Search results for "Monetary"

The Export-Productivity Link in Brazilian Manufacturing Firms

2015

This paper explores the link between exports and total factor productivity in Brazilian manufacturing firms over the period 2000–08. The Brazilian experience is instructive, as it is a case of an economy that expanded aggregate exports significantly, but with stagnant aggregate growth in total factor productivity. The paper first estimates firm-level total factor productivity under alternative assumptions (exogenous and endogenous law of motion for productivity) following a GMM procedure. In turn, the analysis uses stochastic dominance techniques to assess whether the ex ante most productive firms are those that start exporting (self-selection hypothesis). Finally, the paper tests whether e…

Trade credit and determinants of profitability in Europe. The case of the agri-food industry

2018

Abstract The objective of this paper is to analyse the effect that trade credit has on the determinants of profitability during the crisis period in Europe. We use panel data for a total of 24,177 European agri-food companies from 2010 to 2014. Among our main contributions, we highlight that we isolate the sector effect and study the country effect by separating the different policies and customs with respect to the granting of trade credit. The results confirm, in general, that trade credit affects profitability depending on the country and the characteristics of size, specificity, market power or reputation.

Optimal vs satisfactory transparency : The impact of global macroeconomic fluctuations on corporate competitiveness

2019

Abstract Being able to separate temporary global macroeconomic influences – caused by fluctuations in exchange rates, interest rates and inflation – from intrinsic performance – related to a superior product, production process or management – is crucial to assessing the development of a firm’s competiveness. Against that background, this paper analyzes institutions’ role in making firms supply outside shareholders with relevant information corresponding to satisfactory transparency from the shareholder perspective. Based on a sample of the 100 largest public European firms, it is found that no firm provided information to a level deemed satisfactory by the outside shareholder. One explanat…

Explaining the willingness of consumers to bring their own reusable coffee cups under the condition of monetary incentives

2022

An increasing number of hospitality firms attempt to foster sustainable practices among their customers. Amongst these, incentives for customers to bring their own reusable products stand out. In this study, we first analyse whether consumers are willing to bring a reusable coffee cup (RCC) under the condition of a monetary incentive (qualitative decision) and the minimum discount required for individuals to be willing to use an RCC (quantitative decision). Second, we analyse the explanatory factors impacting these two decisions. Several factors are proposed to explain an individual's willingness to bring an RCC including their environmental knowledge and involvement, and personal restricti…

Ekonomika. 2

2003

Forecasting the Equity Risk Premium in the European Monetary Union

2018

This article examines the performance of several variables that could be good predictors of the equity risk premium in the European Monetary Union for a period that spans from 2000 to 2015. In-sample, technical indicators display predictive power, matching or exceeding that of traditional economic forecasting variables. We also find consistent results in the fact that combining information from technical and economic variables improves equity risk premium forecasts, compared to using these variables alone. Nevertheless, out-of-sample exercises do not confirm in-sample results. Economic predictors show stronger out-of-sample forecasting ability than technical indicators, and apart from volum…

Evasion of Tax on Interest Income in a Two-Country Model

2001

t We consider a model where agents can invest money at home and abroad. Their total income comprises interest income from these investments and labor income. Tax on interest income can be evaded — at the risk of being detected and fined. We analyze the optimal portfolio and tax evading decisions of agents with different incomes. In a second step, we scrutinize the optimal government policy. Using different instruments government tries to maximize total tax receipts and to prevent flight of capital as far as possible.

Coordination of Wage Bargaining, Exchange Rate Stability and External Adjustment

2016

The literature on the determinants of the rate of current account reversion has been limited to examining the role of exchange rate regimes. We propose that the degree of coordination of wage bargaining affects the speed of current account adjustment. Our point estimates are economically and statistically significant, suggesting that fragmented firm-level wage bargaining facilitates external adjustment. We also find a strong negative interaction between the effects of coordination of wage bargaining and exchange rate stability on the rate of current account reversion.

Overreporting Oil Reserves

2009

An increasing number of oil market experts argue that OPEC members substantially overstate their oil reserves. While the economic implications could be dire, the incentives for overreporting remain unclear. This paper analyzes these incentives, showing that oil exporting countries may overreport to raise expected future supply, discourage oil-substituting R&D, and hence improve their future market conditions. Overreporting, however, comes at a cost since it must be backed by observable actions and therefore induces costly distortions of supply. Surprisingly, these latter can eliminate other distortions that arise regardless of information asymmetries in presence of endogenous technological …

What Drives the Microfinance Lending Rate?

2012

Is the microfinance institution (MFI) able to charge unduly high lending rates and obtain a profitability incompatible with perfect competition? We use a global panel data set of MFIs. The Panzar and Rosse revenue test in static and dynamic versions is employed, together with analyses of price (the lending rate) and return on assets. We control for microfinance specific variables such as average loan and institutional background variables, and also perform estimations in sub-samples of ownership types, regulation, and founder type. We find that the average MFI does not enjoy monopoly market power in its market, but cannot reject that perfect competition or monopolistic competition are bette…