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This paper explores the empirical relationship between population age structure and bilateral trade.

The author includes age structure in both log and Poisson pseudo-maximum likelihood (PPML) formulations of the gravity equation of trade. The author studies relative age effects, using differences in the demographic structure of each country-pair.

The author finds that a relatively larger share of population in working age increases bilateral exports. This is robust to various estimation models, as well as to changes in the method of specifying the demographic controls. Old-age shares have a negative, but less robustly estimated impact on trade. Estimating instead the balance of trade between trading partners produces similar results, with positive effects of age structure peaking later in working life.

Global populations are poised to undergo a massive transition. Trade a crucial way that the demographic deficits of one country may be offset by the dividends of another as comparative advantages shift along with the size and strength of their underlying workforce.

The author’s work is among the first to quantify the effect of relative age structure between two countries and their bilateral trade flows. Focusing on the aggregate flows, relative age shares and PPML estimates of the trade relationship, this paper provides the most comprehensive picture to date on how age structure affects trade.

The Analytical Hierarchy Process (AHP), a multicriteria decision support system that has been successfully applied to numerous decision-making situations, has been applied to patient assessment. The AHP was used with Timeslips™, a group storytelling program that encourages creative expression among dementia patients, to determine the optimal scale for pre and post assessment among the nine most common agitation and anxiety scales. The AHP used the six criteria identified by qualitative assessment of the nine scales: (1) validity/reliability, (2) observation period, (3) training required, (4) time to administer, (5) most appropriate administrator, and (6) accessibility/cost. The AHP indicated that the Overt Agitation & Anxiety Scale was optimal for use with Timeslips; the process and results are discussed.

This paper aims to investigate the influence of the central bank’s regulatory capital on commercial banks specific performance outcomes such as credit supply, interest rate spread (as a measure of efficiency) and non-performing loans (NPLs).

Using specific commercial bank-level panel data from 2002-2012, a system of equations was modeled that allows us to apply the system generalized methods of moment approach and estimate the equations, while controlling for specific bank level, industry and macroeconomic variables.

The study finds a positive relationship between a net minimum capital ratio and the net interest margin. Although this is in contrast with the study expectations, the result suggests that a high net minimum capital requirement would widen the spread between the lending and saving rates. The study further finds evidence to support the fact that high minimum capital requirement and excess capital above the minimum required drive credit growth in the banking sector of Ghana. However, high excess capital increases risk-taking activities of the banks, as excess capital is found to be associated with high NPL ratios.

Given the economic benefits and costs of sharply increasing bank regulatory capital, our results speak to the ongoing debates on the right level of capital, the effectiveness of the Bank of Ghana policy rate (PR) and the high lending rates that appear to respond only slowly to macroeconomic indicators such as the PR and the inflation rate. The finding also has practical implications for the adoption of the Basel III accord.

The empirical literature has not paid enough attention to the impact of regulatory capital on the three specific bank-level outcomes – NPLs, interest rate spread and the nature of interrelationships among these variables, particularly in the African context.

A full Edgeworth cycle of deposit rate is divided into two phases: an “overcutting cycle” in which the banks battle for deposits, and a “relenting cycle” in which the banks cease battling and instead choose to restore a temporarily low deposit rate. Such strategies have two testable implications on overall market movements. First, deposit rate decreases are more likely to be initiated when the deposit rate is near the upper bound of a cycle. Second, deposit rate decreases are more sensitive than increases to market interest rate changes. This chapter empirically confirms this pattern and shows strong evidence for the presence of Edgeworth cycles in deposit rates after Hong Kong’s interest rate deregulation.

The purpose of this paper is to examine the timing and the determinants of electing Statement of Financial Accounting Standard (SFAS) No. 159 in the banking industry.

The authors hypothesize certain factors that will potentially affect banks' election decisions and separate banks into three groups: early electors, late electors and non‐electors by hand‐collecting the election decisions and the timing of the election decisions. Univariate and logit rank regressions are used to identify the determining factors between electors (vs non‐electors) and between early electors (vs late electors).

The authors find that compared to banks not electing SFAS No. 159 (non‐electors), banks electing SFAS No. 159 (early electors as well as late electors) face greater earnings pressures, have less volatile earnings and larger size, and are active in hedging activities. In addition, compared to banks electing SFAS No. 159 at required election date (late electors), banks electing SFAS No. 159 early (early electors) have weak financial strength, less volatile earnings, and are more likely to be audited by non‐Big‐4 auditors.

The study only focuses on the banking industry, so the results from may not be generalized to other industries. Future studies could explore how SFAS No. 159 impacts firms in different industries.

The authors' overall results suggest that the banks might have many considerations in mind when they elect to use SFAS No. 159. The results provide useful information for regulatory bodies to evaluate the efficacy of issuing the standard. Early electors could have exploited the opportunities provided by the transition provisions of this standard to boost their regulatory capital ratios.

This study attempts to determine whether the level and volatility of interest rates affect the equity returns of commercial banks. Short‐term, intermediate‐term, and long‐term interest rates are used. Volatility is defined as the conditional variance of respective interest rates and is generated by using the ARCH estimation procedure. Two sets of models are estimated. The basic models attempt to determine the effect of contemporaneous and lagged interest rate volatility on bank equity returns, while the extended models incorporate additional contemporaneous macroeconomic variables. Contemporaneous interest rate volatility has little explanatory power, while lagged volatilities do possess some explanatory power, with the lag length varying depending on the interest rate series used and the time period examined. The results from the extended model suggest that the long‐term interest rate affects bank equity returns more adversely than the short‐term or the intermediate‐term interest rates. The findings establish the relevance of incorporating macroeconomic variables and their volatilities in models determining bank equity returns.

This chapter deals with the question: What is a conspiracy theory? It provides a concept of conspiracy theories and situates conspiracy theories in the context of COVID-19.

In order to understand how COVID-19 conspiracy theories work, one requires a theoretical concept of conspiracy theories. The developed understanding is especially grounded in Frankfurt School critical theory. Section 2 of this chapter works out a critical theory concept of conspiracy theories. Section 3 is an introduction to the communication of COVID-19 conspiracy theories.

This study aims to examine the triple relationship between capital regulation, banking lending and economic growth in a dual markets. Specifically, the author seeks to explore how changes in capital regulation can impact banking lending practices and subsequently influence economic growth, while also investigating the reciprocal effects of banking lending on economic growth.

The author follows several previous studies such as Shrieves and Dahl (1992), Beck and Levine (2002), Altunbas et al. (2007), Saeed et al. (2020) and Stewart et al. (2021) to identify a system of three equations, regarding economic growth, capital and banking financing growth, respectively. The author estimates the parameters of all equations simultaneously using the seemingly unrelated regression method (Zellner, 1962) for a sample of 46 Islamic banks and 113 conventional banks during 2002–2022. These banks operate in 13 Muslim countries from Middle East and North Africa and Southeast Asia.

The author’s findings demonstrate that in the case of Islamic banking, an increase in loan growth stimulates economic growth, while an increasing capital ratio positively influences economic growth but is accompanied by a reduction in loan growth. This result corroborates the findings of Stewart et al. (2021), which indicate that regulatory capital reduces unstable credit while improving gross domestic product growth. However, in the case of conventional banks, the response to an increase in loan growth on Gross Domestic Product Per Capita Growth (GDPCG) is ambiguous, while the capital ratio improves GDPCG and promotes LOANG, which, in turn, increases risk.

The Islamic banks can continue to significantly contribute to economic growth by effectively directing their available capital toward viable investment opportunities and supporting sustainable financial practices, even in the presence of potential constraints on loan growth. As for conventional banks, they are invited to increase their capital levels to ensure a strong and resilient financial system that can support lending and facilitate economic growth.

To the best of the author’s knowledge, this paper is the first to explore the triple relationship between capital requirements, Islamic bank lending and economic growth.