Jobs specialization versus unemployment: more on the productivity effect of unemployment benefits

We use the Marimon and Zilibotti (Econ J 109: 266–291, 1999) circle model and we endogenize the choice of the degree of specialization of jobs. We show that an increase in unemployment benefits not only reduces the mismatch of talents (as in Marimon and Zilibotti), but it also raises the degree of specialization of jobs. This reinforces the productivity enhancing effects of unemployment benefits.      

Brechas de ingresos entre migrantes en los países del Consejo de Cooperación del Golfo. ¿Percepciones de los empleadores o costos de oportunidad?

Se analizan las diferencias de ingresos entre migrantes calificados occidentales, árabes y asiáticos del sector privado en los países del Consejo de Cooperación del Golfo de 2012 a 2014. Utilizando dos métodos de descomposición estándar, se investiga si las percepciones de los empleadores son la causa de la prima salarial de los occidentales. Según los resultados, de un tercio a tres cuartos de la brecha de ingresos reales por hora son atribuibles a las características relacionadas con la productividad, y el resto a los mayores costos de oportunidad. El efecto potencial de las percepciones no observadas resulta no significativo.     

Multinational Enterprises,Technology Diffusion,and Host Country Absorptive Capacity: A Note

Abstract

Previous empirical studies show mixed support for the hypothesis that the impact of technology diffusion from multinational enterprises (MNEs) on host country productivity growth depends on host country absorptive capacity. One explanation is that the results of these empirical studies are sensitive to the measures of absorptive capacity used. This paper contributes to the empirical literature by investigating average years of schooling and total factor productivity gap as measures of host country absorptive capacity in 38 developed and developing countries. Panel data regression equations are estimated using a cross-sectionally heteroskedastic and timewise autoregressive (CHTA) model. The paper has two main results. The first result does not support the hypothesis that the technology diffusion from MNEs has a positive impact on the productivity growth in developing countries. The second result is that the total factor productivity gap is more appropriate than average years of schooling to measure host country absorptive capacity. This may suggest that the results of previous studies that used average years of schooling should be interpreted with caution.     

Trade creation and diversion effects in the Mediterranean area: Econometric analysis by gravity model

Since the early 1990s, the world has seen a proliferation of free trade agreements (FTAs). A major goal of free trade is to develop trade between its signatories. The gravity model is used to analyze the bilateral trade data against the variables of the relative size of the pair of countries involved in trade, distance, common border and language and dummies for each of the FTAs. This article focuses on the studying of the influence of the FTAs in the Mediterranean countries in which we integrate the role of the regional dummy EU-15, Economic and Monetary Union (eurozone), the Arab Maghreb Union and AGADIR Agreement (FTA between Jordan, Egypt, Tunisia and Morocco) in trade flows. In addition, this work aims to detect the impact of the global financial crisis on export flows between the FTAs in the Mediterranean region. The use of regional variables in gravity models designed to determine whether the FTAs contribute to the creation or trade diversion. This study examines a cross section and panel (static and dynamic) of 27 countries for 1980–2011. The results show the existence of a strong relationship between the factors of FTAs and trade flows.     

Perspectives of Accountability in Charities in New Zealand

This study identifies three perspectives of accountability in charitable organizations: agency, stewardship, and stakeholder in relation to the availability of financial information. To examine current accountability practices, 75 interviews and informal conversations were undertaken with participants in charities in New Zealand. Many of the interviewees operated under some form of stewardship milieu. They regarded the need to discharge accountability by providing financial information as a low priority. Education may provide a way to resolve this issue by advancing stakeholders’ perspectives of accountability. This could result in reduced support for charities that do not uphold a certain standard of financial information.     

The economic impact of acute coronary syndrome on length of stay: an analysis using the Healthcare Cost and Utilization Project (HCUP) databases

Objective:

To assess the economic impact of initial and repeat hospitalizations associated with acute coronary syndrome (ACS) over 1 year (2009).

Design and methods:

National- and state-level data on length of stay (LOS) and related charges for ACS-associated hospital admissions were assessed using two Healthcare Utilization Project databases. The first, the Nationwide Inpatient Sample (NIS), provided clinical and resource use information from ～8 million hospital stays, representing a 20% stratified sample of ～40 million annual hospital stays in the US in 2009. The second, the State Inpatient Databases, provided 100% of inpatient data from nine states that included both patient age and linked information on multiple patient admissions within the same calendar year. For patients with repeat admissions, the LOS, primary diagnosis, and total charges between the first and subsequent admissions were evaluated. All patients ≥18 years of age with at least one diagnosis of ACS, defined using the International Classification of Diseases, 9th Revision, were included (code 410.xx [except 410.x2], 411.1x and 411.8x). Variables evaluated for each discharge included demographics, cardiovascular events and procedures, LOS, discharge status, and total charges.

Results:

The NIS reported 1,437,735 discharges for ACS in 2009. In this dataset, mean LOS for an initial ACS event was 5.56 days. Patients >65 years of age had the highest numbers of admissions; this group also had the most comorbidities. Approximately 40% of ACS patients with data on repeat visits had more than one admission, >70% of these within 2 months of the primary discharge. Mean charges were $71,336 for the first admission and $53,290 for the second admission.

Conclusion:

Despite a variety of new therapies to prevent ACS, it remains a common condition. Better therapies are called for if the clinical and cost burden of ACS is to be alleviated.     

Transition Period of Mandated Accounting Changes — Timing of Adoption and Economic Consequences: The Case of SEAS No. 13

This study examines the economics of the timing of adoption of SFAS No. 13, Accounting for Leases by Lessees . We analyzed actual debt contracts of the affected firms to determine whether they were based on GAAP or Non-GAAP accounting rules. We also examined what actions were taken by management to alleviate the negative effects of complying with SFAS No. 13 . The results indicate that late adopters had a higher percentage of debt convenants based on GAAP measures, and that the late adopters would have experienced significant increases in closeness to default had they adopted SFAS No. 13 early. The results also indicate that by choosing late adoption, the firms were able to reduce the expected negative effects of the new accounting standard on financial statements.     

Explaining the democracy deficit in the Arab world

This paper strongly corroborates the widely held claim about the democracy and freedom “deficit” in the Arab world and asks the natural question as to why has the Arab world experienced such a deficit. The estimation results of an extended “modernity” model of democracy (measured by the Polity IV global index) suggest that after controlling for a host of economic, social and historical variables a negative and highly significant Arab dummy effect remains. This suggests, therefore, that the modernization theory does not fully account for the democracy deficit of the Arab world. Controlling for the modernity and other determinants, oil is negatively associated with democracy while the net effect of regional conflicts in the Arab world was negative, suggesting that conflicts in the Arab world promote authoritarianism in contrast with other regions where regional wars have been associated with democratic transitions. Moreover, and very significantly the Arab dummy was no longer significant as a stand alone effect though it remains significant when interacted with regional wars.     

Effectiveness of minimum tax legislation and its effect on corporate financial reporting: A comparative analysis between the United States and India

This paper reports a comparative analysis of the experience of introducing minimum tax legislation in the US and India. Given the differences in the economic and market settings in the two countries, one would expect the impact of the regulation and the corporate response to its introduction to be different. Our empirical analysis, however, indicates that the response to the minimum tax legislation in India is very similar to that in the US. The evidence indicates that the minimum tax legislation is not the best means of achieving horizontal equity among taxpayers, given its significant administrative and compliance costs and the manipulative reporting response it generates from the corporate sector.     

Technological choices and unemployment benefits in a matching model with heterogenous workers

This article aims at understanding the interactions between public policies, such as unemployment benefit systems, and firms’ technological choices. For this purpose, we use a matching model in which workers are vertically differentiated and where the nature of jobs is endogenous. We show that an improvement in unemployment benefits leads to an increase in productivity by making agents more selective and jobs more complex. However, the impact on labour market participation is negative.