ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)
Chih-Hsiung Chang, Wu-Hua Chang and Yi-Yu Shih
Correspondence: Chih-Hsiung Chang, simon5289@gmail.com
Department of Finance, I-Shou University
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/923
Thanks to the deregulation of financial regulations since the 1990s, the domestic financial institutions had ever been in excessive amounts for a long time. In order to expand their business scope and market share, they often adopted a looser or simple review mechanism, which led to a decline in the asset quality of financial institutions and an upward trend in overdue loans. As a result, the credit card debt crisis caused by the information asymmetry and the derived serious social problems ensued . Under the pressure of public opinion, the financial authority was forced to promote the debt negotiation mechanism in 2005 and even led passing the Consumer Debt Clearance Regulations in 2007. This article analyzed the statistics of consumer finance related to public and private banks, trying to explain whether the problems related to information asymmetry was reduced and whether financial institution management was effective. The result revealed that the number of valid cards, revolving interest rates, and overdue ratios fell in tandem after the financial authority intervened in the market. Especially when the credit card debt crisis and the social problem were showed under control, it was proven that financial institution management is essential and effective to reduce problems related to information asymmetry in Taiwan.
Financial Institution Management, Credit Cards, Card Debt Crisis, Information Asymmetry, Adverse Selection, Moral Hazard.
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John MacCarthy, Paul Muda and Prince Sunu
Correspondence: John MacCarthy, maccarthy.john@upsamail.edu.gh
Accounting Department, University of Professional Studies, Accra, Ghana.
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/922
The paper sought to assess the taxes and economic growth nexus in Ghana. The study used annual time-series data collected from 1972 to 2019. The study used the Johansen Co-integration technique, vector error correction model, and Granger causality test to assess the causal relationship between tax revenue and economic growth in Ghana. The Co-integration test was used to establish the long-run relationship. In contrast, the Granger Causality test was used to establish the short-run relationship between the variables used in the model. The study revealed that the model has a speed of adjustment of 61.4% to restore the short-run relationship to the long-run equilibrium path. Furthermore, the study found a unidirectional relationship between tax revenue variables and economic growth. Again, the study found support for a positive and significant nexus between direct tax revenue and economic growth and a significant and negative nexus between indirect tax revenue and economic growth. Based on the results, the study recommends that the government tax policy move gradually from indirect tax revenue concentration to direct tax revenue to finance development programs to sustain economic growth.
Direct tax; Economic growth; Granger Causality; Indirect tax.
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Eftychia Lola and Spyridon D. Symeonides
Correspondence: Eftychia Lola, eftehialola@yahoo.gr
Department of Economics, University of Ioannina
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/921
In this paper we examine, from a theoretical viewpoint, the generalized normal linear regression model with disturbances that are simultaneously heteroskedastic and autoregressive. In particular, the error specification of the model is a mixture of Amemiya’s linear heteroscedasticity structure with a stationary first-order autoregressive process. Given that the heteroskedastic variances are functions of the first-order autocorrelation coefficient, the estimators used in applied research cannot properly distinguish the estimations of the heteroskedastic and autoregressive parameters of the model. To avoid this problem, we introduce a multi-step estimation procedure, which has mainly theoretical interest, and is not suggested as an alternative to the well-known heteroskedasticity and autocorrelation consistent estimation used in applied econometric research. This estimation procedure facilitates the derivation of two distinct, theoretically important, generalized linear models, one with heteroskedastic and another with first-order autoregressive error terms. These two distinct models can be used for the theoretical examination of the finite-sample distributional properties of the estimators of the heteroskedastic and autoregressive parameters.
Linear regression model; autoregression; heteroskedasticity; consistent estimation
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Olesea Speian, Victoria Ganea and Constantinos Kyriakopoulos
Correspondence: Constantinos Kyriakopoulos, k_kiriak@otenet.gr
Department of Mathematics, National and Capodidtrian University of Athens, Greece and EU finance expert
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/919
In this note we apply the Nelson Siegel model on the Moldovan Government Securities market. In the Republic of Moldova although remarkable progress for the construction of a medium yield curve has been made during the last five years, the market still lacks the liquidity and depth level that would allow the application of market-based models for the credible description of the yields. Similar to countries with comparable stage of capital market development, the application of the Nelson Siegel model will provide a credible guidance for yields for tenors that either are not traded in the secondary market or even if they are traded the volume is so small that there is no a credible price and yield discovery mechanism.
yield curve, bond market, liquidity level, Nelson – Siegel method
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Hong-Wen Tsai, Hui-Chung Che and Bo Bai
Correspondence: Hui-Chung Che, drcharlie918@yeah.net
Shenzhen TekGlory Intellectual Property Data Technologies, Ltd
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/918
By setting the market capitalization as the frame of patent value reference, twenty-two quarter’s market capitalization from 2016Q1 to 2021Q2 of China listed companies (A-shares) were collected. All valid patent data of three patent species including the invention grant, the utility model grant and the design grant, were retrieved for calculating the average patent life of each A-share. The variances of the market capitalization via different patent life groups were analyzed via ANOVA. The A-shares having invention grant’s patent lives above the general level usually showed higher market capitalization means than the A-shares having invention grant’s patent lives below the general level. The invention grants with longer patent life might be regarded as the patents of higher value. The utility model grants with longer patent life might not be regarded as the patents of higher value because of poor significance. The design grant’s patent life was a significant indicator for discriminating China A-share’s market capitalization, however, the optimal patent life were close to but not longer than four years. The longer patent life of the design grants was not regarded as higher value.
patent, market capitalization, China A-share, patent life, ANOVA.
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An Empirical Study of China Stock Market and Patents, Internal Journal of Economics and Research, 12(i5), 01-29 (so).Tsai, H.W., Che, H.C. and Bai, B., (2021e) Using Patent Backward Citation for Classifying Stock Price of China Stock Market, Economics and Management, 18(2), 12-34. https://doi.org/10.37708/em.swu.v18i2.2Tsai, H.W., Che, H.C. and Bai, B., (2021g) Patent Effects on Higher Stock Price - An Insight into China Stock Market and Four Stock Boards, International Journal of Innovation in Management, 9(2), 61-74. https://siim.org.tw/IJIiM/DW/V9N2/IJIiM-21-014.pdfTsai, H.W., Che, H.C. and Bai, B., (2022) Using Patent Forward Citation for Discriminating Stock Price in China Stock Market, Journal of Business and Management Sciences, 10(1), 1-12. https://doi.org/10.12691/jbms-10-1-1Van Zeebroeck, N., (2011) Long Live Patents: the Increasing Life Expectancy of Patent Applications and Its Determinants, Review of Economics and Institutions, 2(3), Article 5. https://doi.org/10.5202/rei.v2i3.41
Diana Castorina and Riccardo Welters
Correspondence: Diana Castorina, diana.castorina@jcu.edu.au
College of Business, Law and Governance, James Cook University, Australia
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/917
The functionality of a region depends on its people. Yet for some regions within Australia, attracting and retaining varied skilled people continues to be a challenge. What influences people to want to stay, move away from or move into a region? Before we can answer this question, we firstly need to understand ‘who’ is making this decision. Much of past research assumes the decision is made at the individual head of household level or must assume the decision is made at the individual as opposed to the household level as a result of data availability. This paper highlights the limitations of making such an assumption and offers an alternative method transforming secondary microdata to reflect the collective household unit as the decision making unit. We find that our migration models are statistically robust with results consistent with conventional studies that show smaller, younger households are more mobile. Most importantly, however, we find evidence that our proxies which represent characteristics of the collective unit, termed “Decision Making Unit”, are also statistically significant. Thus, justifying the need for migration models to reflect the collective unit and not just the individual, should we seek to better understand motives.
interregional migration, migration, decision-making, households, regions
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Thomas Ziesemer
Correspondence: Thomas Ziesemer, t.ziesemer@maastrichtuniversity.nl
Department of Economics, Maastricht University, The Netherlands
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/916
We briefly survey the literature which uses data for Gini coefficients of education. We update the Gini coefficients of education to include the year 2015, added to the Barro-Lee data set recently, and compare them to those of the earlier data set based on older Barro-Lee data. A panel analysis shows that every five years education inequality falls by 2.8 percentage points. A stable average value is predicted to be 0.22. Kernel density world distributions for education Ginis loose their twin peaks when going from 1955 to later years, and the right tail of the distribution with high inequality is losing mass over time.
Gini coefficients of education, guide to literature, new data, trend, changing global distribution.
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Bahram Adrangi and Arjun Chatrath
Correspondence: Bahram Adrangi, adrangi@up.edu
University of Portland, USA
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/915
This study examines the reaction of four major emerging equity markets of the Pacific Rim to the US oil market fear index (i.e., the Chicago Board of Trade Volatility Index, OVX). The OVX is designed to perform as a leading indicator of the volatility in crude oil markets. Our study examines the daily data for the period of 2014 through 2019. We excluded data for the extraordinary and transitory COVID-19 time period. We found that, during this period, there were four significant breaks in the data. Impulse responses from the structural vector autoregressive (SVAR) estimation show that in the second and third subperiods, from December 2016 through December 2018, the volatility of the equity markets of Hong Kong, Shanghai, Seoul, and Taiwan responded to structural shocks to the OVX. Nonlinear Granger causality tests confirmed these findings. This period is characterized by geopolitical crises, like nuclear proliferation on the Korean Peninsula and lingering complications surrounding the Brexit referendum.
volatility, Pacific Rim Equity Markets, OVX, structural vector autoregression, GARCH Models, causality
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Tito Nestor TIEHI and Foungnigué Noé COULIBALY
Correspondence: Tito Nestor TIEHI, titotiehi@gmail.com
Department of Economics and Management Sciences, University of Cocody-Abidjan, Côte d’Ivoire
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/914
The aim of this article is to analyze the determinants of government spending on health in the West African Economic and Monetary Union (WAEMU) area. To do this, we have collected panel data on which an autoregressive Distributed Lag model (ARDL) approach is applied at the end of econometric tests (Stationarity and Co-integration). As main results, population growth, use of mosquito nets, hospital beds, number of doctors, nurses - midwives, corruption scores and political stability are responsible for government spending. To be short, we can note that these determinants are both supply and demand factors. Thus, government action is not only political (ensuring political stability, good governance), but also medical (ensuring the professionalism of healthcare staff and raising awareness among the population about the use of Treated Mosquito nets with limited duration of action).
Public health spending and health, Autoregressive Distributed Lag, WAEMU
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Susana Santos
Correspondence: Susana Santos, ssantos@iseg.ulisboa.pt
Lisbon School of Economics and Management, Universidade de Lisboa, Portugal.
pdf (774.96 Kb) | doi: https://doi.org/10.47260/bae/913
The economic flows measured by the national accounts, which are associated with transactions of goods, services, and assets, as well as transfers, all represent interactions between institutional units, to whom legal responsibility for their actions and the fulfilment of specific economic functions is recognized. These flows are defined by the underlying system – the System of National Accounts (SNA) as being transactions. When represented in the matrix form, depending on the classification and organization of the institutional units, at the origin and the destination of the corresponding flows, the “from-whom-to-whom” transactions can be measured and modelled, benefiting from the underlying network of linkages. By adopting the nomenclatures and rules of the current version of the above-mentioned system (SNA 2008), this study uses a top-down methodology to design a matrix representation of the above-mentioned transactions - the Social Accounting Matrix (SAM). Empirical and theoretical descriptions of the economic activity of a country (Portugal is used as the illustrative case), made possible by the use of the numerical and algebraic versions of a SAM, are adopted to approach the multiplier effects of policy measures and the corresponding economic adjustments.
National Accounts, Social Accounting Matrix, Economic Adjustments
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