide methods that take account of more identification information. We compare our methods theoretically and numerically with the Roll method as well as with its best known competitor, the Hasbrouck (2004) method, which uses a Bayesian …

Dynamic Equality Of Opportunity, John E. Roemer, Burak Unveren

Cowles Foundation Discussion Papers

What are the long-term effects of policies intended to equalize opportunities among different social classes of children? To find out, we study the stationary states of an intergenerational model where adults are either White or Blue collar employees. Both adults and the state invest in their children’s education. Our analysis indicates that the major obstacle to equalizing opportunities in the long-run is private educational investment. Next we examine economies where only the state invests in education, motivated by the Nordic experience. In a majority of these economies, no child lags behind regarding future prospects, a theoretical result confirmed by simulations.

Agenda Setting In Uganda: Influencing Attitudes On Land Through Policy And Persuasion, Anne Pitsch Santiago

Journal of Global Initiatives: Policy, Pedagogy, Perspective

The Government of Uganda (GoU) has been actively advocating land reform and modernization, as demonstrated in the National Development Plan 2010-2015 and other official documents. With the adoption of these policies, there has been a rise in contentious relations between different actors within society, and while widespread violence has been kept in check, reports of small-scale violence over land continues, and dissatisfaction with government land policy exacerbates land tensions and the potential for larger-scale violence remains a serious potential threat. The research questions explored in this article are: in what ways and through which strategies does the GoU attempt agenda …

The Laimbwe Ih'neem Ritual/Ceremony, Food Crisis, And Sustainability In Cameroon, Henry Kam Kah

Journal of Global Initiatives: Policy, Pedagogy, Perspective

This article examines rituals and ceremonies associated with food sustainability, sufficiency, and/or insufficiency among the Laimbwe people of Boyo and Menchum Divisions of northwest Cameroon from earliest times to the 21st century. Food is important to sustainable livelihood in many rural communities in Cameroon and explains the organization of elaborate food-related ceremonies and rituals. Cameroon’s Ministry of Agriculture and Rural Development has recognized the importance of food and has recently embarked on the modernization of farming techniques and practices throughout the country in its “Second Generation” agriculture program. The population is mobilized annually through an official launching of the farming …

Gendering Peacebuilding In Post-Conflict Northern Uganda, Amanda J. Reinke

Journal of Global Initiatives: Policy, Pedagogy, Perspective

Approximately 1.8 million northern Ugandans were internally displaced during conflict between the Ugandan government and Lord’s Resistance Army (LRA) rebels (1987-2006). The ethnographic and qualitative research findings presented in this article illuminate the need to address structural violence, not just physical violence, in the aftermath of conflict, and to pay particular attention to how conflict and peacebuilding processes are gendered. Although gender-sensitive approaches to peacebuilding have increased in recent years, especially among scholars, in practice these processes often still fail to adequately address the myriad needs of survivors and to understand the complex interplay between gender, conflict, and post-conflict rebuilding. …

An Assessment Of Rural Household Vulnerability In The Hadejia-Nguru Wetlands Region, Northeastern Nigeria, Ahmadu Abubakar Tafida, Mala Galtima

Journal of Global Initiatives: Policy, Pedagogy, Perspective

The Hadejia-Nguru wetlands have long been recognized as a World Heritage Site notably for its supportive role to wild birds from Europe, Asia, and Australia. At times the functions of the wetlands have been tremendously jeopardized due to dwindling resources and thus affecting the lives of more than 1.5 million people. A number of projects were initiated by different international communities, such as the Department for International Development (DFID), aimed at fostering sustainable utilization of the natural resource base to improve the well-being of the people. The interventions have rarely succeeded, perhaps due to the lack of understanding of rural …

Collaboration In Scientific Digital Ecosystems: A Socio-Technical Network Analysis, Philip Mutuma Munyua

Open Access Dissertations

This dissertation seeks to understand the formation, operation, organizational (collaboration) and the effect of scientific digital ecosystems that connect several online community networks in a single platform. The formation, mechanism and processes of online networks that influence members output is limited and contradictory. The dissertation is comprised of three papers that are guided by the following research questions: How does online community member’s productivity (or success) depend upon their ‘position’ in the digital networks? What are the network formation mechanism, structures and characteristics of an online community? How do scientific innovations traverse (diffuse) amongst users in online communities? A combination …

Project Selection: Commitment And Competition, Vidya Atal, Talia Bar, Sidartha Gordon

Department of Economics Faculty Scholarship and Creative Works

We examine project selection decisions of firms constrained in the number of projects they can handle at once. A new project opportunity arises every period. Taking on a project requires a commitment of uncertain duration, preventing the firm from selecting another project in subsequent periods until the commitment ends. In our dynamic game, when two firms are free of commitment, they move sequentially in random order. Symmetric pure strategy Markov perfect equilibria always exist. In equilibrium, the first mover strategically rejects some projects that are then selected by the second mover, even when the value of the project is the …

Introduction: Sustainable Livelihoods, Conflicts, And Transformation, Brandon D. Lundy, Akanmu G. Adebayo

Journal of Global Initiatives: Policy, Pedagogy, Perspective

Introduction to the Journal of Global Initiatives Volume 10, Number 2 "Sustainable Livelihoods and Conflict."

Nigeria: The Matrix Between Fragility Of Livelihoods And Conflict, Abiodun Odusote

Journal of Global Initiatives: Policy, Pedagogy, Perspective

In recent times, there has been an increased outbreak of conflicts across the globe, particularly in areas experiencing livelihood fragility. Available literature suggests that in a society where livelihoods are threatened, minimal, or non-existent, the people are generally more overwhelmed and prone to violence and conflict. This paper consolidates the available literature on livelihoods and conflict, with the aim of identifying the nexus between the two concepts. The author particularly interrogates the matrix between fragility of livelihoods and armed conflicts, with emphasis on Boko Haram and the Niger Delta conflicts. The article notes that there seems to be a large …

The Application Of Geospatial Analytical Techniques In The Assessment Of Land Use Conflicts Among Farmers And Cross-Boundary Nomadic Cattle Herders In The Gombe Region, Nigeria, Whanda J. Shittu, Mala Galtima, Dan Yakubu

Journal of Global Initiatives: Policy, Pedagogy, Perspective

In Nigeria, many land use conflicts among the teeming rural agrarian communities in the northern parts of the country are often wrongly attributed to ethno-religious differences while ignoring the salient role environmental degradation, climate change, and urbanization play in exacerbating the conflicts. The two traditional farming groups (crop producers and cattle herders) that contribute immensely to the country’s food security are in constant conflict, thereby threatening sustainable agricultural production. The objective in this article is to investigate the nature and extent of land use changes in the Gombe region using geospatial analytical techniques and assess the implications on land conflicts. …

External Management Reserve: Overview And Performance Of Major Asset Classes For The Period 2000-2016, Mujtaba Muhammad Farouk, Abdurrahman Abdullahi

Bullion

This paper discusses in detail, various asset classes available to both active and passive reserves managers and analyse the performance of the asset classes held mostly by central banks. Following an introduction, the paper is structured as follows: Section two reviewed literature on reserves management, including motives and what guides the decisions of the investment committee in determining asset classes. Section three analysed the various asset classes that reserves managers invest in, while section four evaluates the major central banks' asset classes' performance over the lost fifteen years covering the period before and after the 2008 global financial crisis. Section …

Is The Discovery Of Oil A Curse Or A Blessing To Nigeria?, Ahmed S. Saidu, Saidu B. Aliyu, Umar A. Zubair

Bullion

The discovery of oil in commercial quantity in Oloibiri in Niger Delta in 1955 opened a new chapter in the economic landscape of Nigeria. Before the discovery of oil resources, agriculture was the main source of government revenue. Over the years however, revenue from oil export become the backbone of the economy. The annual budget, which defines economic direction the country charts, is solely based on crude oil revenue. This situation can be likened to one putting his eggs in one basket. And it is exactly this situation that has become the major source of agitation by oil producing areas …

The Impact Of Relationship Marketing (Rm) On Relationship Quality (Rq): Empirical Evidence From Commercial Bank Customers In Nigeria., Sunny E. Ekakitie

Bullion

The study set out to determine the impact of Relationship Marketing (RM) on relationship quality (RQ), with respect to the services Nigerian banks deliver to their clients. Three hypotheses were formulated to drive the study. Survey research design was adopted using a 48-item Likert style questionnaire to capture the opinions of valued clients. The study covered the six geo-political zones in Nigeria with 4 states drawn randomly from each zone. Extensive literature on RM and RQ were reviewed. Models/theories were lucidly discussed with the study evolving the quality/customer satisfaction model which is a modification of Zineldin's (2006) technical and functional …

Treasury Single Account System And Economic Juche: The Nigerian Experience., Kingsley Imandojemu

Bullion

This paper critically examines the nexus between the full implementation of the Treasury Single Account System (TSA) and Economic emancipation in Nigeria. Using data sourced from the Central Bank of Nigeria Statistical Bulletin, the study employed the use of explorative analysis. Findings emanating from the research indicate that the full implementation of TSA is capable of rejuvenating the drive for economic emancipation in Nigeria. Therefore, this paper has recommended policy reforms to serve as an operational framework for the full implementation of TSA, being one of the pre-conditions of optimal resource utilization and economic autarky.

Non-Oil Revenue Buoyancy And Elasticity: Implications For Revenue Generation In Nigeria, B. Gaiya, A.A. Ononugbo-Ikenna, K. Ajala

Economic and Financial Review

The paper employs annual time series data on real government tax revenue components from 1981-2014 to endogenously determine the level of non-oil revenue buoyancy and elasticity and its implication for revenue generation in Nigeria. A partitioning approach to determining tax buoyancy and elasticity is employed to address these objectives. The study found that with the exception of the Company Income Tax, an inelastic tax structure exists in Nigeria for the period under review. The proxy bases had similar results in terms of their responsiveness to the tax system. There were also evidences that the discretionary measures taken during the study …

Economic Growth, Poverty And Income Inequality Matrix In Nigeria: A Further Investigation, H. O. Okafor

Economic and Financial Review

This paper examined the existing relationship among economic growth, poverty and income inequality in Nigeria. Using the Vector Auto-regressive (VAR) model and the Engle-Granger technique to test for the causality existing among the variables, the results revealed that economic growth had no impact on poverty reduction and income distribution in Nigeria due its non-inclusive nature. There was, however, evidence of a unidirectional causality, running from income inequality to increased poverty. This implied that inequality would lead to increase in poverty in Nigeria. Therefore, the paper recommended that government should develop stronger economic institutions that are capable of reorganising the productive …

Non-Oil Revenue Buoyancy And Elasticity: Implications For Revenue Generation In Nigeria, B. Gaiya, A. A. Ikenna-Ononugbo, K. Ajala

Economic and Financial Review

The paper employs annual time series data on real government tax revenue components from 1981-2014 to endogenously determine the level of non-oil revenue buoyancy and elasticity and its implication for revenue generation in Nigeria. A partitioning approach to determining tax buoyancy and elasticity is employed to address these objectives. The study found that with the exception of the Company Income Tax, an inelastic tax structure exists in Nigeria for the period under review. The proxy bases had similar results in terms of their responsiveness to the tax system. There were also evidences that the discretionary measures taken during the study …

Asymptotic Power Of The Sphericity Test Under Weak And Strong Factors In A Fixed Effects Panel Data Model, Badi H. Baltagi, Chihwa Kao, Fa Wang

Center for Policy Research

This paper studies the asymptotic power for the sphericity test in a fixed effect panel data model proposed by Baltagi, Feng and Kao (2011), (JBFK). This is done under the alternative hypotheses of weak and strong factors. By weak factors, we mean that the Euclidean norm of the vector of the factor loadings is O(1). By strong factors, we mean that the Euclidean norm of the vector of factor loadings is O(pn), where n is the number of individuals in the panel. To derive the limiting distribution of JBFK under the alternative, we first derive the limiting distribution of its …

Empirical Estimation Of Optimal International Reserves For Nigeria: The Sudden Stop Model, G.K. Sanni, T.S. Olusegun, Z. Sani

Economic and Financial Review

The study examined the issue of optimum external reserves for Nigeria during 2010 - 2014, using Jeanne and Ranciere (2006) and Goncalves (2007) sudden stop model approach. The study showed that resident foreign currency deposit accounted for over 90 per cent of the total foreign currency deposit, while non-resident foreign currency deposit accounted for the remaining. The result of the model suggested that external reserves were adequate in 2010 but beyond that period, it was far below optimal level. On average, the optimum external reserves were around 15.7 per cent of GDP in the past four years, translating to US$54.52 …

Economic Growth, Poverty And Income Inequality Matrix In Nigeria: A Further Investigation, H.O. Okafor

Economic and Financial Review

This paper examined the existing relationship among economic growth, poverty and income inequality in Nigeria. Using the Vector Auto-regressive (VAR) model and the Engle-Granger technique to test for the causality existing among the variables, the results revealed that economic growth had no impact on poverty reduction and income distribution in Nigeria due its non-inclusive nature. There was, however, evidence of a unidirectional causality, running from income inequality to increased poverty. This implied that inequality would lead to increase in poverty in Nigeria. Therefore, the paper recommended that govemment should develop stronger economic institutions that ore capable of reorganising the productive …

The Impact Of Lending Rate On The Manufacturing Sector In Nigeria, D.B. Akpan, D.J. Yilkudi, D. C. Opiah

Economic and Financial Review

The study investigates the impact of lending rate on output of the manufacturing subsector using the Vector Error Correction Model (VECM) and annual data from 1981- 2014. The empirical results indicated that high lending rate had negative impact on manufacturing output in the long-run. This suggests that increase in lending rate undermines manufacturing output, thus retarding growth in the real sector. Specifically, the estimates revealed that a 1.0 per cent increase in lending rate reduces manufacturing output by 0.03 per cent. The study, therefore, recommends the implementation of investment friendly policies that narrows the lending rate by the deposit money …

Empirical Estimation Of Optimal International Reserves For Nigeria: The Sudden Stop Model, G. K. Sanni, T. S. Olusegun, Z. Sani

Economic and Financial Review

The study examined the issue of optimum external reserves for Nigeria during 2010 – 2014, using Jeanne and Ranciere (2006) and Goncalves (2007) sudden stop model approach. The study showed that resident foreign currency deposit accounted for over 90 per cent of the total foreign currency deposit, while non-resident foreign currency deposit accounted for the remaining. The result of the model suggested that external reserves were adequate in 2010 but beyond that period, it was far below optimal level. On average, the optimum external reserves were around 15.7 per cent of GDP in the past four years, translating to US$54.52 …

The Impact Of Lending Rate On The Manufacturing Sector In Nigeria, D. B. Akpan, D. J. Yilkudi, D. C. Opiah

Economic and Financial Review

The study investigates the impact of lending rate on output of the manufacturing subsector using the Vector Error Correction Model (VECM) and annual data from 1981- 2014. The empirical results indicated that high lending rate had negative impact on manufacturing output in the long-run. This suggests that increase in lending rate undermines manufacturing output, thus retarding growth in the real sector. Specifically, the estimates revealed that a 1.0 per cent increase in lending rate reduces manufacturing output by 0.03 per cent. The study, therefore, recommends the implementation of investment friendly policies that narrows the lending rate by the deposit money …

Violence In Mexico And Its Effects On Labor Productivity, Rene Cabral, André Varella Mollick, Eduardo Saucedo

School of Economics and Finance Faculty Publications

This paper examines the evolution of Mexico’s labor productivity (GDP per worker) across its 32 sub-national entities from 2003 to 2013, during a period of rising drug-related crimes. Using quarterly data and economic controls, fixed effects models suggest the effects of crime are small and differ depending on whether such crimes are prosecuted by state/local or federal authorities. However, results from System Generalized Methods of Moments regressions generate stronger responses for (endogenous) wages and labor productivity. First, crime has negative effects on Mexican labor productivity across states during the “war on drugs” period. Second, increases in expenditures on public security …

Prices, Markups, And Trade Reform, Jan De Loecker, Pinelopi K. Goldberg, Amit K. Khandelwal, Nina Pavcnik

Dartmouth Scholarship

This paper examines how prices, markups, and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with multi‐product firms. This approach does not require assumptions on the market structure or demand curves faced by firms, nor assumptions on how firms allocate their inputs across products. We exploit quantity and price information to disentangle markups from quantity‐based productivity, and then compute marginal costs by dividing observed prices by the estimated markups. We use India's trade liberalization episode to examine how firms adjust these performance measures. Not surprisingly, we find that trade liberalization lowers factory‐gate …

The Fatality And Morbidity Components Of The Value Of Statistical Life, W. Kip Viscusi, Elissa Philip Gentry

Vanderbilt Law School Faculty Publications

The fatality risk–money tradeoff that is the value of a statistical life (VSL) may vary with the nature of the fatality event. While all fatalities involve loss of future life expectancy, the morbidity effects and their duration may differ. This article analyzes fatality risks accompanied by morbidity effects of different duration to disentangle the mortality and morbidity components of VSL using data from the Census of Fatal Occupational Injuries (CFOI). The VSL is comprised of the sum of the value of the fatality risk and the value of the morbidity risk. Labor market valuations of morbidity risks are positive, even …

Explaining The Fixed Cost Component Of Discounting: The Importance Of Students' Liquidity Constraints, Andrew G. Meyer

Economics Faculty Research and Publications

Utilizing experimental data on choices over real monetary rewards made by university students, we provide evidence that two measures of liquidity, income and employment status, significantly explain differences in patterns of discounting. We find an average fixed cost component of discounting in the range of $5 for unemployed students and near $0 for employed students. An increase in annual disposable income of $1000 decreases the fixed cost component of discounting by approximately $0.20 to $0.25. These findings can help resolve the puzzle that some studies in the literature find evidence of present-bias and magnitude effects and some do not.

Discrimination In Mortgage Lending: Evidence From A Correspondence Experiment, Andrew R. Hanson, Zackary Hawley, Hal Martin, Bo Liu

Economics Faculty Research and Publications

We design and implement an experimental test for differential response by mortgage loan originators (MLOs) to requests for information about loans. Our e-mail correspondence experiment is designed to analyze differential treatment by client race and credit score. Our results show net discrimination by 1.8% of MLOs through non-response. We also find that MLOs offer more details about loans and are more likely to send follow up correspondence to whites. The effect of being African American on MLO response is equivalent to the effect of having a credit score that is 71 points lower.

Local Labor Markets And The Federal Earned Income Tax Credit, Andrew R. Hanson, Zackary Hawley

Economics Faculty Research and Publications

The Earned Income Tax Credit (EITC), which offers relief from federal income-tax payments for a targeted group of taxpayers, is based on national income limits and the presence of dependent children. Benefits determinations are made with a flat national maximum level of assistance. The EITC is extended to nearly 29 million families and costs the U.S. Treasury about $64 billion annually.

While the EITC uses national parameters to determine eligibility and benefits, the U.S. labor force is dispersed among a series of disparate labor markets in metropolitan areas. Each market within each geography has unique characteristics, with vastly different wage …