A comparison of five reflective–formative estimation approaches: reconsideration and recommendations for tourism research

Quality & Quantity - In partial least squares structural path modelling, the reflective–formative type of hierarchical component models (HCMs) (also known as Higher-Order Model) have...     

NEUTRAL TECHNOLOGY SHOCKS AND THE DYNAMICS OF LABOR INPUT: RESULTS FROM AN AGNOSTIC IDENTIFICATION*

This article studies the dynamic response of labor input to neutral technology shocks. It uses benchmark dynamic, stochastic, general equilibrium models enriched with labor market search and matching frictions and investment‐specific technological progress that enables a new, agnostic, identification scheme based on sign restrictions on a structural vector autoregression (SVAR). The estimation supports an increase of labor input in response to neutral technology shocks. This finding is robust across different perturbations of the SVAR model.     

The Public Finances of the United Kingdom: a re-interpretation

This paper presents evidence concerning the distributive activities of the UK state with regards to labour. A methodology is developed which assesses both the costs and the benefits of the UK state to labour. Applying such a methodology to the UK national accounts demonstrates that the taxes paid by labour exceed the benefits of social spending received by labour. Thus, there has been a net transfer of resources from labour to other social sectors. It can therefore be argued that the UK state both horizontally re-circulates income within labour and transfers resources vertically from wages and consumption to profits, investment and the state.     

On the determinants of national saving: An extreme-bounds analysis

On the Determinants of Saving: An Extreme-Bounds Analysis. — We use extreme-bounds analysis to examine the reliability of estimates of various determinants of national saving. Results from the cross-sectional data are discouraging, for few of the standard determinants identified in the theoretical and empirical saving literature can pass robustness tests. However, our panel analysis is much more encouraging. We found agricultural share in total output, public saving, budget balance, and the current account balance are indeed robust. Furthermore, when we applied a modified form of sensitivity analysis, we found that seven variables are very robust. Generally, the most commonly specified determinants of saving provide limited guidance in understanding and predicting saving behavior.     

The Determinants of Chinese Outward Foreign Direct Investment: A Closer Look

Over the last fifteen years, China rapidly expanded its outward foreign direct investment (OFDI) through remarkable economic growth and the “go global” policy. Chinese firms explored investment avenues especially in developing and emerging countries. As a result, China became the third largest contributor of OFDI. We examine the determinants of Chinese OFDI in 67 countries during the period lasting from 2006 to 2015 using the feasible generalized least square method. We find that the size of the economy, market opportunities, cost advantages due to low wage structure, ease of doing business, country risk, and geographical proximity are the prominent factors leading to changes in Chinese OFDI in developing and emerging economies. We find that China’s investments in different developing and emerging countries are driven by a different set of factors and the determinants of Chinese OFDI vary in low and high per capita income countries.     

WHAT DO VARS TELL US ABOUT THE IMPACT OF A CREDIT SUPPLY SHOCK?

In the aftermath of the recent financial crisis, a variety of structural vector autoregression (VAR) models have been proposed to identify credit supply shocks. Using a Monte Carlo experiment, we show that the performance of these models can vary substantially, with some identification schemes producing particularly misleading results. When applied to U.S. data, the estimates from the best performing VAR models indicate, on average, that credit supply shocks that raise spreads by 10 basis points reduce GDP growth and inflation by 1% after one year. These shocks were important during the Great Recession, accounting for about half the decline in GDP growth.     

Pro-poor growth and social protection in South Africa: Exploring the interactions

This study evaluates the impact of South Africa's long-term economic growth on household poverty and inequality between 1995 and 2005. We find a decline in aggregate levels of poverty, but increasing levels of inequality. The evidence suggests that the growth model provides substantial redistributive income support to the poor through the social grant programme, whilst offering few returns to those in the middle of the distribution.     

Estimating a poverty line: An application to free basic municipal services in South Africa

One of the key interventions aimed at improving the welfare of South African households has been local government's provision of a package of free basic municipal services to poor households. It is, however, not completely clear how different municipalities identify households that are eligible for these services. Evidence suggests that many municipalities currently provide services to all households with a monthly income of less than R1500 a month. This ‘free basic services poverty line’ is, however, low in comparison with a number of unofficial poverty lines used by policymakers and researchers in South Africa. This paper considers the impact of increasing the value of the free basic services line, in terms of the additional share and number of households eligible for support and the additional financial cost. We find that urban municipalities would face the steepest increases in their free basic services budgets with any potential increase in the free basic services poverty line.     

Measuring the impact of violence on macroeconomic instability: evidence from developing countries

Portuguese Economic Journal - Uncertainty induced by various economic and non-economic factors instigates macroeconomic instability. Macroeconomic instability, further, reduces predictability of a...     

Motivational pathways for farmer learning behaviour in the student-to-farmer university outreach

In recent times, calls for practical training of agricultural extension workers, who exhibit the right mix of competences for responsiveness to farmer learning needs, have intensified. This comes at the time when there is an increasingly growing desire for more community-engaged African universities, and as such, making the integration of agricultural students into community outreach services a necessity. However, empirical evidence on whether student-led outreach and training models adequately respond to the psychological learning needs of host farmers and subsequent motivation of these farmers for learning is lacking. This study uses a structural equation modelling technique on a sample of 283 farmers who had previously participated in the student-to-farmer outreach of Gulu University. Results reveal that satisfying farmer learning needs influences intrinsic motivation, formation of learning intentions and farmer learning behaviour. Intrinsic motivation mediates the relationship between satisfying farmer learning needs and the outcome learning behaviour. We conclude that satisfying farmer learning needs is a strong initiator of motivational pathways for farmer learning behaviour in the student-to-farmer university outreach. We call for more public financing of university outreach programmes so as to enable not only training for churning out graduates with the right competences of responsiveness to community needs but also fostering creative innovations involving both universities and communities.