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We analyze the impact of monetary policy instruments on interbank lending rates and retail bank lending in China using an extended version of the model developed by Porter and Xu (2009). Unlike the central banks of advanced economies, the People’s Bank of China (PBoC) uses changes in the required reserve ratios and open market operations to influence liquidity in money markets and adjusts the regulated deposit and lending rates and loan targets to intervene in the retail deposit and lending market. These interventions prevent the interbank lending rate from signaling monetary policy stance and transmitting the effect of policy to the growth of bank loans. Since the global financial crisis, the PBoC’s monetary policy has gone through a full cycle. The combining effects of using different policy instruments simultaneously within a short period of time were quite effective in bringing the credit and money growth in line with its desired level. Most recently steps have been taken to speed up the interest rate liberalization. Effective July 2013, the PBoC removed the floors of the benchmark lending rates.

This chapter evaluates the effectiveness of states' research and development (R&D, used to represent creditable research expenses) tax credits. Prior studies report mixed results on the effect of state R&D tax credit incentives. Generally, such studies consider the influence of state R&D tax credits by applying the statutory income tax and R&D credit tax rates. We reexamine the effect of a state's entire tax burden instead of the statutory tax rates in moderating the effectiveness of a state's R&D tax credit incentives. After controlling for several nontax factors, such as the workplace environment, political environment, and workforce education levels in a regression analysis during the 2010–2013 period in 50 states, we find that statewide private-sector R&D spending is a positive function of the R&D tax credit and this effect increases with the overall level of the state tax burden. We attribute this finding to the fact that high tax burdens increase the present value of the R&D tax credits.

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

If banks solve an inter-temporal problem under adverse selection and moral hazard, then bank specific factors, regulatory and supervisory features, market structure, and macroeconomic factors can be expected to affect banks’ loan interest rates and their spread over deposit interest rates. To examine interest rate pass-through for Indian banks in a period following extensive financial reform, after controlling for all these factors, we estimate the determinants of commercial banks’ loan pricing decisions, using the dynamic panel data methodology with annual data for a sample of 33 banks over the period 1996–2012. Results show commercial banks consider several factors apart from the policy rate. This limits policy pass-through. More competition reduces policy pass-through by decreasing the loan rate as well as spreads. If managerial efficiency is high then an increase in competition increases the policy pass-through and the vice-versa. Reform has had mixed effects, while managerial inefficiency raised rates and spreads, product diversification reduced both. Costs of deposits are passed on to loan rates. Regulatory requirements raise loan rates and spreads.

This paper examines the relationship between environmental uncertainty and tax avoidance at the firm level. We posit that managers faced with more uncertain environments are likely to engage in more tax avoidance activities. We find a significant and negative relationship between environmental uncertainty and effective tax rates, and our results persist through a battery of robust checks. We further find that managerial ability mitigates the above relationship. Moreover, we find that small, highly leveraged, and innovative firms operating in uncertain environments engage in more tax avoidance.

The purpose of this chapter is to analyze the impact of public agricultural Research and Development (R&D) investments on agricultural productivity and long-term food security to derive policy recommendations. The methodological approach is based on the application of the state-of-the art Computable General Equilibrium (CGE) model to R&D. By endogenizing R&D in global CGE models, it is possible to assess the impact of different public R&D policies on the food availability and food access of food security. This study found that R&D investments bring positive effects on the food access dimension of food security, particularly in places such as Sub-Saharan Africa where prices are expected to grow significantly by 2050, as agricultural land becomes scarcer and more expensive. Doubling the R&D intensity would soften the land constraints and substantially decelerate food prices, thus preventing the deterioration of living standards of rural households and leading to a gain in daily caloric consumption. The impact of alternative agricultural R&D policies on the various dimensions of food security has not been analyzed using a CGE framework, which enables capturing both the benefits and costs from R&D investments. Modeling the dynamic accumulation of R&D stocks makes it possible to analyze the effects of R&D on food security over time.

Inter-organizational alliances and the networks they generate have been a central topic in organization theory over the last decade. However, network analyses per se have been static. Even when information over time has been available, the temporal component has been set aside or aggregated to the end point of the study. Substantially more research has been conducted on organizations initiating inter-organizational relationships. The organization-level research has been decidedly dynamic in nature. However, organization-level research has largely examined the structural characteristics of the networks generated by organizational actions. Work combining network-level and organization-level phenomena has been rare and, to our knowledge, no research including the effects of organization-level actions on the evolution of network-level phenomena has occurred.

In this chapter we use more than 6000 R&D alliances and more than 6500 M&D alliances initiated by more than 1000 biotech firms in the U.S. over a 30 year period to construct quarterly networks. We test 13 hypotheses linking the actions of the firms to changes in network structure. Utilizing hazard-rate models we test the effects of institutional status, positional status (centrality), and structural status (coreness) of firms on their propensity to form ties with different structural consequences. Our research indicates that both R&D and M&D networks in U.S. biotechnology are developing a distinct core/periphery structure over time. Furthermore, we find support for a process of preferential attachment wherein organizations are more likely to form ties with organizations of similar institutional and structural status. Furthermore, we find evidence for cross effects, for example attachment processes that enfold across the two networks.