Search results
1 – 10 of 83The aim of this article is to assess the macroeconomic consequences of some specific aspects of financialization (i.e. share buy-back) using a hybrid post-Keynesian model of…
Abstract
Purpose
The aim of this article is to assess the macroeconomic consequences of some specific aspects of financialization (i.e. share buy-back) using a hybrid post-Keynesian model of growth and distribution based on Kaldorian and Kaleckian characteristics.
Design/methodology/approach
The study follows a post-Keynesian approach and deals with financialization issues by implementing several numerical simulations.
Findings
The numerical simulations reveal the negative real impacts of massive share repurchases on the rate of accumulation because they immediately siphon off revenues directly intended for investment projects. Moreover, the negative effect of share buy-backs is reinforced especially when firms' investment decisions are more sensitive to a variation in retained earnings. Next, this macro-model also reproduces several well-known figures of the Kaleckian tradition and the paradox of costs.
Research limitations/implications
The present article can be considered as a starting point for further theoretical extensions and requires empirical validation.
Originality/value
The Kaldor-Kalecki macro-model could be useful for policymakers who are interested in containing some of the negative excesses of financialization.
Details
Keywords
Hugo Iasco-Pereira and Rafael Duregger
Our study aims to evaluate the impact of infrastructure and public investment on private investment in machinery and equipment in Brazil from 1947 to 2017. The contribution of our…
Abstract
Purpose
Our study aims to evaluate the impact of infrastructure and public investment on private investment in machinery and equipment in Brazil from 1947 to 2017. The contribution of our article to the existing literature lies in providing a more comprehensive understanding of the presence or absence of the crowding effect in the Brazilian economy by leveraging an extensive historical database. Our central argument posits that the recent decline in private capital accumulation over the last few decades can be attributed to shifts in economic policies – moving from a developmentalist orientation to nondevelopmental guidance since the early 1990s, which is reflected in the diminished levels of public investment and infrastructure since the 1980s.
Design/methodology/approach
We conducted a series of econometric regressions utilizing the autoregressive distributed lag (ARDL) model as our chosen econometric methodology.
Findings
Employing two different variables to measure public investment and infrastructure, our results – robust across various specifications – have substantiated the existence of a crowding-in effect in Brazil over the examined period. Thus, we have empirical evidence indicating that the state has influenced private capital accumulation in the Brazilian economy over the past decades.
Originality/value
Our article contributes to the existing literature by offering a more comprehensive understanding of the crowding effect in the Brazilian economy, utilizing an extensive historical database.
Details
Keywords
Tevfik Demirciftci, Amanda Belarmino and Carola Raab
The purpose of this study is to discover what attributes of casino buffet restaurants are the most important for customers’ willingness to pay (WTP).
Abstract
Purpose
The purpose of this study is to discover what attributes of casino buffet restaurants are the most important for customers’ willingness to pay (WTP).
Design/methodology/approach
Choice-based conjoint analysis was used in this study to test seven attributes: food, price/value, real price, service, atmosphere, the number of reviews and user-generated star ratings. Sawtooth Software was used to do the conjoint analysis, and a series of significance t-tests were run to determine the significance of each attribute on WTP with Statistical Package for the Social Sciences (SPSS).
Findings
Based on a survey of 483 respondents who had visited a buffet at a casino within the last two years, this study found that food is ranked as the most significant attribute of a casino buffet restaurant, followed by real price and service quality.
Originality/value
Theoretically, this work is the first to the authors’ knowledge to apply the antecedents of behavioral intention to willingness-to-pay for niche restaurants. Practically, the results of this study will help casino buffet operators as they re-open after COVID-19. Future studies could collect data in the post-pandemic environment and examine WTP at casino buffets in different geographic locations.
Details
Keywords
Government spending plays a crucial role in fiscal policy in any country, both as a tool for implementing individual government policies and as a possible instrument for…
Abstract
Government spending plays a crucial role in fiscal policy in any country, both as a tool for implementing individual government policies and as a possible instrument for mitigating uneven economic developments and economic shocks. This chapter provides direct empirical evidence on the development and structure of general government expenditure and its relationship with real economic growth in Czechia and the European Union countries. Compared to theoretical recommendations, general government expenditure has not been used as a stabiliser in Czechia and EU countries and has been observed to be pro-cyclical in the period under review. Granger causality analysis identified the direction of causality between the macroeconomic variables analysed and found that in most cases economic growth came first, followed by government spending.
Details
Keywords
Alexandre Chirat, Basile Clerc and Richard P. F. Holt
In 1979, Galbraith wrote a manuscript titled “The Social Consequences of Inflation and Unemployment and Their Remedies.” The manuscript was found in the John Kenneth Galbraith…
Abstract
In 1979, Galbraith wrote a manuscript titled “The Social Consequences of Inflation and Unemployment and Their Remedies.” The manuscript was found in the John Kenneth Galbraith Personal Papers at the John F. Kennedy Library. The reasons for Galbraith to write the article might appear at first glance to be purely contextual. At the macroeconomic level, the United States was experiencing stagflation, a situation unseen since 1945, resulting in double-digit inflation rates and high unemployment. A policy debate was going on about the Phillips curve and whether there is a trade-off between inflation and unemployment. Milton Friedman challenged the Keynesian analyses of the Phillips curve in the mid-1960s (Friedman, 1977). Galbraith’s 16-page draft manuscript provides us an incisive summary of Galbraith’s views about the causes of stagflation and what can be done about it. He provides us with an alternative to the neoclassical synthesis of Samuelson and Solow and the neoliberal thinking of Milton Friedman and F.A. Hayek.
Details
Keywords
This chapter discusses conceptual links among Hazel Kyrk’s A Theory of Consumption (1923), the overall work of Thorstein Veblen, and Wesley C. Mitchell’s essays on spending and…
Abstract
This chapter discusses conceptual links among Hazel Kyrk’s A Theory of Consumption (1923), the overall work of Thorstein Veblen, and Wesley C. Mitchell’s essays on spending and money. The three authors are concerned with transformations in production, related changes in the organization of consumption, and the effects on people. The approach is based on reading of Kyrk’s book in light of an integrated view of Veblen’s overall work. This chapter explains how Mitchell’s essays on money and spending built on Veblen’s work and discusses their relevance for understanding Kyrk’s book as conceptually linked to institutional economics. This chapter delineates the following commonalities: conception of living humans and money as an institution; distinction between business and industrial concerns; connection between distribution, waste, and consumption; and Veblen’s “machine process” of standardization in production and its relation to consumption. This chapter brings more detail in the conceptual and theoretical discussion of Veblen’s influence on Kyrk’s book.
Details
Keywords
As an effort to support the quest for a stable financial sector, this study aims to determine the factors that contribute to the financial stability gap in sub-Saharan Africa…
Abstract
Purpose
As an effort to support the quest for a stable financial sector, this study aims to determine the factors that contribute to the financial stability gap in sub-Saharan Africa (SSA).
Design/methodology/approach
The estimation techniques used include the fixed and random effect, system general methods of moments and dominance analysis. The data used is annual data for 33 SSA countries, covering the period 2007 to 2018.
Findings
Key findings from the analyses indicate that nonperforming loans increase gaps in financial stability while regulatory quality, control of corruption, political stability and appreciation of the local currency reduce the financial stability gap in SSA.
Research limitations/implications
The absence of a specific metric for measuring the financial stability gap appears to be the limitation of this study. Its existence could improve the discussion and also make replicability easier. However, this study relies on a measure introduced by Kulu et al. (2022b), which is also acceptable and quite popular in the literature.
Originality/value
To the best of the authors’ knowledge, this study is the first in the finance literature to estimate the determinants of the financial stability gap in SSA.
Details