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The objective of this study is to reevaluate the correlation among pharmaceutical consumption, per capita income, and life expectancy across different age groups (at birth, middle age, and advanced age) within the OECD countries between 1998 and 2018.

We employ a two-step methodology, utilizing two independent approaches. Firstly, we con-duct the Dumitrescu-Hurlin pairwise panel causality test, followed by Machine Learning (ML) experiments employing the Causal Direction from Dependency (D2C) Prediction algorithm and a DeepNet process, thought to deliver robust inferences with respect to the nature, sign, direction, and significance of the causal relationships revealed in the econometric procedure.

Our findings reveal a two-way positive bidirectional causal relationship between GDP and total pharmaceutical sales per capita. This contradicts the conventional notion that health expenditures decrease with economic development due to general health improvements. Furthermore, we observe that GDP per capita positively correlates with life expectancy at birth, 40, and 60, consistently generating positive and statistically significant predictive values. Nonetheless, the value generated by the input life expectancy at 60 on the target income per capita is negative (−61.89%), shedding light on the asymmetric and nonlinear nature of this nexus. Finally, pharmaceutical sales per capita improve life expectancy at birth, 40, and 60, with higher magnitudes compared to those generated by the income input.

These results offer valuable insights into the intricate dynamics between economic development, pharmaceutical consumption, and life expectancy, providing important implications for health policy formulation.

Very few studies shed light on the nature and the direction of the causal relationships that operate among these indicators. Exiting from the standard procedures of cross-country regressions and panel estimations, the present manuscript strives to promote the relevance of using causality tests and Machine Learning (ML) methods on this topic. Therefore, this paper seeks to contribute to the literature in three important ways. First, this is the first study analyzing the long-run interactions among pharmaceutical consumption, per capita income, and life expectancy for the Organization for Economic Co-operation and Development (OECD) area. Second, this research contrasts with previous ones as it employs a complete causality testing framework able to depict causality flows among multiple variables (Dumitrescu-Hurlin causality tests). Third, this study displays a last competitive edge as the panel data procedures are complemented with an advanced data testing method derived from AI. Indeed, using an ML experiment (i.e. Causal Direction from Dependency, D2C and algorithm) it is believed to deliver robust inferences regarding the nature and the direction of the causality. All in all, the present paper is believed to represent a fruitful methodological research orientation. Coupled with accurate data, this seeks to complement the literature with novel evidence and inclusive knowledge on this topic. Finally, to bring accurate results, data cover the most recent and available period for 22 OECD countries: from 1998 to 2018.

This study aims to investigate the relationship between financial inclusion and household expenditure behaviour among Ghanaian households, by taking into account both formal and informal financial inclusion channels.

Propensity score matching as well as instrumental variable techniques are applied to data from the Ghana Living Standard Survey to investigate the effect of financial inclusion on the share of total expenditure devoted to different categories, including food, health, education, housing, durables, temptation goods and other goods.

Informal financial inclusion seems to have no substantial effect on households’ consumption behaviour, whereas formal financial inclusion significantly affects it. The study finds that formal financial inclusion is inversely related to the budget share devoted to short-term expenditure (food, temptation goods and other goods such as transport and recreation). Conversely, financially included households spend more on long-term expenditure such as education, housing and consumer durables, thus, suggesting a diversion effect towards investment in long-term physical and human capital.

The investigation of the heterogeneous impact across households (male vs female headed, rural vs urban) has essential policy implications on how financial inclusion can be improved among the disadvantaged groups, and with what effects.

The study focuses on the importance of financial inclusion in Ghana, considering both formal and informal financial inclusion channels. Previous studies only examined the overall effects on household welfare, overlooking the impact on household expenditure composition and consumption shares. The analysis also considers the heterogeneous impact of financial inclusion on households based on the gender of the household head and the location where households reside (rural, urban).

Innovation is necessary to ensure consistent economic growth and to meet the global competition. In view of this, the purpose of this study to check the effect of governance quality as a tool for fostering innovation performance.

The empirical analysis was arranged on 20 year’s (2000–2019) data from South Asian economies. Subject to the existence of cointegration, the authors use the fully modified ordinary least square model for regression analysis and check the robustness through robust least square model.

The empirical findings infer that all dimensions of governance have a positive significant impact on both research and development expenditures and trademark applications jointly known as innovation performance. In addition, the empirical analysis discloses the positive effect of all control variables, including FDI inflow, banking sector development, economic growth, ease of doing business index and government subsidies on innovation activities. The analysis confirms the “grease the wheel” role of governance in fostering innovation.

It is apparently recommended to strengthen the exercise of better governance to harvest better innovation scores.

This study advocates the positive role of individual dimensions of governance recommended by existing literature and complements the literature by jointly exploring the impact of all governance dimensions on overall innovation performance.

Evidence shows that African countries are confronted with high levels of income inequality. Therefore, it is relevant to approach and analyze the factors contributing to these severe inequality cases. This paper addresses the issue by focusing on the role of financial regulation and military spending.

We used a sample of 30 African countries and a recent period (2009–2020), employing various instrumental variable estimation techniques to control for endogeneity.

The results confirm that economic growth aggravates income inequality due to high corruption and political instability. Results confirm that the increase in military spending increases inequality and that financial regulation weakens financial inclusion and also increases income inequality.

The study shows the need for greater control of corruption and the promotion of political stability so that economic growth and financial inclusion can effectively reduce income inequality, as well as the need for a better balance in the drafting of financial regulations and the preparation of military expenditure to safeguard other policy objectives.

The present study contributes to scarce financial, economic, and social literature considering the role of financial regulation and military spending in the persistence of income inequality in African countries. Previous studies disregarded this fact.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2023-0287

This paper seeks to explore the sensitivity of these parameters and their impact on fiscal policy outcomes. We use the existing literature to establish possible ranges for each parameter, and we examine how changes within these ranges can alter the outcomes of fiscal policy. In this way, we aim to highlight the importance of these parameters in the formulation and evaluation of fiscal policy.

The role of fiscal policy, its effects and multipliers continues to be a subject of intense debate in macroeconomics. Despite adopting a New Keynesian approach within a macroeconomic model, the reactions of macroeconomic variables to fiscal shocks can vary across different contexts and theoretical frameworks. This paper aims to investigate these diverse reactions by conducting a sensitivity analysis of parameters. Specifically, the study examines how key variables respond to fiscal shocks under different parameter settings. By analyzing the behavioral dynamics of these variables, this research contributes to the ongoing discussion on fiscal policy. The findings offer valuable insights to enrich the understanding of the complex relationship between fiscal shocks and macroeconomic outcomes, thus facilitating informed policy debates.

This paper aims to investigate key elements of New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models. The focus is on the calibration of parameters and their impact on macroeconomic variables, such as output and inflation. The study also examines how different parameter settings affect the response of monetary policy to fiscal measures. In conclusion, this study has relied on theoretical exploration and a comprehensive review of existing literature. The parameters and their relationships have been analyzed within a robust theoretical framework, offering valuable insights for further research on how these factors influence model forecasts and inform policy recommendations derived from New Keynesian DSGE models. Moving forward, it is recommended that future work includes empirical analyses to test the reliability and effectiveness of parameter calibrations in real-world conditions. This will contribute to enhancing the accuracy and relevance of DSGE models for economic policy decision-making.

This study is motivated by the aim to provide a deeper understanding of the roles macroeconomic model parameters play concerning responses to expansionary fiscal policies and the subsequent reactions of monetary authorities. Comprehensive reviews that encompass this breadth of relationships within a single text are rare in the literature, making this work a valuable contribution to stimulating discussions on macroeconomic policies.

This study quantitatively examines the relationship between economic fluctuations and government budget size in the context of China’s fiscal decentralization, drawing inspiration from theoretical predictions of the Keynesian view and empirical studies on other economies.

The panel comprises 31 provinces or equivalents in mainland China, spanning from 1994 to 2019. Diverse estimation strategies including two-way fixed effect regression, the generalized method of moments (GMM) and threshold regressions are, utilized.

The results suggest that under the “tax-assignment system”, neither the central government’s fiscal transfers nor the provincial budgetary revenues or expenditures help reduce economic volatility. Surprisingly, some regression outcomes suggest that government size measures destabilize business cycles.

While the study does not provide supportive evidence for the stabilizing effect of public budgets in Chinese provinces, it promotes a rethinking of the government’s intricate role in macroeconomic stabilization in the context of China’s fiscal decentralization.

The interplay between individual and collective creativity and its translation into innovation is a critical yet complex challenge in the ever-evolving innovation landscape. This study delves into the intricate relationship between managerial ability, intellectual property rights (IPRs) and research and development (R&D) investments contextualized within the dynamics of leverage, firm life stages and tangibility for pharmaceutical firms in the Asia-Pacific region. By exploring how micro-level factors influence macro-level innovation processes, this study aims to contribute to the broader understanding of creativity and innovation, a theme at the heart of addressing contemporary global challenges.

Econometric methodologies were used to analyse a data set comprising 2,660 firm-year observations spanning the decade from 2011 to 2020.

A key finding was that companies with lower managerial prowess strategically leverage R&D intensity to signal their value to the market and accrue reputational currency. The research unearths a significant positive relationship between managerial ability, IPRs and R&D investment. In environments characterized by strong managerial acumen and robust IPR safeguards, firms exhibit a heightened propensity to allocate resources to R&D endeavours. This underscores the role of intellectual leadership and legal protections in shaping R&D strategies within the pharmaceutical domain. Incorporating firm life stages as a moderating factor reveals that firm maturity fundamentally influences the interplay between managerial ability, IPRs and R&D expenditure.

These findings’ implications resonate profoundly within policy-making circles and pharmaceutical firms’ day-to-day operational strategies, underscoring the pivotal role of intellectual capital and legal safeguards in shaping the future of innovation in the Asia-Pacific pharmaceutical sector.

This study examines the importance of exchange rate and credit growth fluctuations when designing monetary policy in Thailand. To this end, the authors construct a small open economy New Keynesian dynamic stochastic general equilibrium (DSGE) model. The model encompasses several essential characteristics, including incomplete financial markets, incomplete exchange rate pass-through, deviations from the law of one price and a banking sector. The authors consider generalized Taylor rules, in which policymakers adjust policy rates in response to output, inflation, credit growth and exchange rate fluctuations. The marginal likelihoods are then employed to investigate whether the central bank responds to fluctuations in the exchange rate and credit growth.

This study constructs a small open economy DSGE model and then estimates the model using Bayesian methods.

The authors demonstrate that the monetary authority does target exchange rates, whereas there is no evidence in favor of incorporating credit growth into the policy rules. These findings survive various robustness checks. Furthermore, the authors demonstrate that domestic shocks contribute significantly to domestic business cycles. Although the terms of trade shock plays a minor role in business cycles, it explains the most significant proportion of exchange rate fluctuations, followed by the country risk premium shock.

This study is the first attempt at exploring the relevance of exchange rate and credit growth fluctuations when designing monetary policy in Thailand.

Since the liberalization policy of 1991, India has focused on export-led growth. However, the performance of international trade remains poor. This study aims to examine the role of credit constraints on the choice of Indian manufacturing firms to borrow in foreign currency. First, it explores the role of export activities in foreign currency borrowing (FCB). Second, it investigates how credit constraints forced these firms for foreign currency loans.

The study analysed data from 1,412 firms listed on the Bombay Stock Exchange in the manufacturing sector, covering the period from 1991 to 2022. A random effects probit model was used to examine the role of credit constraints on FCB, incorporating the influence of micro, small and medium enterprises (MSMEs) status and export activities. Additionally, a two-step system-generalized method of moment was used for robustness checks.

Export activities significantly influence FCB, with exporting firms showing a higher propensity to borrow foreign currency compared to domestically operating firms because of the increased funding needs of export activities. Larger firms are more likely to secure FCB than MSMEs, benefiting from collateral advantages. MSME exporting firms exhibit a higher tendency to borrow in foreign currency compared to large exporting firms.

This study focuses on firm-level data and considers only demand-side credit constraints. It does not examine supply-side credit constraints affecting FCB.

This study underscores the credit constraints faced by MSME exporters in the domestic market, leading them to rely on FCB. These insights are valuable for policymakers aiming to reduce MSMEs' dependency on FCB and enhance their export performance.

The findings highlight that MSME exporting firms are more inclined to borrow in foreign currency than their larger counterparts. This tendency is driven by the credit constraints MSMEs face because of asymmetric information and underdeveloped financial markets, which compel them to seek FCB.

This work aims to analyse the relationship between public health efficiency and well-being considering a panel of 102 Italian provinces from 2000 to 2016 and evaluates if there are omitted variable biases and endogeneity biases and also evaluates if there are heterogeneous effects among provinces with different income levels.

We use a multi-input and output bootstrap data envelopment analysis to assess public health efficiency. Then, we measure well-being indices using the min-max linear scaling transformation technique. A two-stage least squares model is used to identify the causal effect of improving public health efficiency on well-being to account for time-invariant heterogeneity, omitted variable bias and endogeneity bias.

After controlling for important economic factors, the results show a significant effect of an accountable and efficient public health system on well-being. Those effects are concentrated in the North, the most economically, geographically and environmentally advantageous areas.

The use of the sample mean, probably the oldest and most used method for aggregating the indicators, could be affected by variable compensation, with consequent misleading results in the process of constructing the well-being index. Another limitation is the use of lagged values of the main predictor as an instrument in the instrumental variables setting because it could lead to information loss. Finally, the availability of data over a long period of time.

The findings could help policymakers adopt measures to strengthen the public health system, encourage private providers and inspire countries worldwide.

These results draw the attention of local authorities, who play an important role in designing and implementing policies to stimulate local public health efficiency, which puts individuals in the conditions of achieving overall well-being in their communities.

For the first time in Italy, a panel of well-being indices was constructed by developing new methodologies based on microeconomic theory. Furthermore, for the first time, the assessment of the relationship between public health efficiency and well-being is carried out using a panel of 102 Italian provinces.