Multiple job holding as a strategy for skills development

This study investigated the training effect of multiple job holding on the activity of main jobs. First, we developed a dual-labor supply model by adding the training effect of working second jobs. The theory showed that workers with unconstrained hours hold second jobs when they develop skills via the experience of second jobs. To verify the hypotheses from the theoretical model, the causal relationship between holding a second job and the wage rate of a main job was estimated using the Keio Household Panel Survey. Difference generalized method of moments was adopted to remove time-invariant individual effects and endogenous bias. Moreover, the estimations showed heterogeneity of main jobs in terms of length of working hours, tasks, and job turnover. Full-time workers engaged in intelligent tasks and those who did not change their jobs secured training effects from second jobs but only when the comparison group was the workers allowed to hold second jobs by their employers. It was presumed that employers paid to restrict employees’ activities. On the contrary, part-time workers engaged in physical tasks were exhausted by second jobs, which decreased the wage rate of their main jobs.     

The determinants of commercial banking profitability in low-, middle-, and high-income countries

Using a broad bank-level dataset and the GMM estimator technique described by Arellano and Bover (1995), this paper analyses how bank-specific characteristics, macroeconomic variables, and industry-specific factors affect the profitability of 10,165 commercial banks across 118 countries over the period from 1998 to 2012. Grouping the countries according to three income levels, we show that the determinants of bank profitability included in our model can explain existing profitability differences among commercial banks in low-, middle-, and high-income countries. The profitability determinants vary quite widely across the different levels of income in terms of significance, sign and size of the effect. The level of income has thus an important impact on the determinants of bank profitability.     

技术创新、金融创新与经济增长——基于中国省际面板数据

本文从实证分析层面对金融创新、技术创新与经济增长之间的作用关系进行探讨。基于我国 2000~2015 年省级面板数据，采用GMM估计方法，利用动态面板模型进行实证检验。结果表明：技术创新对经济增长的影响显著为正，单独的金融创新对经济增长起抑制作用，二者的交互作用则对经济增长起显著性正向作用。脱离实体经济的金融创新将抑制经济增长，也会间接阻碍技术创新对经济增长的影响。本文结合当前经济形势，从金融机构与创新企业相接轨共同提高创新水平、培养创新型人才等角度提出建议。     

Risk-Taking Behavior and Capital Adequacy in a Mixed Banking System: New Evidence from Malaysia Using Dynamic OLS and Two-Step Dynamic System GMM Estimators

This study is the first attempt to investigate the relationship between the level of risky assets and capital level in a mixed Malaysian banking system covering 83 months starting December 2006. The results of dynamic ordinary least squares indicate positive relationship between capital ratio (CAR) and risk-weighted asset ratio (RWA) in the long run. Furthermore, the causality analysis based on panel vector error correction model (VECM) and two-step dynamic system generalized method of moments indicates unidirectional causality from CAR to RWA. Our results further suggest that higher capital growth and capital buffer provide an extra cushion for the Malaysian banks to pursue relatively riskier financial activities, and the nature of risk-taking behavior of Islamic banks follows that of the conventional banks.     

Is ex-post credit risk affected by the cycles? The case of Italian banks

The objective of this research is to empirically examine if both credit and business cycle affect the ex-post credit risk (i.e. non-performing loans) in the banking system of Italy for the period 1995Q1–2014Q1. The increase in NPLs post-2008 has put into question the robustness of many European banks and the stability of the whole sector. It still remains a serious challenge, especially in Italy which is one of the countries that hit by the financial crisis. By employing fixed and random effects and a dynamic GMM estimation as econometric methodologies I find results that underline common causes for NPLs. Higher NPLs in Italy are mostly due to worse macroeconomic conditions (i.e. bad phase of business cycle) and due to excess credit. Through a Granger causality test, my arguments found even more support. Such findings can be helpful when designing macro-prudential as well as NPL resolution policies.     

Microstructures,financial reforms and informational efficiency in an emerging market

This paper investigates the effects of microstructures and financial reforms on time-varying informational efficiency in an emerging equity market setting. Our data comprises of firm level data from the Trinidad and Tobago Stock Exchange, over the period 1990–2013. Using a dynamic panel regression framework while controlling for firm size, we find that microstructures, specifically liquidity, volatility, automation and the number of shareholders have an important role in influencing the time-varying efficiency of this emerging market. The financial reforms, namely liberalisation and regulation are not found to have a notable influence. We also consider heterogeneity at the firm level, finding that the microstructures of the banking firms listed in this market have a greater impact on market efficiency, in relation to the other listed firms.     

Credit risk,managerial behaviour and macroeconomic equilibrium within dual banking systems: Interest-free vs. interest-based banking industries

In this paper, an attempt has been made to explore the determinants of credit risk in the banking system with a particular interest toward the Islamic banking industry. We analyze the link between credit risk and a set of bank-specific and macroeconomic along with institutional variables using two complementary approaches. First, we investigate the factors of credit risk using one-step generalized method of moments (GMM) system estimator. Then, we explore the feedback between credit risk and its determinants in a panel vector autoregressive (PVAR) model. We have used a sample of Middle Eastern, North African (MENA) and Asian countries to apply our model. The major purpose of this paper is to find factors that could explain credit risk within the interest-free banking system relative to the interest-based one.     

Semi-parametric predictions of the intertemporal approach to the current account

This paper uses the method dynamic programming (DP) by GMM and Canadian data to estimate a dynamic model of a small-open economy. DP by GMM has several appealing features: it does not impose certainty equivalence, it accommodates multiple shocks and imposes few restrictions on the properties of the shocks in the model. Also, since it uses the actual shocks series to estimate approximate decision rules, it produces sample paths for the endogenous variables in the model. The model estimated fits the data well. In particular, the variance of the predicted trade balance-output ratio matches its empirical counterpart.     

The Labour Input Response to Permanent Changes in Output: An Errors-in-Variables Analysis Based on Panel Data

Using panel data for Norwegian manufacturing, we revisit 'the increasing returns to scale puzzle' for labour inputs. We consider the response of the input of white-collar workers, blue-collar workers, and blue-collar worker hours to permanent changes in output. Permanent and temporary changes in output are treated as latent variables. We compare OLS, IV, and GMM estimates of the response elasticities and conclude that the distinction between permanent and temporary changes is essential. Our GMM estimates suggest that the 'increasing returns to scale puzzle' remains for all measures of the labour input also when we consider their response to permanent changes in output. For materials, the output response indicates approximately constant returns to scale. This suggests non-homotheticity of the production technology.
JEL classification : C 23; J 23