Search results for "endogeneity"
showing 10 items of 52 documents
Structure and determinants of production in Textile-Clothing-Leather-Skins (TCLS) craft industry in Benin: a study based on investigations of the val…
2014
Lieu et date de la conférence modifiées. Prétoria 31Juillet au 2 Août 2014 (Au lieu de Kigali -Rwanda); International audience; Sustainable economic growth in Benin requires a better understand of the informalsector, which contributes to two-thirds of GDP. Particularly, craft industry and TCLSsubsector is one of informal activity sector to be handled. The objectives of this work wereto identify the structure and factors that determine the production in TCLS craft industry.This study was based on a survey carried out in February 2011 on value creationdata in craft industry of TCLS in Benin. Lack of data induced by informal activities wascircumvented using an imputation method. A Multiple Cor…
Consumer Awareness and the Use of Payment Media: Evidence from Young Finnish Consumers
2008
In the market for payment media, some consumers use only one medium when paying for their point-of-sale transactions, while others use many. This pattern reflects the diffusion of new payment media, because a payment method innovation is typically first used simultaneously with the established methods. We study the use of multiple payment media by employing data on young Finnish consumers. We find that the use of multiple payment media is directly related to consumer awareness and that not controlling for the endogeneity of awareness can bias its effect downwards. These results suggest that increasing consumer awareness may have been underlying the rise of debit card use around the world. I…
Does one size fit all? The impact of cognitive skills on economic growth
2016
Les Documents de Travail de l'IREDU, n°2016-1; This paper tests for heterogeneous effects of cognitive skills on economic growth across countries. Using a new extended dataset on cognitive skills and controlling for potential endogeneity, we find that the magnitude of the effect is about 60 per cent higher for low-income countries compared to high-income countries, and it more than doubles when low TFP countries are compared to high TFP countries. There are also marked differences across geographic regions. Using data on the share of the population with advanced and minimum skill levels, our results also indicate that high-income countries should focus on increasing the number of high skill…
Testing for financial contagion between developed and emerging markets during the 1997 East Asian crisis
2005
In this paper we examine whether during the 1997 East Asian crisis there was any contagion from the four largest economies in the region (Thailand, Indonesia, Korea and Malaysia) to a number of developed countries (Japan, UK, Germany and France). Following Forbes and Rigobon, we test for contagion as a significant positive shift in the correlation between asset returns, taking into account heteroscedasticity and endogeneity bias. Furthermore, we improve on earlier empirical studies by carrying out a full sample test of the stability of the system that relies on more plausible (over) identifying restrictions. The estimation results provide some evidence of contagion, in particular from Japan…
Is the sustainability profile of FinTech companies a key driver of their value?
2022
[EN] The digitisation process is affecting all markets and raising consumer awareness about companies' sustainable behaviour. This work studies the effect of the sustainability profile of FinTech companies on the firm (market value and book value) as the factors that add value to investors and motivate their evolution in markets are still unknown. Using the KBW and Nasdaq FinTech Indices, and the NASDAQ Insurance Index (IXIS), we composed a panel of 95 companies over a 10-year period (2010-2019) with economic-financial variables and data about green certificates and sustainability indices. The applied methodology is based on dynamic (GMM-SYS) and static (PCSE) panel data models. Our results…
Returns to Schooling in Spain: How Reliable are Instrumental Variable Estimates?
2002
This paper studies the ordinary least–squares (OLS) and instrumental variable (IV) estimates of the returns to schooling for male workers in Spain. OLS estimates are often biased due to the endogeneity of schooling, measurement errors or omitted variables. Proper IV estimates correct this bias. The reliability of family background, natural experiments (based on changes in the education system and season of birth) and the availability of a college in the province is checked using Spanish data. The results suggest that background and college availability are valid instruments and that the IV estimates of the returns to schooling are higher than OLS estimates. These results are in line with th…
Selection Correction in Panel Data Models: An Application to Labour Supply and Wages
2000
In recent years a number of panel estimators have been suggested for sample selection models, where both the selection equation and the equation of interest contain individual effects which are correlated with the explanatory variables. We review and compare some of these estimators, and apply them to estimating the return to actual labour market experience for females, using a panel of twelve years. All these estimators rely on the assumption of strict exogeneity of regressors in the equation of interest, conditional on individual specific effects and the selection mechanism. This assumption is likely to be violated in many applications. Also, life history variables are often measured with…
Do foreign workers reduce trade barriers? Microeconomic evidence
2015
This paper provides evidence that foreign workers reduce firms' trade costs and thus increase the probability that firms export. This informs both the literature on trade costs and the microeconomic literature on firms' export behaviour. We identify the nationality of each worker in a large sample of German establishments, and relate this to the exporting behaviour of these establishments. We allow for the possible endogeneity of an establishment's workforce by instrumenting the share of foreign workers with the regional distribution of foreign workers in the wider labour market. We find a significant effect of worker nationality on exporting which is not driven by the industrial, occupatio…
The Effects of IFRS Adoption on the Unconditional Conservatism of Spanish Listed Companies
2017
This paper analyses the effects on unconditional conservatism of the mandatory adoption of International Financial Reporting Standards (IFRS) by Spanish listed companies in January 2005. The lack of robustness in the previous evidence justifies analysing this issue from different perspectives. To this end, we use, for the first time in this context, Ahmed and Duellman’s methodology (J. Account. Econ., 2007). In its design, these authors consider the impact of growth options and other future incomes, controlling for the idiosyncratic factors that the literature has found to condition this type of conservatism. Additionally, beyond the pooled regression techniques usually used, we use econome…
Monetary policy and the exchange rate during the Asian crisis: identification through heteroscedasticity
2005
Abstract This paper examines whether a monetary policy tightening (i.e., an increase in the domestic interest rate) was successful in defending the exchange rate from speculative pressures during the Asian financial crisis. We estimate a bivariate VECM for four Asian countries, and improve upon existing studies in two important ways. First, by using a long data span we are able to compare the effects of an interest rate rise on the nominal exchange rate during tranquil and turbulent periods. Second, we take into account the endogeneity of interest rates and identify the system by exploiting the heteroscedasticity properties of the relevant time series, following Rigobon [Identification thro…