Pub Date : 2023-07-03DOI: 10.1080/15140326.2023.2230623
A. Zhangaliyeva, Masaki Nakabayashi
ABSTRACT Vocational school graduates enjoy a higher employment probability than other types of graduates across industrial economies. This may result from either the signaling effects of vocational school degrees or skill complementarity between vocational schooling and work experience. Regarding wage regressions, signaling effects should make the coefficient of the interaction term between years of schooling and work experience negative, whereas complementarity between education and work experience should increase this coefficient because the cross-derivative of output with respect to schooling and work experience is positive. Thus, the negativity of the interaction term between years of schooling and work experience decreases as schooling becomes more complementary to work. We find that the negativity of the interaction term is smaller for vocational track graduates than for general track graduates in Russia. This result is arguably because the Russian vocational track emphasizes complementarity between education and work to a greater degree than its general track.
{"title":"Legacy of the Czar: Complementarity between education and work in Russia","authors":"A. Zhangaliyeva, Masaki Nakabayashi","doi":"10.1080/15140326.2023.2230623","DOIUrl":"https://doi.org/10.1080/15140326.2023.2230623","url":null,"abstract":"ABSTRACT Vocational school graduates enjoy a higher employment probability than other types of graduates across industrial economies. This may result from either the signaling effects of vocational school degrees or skill complementarity between vocational schooling and work experience. Regarding wage regressions, signaling effects should make the coefficient of the interaction term between years of schooling and work experience negative, whereas complementarity between education and work experience should increase this coefficient because the cross-derivative of output with respect to schooling and work experience is positive. Thus, the negativity of the interaction term between years of schooling and work experience decreases as schooling becomes more complementary to work. We find that the negativity of the interaction term is smaller for vocational track graduates than for general track graduates in Russia. This result is arguably because the Russian vocational track emphasizes complementarity between education and work to a greater degree than its general track.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44199539","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-14DOI: 10.1080/15140326.2023.2223953
Xueting Deng, Yuqing Zheng, J. Butler
ABSTRACT This paper examines the role of addiction in influencing the demand for e-cigarettes using the Nielsen Retail Scanner Data and the Nielsen Consumer Panel Data between 2012 and 2017. With a comparison of a myopic addiction model, a forward-looking model, and a rational addiction model, this paper tests whether the consumption of e-cigarettes is addictive and rational. Results from both the macro data and the microdata support the rational addictiveness of e-cigarettes. Applying an OLS method and an instrumental variable method in causal inference, results show that the long-run price elasticity estimates are larger than the estimates of the short-run price elasticity of demand for e-cigarettes. Estimates of both long-run and short-run elasticities are greater than one, −1.50 and −1.05, suggesting e-cigarette demand is elastic in both the long run and short run.
{"title":"An empirical analysis of e-cigarette addiction","authors":"Xueting Deng, Yuqing Zheng, J. Butler","doi":"10.1080/15140326.2023.2223953","DOIUrl":"https://doi.org/10.1080/15140326.2023.2223953","url":null,"abstract":"ABSTRACT This paper examines the role of addiction in influencing the demand for e-cigarettes using the Nielsen Retail Scanner Data and the Nielsen Consumer Panel Data between 2012 and 2017. With a comparison of a myopic addiction model, a forward-looking model, and a rational addiction model, this paper tests whether the consumption of e-cigarettes is addictive and rational. Results from both the macro data and the microdata support the rational addictiveness of e-cigarettes. Applying an OLS method and an instrumental variable method in causal inference, results show that the long-run price elasticity estimates are larger than the estimates of the short-run price elasticity of demand for e-cigarettes. Estimates of both long-run and short-run elasticities are greater than one, −1.50 and −1.05, suggesting e-cigarette demand is elastic in both the long run and short run.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47127691","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-11DOI: 10.1080/15140326.2023.2222964
Tin H. Ho, D. Nguyen, Thu B. Luu, Tu D. Q. Le, Thanh D. Ngo
ABSTRACT The Covid-19 pandemic’s economic effect led to tighter credit standards and a decline in the market for many types of loans. With a rich database of 1,231 banks in 90 countries from 2018Q1 to 2021Q4, we conducted a timely, broad-based international study to investigate whether non-interest activities, serving as a shock absorber, can promote bank performance before and during the Covid−19 pandemic. When using a dynamic panel data model with a system GMM estimator, our findings indicate that banks should be encouraged to diversify their income sources to reduce the adverse effects of the shock. With comparative analysis, we also found heterogeneous effects of income diversification on bank performance by its components, in pre-Covid−19 and during-Covid−19 periods, in both developed and developing countries. This study implies that bank managers should diversify income sources, especially fee-based services, trading activities, and foreign currency, to foster financial performance and stability during exogenous shocks.
{"title":"Bank performance during the COVID-19 pandemic: does income diversification help?","authors":"Tin H. Ho, D. Nguyen, Thu B. Luu, Tu D. Q. Le, Thanh D. Ngo","doi":"10.1080/15140326.2023.2222964","DOIUrl":"https://doi.org/10.1080/15140326.2023.2222964","url":null,"abstract":"ABSTRACT The Covid-19 pandemic’s economic effect led to tighter credit standards and a decline in the market for many types of loans. With a rich database of 1,231 banks in 90 countries from 2018Q1 to 2021Q4, we conducted a timely, broad-based international study to investigate whether non-interest activities, serving as a shock absorber, can promote bank performance before and during the Covid−19 pandemic. When using a dynamic panel data model with a system GMM estimator, our findings indicate that banks should be encouraged to diversify their income sources to reduce the adverse effects of the shock. With comparative analysis, we also found heterogeneous effects of income diversification on bank performance by its components, in pre-Covid−19 and during-Covid−19 periods, in both developed and developing countries. This study implies that bank managers should diversify income sources, especially fee-based services, trading activities, and foreign currency, to foster financial performance and stability during exogenous shocks.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45834455","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-02DOI: 10.1080/15140326.2023.2220468
Weiwei Yang, He Wang, Huobao Xie
ABSTRACT The rapid growth of local SOEs in China largely depends on high leverage, thus local governments and their SOEs will face harder budget constraints when the central bank implements tight credit policies. Using a sample of listed local SOEs in the Chinese A-share market, this paper attempts to investigate the relationship between financial deleveraging and privatization of local SOEs. We find that privatization of the Chinese local SOEs increases significantly during financial deleveraging, and this effect is more pronounced among SOEs with less tax contribution, fewer employees and that cause greater financial burden to the local governments. This paper broadens the research on environmental factors that drive politicians to privatize.
{"title":"Does financial deleveraging affect governments’ desirability of privatization? Evidence from the Chinese listed local SOEs","authors":"Weiwei Yang, He Wang, Huobao Xie","doi":"10.1080/15140326.2023.2220468","DOIUrl":"https://doi.org/10.1080/15140326.2023.2220468","url":null,"abstract":"ABSTRACT The rapid growth of local SOEs in China largely depends on high leverage, thus local governments and their SOEs will face harder budget constraints when the central bank implements tight credit policies. Using a sample of listed local SOEs in the Chinese A-share market, this paper attempts to investigate the relationship between financial deleveraging and privatization of local SOEs. We find that privatization of the Chinese local SOEs increases significantly during financial deleveraging, and this effect is more pronounced among SOEs with less tax contribution, fewer employees and that cause greater financial burden to the local governments. This paper broadens the research on environmental factors that drive politicians to privatize.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42508686","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-15DOI: 10.1080/15140326.2023.2212455
Xiaoxing Liu, K. Shehzad
ABSTRACT This investigation utilized the VARX-DCC-MEGARCH model assimilated with skewed-t density to analyze the time-different (i.e., daytime, overnight, and daily) connectedness among S&P 500, DAX 30, FTSE-100, Nikkei 225, and Shanghai Composite Index. This investigation discovered that the current daytime returns transmission from the DAX 30, FTSE 100, and Nikkei 225 index to ensuing overnight returns of the S&P 500 index was inconsequential during the stable period. The study also quantified that shocks befallen in the current overnight returns of the S&P 500 partake bidirectional and negative ties with shocks that occurred in subsequent day-wise returns of the DAX 30 index. Moreover, during crises, only the Shanghai composite index spillovers the volatility of the FTSE 100 index. The study revealed a leverage effect for the day-wise return of the S&P 500, DAX 30, and overnight returns of the FTSE 100 index.
{"title":"Analyzing time-different connectedness among systemic financial markets during the financial crisis and conventional era: New evidence from the VARX-DCC-MEGARCH model","authors":"Xiaoxing Liu, K. Shehzad","doi":"10.1080/15140326.2023.2212455","DOIUrl":"https://doi.org/10.1080/15140326.2023.2212455","url":null,"abstract":"ABSTRACT This investigation utilized the VARX-DCC-MEGARCH model assimilated with skewed-t density to analyze the time-different (i.e., daytime, overnight, and daily) connectedness among S&P 500, DAX 30, FTSE-100, Nikkei 225, and Shanghai Composite Index. This investigation discovered that the current daytime returns transmission from the DAX 30, FTSE 100, and Nikkei 225 index to ensuing overnight returns of the S&P 500 index was inconsequential during the stable period. The study also quantified that shocks befallen in the current overnight returns of the S&P 500 partake bidirectional and negative ties with shocks that occurred in subsequent day-wise returns of the DAX 30 index. Moreover, during crises, only the Shanghai composite index spillovers the volatility of the FTSE 100 index. The study revealed a leverage effect for the day-wise return of the S&P 500, DAX 30, and overnight returns of the FTSE 100 index.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46345956","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-10DOI: 10.1080/15140326.2023.2212348
Roberto Cellini
ABSTRACT This note investigates the empirical pattern of suicides across Italy over the last 15 years. Typically, a country shares similar basic cultural and social macro-features. Yet in Italy there are marked variations across the regions such that it provides a useful setting to examine the economic factors that influence suicidality. The results align with some earlier work positing an N-shaped Kuznets curve linking income and the suicide rate. Female participation in the labour market emerges as a robust explanatory factor for male and female suicide rates.
{"title":"Suicide and the economy: a regional analysis of italy","authors":"Roberto Cellini","doi":"10.1080/15140326.2023.2212348","DOIUrl":"https://doi.org/10.1080/15140326.2023.2212348","url":null,"abstract":"ABSTRACT This note investigates the empirical pattern of suicides across Italy over the last 15 years. Typically, a country shares similar basic cultural and social macro-features. Yet in Italy there are marked variations across the regions such that it provides a useful setting to examine the economic factors that influence suicidality. The results align with some earlier work positing an N-shaped Kuznets curve linking income and the suicide rate. Female participation in the labour market emerges as a robust explanatory factor for male and female suicide rates.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45157521","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-04DOI: 10.1080/15140326.2023.2207325
Chengchun Li, Huanhuan Lu, Min Wu, D. Teng
ABSTRACT This paper examines the relationship between corporate debt and firm productivity. We add to the existing literature by investigating the contingency effect of institutional quality in the corporate debt-productivity nexus. Using data for 2,084 Chinese listed firms, we find that corporate debt and political institutional quality have significant and negative impacts on productivity while legal institutional quality is significantly and positively associated with productivity. Also, our results reveal that both financial and fintech-supporting institutional factors exert negative contingency effects in the corporate debt-productivity relationship. Our findings provide a reasonable guideline for emerging market countries aiming to address the corporate debt overhang problem or seeking factors to boost firm productivity growth.
{"title":"The role of instituions in the corporate debt-productivity relationship: evidence from listed firms in China","authors":"Chengchun Li, Huanhuan Lu, Min Wu, D. Teng","doi":"10.1080/15140326.2023.2207325","DOIUrl":"https://doi.org/10.1080/15140326.2023.2207325","url":null,"abstract":"ABSTRACT This paper examines the relationship between corporate debt and firm productivity. We add to the existing literature by investigating the contingency effect of institutional quality in the corporate debt-productivity nexus. Using data for 2,084 Chinese listed firms, we find that corporate debt and political institutional quality have significant and negative impacts on productivity while legal institutional quality is significantly and positively associated with productivity. Also, our results reveal that both financial and fintech-supporting institutional factors exert negative contingency effects in the corporate debt-productivity relationship. Our findings provide a reasonable guideline for emerging market countries aiming to address the corporate debt overhang problem or seeking factors to boost firm productivity growth.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42173257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-02DOI: 10.1080/15140326.2023.2207326
Qiang Chen, Ji Qi
ABSTRACT R2 and adjusted R2 may exaggerate a model’s true ability to predict the dependent variable in the presence of overfitting, whereas leave-one-out R2 (LOOR2) is robust to overfitting. We demonstrate this by replicating 279 regressions from 100 papers in top economics journals, where the median increases of R2 and adjusted R2 over LOOR2 reach 40.2% and 21.4% respectively. The inflation of test errors over training errors increases with the severity of overfitting as measured by the number of regressors and nonlinear terms, and the presence of outliers, but decreases with the sample size. These results are further validated by Monte Carlo simulations.
{"title":"How much should we trust R2 and adjusted R2: evidence from regressions in top economics journals and Monte Carlo simulations","authors":"Qiang Chen, Ji Qi","doi":"10.1080/15140326.2023.2207326","DOIUrl":"https://doi.org/10.1080/15140326.2023.2207326","url":null,"abstract":"ABSTRACT R2 and adjusted R2 may exaggerate a model’s true ability to predict the dependent variable in the presence of overfitting, whereas leave-one-out R2 (LOOR2) is robust to overfitting. We demonstrate this by replicating 279 regressions from 100 papers in top economics journals, where the median increases of R2 and adjusted R2 over LOOR2 reach 40.2% and 21.4% respectively. The inflation of test errors over training errors increases with the severity of overfitting as measured by the number of regressors and nonlinear terms, and the presence of outliers, but decreases with the sample size. These results are further validated by Monte Carlo simulations.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48427162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-23DOI: 10.1080/15140326.2023.2194599
Changying Li
ABSTRACT In the context of a vertically differentiated duopoly model with endogenous quality choice, we analyzes the welfare effect of overlapping ownership when the market is fully covered. The results show that overlapping ownership, while detrimental for consumer surplus, may increase or decrease social welfare and firms’ profits. In particular, when the overlapping ownership structure is such that the lower-quality firm acquires a positive share of the higher-quality firm’s profit, an increase in overlapping ownership reduces the lower-quality firm’s incentive to compete against its rival, leading to a higher level of industry profit and, therefore, a higher level of overall welfare.
{"title":"Welfare implications of overlapping ownership with endogenous quality","authors":"Changying Li","doi":"10.1080/15140326.2023.2194599","DOIUrl":"https://doi.org/10.1080/15140326.2023.2194599","url":null,"abstract":"ABSTRACT In the context of a vertically differentiated duopoly model with endogenous quality choice, we analyzes the welfare effect of overlapping ownership when the market is fully covered. The results show that overlapping ownership, while detrimental for consumer surplus, may increase or decrease social welfare and firms’ profits. In particular, when the overlapping ownership structure is such that the lower-quality firm acquires a positive share of the higher-quality firm’s profit, an increase in overlapping ownership reduces the lower-quality firm’s incentive to compete against its rival, leading to a higher level of industry profit and, therefore, a higher level of overall welfare.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47647802","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-15DOI: 10.1080/15140326.2023.2188634
Patrick Jaquart, M. Motz, L. Köhler, Christof Weinhardt
ABSTRACT We create a simulated financial market and examine the effect of different levels of active and passive investment on fundamental market efficiency. In our simulated market, active, passive, and random investors interact with each other through issuing orders. Active and passive investors select their portfolio weights by optimizing Markowitz-based utility functions. We find that higher fractions of active investment within a market lead to an increased fundamental market efficiency. The marginal increase in fundamental market efficiency per additional active investor is lower in markets with higher levels of active investment. Furthermore, we find that a large fraction of passive investors within a market may facilitate technical price bubbles, resulting in market failure. By examining the effect of specific parameters on market outcomes, we find that that lower transaction costs, lower individual forecasting errors of active investors, and less restrictive portfolio constraints tend to increase fundamental market efficiency in the market.
{"title":"The impact of active and passive investment on market efficiency: a simulation study","authors":"Patrick Jaquart, M. Motz, L. Köhler, Christof Weinhardt","doi":"10.1080/15140326.2023.2188634","DOIUrl":"https://doi.org/10.1080/15140326.2023.2188634","url":null,"abstract":"ABSTRACT We create a simulated financial market and examine the effect of different levels of active and passive investment on fundamental market efficiency. In our simulated market, active, passive, and random investors interact with each other through issuing orders. Active and passive investors select their portfolio weights by optimizing Markowitz-based utility functions. We find that higher fractions of active investment within a market lead to an increased fundamental market efficiency. The marginal increase in fundamental market efficiency per additional active investor is lower in markets with higher levels of active investment. Furthermore, we find that a large fraction of passive investors within a market may facilitate technical price bubbles, resulting in market failure. By examining the effect of specific parameters on market outcomes, we find that that lower transaction costs, lower individual forecasting errors of active investors, and less restrictive portfolio constraints tend to increase fundamental market efficiency in the market.","PeriodicalId":51747,"journal":{"name":"Journal of Applied Economics","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43574463","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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