Munich RePEc Personal Archive

    Macroeconomic framework for financial stability for Morocco

    Get PDF
    In this paper, a macroeconomic model with financial frictions was estimated with a view to evaluate the interactions between the Moroccan banking system and the evolutions of the macroeconomic framework. Indeed, two heterogeneous commercial banks were introduced into an objective to highlight the frictions and financial shocks which affect the evolutions of the macroeconomic economic conditions. The results obtained made it possible to confirm that this model reproduced, to a certain extent, the various fundamental characteristics of the Moroccan economic system. In addition, some shocks were planned in order to measure their impacts on the equilibrium of the system. The results were convincing and the introduction of the banking system into this model proved to be persuasive

    Who Said or What Said? Estimating Ideological Bias in Views Among Economists

    Get PDF
    There exists a long-standing debate about the influence of ideology in economics. Surprisingly, however, there is no concrete empirical evidence to examine this critical issue. Using an online randomized controlled experiment involving economists in 19 countries, we examine the effect of ideological bias on views among economists. Participants were asked to evaluate statements from prominent economists on different topics, while source attribution for each statement was randomized without participants’ knowledge. For each statement, participants either received a mainstream source, an ideologically different less-/non-mainstream source, or no source. We find that changing source attributions from mainstream to less-/non-mainstream, or removing them, significantly reduces economists’ reported agreement with statements. This contradicts the image economists have of themselves, with 82% of participants reporting that in evaluating a statement one should only pay attention to its content. Using a framework of Bayesian updating we examine two competing hypotheses as potential explanations for these results: unbiased Bayesian updating versus ideologically-/authority-biased Bayesian updating. While we find no evidence in support of unbiased updating, our results are consistent with biased Bayesian updating. More specifically, we find that changing/removing sources (1) has no impact on economists’ reported confidence with their evaluations; (2) similarly affects experts/non-experts in relevant areas; and (3) has substantially different impacts on economists with different political orientations. Finally, we find significant heterogeneity in our results by gender, country, PhD completion country, research area, and undergraduate major, with patterns consistent with the existence of ideological bias

    Trade Liberalization and Unemployment in India: A State Level Analysis

    Get PDF
    The study empirically examines the relationship between trade liberalization and unemployment for the Indian economy using data for Indian states (separately for rural and urban areas). This study provides support to the argument that effects of trade liberalization have been different for the states in India. The results find evidence for the negative relationship unemployment and trade openness. The relationship is significant for rural parts of the states which also drive results for the total state; though for urban part of the states, relationship is not found to be significant. The results also indicate that this effect is higher and stronger for more flexible states. The results hence, confirm to the theory that in developing countries trade openness leads to increase in the employment of labour; but more so of unskilled workers and leads to a movement away from the agriculture and hence rural sector of the economy. This is substantiated by internal migration trends for India which showed an increase in population mobility during post reform period. The data also corroborated the shift from rural agricultural to rural non-agricultural and urban sectors of the economy

    Sustainable Development Strategy through GRI with Reference to VEDANTA Company

    Get PDF
    Sustainable development has become one of the key principles for succeeding human development goals while at the same time strengthening the power of natural systems in order to provide ecosystem services which the economy and society depends upon. The society’s end result is where the use of resources and the living conditions prolong to meet the human needs without hindering the balance of the natural systems. If ever focusing on Environmental sustainability, it will have a concern with the natural environment and how it remains diverse and productive. For natural resources are derived from the environment, the state of water, air, soil are of particular concern. GRI (Global Reporting Initiative) has an important role to form a framework of sustainable development in businesses, government and other organizations. The goal of the sustainable development process is to achieve the status of ‘sustainability’ in all communities. It is important to make compatible with developed and flexible using the standards laid down by GRI therefore in the long term, strategies’ of sustainable development should assist the continuance of the system of biodiversity of city and suburbs through the active protection and sustainable utilization of natural sources. Therefore in order to achieve sustainability, it is necessary to make structural reforms as regarded in the standards set by GRI and to create some deep and fundamental changes in all levels of communities. Sustainable Business Models (SBM) integrates a triple bottom line approach and includes stakeholder interests, including the environment and society. They are important in implementing business innovation for sustainability and can help fix sustainability into corporate purpose, and serve as a key driver of competitive advantage. This study focuses on the analysis of the sustainable development of Vedanta Company

    Do banks need a supervisor?

    Get PDF
    The paper studies a simple microeconomic stochastic model of a bank operating in a competitive environment. The model allows us to describe the conditions on the model parameters that generate both the formation of bubbles in the credit market and the formation of stable banks with self-restrictive behavior, that do not require the intervention of the regulator. The comparative statics of equilibria is studied with respect to the basic parameters of the model, a theoretical assessment is carried out of the probability of bank default based on the values of exogenous factors in both the short and long term

    Does Social Health Insurance Help Owners of Micro- and Small Firms Cope with Family Hardships? Evidence from Indonesia

    Get PDF
    Micro- and small firms lack access to external finance and the labour market so that they are vulnerable to family hardships experienced by the owners such as deaths or sickness of family members. The literature is thin on how these firms cope with family hardships, in particular on whether owners’ access to social health insurance helps. We examine whether a social health insurance in Indonesia, Askeskin, protects owners of micro- and small firms against family hardships. We find some evidence Askeskin reduces the adverse effects of recent deaths in the family, outpatient care, and traffic accidents on net profits; Askeskin also protects the firms’ assets against owners’ outpatient care need. Social health insurance may, therefore, improve micro- and small firms’ survival, which (because most people in developing countries’ labour markets work in micro- and small firms) helps governments’ efforts to eradicate poverty

    Impact of quantitative easing on the long-term investment values

    Get PDF
    Presented here are simplified mathematical models for evaluation of the long-term investment values. Three scenarios were considered in a framework of the single product economy. The first scenario assesses an impact of capital investments (accrued on the product market with a constant acceleration) on an equity price on the equity market. The second scenario assesses impact of both capital investments (accrued on the product market with a constant acceleration) and quantitative easing (accrued on the equity market with a constant acceleration) on an equity price on the equity market. The third scenario assesses impact of both capital investments (accrued on the product market with a constant acceleration) and quantitative tightening (accrued on the equity market with a constant acceleration) on an equity price on the equity market

    Integration into formal enterprise space: Challenges and opportunities for informal sector entrepreneurs

    Get PDF
    A vast majority of micro and small enterprises (MSEs) operate in an informal enterprise space, functioning without the required legal and regulatory approvals, notwithstanding crucial role that they play in job creation, poverty alleviation, exports, and regional economic development. Living in an informal enterprise space is not a choice, but forced reality brought on by regulatory burdens, complex compliance structures, and an inefficient and slow-moving government system. This article looks at the informal MSME sector in terms of the challenges and opportunities on its route to formalization. It highlights some of these important aspects, which facilitates the transition into formal enterprise space. IT has provided inputs resulting from interactions with entrepreneurs, associations, and NGOs working in the informal MSME space. The study was also supplemented by secondary source materials. Some of the sectors that have been evaluated are waste management and recycling, last-mile public transport connectivity operators, handloom weavers, potters and street food vendors

    A Residual-Based Cointegration test with a Fourier Approximation

    Get PDF
    This paper proposes a residual-based cointegration test in the presence of smooth structural changes approximated by a Fourier function. The test offers a simple way to accommodate unknown number and form of structural breaks and have good size and power properties in the presence of breaks

    Credit, Default, and Optimal Health Insurance

    Get PDF
    How do defaults and bankruptcies affect optimal health insurance policy? I answer this question using a life-cycle model of health investment with the option to default on emergency room (ER) bills and financial debts. I calibrate the model for the U.S. economy and compare the optimal health insurance in the baseline economy with that in an economy with no option to default. With no option to default, the optimal health insurance is similar to the health insurance system in the baseline economy. In contrast, with the option to default, the optimal health insurance system (i) expands the eligibility of Medicaid to 22 percent of the working-age population, (ii) replaces 72 percent of employer-based health insurance with a private individual health insurance plus a progressive subsidy, and (iii) reforms the private individual health insurance market by improving coverage rates and preventing price discrimination against people with pre-existing conditions. This result implies that with the option to default, households rely on bankruptcies and defaults on ER bills as implicit health insurance. More redistributive healthcare reforms can improve welfare by reducing the dependence on this implicit health insurance and changing households’ medical spending behavior to be more preventative
    Munich RePEc Personal Archive is based in DE
    Do you manage Munich RePEc Personal Archive? Access insider analytics, issue reports and manage access to outputs from your repository in the CORE Dashboard!