Macroeconomics Commons^™

The Federal Reserve’S Financial Crisis Response B: Lending & Credit Programs For Primary Dealers, Rosalind Z. Wiggins, Patricia C. Mosser, Andrew Metrick

Journal of Financial Crises

Beginning in the summer 2007 the Federal Reserve (the Fed) deployed numerous conventional and innovative programs to address the credit crisis occurring in the wholesale lending markets that was beginning to affect the broader financial markets and threaten the economy at large. Two of those programs, the Term Securities Lending Facility (TSLF) and the Primary Dealer Credit Facility (PDCF) were aimed at providing liquidity to primary dealers and required the Fed to rely on its authority under Section 13(3) of the Federal Reserve Act. Section 13(3) is a Depression Era amendment that permits the Fed expanded powers in “unusual and …

The Federal Reserve’S Financial Crisis Response A: Lending & Credit Programs For Depository Institutions, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Beginning in summer 2007, the Federal Reserve (the Fed) was called upon to address a severe disruption in the interbank lending markets sparked by a downturn in the subprime mortgage market. As these developments began to impact the ability of banks to raise adequate funding, the Fed encouraged them to utilize the Discount Window (DW), its standing facility for lending to depository institutions, and repeatedly decreased the lending rate to make the facility more accessible. Despite the Fed’s efforts, for a number of reasons, including historical perceptions of stigma, banks were reluctant to utilize the DW. In December 2007, the …

Job Duration And Match Characteristics Over The Business Cycle, Ismail Baydur, Toshihiko Mukoyama

Research Collection School Of Economics

This paper studies the cyclical behavior of job separation and the characteristics of matches between workers and jobs. We estimate a proportional hazard model with competing risks, distinguishing between different types of separations. A higher unemployment rate at the start of an employment relationship increases the probability of job-to-job transitions, whereas its effect on employment-to-unemployment transitions is negative. We then build a simple job ladder model to interpret our empirical results. A model with two-dimensional heterogeneity in match (job) characteristics has the same qualitative features as the data. Once the model is extended to include cyclicality in the offered match …

Gender Gaps In Labor Market Participation And Earnings In Post-Reform China, Xiao Saizi

Student Works (2020-2029)

Ensuring gender equity in the process of economic development is a key Sustainable Development Goal. Many governments have invested heavily in women’s education to address gender inequality in the labor market. However, gender gaps in labor force participation and earnings continue to persist even in developing countries that have experienced steady macroeconomic growth and graduated to upper middle income status. A case in point is China, the country with the largest labor force in the world, where gender gaps in labor force participation rates and earnings have widened during the transition from a centrally planned economy to a market-oriented one. …

The Impact Of Human Capital On Shadow Economy In Indonesia, Neli Agustina

Economics and Finance in Indonesia

Shadow economy is a market for legal and illegal goods and services that escape recording and estimation of GDP. It can cause inaccurate estimation of GDP, declining tax revenue, and less precise economic policies. Improving the quality of human capital, both in education and health dimensions, can reduce shadow economy. The research aims to estimate shadow economy and analyze the influence of the quality of human capital on shadow economy in Indonesia. Applying time series multiple linear regression analysis, the findings show that the average shadow economy in Indonesia is 28.97 percent, changes in life expectancy negatively affect changes in …

Enhancing Resilience To Turbulent Global Financial Markets: An Indonesian Experience, Febrio Kacaribu

Economics and Finance in Indonesia

In the empirical literature, large and abrupt declines in capital inflows, or sudden stops, typically hit asset markets and generate output losses in the receiving countries. The significant decrease in capital flows to emerging markets in 2018 is a unique opportunity to test this premise. Using Indonesian data, we found that the sharp decline in capital inflows for over two consecutive quarters in 2018 had an adverse impact on the currency, equities, and bond markets, but no discernible output loss was recorded. Real GDP growth remained resilient throughout 2018 and held broadly steady at around 5 percent in the first …

Book Review: Central Bank Policy: Theory And Practice, Denny Irawan

Economics and Finance in Indonesia

No abstract provided.

Corporate Income Tax Rate And Foreign Direct Investment: A Cross-Country Empirical Study, Amalia Indah Sujarwati

Economics and Finance in Indonesia

This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003-2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.

Gender Differences In Children's Non-Leisure Activities: A Decomposition Analysis, Dayang Haszelinna Abang Ali

Economics and Finance in Indonesia

The prevalence of son preference indicates that girls will have less leisure time compared to boys. This study aims to examine gender differences in weekly hours in schooling, housework, and working among children in Indonesia using Tobit Model and decomposition model of Bauer & Sinning (2005), to test whether son preference explains the differences. The dataset was drawn from the fourth wave of Indonesia Family Life Survey (IFLS) in 2007. The results show significant gender differences in housework and working for children aged 5-14 years and insignificant gender gap in schooling for both age groups. These results confirm the existence …

The Impact Of Entrepreneurship On Economic Performance In Indonesia, Yohanes Kadarusman

Economics and Finance in Indonesia

Entrepreneurship is claimed to have a positive and significant effect on economic growth in developed countries, but less so in developing countries. Using the growth model, this study examines the impact of entrepreneurship on economic performance in Indonesia as indicated by economic growth and income per-capita from 1985 to 2017. The estimation result confirms the non-significant effect of the growth of entrepreneurial ventures on the growth of GDP per-capita. However, the accumulation of the ventures has a positive and significant effect on the level of GDP per capita. The different typology of entrepreneurial ventures in Indonesia provides some insight to …

The Effects Of The African Continental Free Trade Agreement On Africa's Regional Economic Communities: An Empirical Analysis, Elizabeth Zhu

Undergraduate Economic Review

This study examines the economic effects of the African Continental Free Trade Agreement (AfCFTA) on three regional economic communities in Africa: COMESA, ECOWAS, and CEMAC. It scrutinizes the effects of the agreement on Africa’s largest trading partners: the EU, China, and America. Three scenarios are modelled using the GTAP CGE model: a removal of tariffs on 97% of goods, a removal of non-tariff barriers, and a combination of the previous two scenarios. The findings show that the welfare of all African regions increases due to AfCFTA, but to varying degrees, with CEMAC benefiting the least of the three regional blocs.

The Effect Of Endogenously-Determined Bullying On Test Scores, Hisham Bin Yacob Patel

Dissertations and Theses Collection (Open Access)

The problem of bullying is one of the main sources of adverse school environment. In this dissertation, I explore the effect of bullying on test scores, under the assumption that bullying is endogenously determined. Comparing my estimates with that from traditional OLS, I find that estimates from OLS grossly underestimates the effect of bullying on short-term student outcomes. I also find significant evidence of heterogeneity across various sub-groups; for example, male students are found to be less affected by bullying as compared to their female peers. Furthermore, male students are also found to be less affected by physical bullying while …

Principles Of Macroeconomics, Ernesto Garcia Iii

Open Educational Resources

No abstract provided.

Essays In Retirement Economics, Gunnar Poppe Yanez

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters.

Chapter 1

The discrepancy between the high demand for annuities predicted by economic theory and the empirical low holdings of these assets, known as the annuity puzzle, is still not completely understood in economic studies of retirement finance. This paper assesses the effect of individuals' mortality risk learning process on annuitization. I isolate this effect by building a life-cycle model in which individuals have imperfect information of their true survival probability distribution, and therefore have to update their beliefs about it in a Bayesian manner. Using data on subjective mortality by the Health and …

Efficiency Gain Argument Of Fiscal Federalism And Economic Growth: Evidence From Five Selected Developing Federal Economies, Hyacinth E. Ichoku, Walter O. Ugwuoke

Bullion

This paper investigated efficiency gain argument of fiscal federalism and economic growth with evidence from five selected developing federal economies. The curiosity is to ascertain whether the efficiency gain –the fundamental argument why countries adopt fiscal federalism is justified in these economies. The paper uses stochastic frontier model to achieve this objective. The evidence from the selected developing federal economies revealed diverging results. While in Nigeria, Ethiopia and India there is more expenditure decentralization than revenue decentralization suggesting that efficiency gains from fiscal federalism may remain elusive, in Brazil and South Africa there is more revenue decentralization than expenditure decentralization …

Education, Inclusive Growth And Development In Nigeria: Empirical Examination, Emmanuel Onwioduokit

Bullion

Fundamental changes in the intellectual and social stance of any society have always been preceded by educational renaissance. This paper investigates the role of education in achieving and sustaining economic development in Nigeria. Abstracting from the theory, the paper examines education in Nigeria, its enhancing, including comparative analysis with selected African countries and its connection with economic development. The ARDL model was adopted to examine both the short run and long run relationships between education and development proxied by HDI and education and economic growth within the context of inclusive growth model. Evidence from the estimated long run ARDL model …

The Impact Of External Debt On Agricultural Production In Nigeria (1980-2016): Autoregressive Distributed Lag Modelling, Aishatu U. Yerima, Hussaini M. Tahir

Bullion

The study analyzed the impact of external debt on Nigeria's agricultural production from 1980 to 2016 using secondary data obtained from Central Bank of Nigeria (CBN) statistical bulletin and the World Development Indicators (WDI). Augmented DickeyFuller unit root test and the autoregressive distributed lag (ARDL) bound testing approach to co-integration were utilized, to achieve the objectives of the study. Empirical results revealed that the variables were cointegrated, indicating that they exhibited long run relationship, both in the short and the long run. External debt stock (EDS) had a significant positive impact on agricultural production (AGP), indicating that EDS positively impacted …

Essays In Financial Economics And Applied Macroeconomics, Marius Mihai

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters that cover topics in finance and macroeconomics.

Chapter 1 - Do Credit Booms Predict U.S. Recessions?

This paper investigates the role of bank credit in predicting U.S. recessions since the 1960s in the context of a bivariate probit model. A set of results emerge. First, credit booms are shown to have strong positive effects in predicting declines in the business cycle at horizons ranging from six to nine months. Second, by isolating the effect of credit booms, I identify their contributions to recession probabilities which range between three and four percentage points at a …

Essays In Macroeconomics Of Emerging Markets, Miguel Acosta Henao

Dissertations, Theses, and Capstone Projects

Chapter 1. Law enforcement and the size of the informal sector.

I assemble new cross-country evidence showing that contrary to the standard view, the relationship between the size of the informal sector and tax rates is, at best, ambiguous. Law enforcement and informality also show no clear relation. Motivated by these findings, I augment a standard two-sector (formal and informal) small open economy model with endogenous law enforcement that depends on the size of the informal sector (measured by its assets) and government expenditure. I use a micro-dataset from Colombia to show that both taxes and law enforcement are necessary …

Do Oil Price Returns Impact Exchange Rates Fluctuations: Evidence From The Top Four Oil Importing Countries In Asia – China, India, Japan And South Korea, Alexander Nti

Doctoral Dissertations (DBA)

Using daily data obtained from Federal Reserve Bank of St. Louis database, we convert oil price and exchange rates to first difference logarithm to examine the link between oil price and exchange rates. We apply Johansen Cointegration models to examine relationship between the series, and our results indicate the variables are not cointegrated. Augmented Dicky Fuller test indicates that the series are nonstationary at level, but stationary at first difference. Impulse response analysis based on unrestricted vector autoregressive (VAR) yields varying results for the relationship between oil price and exchange rates across the currencies of the four countries considered. Thus, …