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In construction projects, engineering variations are very common and create breeding grounds for opportunistic claims. This study investigates the complementary effect between an inspection mechanism and a reputation system in deterring opportunistic claims, considering an employer with limited inspection accuracy and a contractor, which can be either reputation-concerned or opportunistic.

This paper applies a signaling game to investigate the complementary effect between the employer's inspection and a reputation system in deterring the contractor's possible opportunistic claim, considering the information-flow influence of claiming prices.

This study finds that in the exogenous-inspection-accuracy case, the employer does not always inspect the claim. A more stringent reputation system complements a less accurate inspection only when the inspection cost is lower than a threshold, but may decline the employer's surplus or social welfare. In the optimal-inspection-accuracy case, the employer always inspects the claim. However, only a sufficiently stringent reputation system can guarantee the effectiveness of an optimal inspection in curbing opportunistic claims. A more stringent reputation system has a value-stepping effect on the employer's surplus but may unexpectedly impair social welfare, whereas a higher inspection cost efficiency always reduces social welfare.

This article contributes to the project management literature by combing the signaling game theory with the reputation theory and thus embeds the problem of inspection mechanism design into a broader socio-economic framework.

Standard economic theory predicts that any increase in public spending is accompanied by a rise in inflation in an economy. This paper presents empirical proof that prices do not always rise with an increase in public expenditure but only up to a certain threshold level. The primary aim of this paper is to unearth the government size-inflation nexus in India for the period from 1971 to 2019.

The logistic STAR (smooth transition autoregression) model is employed to unravel the government size-inflation nexus for the Indian economy from a non-linear perspective.

The finding of our study confirm the non-linear relationship between the size of the government and inflation in India. The estimated threshold level for government size is precisely found to be 9.27%. The size of the government exerts a negative influence on inflation until it reaches the optimal or threshold level. Any further increase in the size of government beyond this threshold level would result in a rise in inflation.

The findings have implications for the conduct of fiscal policy. Policymakers can increase government spending in a regime of small government size without having any inflationary impacts by generating revenues from taxes and other sources instead of relying much on the central bank. In the regime of a large-sized government, adhering strictly to the discipline in the conduct of fiscal and monetary policies would help curb inflation and enhance growth synchronously, hence alleviating any loss of welfare.

To the best of the authors’ knowledge, this study is an attempt to revisit the government size-inflation nexus in India from a non-linear perspective using the Smooth Transition Autoregression (STAR) model for the first time.

This study aims to understand the socioeconomic impact of flood events on households, especially household welfare in terms of changes in consumption and coping strategies to deal with flood risk. This study is based on Bihar, one of the most frequently flood-affected, most populous and economically backward states in India.

Primary data were collected from 700 households in the seven most frequently flood-affected districts in Bihar. A total of 100 individuals from each district were randomly selected from flood-affected villages. Based on a detailed literature review, an econometric (probit) model was developed to test the null hypothesis of the availability of consumption insurance, and the multivariate probability approach was used to analyze the various coping strategies of these households.

The results of this study suggest that flood-affected households maintain their consumption by overcoming various losses, including income, house damage and livestock loss. Households depend on financial transfers, borrowings and relief, and migrate to overcome losses. Borrowing could be an extra burden as the government compensates for house damage and crop loss late to the affected households. Again, there is no compensation to overcome livelihood loss and deal with occurrences of post-flood diseases, which further emphasizes the policy implications of strengthening the health infrastructure in the state and generating alternative livelihood opportunities.

This study discusses flood risk in terms of changes in household welfare, identifies the most effective risk-coping capabilities of rural communities and contributes to the shortcomings of the government insurance and relief model.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2023-0569

This paper analyzes real and welfare effects of a permanent change in inflation rate, focusing on macroprudential policy’ role and its interaction with monetary policy.

While investigating disinflation costs, the authors simulate a medium-scale dynamic general equilibrium model with borrowing constraints, credit frictions and macroprudential authority.

Providing discussions on different policy scenarios in a context where still it is expected high inflation, there are three key contributions. First, when macroprudential authority actively operates to improve financial stability, losses caused by disinflation are limited. Second, a Taylor rule directly responding to financial variables might entail a trade-off between price and financial stability objectives, by increasing disinflation costs. Third, disinflation is welfare improving for savers, while costly for borrowers and banks. Indeed, while savers benefit from policies reducing price stickiness distortion, borrowers are worried about credit frictions, coming from collateral constraint.

The paper suggests threefold policy implications: the macroprudential authority should actively intervene during a disinflation process to minimize costs and financial instability deriving from it; policymakers should implement a disinflationary policy stabilizing also output; the central bank and the macroprudential regulator should pursue financial and price stability goals, separately.

This paper is the first attempt to study effects of a permanent inflation target reduction in focusing on the macroprudential policy’ role.

Post-harvest losses are becoming a huge issue worldwide and are predominantly severe in developing countries. Seeking ways to control post-harvest losses is important because losses decrease farm income by more than 15% for approximately 480 million small-scale farmers.

The study engaged Wave 4 (2018/2019) of the Living Standards Measurement Studies–Integrated Survey on Agriculture, to examine the impact of soil technology such as fertilisers, herbicides, pesticides and certified crops on post-harvest losses in Nigeria. The study engaged descriptive statistics, logit regression and propensity score matching (PSM) to analyse the data.

The study found that approximately 38% of the household harvest was lost along the value chain. In addition, the results showed that among the indicators of soil technology, crop certification has a significant impact on the reduction of post-harvest losses. The implication is that from the nearest neighbour and kernel-based matching, the use of certified crops by households contributed to 1.62 and 1.36% reduction in post-harvest losses, respectively. In contrast, pesticide, herbicide and fertiliser use had no significant impact on post-harvest losses.

One of the limitations is that this study applied the PSM, the model did not account for endogeneity. Therefore, in examining this concept, further studies should consider applying other impact model such as the difference-in-difference to account for endogeneity.

While previous studies have examined how ICT adoption, storage mechanisms and value chain among others help to minimise post-harvest losses, the aspect of how soil technology can reduce post-harvest losses has been a subject of exclusion in the extant literature. This study empirically examines the impact of soil technology adoption on post-harvest losses in Nigeria.

In China, engineering insurance has been questioned as not being beneficial as expected. This paper seeks to further understand how China's engineering insurance industry functions and to provide a macro perspective explanation for engineering insurance's underdevelopment.

Three industrial organization hypotheses were extended to the engineering insurance context: structure conduct performance (SCP), relative market power (RMP) and efficiency structure (ES) hypotheses. This paper employed the Generalized Method of Moments (GMM) and Data Envelopment Analysis (DEA) bootstrap to test the hypotheses using panel data from 2008 to 2017.

The results suggest that the SCP paradigm is validated in China's engineering insurance market, indicating a concentrated market where the welfare of consumers (e.g. owners, contractors and designers) may be eroded. Several factors are identified to have significant impacts on engineering insurers' performance, such as the investment return, percentage of engineering business, the ratio of outstanding claims, the number of large contractors, market rivalry and entry barriers.

Despite the sheer size of China's construction industry and the urgent need to improve risk management, the insurance industry that serves construction firms engineering insurance is underdeveloped. Engineering insurance is yet to be understood from a macro perspective, which may reveal the underlying reasons for engineering insurance's underdevelopment. The industrial organization theories provided a theoretical framework to test the functioning of this specific industry. The disaggregated data (engineering line specific) is employed to ensure effective regulation and policymaking.

This paper finds the returns from soil conservation practices and examines whether the welfare implications of adopting the conservation practices are heterogeneous across the farming groups in Indian agriculture.

The study uses an endogenous switching regression (ESR) method on the data collected from the 77th round of National Sample Survey (2019–21) to quantify the returns from adopting soil conservation practices.

It finds that farmers adopting soil health conservation practices would have reduced their crop yield by 13% if they did not implement them. Similarly, smallholders who have not adopted soil health management practices would have increased crop yield by 16% if they had adopted the practices. The authors also observed that the returns from adopting soil health management practices vary across farming groups, where marginal and large farms tend to gain higher yields. Finally, the authors find that regardless of farm size, smallholders who did not adopt soil health management practices would benefit from adopting these with increased crop yields of 29%–31%.

More data could have been better for drawing policy implications, since the number of soil card users are relatively less.

This research work uses nationally representative data, which is first in nature on this very aspect.

This study reveals the economic impact of the Indo-Pacific Strategy on the Regional Comprehensive Economic Partnership (RCEP).

This paper uses the GTAP model to analyze the economic effects of RCEP under the effect of the “Indo-Pacific Strategy” under different scenarios.

The results show that (1) with the improvement of the implementation effect of the US “Indo-Pacific Strategy,” the welfare level of China has gradually had a significant negative impact, while the welfare level of US Allies and partners has been further improved. (2) The implementation of the Indo-Pacific Strategy will further expand the import scale of Japan, South Korea and other Allies that are both RCEP members and the USA and slightly reduce the import scale of the European Union (EU) and other countries. (3) After the USA implemented the “Indo-Pacific Strategy,” its export scale has significantly improved, and it has been able to completely offset the adverse effects of the signing of RCEP on its exports. China's export scale has also gradually declined, and Japan has benefited the most.

There are three main possible contributions to this article: first, the authors combined geopolitical factors to simulate and evaluate the economic effects of RCEP under different Indo-Pacific Strategy implementation scenarios, which is more relevant than analyzing the economic effects of RCEP in a “vacuum.” Second, the standard static GTAP model can only measure the change of equilibrium state before and after the trade policy. At the same time, the dynamic GTAP model (GTAP-Dyn) introduces mechanisms such as capital flow and capital accumulation and treats time as a continuous variable affected by exogenous variables so that each variable has a time dimension so as better to simulate the medium- and long-term economic effects. This paper refers to the dynamic recursion method of Walmsley (2006) and Yang (2011) to update the base year of the GTAP version 10.0 database to 2020, that is the time when RCEP officially reached 2020. The simulation results of shock variables introduced into the baseline scenario are more reliable. Third, the authors analyze the welfare effect of RCEP and the impact on the import and export of relevant countries from the macrolevel and examine the impact on different products in different countries from the microlevel.

Women migrant street vendors are considered a vulnerable group in societies, thereby being hard hit during a crisis. This research aims to examine effects of COVID-19 social distancing on their businesses, consumption, health and general lives; solutions and mitigation strategies that they adopted in response to these adverse effects; and their recovery of socioeconomic lives after social distancing.

The data were collected from the women migrant street vendors in urban Vietnam. Descriptive statistics, probit model and ordered probit model were used for empirical analysis.

Women migrant street vendors faced immense challenges during social distancing. They also lacked solutions to sustain their businesses and were forced to resort to various mitigation strategies. Their socioeconomic lives were also slow to recover after social distancing. In addition, those experiencing greater business loss faced more adverse effects during social distancing and have more difficulties in the recovery of socioeconomic lives after social distancing.

This research highlights the importance of redesigning social policies to support women migrant street vendors during crises. It also emphasizes the need to formalize and legalize their activities to foster sustainable and inclusive development in the long term.

To the best of the authors’ knowledge, this research is among the first attempts to explore the effects of COVID-19 social distancing on the women migrant street vendors and to examine how they respond to these adverse effects.

The study seeks to evaluate the effect of capital adequacy and competition on the liquidity creation of Kenyan commercial banks.

Unbalanced panel data from 36 Kenyan commercial banks with licenses from 2001 to 2020 is used in the study. The generalized method of moments (GMM), a two-step system, is employed in the investigation. To increase the robustness and prevent erroneous findings, serial correlation tests and instrumental validity analyses are used. The methodology developed by Berger and Bouwman (2009) is used to estimate the commercial banks' levels of liquidity creation.

The study supports the financial fragility-crowding out hypothesis by finding a significant negative effect of capital adequacy on the liquidity creation of commercial banks. The research also identifies a significant inverse relationship between competition and liquidity creation, depicting competition's value-destroying effect.

A trade-off exists between capital adequacy and liquidity creation, which must be carefully evaluated as changes in capital requirements are considered. The value-destroying effect of competition on liquidity creation presents a case for policy geared toward consolidating banks' operations through possible mergers and acquisitions.

To the best of the authors' knowledge, this is the first study to empirically offer evidence concurrently on the effect of competition and capital adequacy on the liquidity creation of commercial banks in a developing economy such as Kenya. Additionally, the authors employ a novel measure of competition at the firm level.