Search results for "Rate of return"
showing 10 items of 43 documents
Does a global wealth tax reduce inequality? When Piketty meets Mankiw
2020
Abstract We investigate the effects of a wealth tax on consumption and wealth inequality in a standard small open economy model featuring labour income heterogeneity. We show that consumption inequality and wealth inequality are identical in the long run if consumption growth exceeds output growth. Under this condition, the wealth tax reduces long run inequality under two additional conditions. First, the difference between the rate of return on wealth and the growth rate, r − g , is higher than a positive threshold. Second, the tax rate is lower than a cap which rises in r − g but decreases in labour income heterogeneity.
A comment on mortgage procylicality
2012
This paper comments on mortgage procyclicality. A framework for credit constraints along the lines of Kiyotaki and Moore (1997) is applied to illustrate a potential regime shift in the credit risk assessments of mortgagees. Depending on the relationship between house price growth and the alternative rate of return the weight given to collateral and debt-servicing ability may vary according to the house price cycle as mortgagees engage in search-for-yield. The regime shifts induced by increased global liquidity and expectations of continued housing appreciation might stimulate owner-occupation and LTV-ratios and induce mortgage procyclicality.
ESTIMATION OF RATES OF RETURN TO INVESTMENTS IN EDUCATION IN LATVIA
2021
The aim of the article is to prove the positive impact of education on work salary. For this purpose, the main task of the article is toestimate the Mincer rate of return by taking several factors into account. A secondary task of the research is to analyze the results of2010 and 2011 and to find explanations for the significant differences between the two years. The results of research and a detailedanalysis of the labour market indicate a positive return from attainment of education at an individual level, and they strengthen thehypothesis about a correlation among higher education attainment, higher employment levels and welfare. So far, the Mincer rate ofreturn has not been widely used …
Regional differences in returns to education for entrepreneurs versus wage earners
2010
Many studies suggest that rates of return to schooling are lower for entrepreneurs than for employees, although the opposite has also been reported. This paper analyses the returns to education for entrepreneurs in urban and rural regions in Finland and compares these to the returns for wage earners. These areas show different rates of self-employment, higher rates being found in rural areas and lower rates in urban areas. The analysis is based on a rich, register-based dataset that includes a 7% random sample of all Finns. To avoid potential sources of bias, Mincer-type income equations are estimated using different estimation procedures. The results show regional variation in returns to e…
ESTIMATION OF PRIVATE AND SOCIAL RATES OF RETURN TO INVESTMENTS IN EDUCATION IN LATVIA
2013
The main aim of the paper is to evaluate the rates of return to investments in education at individual and society level as well. The task of the paper is to provide detailed analysis and estimation of the variables which impact the private and social rates of return. It is based on Professor Angel de la Fuente methodology complemented by Mincer earnings function and non-parametric DEA (Data Envelopment Analysis) method to estimate world technological frontier and the technological gap. For this purpose the authors build the matrix with respective years of schooling depending from level of schooling and birth of year taking into account the differences in schooling system since 1940ties. Th…
The Effect of Public Infrastructure on the Private Productive Sector of Spanish Regions
2002
In this paper we analyze the effect of infrastructure on the cost and productivity performance of the private productive sector of Spanish regions over the period 1980–1993. We use a dual approach based on cost functions that allows us to recover the usual parameters estimated with production functions. In addition, we obtain rates of return and cost elasticities of production factors at the regional level. Our framework explicitly considers that some factors are quasi-fixed and their volume can differ from their optimal endowment levels. Our results indicate that the public sector has contributed significantly to enhance productivity and reduce costs in the private sector of almost every S…
The cost and actuarial imbalance of pay‐as‐you‐go systems: the case of Spain
2010
This work determines the actuarial cost of delivering a monetary unit of pension in the case of a pay‐as‐you‐go system. The model is also applied to determining the imbalance and the unitary pension cost of the contributory pension system of the Spanish Social Security system. The study covers all benefits and all regimes for five consecutive years from 2002 to 2006. Policy alternatives are presented that would allow the system to be brought back into balance by actuarially equating the cost to the value of the pension delivered.
Notional defined contributions (NDC): Solvency and risk in Spain
2007
The aim of this article is twofold: to demonstrate the actuarial imbalance in the Spanish pension system in its current form; and to measure the degree of aggregate economic risk to which pensioners are exposed when applying formulas for the calculation of retirement pensions based on notional accounts. The model used generates scenarios for various periods encompassing some 10,000 different permutations of the macroeconomic indices needed to calculate such parameters as initial pension, earnings replacement rate, or internal rate of return and value at risk. The findings are analysed both objectively and subjectively. The main conclusions are that if the projections for the macroeconomic i…
An analysis of feed’in tariffs for solar PV in six representative countries of the European Union
2014
Abstract In this paper, after a brief review on the main support policies for Photovoltaic (PV) systems in Europe, the specific situations of six representative countries (France, Germany, Greece, Italy, Spain and the U.K.) are examined, with the purpose of highlighting the main differences in the implementation of the feed’in tariff (FiT) support policies adopted for PV systems. In particular, a comparison based on the calculation of economic indexes, as the Discounted Cash Flows (DCF), the Pay-Back-Period (PBP), the Net Present Value (NPV) and the Internal Rate of Return (IRR), for different sized PV systems shows that a specific FiT can sometimes be inconvenient for the producer and that…
Comparative analysis of different supporting measures for the production of electrical energy by solar PV and Wind systems: Four representative Europ…
2009
Abstract In the 9th of March 2007, the European Council decided a fixing goal of 20% contribution of the renewable energy sources (RES) on the total European electric energy production in 2020. In order to reach such an ambitious goal, all the European countries are adopting different support policies for encouraging the installations of RES-based generation systems. In this paper, after a brief review on the main support policies for RES in Europe, the specific situations of four representative countries (France, Germany, Italy and Spain) are examined, with the purpose of putting into evidence the main differences in the support policies adopted for Photovoltaic (PV) and Wind systems. In p…