Is Growth an Information Technology Story in Europe Too?

While the return to growth in the US is largely credited to the rapid spreading of information technology, a key policy concern everywhere, and notably in Europe, is whether and when the US economic boom will extend abroad, and what role new technologies are about to play. In this paper, I collect and supplement data on the extent and the contribution to growth of ‘new economy’ activities in Europe, and in a sample of OECD countries at large, in the 1990s. Available evidence indicates that capital accumulation in information technologies did make a contribution to growth in the EU too, though not equally everywhere. The contribution of new technologies was substantial in the UK and the Netherlands, and rapidly increasing over time in Finland, Ireland and Denmark. These were also the fast EU growing countries in the 1990s. New technologies contributed less in France, Germany, Belgium and Sweden, and marginally in Italy and Spain. Most of these countries were also ‘slow growers’. I conclude that the growth gaps between the EU and the US, as well as within the EU, can (also) be associated to the diverse pace of adoption of new technologies across countries.

Aggregation of Productivity Indices: The Allocative Efficiency Correction

Industry productivity is obtained by aggregation of firm productivities and inclusion of the appropriate allocative efficiency terms, one for each firm.This paper identifies the latter correction terms.aggregation;productivity;efficiency;allocation

What will homeland security cost?

The increased spending on security by the public and private sectors in response to September 11 could have important effects on the U.S. economy. Sizable government expenditures, for example, could trigger a rise in the cost of capital and wages and a reduction in investment and employment in the private sector, while large-scale spending by businesses could hamper firm productivity. This article attempts to quantify the likely effects of homeland security expenditures on the economy. It suggests that the total amount of public- and private-sector spending will be relatively small: the annual direct costs of the homeland security efforts are estimated to be $72 billion, or 0.66 percent of GDP in 2003. In the private sector, homeland security expenses are estimated to lower labor productivity levels by at most 1.12 percent. Therefore, the reallocation of resources associated with homeland security is unlikely to have any large and long-lasting effects on the U.S. economy.Economic conditions - United States ; Terrorism ; War - Economic aspects

Whither the community bank? a conference summary

Community banks

Risk and Profitability Considerations in Off-Balance Sheet Engagements: A Comparative Analysis of Deposit Money Banks in Nigeria

This study investigated how off balance sheet engagements of deposit money banks affect risk and profitability compositions of such banks. The study employed secondary data obtained from financial statements of five deposit money banks (namely, Access, Zenith, UBA, GTB and First Bank) for eleven years period (2004 to 2014). The descriptive and content analysis of the financial statements of the selected banks investigated revealed that Zenith Bank has the highest amount of off balance sheet engagement. It therefore concludes that inspite of the huge profit that may accrue to the deposit money bank for engaging in off balance sheet activities, it may be exposed to a very high risk if the unexpected happens. In view of this, this study recommends a prudent management and monitoring of off balance sheet activities by management, the board and Central Bank of Nigeria. This is necessary to ensure that banks remain within the approved threshold or limits of off balance engagements inorder not to compromise the confidence reposed on the banks by depositors and investors

Banking in Brazil: Structure, Performance, Drivers, and Policy Implications

he objective of this paper is to analyze the industry structure of banking services in Brazil in order to shed light on financial performance and its drivers at a disaggregated level. The study illustrates how differences across market segments -- which tend to be averaged out in aggregate analysis -- need to be taken into account when analyzing performance and designing public policy for the banking sector. In particular, retail banking is found to be less sensitive to price competition and to exhibit considerably higher returns than corporate banking. The authors identify and discuss the factors underlying revenues, costs, and risks in each market segment, and conclude with policy implications.Brazil; banking; competition; industry structure; performance