The poverty effect of remittance flows : evidence from Georgia

The main purpose of this study is to analyze the poverty effects of emigration and inward remittance flows through direct and indirect channels within the context of a standard computable general equilibrium (CGE) model. For that purpose, we use a novel approach in modeling a social accounting matrix (SAM) based CGE model by combining a novel and original data set, containing rich, highly-disaggregated household budget suveys with detailed macro-level data for Georgia. A distinctive contribution of this study is the attention paid to regional differences in terms of market access and transaction costs, in addition to households’ factor endowments and consumption patterns. The main questions of interest are if and to what extent remittance flows contribute to the production and consumption pattern of the poor. Two aspects of poverty reduction are emphasized: (1) the impact of remittances on the aggregate and sectoral economic growth; and (2) the impact of remittances on poor households, their production and consumption patterns across regions. The study concludes that while having a strong macroeconomic growth effect at the aggregate level, emigration and inward remittance flows do not affect all sectors and residents symmetrically. Moreover, they have a rather limited impact in terms of poverty and income inequality.info:eu-repo/semantics/publishedVersio

Inter-Household private transfers and underlying motives : evidence for Bulgaria

The effects of interactions between private transfer behavior and income redistribution policies depend on the motives underlying private income transfers. This paper tests for two different potential motives: pure altruism versus simple exchange, in the presence of capital market imperfections. Using household survey data for Bulgaria, microeconometric evidence is found that both motives are in effect. We also find evidence that capital market imperfections are likely to be binding for consumption smoothing, and hence are an important cause of private transfers. The results indicate that social security benefits “crowd in” the incidence of private transfers, but not the amounts transferred

On the effects of economic fluctuations on productivity growth

We analyze the productivity effects of shocks to the real interest rate and to demand and supply conditions in a world where productivity enhancing activities are disruptive. The model predicts that temporary demand downturns may have positive productivity effects if the real interest rate is not too countercyclical, and that supply shocks do not affect productivity growth. The model is used to derive refined novel empirical tests on the so-called Opportunity Cost View of recessions (Aghion and Saint-Paul (1998)) vis a vis the competing theories of learning-by-doing and capital market imperfections

Demand shocks and productivity growth

This paper presents evidence on the relationship between cyclical shocks and productivity growth, for 20 2-digit SIC US manufacturing industries and a set of monetary policy, fiscal policy, and oil price shocks. The paper uses as a mea- sure of productivity change a Solow residual corrected for a wide range of non- technological effects due to imperfect-competition, non-constant returns to scale, and cyclical utilization rates of capital and labor services. The empirical frame- work identifies policy shocks independently of productivity measurement issues via a two-step procedure. While the typical industry shows weak responses of pro- ductivity to the shocks considered, in some industries temporary contractionary policy shocks lead to increases in productivity. In addition, the results reveal that there are localized asymmetries, with contractionary policy shocks having larger productivity effects than their expansionary counterparts. The results support the thesis that job reallocation is an important channel linking contractionary policy shocks and productivity growth. These results support the pit-stop view of down- turns.info:eu-repo/semantics/publishedVersio

The performance of Portuguese job-centers

This paper analyzes the performance of the country-wide system of 86 jobcenters in Portugal, which have the public mandate of matching unemployed individuals with vacancies. The paper uses a rich micro dataset for the years 1998-2002 which allows the construction of individual unemployment duration spells and subsequent employment outcomes, while observing individual characteristics such as age, education, gender and past job experiences and other labour-market variables defined at the local-labour market or job-center level. To assess the performance of the job-centers, we analyze unemployment duration spells and hazard rates and matching rates’ indicators between individuals and vacancies at the job-center level. The analysis is mainly done using graphical and statistical tools. Among the several conclusions and policy recommendations, it should be noted that job-centers are a most important resource in promoting the matching of young and unskilled workers and of workers with no previous job experiences.N/

The effects of contract-type mismatch and matching frictions on unemployment duration : evidence for Portugal

This paper analyses the impact of matching frictions in the Portuguese labour market on individual unemployment hazard rates and unemployment durations. The coexistence of permanent contracts and temporary contracts in the Portuguese (dual) labour-market is akin to a matching friction, with a contracttype mismatch between jobseekers who have a strong preference for permanent contracts, whereas firms, in turn, prefer to offer temporary contracts. The paper uses a rich micro dataset which allows to compute a time and space varying contract-type mismatch index, over 85 local labour markets, identified by jobcenters of the Portuguese Public Employment System. Employing discrete time hazard models and a stock-flow matching mechanism, we find that local labour markets with higher contract-type mismatch rates are characterized by lower hazard rates, especially for job-seekers searching for a permanent contract, and higher exit rates via own means instead of via the job-center. Employing a subsample of uncensored spells and regression models, the data show that longer unemployment duration is a price to be paid to hedge against contract mismatch. Improving the desirability of temporary contracts and the information about local contract-type mismatch rates may reduce matching frictions and average unemployment durations due to contract-type mismatch.N/

Willingness to pay for airline services attributes : microeconometric evidence from a stated preference discrete choice model

We analyze consumer preferences for airline services attributes between Ponta Delgada and Lisbon. For this purpose, we conduct a stated preferences choice game and estimate a microeconometric model à la McFadden (1974). Our results are statistically significant and imply willingness to pay measures economically high for attributes such as punctuality warranties and comfort. We interpret these results at the light of the theories found in Kahneman (2003). Willingness to pay for additional daily flights is quite low. This result is important to how should the policy maker liberalize this sector

Medidas de disponibilidade a pagar por atributos de voos comerciais : uma aplicação do modelo de McFadden ao corredor aéreo Ponta Delgada – Terceira

Este trabalho analisa as preferências dos consumidores do serviço de transporte aéreo entre São Miguel e Terceira: o mais importante corredor aéreo nos Açores. Dada a forte regulação histórica e actual que caracteriza este serviço, não há dados do tipo preferências reveladas. Contudo, o conhecimento das preferências dos consumidores é incontornável na implementação de políticas que promovam o bem-estar social. Assim, realizou-se um stated preferences choice game conducente à estimação dum modelo microeconométrico do tipo McFadden (1974): logit condicional. Os resultados estimados são estatisticamente significativos e revelam medidas de disponibilidade a pagar economicamente elevadas por atributos como garantia de pontualidade e penalidades por alterações nas passagens. A disponibilidade a pagar por mais um voo diário é deveras baixa. Este último resultado é importante no debate se este mercado é um monopólio natural.ABSTRACT: We analyze consumer preferences for airline services between S. Miguel and Terceira: the most important air corridor in the Azores. Due to heavy regulation, there are no revealed preferences data. However, we do need to know consumer preferences if our goal is to implement social surplus maximizing policies. Hence, we conduct a stated preferences choice game in order to estimate a microeconometric model a la McFadden (1974): conditional logit. The results are statistically significant and imply willingness to pay measures economically high for attributes such as reliability warranties and penalties for changing tickets. Willingness to pay for an additional daily flight is quite low. This result is important to establish if we are indeed in the presence of a natural monopoly

The determinants of length of stay in the Azores : a count model approach

This paper employs count data models to estimate the determinants of length of stay, as count data models naturally lend themselves to overcome the censoring and truncation data issues associated with the non-negative, integer nature of length of stay. This paper employs a rich micro data set gathered through questionnaires ministered to a representative sample of tourists departing from the Azores: the fastest growing touristic region in Portugal. It is found that sociodemographic profiles, such as nationality and Azorean ascendancy, and trip attributes, such as repeat visitation rates and type of flight, are important determinants of length of stay. In addition, it is found that destination image and attitudes regarding environmental initiatives, constructed from a factor analysis exercise, also influence length of stay. In particular, the results suggest that marketing strategies that promote the Azores for its nature, landscape, remoteness, weather and safety may increase length of stay, whereas cultural heritage has the opposite effect.N/

Willingness to pay for airline services attributes: evidence from a stated preferences choice game

We analyze consumer preferences for airline service attributes between Ponta Delgada and Lisbon: the most important air corridor between the Azores and Mainland Portugal. Owing to stringent regulations, which fall under the European Union Public Service Obligations (PSOs) domain, there are no revealed preferences data suitable to study consumer preferences. Hence, we conduct a stated preferences choice game and estimate a microeconometric model à la McFadden. Our results are statistically significant and imply willingness to pay measures economically high for attributes such as punctuality warranties and comfort. Willingness to pay for additional daily flights is quite low. This result is important to how should the policy maker liberalize this sector