Openness and interest rates: An analysis using the MIUF model and transaction cost model of money

This paper discusses the manner in which the difference in the specification, which generates a demand for money by agents, alters the optimal interest rate in open economies by taking into account that the prices reflect the producers' optimization. In acanonical money-in-the-utility function (MIUF) model, the Friedman rule is optimal. On the other hand, in the transaction cost model, the optimal interest rate is positive and increases, in terms of the share of imports in consumption.     

Optimal age‐dependent income taxation in a dynamic extensive model: The case for negative participation tax on young people

We consider optimal age‐dependent income taxation in a dynamic model where the labor‐leisure choice is the extensive margin, each household faces idiosyncratic shocks to labor productivity and a pecuniary cost to work, and there is no insurance market against the shocks. We show that the well‐known property of the optimal participation tax rate in the static model continues to hold in our dynamic economy, that is, the participation tax rates for some income groups with low consumption are likely negative. In dynamic models, the optimal participation tax rate depends on age and on labor income. Our numerical simulations suggest that a negative participation tax should be restricted to young households.     

EBITDA margin in brazilian companies Variance decomposition and hierarchical effects

This study explores the controversy between the business and academic perspectives regarding earnings before interest, taxes, depreciation, and amortization (EBITDA). Some authors argue that EBITDA is not useful as an indicator, except for comparing companies within the same sector (Assaf Neto, 2003, McClure, 2006, Stumpp, 2000). On the other hand, the business world strongly uses this type of indicator as a tool to support its decisions (Schmalensee, 1985, Moraes, 2005). This difference in opinions has aroused interest in understanding the reasons for its use and has raised questions regarding the usefulness of EBITDA for comparing companies from both the same and different sectors. By applying Hierarchical Linear Modeling (HLM), the main goal of this research is to observe EBITDA behavior across companies selling goods in Brazil, comparing them within the same sector and across different sectors over time. This research allows for the analysis of the reasons why EBITDA patterns occasionally occur. The results show significant variation in EBITDA among companies across the same sector and across companies from different sectors. On the other hand, our results have shown, nevertheless, that the variability among companies from the same sector was the highest one, raising questions on the actual usefulness of this indicator to compare companies from the same sector.     

Inter-regional and inter-temporal analysis of travel behaviour for Asian metropolitan cities: Case studies of Bangkok, Kuala Lumpur, Manila, and Nagoya

The unprecedented demand for travel experienced in Asia, in conjunction with the economic development of the1980s, has resulted in a number of detrimental effects on urban systems. Economic development has certainly intensified per capita income enhancing personal mobility. In Asia, private vehicle ownership and usage have continued to be recognised as an obligatory element of travel for many. Undoubtedly there is a direct relationship between vehicle ownership and public transport usage. Inter-regional and inter-temporal investigations of travel behaviour in Asian cities are therefore necessary to develop an understanding of the future transportation system including suitability and the role of public transport. Since travel data are scarce in Asian countries, inter-regional or inter-temporal travel behaviour investigations do not exist to date. Several travel demand models are developed using discrete choice modelling techniques and Bangkok, Kuala Lumpur, Manila, and Nagoya as case studies. Estimation results of the mode choice models are successfully incorporated to compare travel behaviour trends in selected cities in Asia. The developed models are tested for spatial and temporal transferability.     

A macroeconomics perspective on international coordination in sales taxes

This article investigates how international coordination vis-à-vis sales tax policies affects the welfare of participating countries. A country's tax policies have asymmetric effects on the pricing behaviors of domestic and overseas producers. International cooperation endogenizes the externality that improves the purchasing power of foreign residents, but at the cost of its own residents’ work efforts. The first-best taxes are lower than in the noncooperative case. When world welfare is utilitarian, smaller economies may experience welfare losses from cooperation under the weak income effect of sales tax. We propose a coordinated tax rule that all countries agree to employ.     

Charitable behavior in China under the Charity Law: Evaluation of charity advertisements involving in-groups and out-groups

This paper examines Chinese charitable behavior in 2016—the year the Charity Law was enforced—with a focus on the evaluation of charity advertisements. The 2016 Charity Law is the first law in China to regulate charitable organizations and their activities. It also provides various tax incentives for charitable organizations and donors. A study was conducted to understand Chinese charitable behavior in terms of in-groups and out-groups. Results indicate that the Chinese more positively evaluate charity advertisements targeting in-groups than those targeting out-groups. This relationship between advertisement type and advertisement attitude is mediated by ethnocentrism. Furthermore, we found that familiarity with the Charity Law moderates the effect of ethnocentrism on advertisement attitude.     

Managed futures,positive feedback trading,and futures price volatility

A major issue in recent years is the role that large, managed futures funds and pools play in futures markets. Many market participants argue that managed futures trading increases price volatility due to the size of managed futures trading and reliance on positive feedback trading systems. The purpose of this study is to provide new evidence on the impact of managed futures trading on futures price volatility. A unique data set on managed futures trading is analyzed for the period 1 December 1988 through 31 March 1989. The data set includes the daily trading volume of large commodity pools for 36 different futures markets. Regression results are unequivocal with respect to the impact of commodity pool trading on futures price volatility. For the 72 estimated regressions (two for each market), the coefficient on commodity pool trading volume is significantly different from zero in only four cases. These results constitute strong evidence that, at least for this sample period, commodity pool trading is not associated with increases in futures price volatility. © 1999 John Wiley & Sons, Inc. Jrl Fut Mark 19: 759–776, 1999     

Public anxiety after the 2011 Tohoku earthquake: fluctuations in hazard perception after catastrophe

In 2011, Japan received a massive blow from the Tohoku Earthquake and the ensuing disaster at the Fukushima Dai-ichi Nuclear Power Generation Plant (hereafter, the Fukushima Nuclear Plant), with 18,000 people dead or missing, and more than 330,000 evacuated long-term. Anxiety among the people of Japan concerning earthquakes and nuclear accidents is higher than ever, but other hazards confront them as well. This research investigated whether the Japanese people’s anxiety about a variety of other hazards has increased or decreased since the Tohoku Earthquake. Based on the availability heuristic, the contrast effect, and the finite-pool-of-worry hypothesis, it was predicted that public anxiety about earthquakes and nuclear accidents would increase, but anxiety about other hazards would decrease. Data from two nationwide surveys conducted in January 2008 and January 2012 were compared to see the change in societal levels of anxiety toward 51 types of hazards. The results showed that anxiety had increased after the Tohoku Earthquake for only one hazard other than earthquakes and nuclear accidents. For 29 other hazards, the anxiety levels had significantly decreased; and for the remaining 19 hazards, there was no significant change. These results support the prediction, indicating that post-disaster, the overall anxiety levels of the Japanese people tended to decline. Practical implications were discussed with a focus on problems that might be caused by the changes in anxiety level.