Search results for "Econometric"
showing 10 items of 3780 documents
Convergence analysis for hierarchical longitudinal data
2018
Abstract Convergence analysis is typically envisaged either from a macro or a micro perspective. However, empirical tests tend to ignore that the two levels are often “nested” in a hierarchy. Building on hierarchical growth curve modelling, we propose an approach to convergence analysis that allows contemporaneous inference on macro and micro-convergence. Compared to the classic linear convergence analysis, the suggested methodology provides a more flexible alternative to model heterogeneity and validate the results for possible Galton's fallacy. We illustrate the approach in two empirical examples, one considering convergence across European regions and countries and the other across Itali…
An Economic Viewpoint on Capitalism Bashing
2016
Abstract In this paper I discuss two long disputed notions: that capitalism without crises is a fallacy respectively that capitalism bashing, however severe, will not endanger the system itself. Yet proving both is not an easy task since the capitalism issue has always been a cupellation of theory, ideology and political precepts, which are controversial and hard to disentangle. That capitalism detractors are numberless is a truism. Yet criticism against capitalism, however fierce, has always been clearly delineated. Not any more: globalization has rendered the picture dangerously fuzzy. It is now hard to ascertain whether someone who will harangue about the ostensible evils of globalizatio…
On the Fallacy of Forward Linkages: A Note in the Light of Recent Results
2009
Following on from de Mesnard’s (2009) radical criticism of the Ghosh supply-driven model, this paper draws the dramatic consequences for the widespread use of forward linkages in input-output analysis applied to regional science: the practice must be abandoned. The arguments are based on three points: (i) it is impossible simultaneously to choose the Leontief model for the backward effects and the Ghosh model for the forward effects; (ii) it is impossible simultaneously to consider a production function of complementary inputs (Leontief) and a production function of perfectly substitutable inputs (Ghosh); and most importantly (iii) price effects and output effects remain inextricably mixed …
Éléments d'analyse économique des faux diplômes
2007
Despite the fact that fake degrees have been used since the creation of legitimate diplomas, the fake degrees business is reaching epidemic proportions, notably because of globalization, new information and communication technologies and “diploma race”. We define the concept of fake degrees and distinguish different kinds of fakes. We also indicate the main functions of diplomas in the economic literature. We identify the supply and demand sides of the market of fake degrees and also consider other affected parties. We show that this growing business generates several negative spillovers that harm, among others, non traditional education institutions such as distance learning institutions a…
Audit Reports on Financial Statements Prepared According to IASB Standards: Empirical Evidence from the European Union
2004
This paper examines the audit report of 147 firms from the European Union that prepare their financial statements in compliance with the standards developed by the International Accounting Standards Board. Bearing in mind that the consolidated accounts of listed companies will follow IAS from 2005 onwards, the purpose of this paper is to provide some insight into the current outcome of the statutory audit on this information. Interesting conclusions are drawn from this empirical study with regard to the auditing standards applied, the wording used and the differences observed between reports produced by auditors from the big firms and reports from different European countries. The need to h…
Evaluation of the Financial Threat Scale (FTS) in four european, non-student samples
2015
Abstract The Financial Threat Scale (FTS) was designed to assess levels of fear, uncertainty, and preoccupation about the stability and security of one's finances. In previous research with Canadian university students, it was shown that the FTS was a psychometrically sound measure, associated with failing personal financial conditions, threat-related personality characteristics, and depreciated psychological health. The present investigation further examines the FTS in a diverse set of non-student European samples. Data were collected in four countries using a self-report questionnaire which included measures of ones’ financial situation, personality, and psychological health. Results were…
Testing-the-Waters Policy With Hypothetical Investment: Evidence From Equity Crowdfunding
2020
International audience; Digitization has enabled “testing-the-waters” in entrepreneurial finance whereby investors can make nonbinding commitments in equity crowdfunding prior to an actual campaign to ascertain interest in the project. We consider whether these nonbinding equity investment commitments are informative about actual investments during the campaign and, thus, ultimate startup funding success. The data indicate that only 18% of nonbinding commitments are, in fact, invested. The evidence is consistent with hypothetical bias. Hypothetical bias is significantly less pronounced among women and among investors living in higher income areas or in areas with higher levels of education.…
Optimal lending contracts
2016
This paper deals with financial contracting between a lender and a borrower with a project to finance. The borrower is protected by limited liability. We consider that the revenue from the project is observable and verifiable but its distribution is influenced by both the borrower’s choice of action and the project’s quality, which are private information. We find that debt contracts are endogenously optimal, as under moral hazard alone. Moreover, while moral hazard leads to credit rationing for the lowest-quality projects only, adding adverse selection creates a bang-bang result: either all projects or none are credit rationed.
How Financial Freedom and Integration Change Public Debt Impact on Financial Development in the Asia-Pacific: A Panel Smooth Transition Regression Ap…
2018
This study investigates the non‐linear effect of fiscal policy (measured by total domestic public sector debt) on the level of financial development, using a balanced panel of 22 economies in the Asia‐Pacific region. Governments in less developed financial institutional infrastructure (for instance, emerging markets) tend to abuse their power by intervening in the domestic debt market. This study shows that better financial institutional infrastructure helps to discipline governments. The results suggest a negative effect of domestic public sector debt on financial development, but only at low level of financial freedom and integration. Higher financial freedom and financial integration wou…
Systemic financial crises and the housing market cycle
2017
Using quarterly data for a group of 20 industrialized countries and both continuous- and discrete-time duration models, we show that financial crisis recessions are associated with a two- to three-fold increase in the likelihood of the end of a housing boom. Additionally, recessions preceded by booms in mortgage credit are especially damaging, as their occurrence coincides with an increase in the duration of housing market slumps of almost 90%.