The International Monetary Fund (IMF) and the Catalytic Effect: Do IMF Agreements Improve Access of Emerging Economies to International Financial Markets?

We investigate whether countries have access to loans with better conditions after an International Monetary Fund (IMF) agreement. We conduct an empirical analysis which takes into account both the maturity and the interest rate of public and publicly guaranteed private debt. A two‐stage least squares estimation method is used to avoid selection bias problems. Panel data covering 116 countries between 1984 and 2007 and two other subsets of this panel data are used. The results indicate an improvement in access to international financial markets when an IMF programme is announced. The improvement increases as the sample consists of better‐performing countries. We conclude that, the catalytic effect may lower the level of commitment, political will and ‘ownership’ of the programme of the borrower country. On the other hand, borrower countries should consider the catalytic effect in determining the amount of financial assistance from the IMF.     

Efficiency in accounting education: evidence from Turkish Universities

It is important to see efficiency of accounting education in order to fully understand the operational environment of companies. In this study, the 45 public universities in Turkey was investigated by using Data Envelopment Analysis [DEA]. In order, some definitions for the outputs and inputs are required for the model. The criteria developed by American Assembly of Collegiate Schools of Business (AACSB) is used as definitions for inputs, is used and the result of the Selection Exam for Public Personnel [SEPP] is used to measure efficiency in accounting education. According to our results, Turkish universities are successful in producing the most appropriate output. They are usually using their input components in a favorable way. According to our model accounting education delivered in the undergraduate programs of the higher education system in Turkey is generally effective. But universities are using resources excessively to get the output. On the departmental basis, Turkish universities are technically effective to a great extent. It is determined that the departments of labor economics, industrial relations and partially public finance are more effective departments. According to resource usage, while the most effective departments are departments of public finance, departments of business administration are the most ineffective ones.     

Sequential Product Design

I consider a model of duopoly where firms make sequential product design changes prior to price competition. I show that a socially desirable outcome is possible in this model. In equilibrium, the leader's product is less specific, implying a customer attraction strategy, and the follower's product is more specific, implying a customer retention strategy. This outcome is in contrast with the equilibrium outcome of a similar model, where simultaneous design competition takes place prior to price competition. In this latter model, the product designs are more specific and the prices are higher in equilibrium, leading to a reduction in welfare. I compare the design incentives under price competition with those in models where price collusion or merger is expected and with multi-product monopoly. In models with no price competition, less specific designs may serve to attract more customers, to improve current or future pie of monopoly profits, or to improve the outside option in bargaining game, depending on the model.