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1 – 10 of over 27000The RMB Internationalization has a great impact on China’s domestic economy. This chapter applies the Gap Estimation approach to estimate the RMB overseas circulation amount from…
Abstract
The RMB Internationalization has a great impact on China’s domestic economy. This chapter applies the Gap Estimation approach to estimate the RMB overseas circulation amount from 1997 to 2015, as the indicator of RMB internationalization. Using the recently developed Directed Acyclic Graph (DAG) method for the model identification and contemporaneous causality analysis. The structural vector auto regression (SVAR) model is constructed between the economic indicators (the interest rate, the CPI, and the exchange rate) and the RMB overseas circulation. The dynamic relationship and degree of mutual influence are further studied between the economic indicators and overseas circulation. The results show that there exist contemporaneous causalities of “from RMB overseas circulation to inflation rate,” “from exchange rate to overseas circulation,” and “from exchange rate to the inflation rate.” The influence of interest rate adjustment on macro economy presents the time lag effect. The internationalization of the RMB encourages the currency appreciation. The China’s Central Bank passively looses monetary policy to meet the needs of internationalization and reduce the shock of the international hot money, thereby further deepening the domestic inflation.
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Bing Xu and Junzo Watada
The study aims to reinvestigate the regional urbanization gap in China and some projects are to be presented for reducing the gap.
Abstract
Purpose
The study aims to reinvestigate the regional urbanization gap in China and some projects are to be presented for reducing the gap.
Design/methodology/approach
An innovative weighted kernel density approach is applied for identifying the regional urbanization development with population migration and investment and evaluating the projects.
Findings
The regional urbanization gap is 7 and 9 percent with the unconditional estimation, 13 (23) percent and 13 (23) percent with population (investment) weighted estimation between eastern and middle region, eastern and western region, respectively. The project on the interior migration of population by 30 percent and the project on the selective investment enhancement by 30 percent both reduce the regional urbanization gap by about 4 percent between middle and eastern region.
Research limitations/implications
Focus is only on the investigation of urbanization development level with single population migration or investment enhancement; the identifications and projects with joint impact of population and investment are not considered.
Originality/value
The study not only measures the urbanization development with the nonparametric approach but also designs some practicable projects for reducing the regional urbanization gap, which is helpful for the Chinese Government in the policymaking process.
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Long Thanh Cung, Nam Hoang Nguyen, Pierre Yves Joubert, Eric Vourch and Pascal Larzabal
The purpose of this paper is to propose an approach, which is easy to implement, for estimating the thickness of the air layer that may separate metallic parts in some…
Abstract
Purpose
The purpose of this paper is to propose an approach, which is easy to implement, for estimating the thickness of the air layer that may separate metallic parts in some aeronautical assemblies, by using the eddy current method.
Design/methodology/approach
Based on an experimental study of the coupling of a magnetic cup core coil sensor with a metallic layered structure (consisting of first metal layer/air layer/second metal layer), which is confirmed by finite element modelling simulations, an inversion technique relying on a polynomial forward model of the coupling is proposed to estimate the air layer thickness. The least squares and the nonnegative least squares algorithms are applied and analysed to obtain the estimation results.
Findings
The choice of an appropriate inversion technique to optimize the estimation results is dependent on the signal-to-noise ratio of measured data. The obtained estimation error is smaller than a few percent, for both simulated and experimental data. The proposed approach can be used to estimate both the air layer thickness and the second metal layer thickness simultaneously/separately.
Originality/value
This model-based approach is easy to implement and available to all types of eddy current sensors.
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Carolina Castagnetti, Luisa Rosti and Marina Töpfer
This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach…
Abstract
This paper analyzes the age pay gap in Italy (22%), particularly as it is of interest in an aging society and as it may affect social cohesion. Instead of the traditional approach for model selection, we use a machine-learning approach (post double robust Least Absolute Shrinkage Operator [LASSO]). This approach allows us to reduce Omitted Variable Bias (OVB), given data restrictions, and to obtain a robust estimate of the conditional age pay gap. We then decompose the conditional gap and analyze the impact of four further potential sources of heterogeneity (workers', sectors', and occupations' permanent heterogeneity as well as sample selection bias). The results suggest that age discrimination in pay is only perceived but not real in Italy for both men and women.
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Kaustav Misra, Esra Memili, Dianne H.B. Welsh, Surender Reddy and Gail E. Sype
The purpose of this paper is to investigate the factors influencing the total factor productivity (TFP) gap between the USA and eight Latin American countries for the period of…
Abstract
Purpose
The purpose of this paper is to investigate the factors influencing the total factor productivity (TFP) gap between the USA and eight Latin American countries for the period of 1970-2000.
Design/methodology/approach
The paper provides an explicit application of TFP estimation by employing a growth accounting approach (Solow Residual) in the presence of non-constant returns to scale and a non-parametric approach (DEA – Malmquist Index) while relaxing the scale-related constraint. A macro-based economic model of innovator and follower countries is employed to explore the linkage between technology gaps and innovations, labor productivity, trade openness, foreign direct investment, and adult workforce illiteracy rates. A pooled model and a fixed effects model are used to determine the factors of the technology gap between the innovator and the follower countries.
Findings
The results show that the labor productivity gap, adult work force illiteracy rates, patent filing gap, and trade openness are significant determinants of the technology gap between innovator and follower country.
Practical implications
Latin American countries would benefit from the technology diffusion from an innovator country; but a minimum threshold of human capital, such as adult workforce illiteracy rates and patent filing has to be met. The authors find government policies on trade openness also have large effects on technology limitations in foreign countries.
Originality/value
This paper is of value to researchers, policy makers, and economic development specialists trying to improve the rate of technology adoption and innovation.
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Jamshaid Anwar Chattha, Syed Musa Alhabshi and Ahamed Kameel Mydin Meera
In line with the IFSB and BCBS methodology, the purpose of this study is to undertake a comparative analysis of dual banking systems for asset-liability management (ALM) practices…
Abstract
Purpose
In line with the IFSB and BCBS methodology, the purpose of this study is to undertake a comparative analysis of dual banking systems for asset-liability management (ALM) practices with the duration gap, in Islamic Commercial Banks (ICBs) and Conventional Commercial Banks (CCBs). Based on the research objective, two research questions are developed: How do the duration gaps of ICBs compare with those of similar sized CCBs? Are there any country-specific and regional differences among ICBs in terms of managing their duration gaps?
Design/methodology/approach
The research methodology comprises two-stages: stage one uses a duration gap model to calculate the duration gaps of ICBs and CCBs; stage two applies parametric tests. In terms of the duration gap model, the study determines the duration gap with a four-step process. The study selected a sample of 100 banks (50 ICBs and 50 CCBs) from 13 countries for the period 2009-2015.
Findings
The paper provides empirical insights into the duration gap and ALM of ICBs and CCBs. The ICBs have more variations in their mean duration gap compared to the CCBs, and they have a tendency for a higher (more) mean duration gap (28.37 years) in comparison to the CCBs (11.79 years). The study found ICBs as having 2.41 times more duration gap compared to the CCBs, and they are exposed to increasing rate of return (ROR) risk due to their larger duration gaps and severe liquidity mismatches. There are significant regional differences in terms of the duration gap and asset-liability management.
Research limitations/implications
Future studies also consider “Off-Balance Sheet” activities of the ICBs, with multi-term duration measures. A larger sample size of 100 ICBs with 10 years’ data after the GFC would be more beneficial to the industry. In addition, the impact of an increasing benchmark rate (e.g. 100, 200 and 300 bps) on the ICBs as per the IFSB 20 per cent threshold can also be established with the duration gap approach to identify the vulnerabilities of the ICBs.
Practical implications
The study makes profound contributions to the literature and suggests various policy recommendations for Islamic banks, regulators, and standard setters of the ICBs, for identifying and measuring the significance of the duration gaps; and management of the ROR risk under Pillar 2 of the BCBS and IFSB, for financial soundness and stability purposes.
Originality/value
To the best of the authors’ knowledge, this is a pioneer study in Islamic banking involving a sample of 100 banks (50 ICBs and 50 CCBs) from 13 countries. The results of the study provide original empirical evidence regarding the estimation of duration gap, and variations across jurisdictions in terms of vulnerability of ICBs and CCBs in dual banking systems.
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Tin Benšic, Marinko Barukcic, Željko Hederic, Venco Corluka, Nebojsa Bozidar Raicevic and Ilona Iatcheva
The purpose of this paper is to develop a system for estimating the position of the active magnetic bearing (AMB) shaft. A new approach using the static and dynamic inductances…
Abstract
Purpose
The purpose of this paper is to develop a system for estimating the position of the active magnetic bearing (AMB) shaft. A new approach using the static and dynamic inductances and complex analytic signal to simplify the estimation procedure. Finite element (FE) simulations are introduced as a part of the system synthesis.
Design/methodology/approach
The paper presents an AMB displacement estimation system. The system is created with three inductive sensors. The position is computed from refined static and dynamic inductance obtained from complex analytic signals of flux and current. FE simulation is used to relate refined inductances to the displacement and to verify the model.
Findings
This paper shows the applicability of complex analytic signal transformation on estimation systems. The use of new refined inductance is presented in contrast to the classical approach of static and dynamic inductances. The paper shows that classical approach of static and dynamic inductance is not usable for the presented estimation system.
Practical implications
For the practical implementation of the presented system, it is necessary to know the exact dimensions of the AMB stator and the voltage and frequency used to supply the inductance estimation system.
Originality/value
The paper presents a system for estimating the displacement of AMB. The paper introduces the application of complex analytic signal to the estimation of AMB displacement. The mentioned signal is used to compute the new refined inductances. The comparison to the classical approach of static and dynamic inductances is given in this paper. The paper introduces FE simulations to the estimation system synthesis.
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José M. Durán-Cabré, Alejandro Esteller Moré, Mariona Mas-Montserrat and Luca Salvadori
The purpose of this paper is to study the concept of tax gap, that is the difference between the total amount of taxes collected and the total tax revenues that would be collected…
Abstract
Purpose
The purpose of this paper is to study the concept of tax gap, that is the difference between the total amount of taxes collected and the total tax revenues that would be collected under full tax compliance.
Design/methodology/approach
The authors also present the methodology to estimate the gap for two taxes levied on wealth: the wealth tax and the inheritance and gift tax; both are administered in Spain by the regional tax authorities.
Findings
The authors point out that its estimation offers useful information about the relative size and nature of non-compliance, as well as its evolution over time. Likewise, the tax gap is a valuable instrument not only to define enforcement strategies of the tax administration but also to enhance its accountability. Nonetheless, the methodology used to estimate the tax gap and, consequently, the interpretation of the results is subject to limitations that are discussed in the paper.
Originality/value
Finally, the paper provides the results of the estimations obtained from using microdata: 44.34 per cent gap in the wealth tax and 41.26 per cent in the inheritance and gift tax.
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