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1 – 10 of 28Pedro Brinca, Nikolay Iskrev and Francesca Loria
Since its introduction by Chari, Kehoe, and McGrattan (2007), Business Cycle Accounting (BCA) exercises have become widespread. Much attention has been devoted to the results of…
Abstract
Since its introduction by Chari, Kehoe, and McGrattan (2007), Business Cycle Accounting (BCA) exercises have become widespread. Much attention has been devoted to the results of such exercises and to methodological departures from the baseline methodology. Little attention has been paid to identification issues within these classes of models. In this chapter, the authors investigate whether such issues are of concern in the original methodology and in an extension proposed by Šustek (2011) called Monetary Business Cycle Accounting. The authors resort to two types of identification tests in population. One concerns strict identification as theorized by Komunjer and Ng (2011) while the other deals both with strict and weak identification as in Iskrev (2010). Most importantly, the authors explore the extent to which these weak identification problems affect the main economic takeaways and find that the identification deficiencies are not relevant for the standard BCA model. Finally, the authors compute some statistics of interest to practitioners of the BCA methodology.
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Zhan Wang, Xiangzheng Deng and Gang Liu
The purpose of this paper is to show that the environmental income drives economic growth of a large open country.
Abstract
Purpose
The purpose of this paper is to show that the environmental income drives economic growth of a large open country.
Design/methodology/approach
The authors detect that the relative environmental income has double effect of “conspicuous consumption” on the international renewable resource stock changes when a new social norm shapes to environmental-friendly behaviors by using normal macroeconomic approaches.
Findings
Every unit of extra demand for renewable resource consumption increases the net premium of domestic capital asset. Even if the technology spillovers are inefficient to the substitution of capital to labor force in a real business cycle, the relative income with scale effect increases drives savings to investment. In this case, the renewable resource consumption promotes both the reproduction to a higher level and saving the potential cost of environmental improvement. Even if without scale effects, the loss of technology inefficient can be compensated by net positive consumption externality for economic growth in a sustainable manner.
Research limitations/implications
It implies how to earn the environment income determines the future pathway of China’s rural conversion to the era of eco-urbanization.
Originality/value
We test the tax incidence to demonstrate an experimental taxation for environmental improvement ultimately burdens on international consumption side.
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Binh Tran-Nam, Cuong Le-Van and Ngoc-Anh Nguyen
This paper aims to provide rigor and clarity to the current coronavirus disease 2019 (COVID-19) policy debate in Vietnam. It is intended to serve a three-fold purpose. First, it…
Abstract
Purpose
This paper aims to provide rigor and clarity to the current coronavirus disease 2019 (COVID-19) policy debate in Vietnam. It is intended to serve a three-fold purpose. First, it critically examines the framing of policy objectives and the utilization of policy instruments for controlling COVID-19 in Vietnam. Second, it goes beyond policy design to consider the coordination and implementation of COVID-19 policies in Vietnam. Third, it discusses policy measures needed for post-COVID sustainable and inclusive growth, especially the sharing of the public costs of COVID-19 policies.
Design/methodology/approach
The paper employs a positivist research framework that emphasizes the causal relationships between the variables under study. The method of analysis is mixed, combining both qualitative and quantitative techniques. In particular, a simple, theoretical model is constructed to evaluate the welfare effects of alternative vaccine strategies. No primary data were collected.
Findings
The Vietnamese government’s dual goals of containing the pandemic and maintaining economic growth, while being reasonable, need clarification and updating. It is argued that in the longer term, there is no trade-off between saving lives and protecting the economy. The downward revision of the projected growth rate and commitment to a coherent and transparent vaccination strategy is the best way to move forward in Vietnam. The choice of vaccine rollout order involves a consideration of ethics. It is suggested that it is appropriate to vaccinate elderly people and people with underlying medical conditions first. Complementary policy measures to stimulate aggregate demand and supply need to be expanded but also more targeted. Effective coordination and implementation of COVID-19 policies remain a serious challenge for Vietnam. Finally, inclusive growth and sustainable development should take account of human capital development and distributive justice.
Social implications
The paper proposes a number of policy measures which have social impact. These include the government's formal commitment to a vaccine first strategy and a relief package of essential goods to poor and disadvantaged households.
Originality/value
The paper contributes positively to the current COVID-19 policy formulation by providing rigor and clarity to the framing of policy objectives and the utilization of policy instruments. While vaccination has been adopted as a national policy instrument, its design and implementation can be much improved. The paper recommends an appropriate vaccine strategy for Vietnam. It also draws attention to other dimensions of successful policies, namely, communication, coordination, implementation and distributive justice.
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Prince Fosu and Martinson Ankrah Twumasi
In Covid-19 pandemic era when most households' members have lost their jobs and incomes, the government assistance and programs in ensuring household consumption smoothing is very…
Abstract
Purpose
In Covid-19 pandemic era when most households' members have lost their jobs and incomes, the government assistance and programs in ensuring household consumption smoothing is very significant. The main objectives of this study are to analyze the impact of government expenditure and free maternal healthcare (FMHC) policy on household consumption expenditure in Ghana in both long run and short run.
Design/methodology/approach
They used the ARDL to estimate the impact of government expenditure on household consumption and Segmented Linear Regression to examine impact of FMHC policy household consumption using longitudinal data from 1967 to 2018.
Findings
The results revealed that government expenditure had a negative and statistically significant effect on household consumption expenditure suggesting that government expenditure crowed-out private consumption in Ghana. Also, it was observed that before the implementation of the FMHC policy, there was an increase household consumption expenditure, but after the introduction of the FMHC policy, the study household consumption expenditure decreases significantly suggesting that FMHC policy has strong association with household consumption in Ghana.
Research limitations/implications
Due to limited data availability, this study did not assess the impact of the FMHC policy at the household or district level. Also, Ghana has introduced a free senior high school education policy in 2017 so further research could analyze the implications of these policies for household consumption in Ghana at the micro-level using different estimation technique such as the difference in difference.
Practical implications
The study suggests the need to increase public spending on basic social amenities and also extend the free maternal healthcare policy to all pregnant women especially those in the rural areas of Ghana as these have a greater impact on household consumption in Ghana. The findings from this study have important implications for household savings and interest rate in Ghana. The findings from this study also have important implications for both fiscal policy and healthcare policy in Ghana and other developing countries.
Originality/value
To the best of my knowledge this is the first empirical study to examine the effect of government expenditure and free maternal healthcare policy on household consumption in Ghana.
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The purpose of this paper is to evaluate and analyze impacts of the monetary policy (MP) – money aggregate and interest rate – on the exchange rate in Vietnam.
Abstract
Purpose
The purpose of this paper is to evaluate and analyze impacts of the monetary policy (MP) – money aggregate and interest rate – on the exchange rate in Vietnam.
Design/methodology/approach
The study uses data over the period of 2008–2018 and applies the vector autoregression model, namely recursive restriction and sign restriction approaches.
Findings
The main empirical findings are as follows: a contraction of the money aggregate significantly leads to the real effective exchange rate (REER) depreciating and then appreciating; a tightening of the interest rate immediately causes the REER appreciating and then depreciating; and both the money aggregate and the interest rate strongly determine fluctuations of the REER.
Originality/value
The quantitative results imply that the MP affects the REER considerably.
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H.A. Dimuthu Maduranga Arachchi and G.D. Samarasinghe
This study aims to analyse the influence of perceived corporate social responsibility (CSR) on purchase intention; this study also examines the mediating effect of generation Y’s…
Abstract
Purpose
This study aims to analyse the influence of perceived corporate social responsibility (CSR) on purchase intention; this study also examines the mediating effect of generation Y’s attitude towards the brand and the moderating effect of their attitude towards CSR.
Design/methodology/approach
This study tested the model with a sample of 392 generation Y consumers using Smart partial least squares (PLS)-structural equation modelling.
Findings
Brand attitude partially mediates the positive influence of perceived CSR (PCSR) on purchase intention. Gen Y’s attitude towards CSR increases the impact of PCSR on brand attitude and purchase intention.
Practical implications
To multiply the effects of CSR and brand attitude, retail marketing managers can develop strategies that strengthen the links between awareness, knowledge, brand affection and purchase intent by encouraging Gen Y consumers to engage with the brand’s CSR strategy.
Originality/value
This study advances the literature on CSR and consumer behaviour by providing an integrated view of the hierarchy of effects model and a generational cohort perspective in predicting purchase intention.
sponsabilidad social corporativa y la actitud hacia la marca en la intención de compra
Propósito
el estudio analiza la influencia de la responsabilidad social corporativa (RSC) percibida sobre la intención de compra. De igual forma, se analizan el efecto mediador de la actitud hacia la marca y el efecto moderador de la actitud hacia la RSC de la Generación Y.
Metodología
el modelo se contrastó con una muestra de 392 consumidores de la generación Y utilizando SMART PLS-SEM.
Hallazgos
la actitud hacia la marca media parcialmente la influencia positiva entre la RSC percibida y la intención de compra. La actitud de la Gen Y hacia la RSC multiplica el impacto de la RSC percibida sobre la actitud hacia la marca y sobre la intención de compra.
Implicaciones prácticas
con la finalidad de multiplicar los efectos de la RSC y de la actitud hacia la marca, los directivos del marketing minorista pueden desarrollar estrategias que refuercen los vínculos entre concienciación, conocimiento, afecto por la marca e intención de compra fomentando la implicación de los consumidores de la generación Y con la estrategia de RSC de la marca.
Originalidad
El estudio avanza en la literatura sobre RSC y comportamiento del consumidor al ofrecer una perspectiva integrada del modelo de jerarquía de efectos (HOE) y la perspectiva de cohortes generacionales en la predicción de la intención de compra.
目的
本研究分析了感知到的企业社会责任对购买意向的影响。同样, 我们也分析了Y世代的品牌态度的中介效应和企业社会责任态度的调节效应。
方法
使用SMART PLS-SEM对392名Y世代消费者的样本进行了模型测试。
研究结果
品牌态度部分调解了感知的企业社会责任和购买意向之间的积极影响。Y一代对企业社会责任的态度使感知到的企业社会责任对品牌态度和购买意向的影响倍增。
实践意义
为了使企业社会责任和品牌态度的效果倍增, 零售业营销人员可以制定战略, 通过鼓励Y一代消费者参与品牌的企业社会责任战略, 加强意识、知识、品牌喜爱和购买意向之间的联系。
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Keywords
- Corporate social responsibility
- Brand attitude
- Purchase intention
- Generation Y attitude
- Hierarchy of effects model
- Generational cohort perspective
- Responsabilidad social corporativa
- Actitud de marca
- Intención de compra
- Actitud de la Generación Y
- Modelo de jerarquía de efectos
- Perspectiva de cohorte generacional
- 企业社会责任
- 品牌态度
- 购买意向
- Y世代态度
- 效应层次模型
- 世代群组视角
Hairul Azlan Annuar, Khadijah Isa, Salihu Aramide Ibrahim and Sakiru Adsebola Solarin
The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun…
Abstract
Purpose
The present study aims to investigate the impact of the reduction of the corporate tax rate on corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun, depicted as the Laffer curve.
Design/methodology/approach
The paper analyses time series data for the period 1996 to 2014 using the autoregressive distributed lag (ARDL) approach.
Findings
The paper finds that the corporate tax rate has a dual effect on corporate tax revenue over the study period. It shows an inverted U-shape relationship between the corporate tax rate and corporate tax revenue and reveals that the optimal tax rate is 25.5156 per cent. Inferentially, a positive relationship exists between the two variables prior to the optimal tax rate, and a negative relationship prevails afterwards. A further test of causality shows a long-run unidirectional causality between corporate tax rate and corporate tax revenue.
Research limitations/implications
First, it should be noted that the policy was not implemented in isolation. Several other tax incentives were given to corporate tax payers, and therefore, such incentives should be controlled for to have a more insightful evaluation of the policy. Second and most important, there is a need to investigate whether the increased cash flow available to firms as a result of the reduction in the corporate tax rate adds value to firms. It is also necessary to investigate whether firms’ stakeholders benefited from the increased cash flow or was there managerial diversion of firms’ resources.
Practical implications
The policy of gradual reduction of the corporate tax rate in Malaysia is suspected to have a positive impact on the productivity of Malaysian companies, which has contributed to an increase in corporate tax revenue. It also has a positive impact on the economic growth of the country. It means that the lower corporate tax rate has actually reduced the cost of doing business in the country.
Originality/value
The benefit of increased corporate tax revenue needs to be investigated empirically for insightful policy evaluation. In Malaysia, however, such investigation is close to non-existent to the best knowledge of the researchers. Thus, the present study aims at investigating the impact of the policy of gradual reduction of the corporate tax rate on corporate tax revenue over an 18-year period from 1996 to 2014.
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Jose Perez-Montiel and Carles Manera
The authors estimate the multiplier effect of government public infrastructure investment in Spain. This paper aims to use annual data of the 17 Spanish autonomous communities for…
Abstract
Purpose
The authors estimate the multiplier effect of government public infrastructure investment in Spain. This paper aims to use annual data of the 17 Spanish autonomous communities for the 1980–2016 period.
Design/methodology/approach
The authors use dynamic acyclic graphs and the heterogeneous panel structural vector autoregressive (P-SVAR) method of Pedroni (2013). This method is robust to cross-sectional heterogeneity and dependence, which are present in the data.
Findings
The findings suggest that an increase in the level of government public infrastructure investment generates a positive and persistent effect on the level of output. Five years after the fiscal expansion, the multiplier effects of government public infrastructure investment reach values above one. This confirms that government public infrastructure investment expansions have Keynesian effects. The authors also find that the multiplier effects differ between autonomous communities with above-average and below-average GDP per capita.
Originality/value
To the best of the authors’ knowledge, no research uses dynamic acyclic graphs and heterogeneous P-SVAR techniques to estimate fiscal multipliers of government public investment in Spain by using subnational data.
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