Using thirty provincial panel-data from 1949 to 2010 that is separated into four periods, this paper examines the details of major regional development policies in practice by China so far since its foundation, and focuses on the analysis of how those policies influenced the resolution of inequality between regions through Gini coefficient analysis, coefficient of variation analysis and Theil index analysis. The results of income inequality analysis in Mao’s time show that income inequality coefficients are ups and downs. In the age of the reform and open-door policy, the income disparity in the eastern region drastically decreased, which in turn reduced the national income disparity among regions. However, from the 1990s the income convergences among regions in eastern coastal areas began to cease, which resulted in spreading income disparity among the regions all over China. Even though coefficients of income inequality indices have decreased since the mid-2000s, it may take more observation to decide whether such phenomenon is the result of the policy of 'building of a harmonious society' pursued by Hu Jintao.
{"title":"Effects of regional development policies on the resolution of income disparity in China","authors":"Jong-Hag Jang, Hong-Yul Jeong","doi":"10.18533/JEFS.V3I6.204","DOIUrl":"https://doi.org/10.18533/JEFS.V3I6.204","url":null,"abstract":"Using thirty provincial panel-data from 1949 to 2010 that is separated into four periods, this paper examines the details of major regional development policies in practice by China so far since its foundation, and focuses on the analysis of how those policies influenced the resolution of inequality between regions through Gini coefficient analysis, coefficient of variation analysis and Theil index analysis. The results of income inequality analysis in Mao’s time show that income inequality coefficients are ups and downs. In the age of the reform and open-door policy, the income disparity in the eastern region drastically decreased, which in turn reduced the national income disparity among regions. However, from the 1990s the income convergences among regions in eastern coastal areas began to cease, which resulted in spreading income disparity among the regions all over China. Even though coefficients of income inequality indices have decreased since the mid-2000s, it may take more observation to decide whether such phenomenon is the result of the policy of 'building of a harmonious society' pursued by Hu Jintao.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"238 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114267506","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article examines the strategies of sourcing the middle office functions in financial institutions. While some functions, in particular the back office functions in financial institutions are popularly and successfully outsourced or co-sourced, it may not be appropriate to do so for sourcing the functions of middle offices. Outsourcing or co-sourcing of the middle offices implies contracting out the risk management function of a financial institution partially or completely. This may reduce the effectiveness of risk management implementation and may potentially expose the institution to great risk. This article compares different strategies, namely outsourcing, co-sourcing, and shared services; and shows that shared services has many advantages over the other two strategies.
{"title":"A sourcing strategy for the middle offices in financial institutions","authors":"Hai Wang, George L Ye","doi":"10.18533/JEFS.V3I6.168","DOIUrl":"https://doi.org/10.18533/JEFS.V3I6.168","url":null,"abstract":"This article examines the strategies of sourcing the middle office functions in financial institutions. While some functions, in particular the back office functions in financial institutions are popularly and successfully outsourced or co-sourced, it may not be appropriate to do so for sourcing the functions of middle offices. Outsourcing or co-sourcing of the middle offices implies contracting out the risk management function of a financial institution partially or completely. This may reduce the effectiveness of risk management implementation and may potentially expose the institution to great risk. This article compares different strategies, namely outsourcing, co-sourcing, and shared services; and shows that shared services has many advantages over the other two strategies.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"121 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125231484","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This work is a first attempt to estimate customer-based brand equity with the contingent valuation method (CVM) for a service-oriented product. We assess the value of a sport brand, IRONMAN triathlon, utilizing the CVM - one of the few available measures for estimating intangible product values. The equity of the IRONMAN brand was derived from consumers’ perceptions, attitudes, and behaviours by asking consumers (i.e., triathletes who have experiences with IRONMAN and non-IRONMAN branded events) about their willingness to pay for an IRONMAN and generic non-IRONMAN triathlon events. We found (1) the presence of price premiums that sport consumers were willing to pay for the branded sport product and (2) the estimated brand equity value of approximately $102 million for IRONMAN Half-distance events, and $123 million for IRONMAN Full-distance event.
{"title":"Assessing sport brand value through use of the contingent valuation method","authors":"J. L. Lee","doi":"10.18533/JEFS.V3I6.179","DOIUrl":"https://doi.org/10.18533/JEFS.V3I6.179","url":null,"abstract":"This work is a first attempt to estimate customer-based brand equity with the contingent valuation method (CVM) for a service-oriented product. We assess the value of a sport brand, IRONMAN triathlon, utilizing the CVM - one of the few available measures for estimating intangible product values. The equity of the IRONMAN brand was derived from consumers’ perceptions, attitudes, and behaviours by asking consumers (i.e., triathletes who have experiences with IRONMAN and non-IRONMAN branded events) about their willingness to pay for an IRONMAN and generic non-IRONMAN triathlon events. We found (1) the presence of price premiums that sport consumers were willing to pay for the branded sport product and (2) the estimated brand equity value of approximately $102 million for IRONMAN Half-distance events, and $123 million for IRONMAN Full-distance event.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"132 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122757818","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abasic issue underlying financial theory is the constitution of the market portfolio. Hence the adequacy of its usual proxy, the S&P500, is of paramount importance. Using 17 industry portfolios, we form an equally-weighted (passive) portfolio statistically identical to the S&P500 with respect to volatility. We find that, about half the time, the industry portfolio has higher returns than the S&P500. We offer this as an explanation for the flatness of the CAPM noted and questioned in early studies by Basu (1977), Black, Jensen and Scholes (1972), and Reinganum (1981). We suggest that the partial inefficiency of the S&P500 is laden with serious implications for investors and portfolio managers, question the behavioral motivation for its continued use as a benchmark, and introduce new measures of full diversification. We estimate a Jensen’s Alpha error of 2.04% associated with the wrong proxy for the market portfolio.
{"title":"On the economic significance of the benchmark portfolio","authors":"G. Baigent, W. Acar","doi":"10.18533/JEFS.V3I6.188","DOIUrl":"https://doi.org/10.18533/JEFS.V3I6.188","url":null,"abstract":"Abasic issue underlying financial theory is the constitution of the market portfolio. Hence the adequacy of its usual proxy, the S&P500, is of paramount importance. Using 17 industry portfolios, we form an equally-weighted (passive) portfolio statistically identical to the S&P500 with respect to volatility. We find that, about half the time, the industry portfolio has higher returns than the S&P500. We offer this as an explanation for the flatness of the CAPM noted and questioned in early studies by Basu (1977), Black, Jensen and Scholes (1972), and Reinganum (1981). We suggest that the partial inefficiency of the S&P500 is laden with serious implications for investors and portfolio managers, question the behavioral motivation for its continued use as a benchmark, and introduce new measures of full diversification. We estimate a Jensen’s Alpha error of 2.04% associated with the wrong proxy for the market portfolio.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130041093","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper provides new evidence on the formation and anchoring of inflation expectations. I conduct a game experiment and analyze the adjustment as well as the impact of credible targets on expectations. In addition, I evaluate the idiosyncratic determinants on the formation of expectations. The analysis reveals six results: First, I find evidence that long-term inflation expectations are firmly anchored to a credible target. Second, a temporary deviation due to unexpected monetary policy might trigger a decline in credibility, and third a de-anchoring of expectations due to uncertainty. Fourth, I find that people change their expectations little if a credible target exists. Fifth, expectations exhibit a large degree of time-variance only in environments without a target. Sixth, the dynamic adjustment to an ‘incomplete’ equilibrium, which is theoretically unstable, is nevertheless rapid and persistent in case of credible targets. All in all, I demonstrate a unique game setup with contributions to both experimental and monetary economics.
{"title":"Anchoring of Expectations: The Role of Credible Targets in a Game Experiment","authors":"Bodo Herzog","doi":"10.18533/JEFS.V3I6.169","DOIUrl":"https://doi.org/10.18533/JEFS.V3I6.169","url":null,"abstract":"This paper provides new evidence on the formation and anchoring of inflation expectations. I conduct a game experiment and analyze the adjustment as well as the impact of credible targets on expectations. In addition, I evaluate the idiosyncratic determinants on the formation of expectations. The analysis reveals six results: First, I find evidence that long-term inflation expectations are firmly anchored to a credible target. Second, a temporary deviation due to unexpected monetary policy might trigger a decline in credibility, and third a de-anchoring of expectations due to uncertainty. Fourth, I find that people change their expectations little if a credible target exists. Fifth, expectations exhibit a large degree of time-variance only in environments without a target. Sixth, the dynamic adjustment to an ‘incomplete’ equilibrium, which is theoretically unstable, is nevertheless rapid and persistent in case of credible targets. All in all, I demonstrate a unique game setup with contributions to both experimental and monetary economics.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131129623","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A non-parametric approach based on DEA techniques is used to dis- entangle the relationship between innovation growth and per-capita GDP growth in a sample of 30 countries during 1996-2008. The decomposition of GDP-growth brings support to the notion of advantage of backward- ness. It leads to conclude that, in the context of innovation, both the process of catching-up and technological change play an important explanation of the dynamics of economic growth. This is in sharp contrast to alternative evidence that brings more support to the importance of capital deepening in explaining labour growth productivity.
{"title":"A non-parametric approach to innovation gaps and economic growth","authors":"J. Perilla","doi":"10.18533/JEFS.V3I05.26","DOIUrl":"https://doi.org/10.18533/JEFS.V3I05.26","url":null,"abstract":"A non-parametric approach based on DEA techniques is used to dis- entangle the relationship between innovation growth and per-capita GDP growth in a sample of 30 countries during 1996-2008. The decomposition of GDP-growth brings support to the notion of advantage of backward- ness. It leads to conclude that, in the context of innovation, both the process of catching-up and technological change play an important explanation of the dynamics of economic growth. This is in sharp contrast to alternative evidence that brings more support to the importance of capital deepening in explaining labour growth productivity.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121290965","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper we investigate a labor market with search frictions. Workers with heterogeneous productivity apply to different types of job vacancies by bidding the optimal profits that they can offer the firms. In the steady state equilibrium, the most capable workers separate themselves by only bidding at jobs requiring high skills, while applicants in the middle of the productivity distribution pool with the low-productivity workers and apply for jobs requiring low skills.
{"title":"An asymmetric job auction model","authors":"Xiaoting Wang","doi":"10.18533/JEFS.V3I05.167","DOIUrl":"https://doi.org/10.18533/JEFS.V3I05.167","url":null,"abstract":"In this paper we investigate a labor market with search frictions. Workers with heterogeneous productivity apply to different types of job vacancies by bidding the optimal profits that they can offer the firms. In the steady state equilibrium, the most capable workers separate themselves by only bidding at jobs requiring high skills, while applicants in the middle of the productivity distribution pool with the low-productivity workers and apply for jobs requiring low skills.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127754217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
T. V. Bommel, Cormac O’Dwyer, Tim W. M. Zuidgeest, F. Poletiek
The present research investigates how consumer choice is affected by Terror Management Theory’s proposition of Mortality Salience increasing one’s cultural worldview defense and self-esteem striving. The study builds empirically upon prior theorizing by Arndt, Solomon, Kasser and Sheldon (2004). During an experiment, we manipulated Mortality Salience and measured product preferences for conspicuousness and familiarity. Participants primed with death were more likely to choose conspicuous products, corroborating previous research of mortality salience raising materialistic tendencies. In addition, participants showed a tendency to prefer familiar brands. These results are in line with the Terror Management Theory framework.
{"title":"When the Reaper becomes a Salesman. The influence of Terror Management on product preferences","authors":"T. V. Bommel, Cormac O’Dwyer, Tim W. M. Zuidgeest, F. Poletiek","doi":"10.18533/JEFS.V3I05.121","DOIUrl":"https://doi.org/10.18533/JEFS.V3I05.121","url":null,"abstract":"The present research investigates how consumer choice is affected by Terror Management Theory’s proposition of Mortality Salience increasing one’s cultural worldview defense and self-esteem striving. The study builds empirically upon prior theorizing by Arndt, Solomon, Kasser and Sheldon (2004). During an experiment, we manipulated Mortality Salience and measured product preferences for conspicuousness and familiarity. Participants primed with death were more likely to choose conspicuous products, corroborating previous research of mortality salience raising materialistic tendencies. In addition, participants showed a tendency to prefer familiar brands. These results are in line with the Terror Management Theory framework.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126734238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
For decades, scholars have continually emphasized the importance of FDI in the less developed countries. Some believe that FDI can fill investment gaps, either private or public and mobilizes savings (Lee and Suruga, 2005; Todaro and Smith, 2003; Hayami, 2001). This study seeks to verify the interactions and transmission mechanism between FDI, private direct investment and public direct investment in Nigeria. Furthermore, these variables were examined to ascertain their direction of causality and whether or not they have long run linear relationship. Also, the impulse responses of these variables to shocks in the extraneous variables were verified; using the Multiple-Equation VAR models with time series data ranging from 1970-2012. The co-integration result indicates that there is no long run relationship between these variables. In addition, the variance decomposition result shows that 46 percent of innovations in FDI were explained by its own past values, while 21 percent of the innovations were due to shocks, to private domestic investment with 31 percent due to public investment. The response of public and private investment to shocks in FDI is positive and significant in the short run and so is consistent with the findings of Jansen (1995), Misun and Tomsik (2002). Efficient infrastructure in terms of public investment in basic infrastructure cannot be overemphasized amongst others.
几十年来，学者们不断强调欠发达国家FDI的重要性。一些人认为，FDI可以填补私人或公共投资缺口，并调动储蓄(Lee and Suruga, 2005;托达罗和史密斯，2003;Hayami, 2001)。本研究旨在验证尼日利亚外商直接投资、私人直接投资和公共直接投资之间的相互作用和传导机制。此外，对这些变量进行了检查，以确定其因果关系的方向，以及它们是否具有长期的线性关系。此外，验证了这些变量对外部变量冲击的脉冲响应;使用多元方程VAR模型，时间序列数据范围为1970-2012年。协整结果表明，这些变量之间不存在长期关系。此外，方差分解结果显示，46%的FDI创新可以用自身的过去价值来解释，而21%的创新是由于国内私人投资的冲击，31%是由于公共投资。公共和私人投资对外国直接投资冲击的反应在短期内是积极和显著的，因此与Jansen (1995)， Misun和Tomsik(2002)的研究结果一致。就基础设施的公共投资而言，有效的基础设施再怎么强调也不为过。
{"title":"FDI, private investment and public investment in Nigeria: An unravelled dynamic relation","authors":"A. Ditimi, Ogbuagu Matthew","doi":"10.18533/JEFS.V3I06.164","DOIUrl":"https://doi.org/10.18533/JEFS.V3I06.164","url":null,"abstract":"For decades, scholars have continually emphasized the importance of FDI in the less developed countries. Some believe that FDI can fill investment gaps, either private or public and mobilizes savings (Lee and Suruga, 2005; Todaro and Smith, 2003; Hayami, 2001). This study seeks to verify the interactions and transmission mechanism between FDI, private direct investment and public direct investment in Nigeria. Furthermore, these variables were examined to ascertain their direction of causality and whether or not they have long run linear relationship. Also, the impulse responses of these variables to shocks in the extraneous variables were verified; using the Multiple-Equation VAR models with time series data ranging from 1970-2012. The co-integration result indicates that there is no long run relationship between these variables. In addition, the variance decomposition result shows that 46 percent of innovations in FDI were explained by its own past values, while 21 percent of the innovations were due to shocks, to private domestic investment with 31 percent due to public investment. The response of public and private investment to shocks in FDI is positive and significant in the short run and so is consistent with the findings of Jansen (1995), Misun and Tomsik (2002). Efficient infrastructure in terms of public investment in basic infrastructure cannot be overemphasized amongst others.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"79 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130442153","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A contingent claims model of the value of sovereign guarantees of bank debt shows that the value decreases with the bank’s own creditworthiness and it increases with that of the sovereign as well as with bank and sovereign size. Using cross-sectional data for 188 large banks world-wide from 2007 to 2013, empirical results are consistent with the model’s implications, suggesting that the implicit support for a bank is higher when the bank is larger, when the bank is weaker, and when the country in which the bank is headquartered is larger or more creditworthy. While bank-specific factors matter as well as those related to the sovereign of the country where the bank is located, the effect on the value of sovereign guarantees of changes in bank strength dominate those in sovereign strength.
{"title":"Valuing guaranteed bank debt: Role of strength and size of the bank and the guarantor","authors":"Sebastian Schich, A. Estrella","doi":"10.18533/JEFS.V3I05.165","DOIUrl":"https://doi.org/10.18533/JEFS.V3I05.165","url":null,"abstract":"A contingent claims model of the value of sovereign guarantees of bank debt shows that the value decreases with the bank’s own creditworthiness and it increases with that of the sovereign as well as with bank and sovereign size. Using cross-sectional data for 188 large banks world-wide from 2007 to 2013, empirical results are consistent with the model’s implications, suggesting that the implicit support for a bank is higher when the bank is larger, when the bank is weaker, and when the country in which the bank is headquartered is larger or more creditworthy. While bank-specific factors matter as well as those related to the sovereign of the country where the bank is located, the effect on the value of sovereign guarantees of changes in bank strength dominate those in sovereign strength.","PeriodicalId":130241,"journal":{"name":"Journal of Economic and Financial Studies","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130938023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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