Financing energy efficiency retrofits in Chilean households: The role of financial instruments,savings and uncertainty in energy transition

High firewood consumption for heating produces high levels of pollution in cities in central and southern Chile, with serious consequences for health and quality of life. Energy efficiency measures (EEMs) have been identified as the best strategy to reduce air pollution and maximize social benefits. However, their adoption has been slow. The objective of this article is to investigate household preferences for financial incentives needed to promote private investments in EEMs in Central-Southern Chilean households and study the role of energy savings and the uncertainty about potential savings in the investment decision, with the aim of finding solutions to increase the adoption of these technologies. We use a choice experiment to explore the trade-off between the investment costs, financial instruments, energy savings, and the uncertainty about achieving the theoretical savings provided by engineering and architectural models. The results show that financial instruments play the most important role in this decision, followed by the savings achieved by the retrofit. Householders prefer to finance their investments with a mix of their personal resources and medium-term credits, trying to avoid long-term commitments. Although uncertainty was found to be a significant variable, it seems to play a small role in the investment decision.     

Accounting practice,fiscal decentralization and corruption

In prior studies, accounting and decentralization corruption solutions have so far been analysed in isolation. In this article, we connect these two strands of literature on corruption. Understanding this connection is important because weak financial accounting and reporting systems can inhibit monitoring incentives and thus reduce decentralization benefits in countering corruption. We argue that the effectiveness of decentralization as an anti-corruption barrier is complemented by the quality of the accounting practice in a country. Using multiple sources of data, we find that decentralization has a positive and increasing effect on reducing corruption among countries with a high-quality accounting practice. In contrast, decentralization has a negative and decreasing effect on reducing corruption among countries with weak-quality accounting practices. These findings are robust to alternative measures of accounting, decentralization and corruption and to endogeneity tests. Our findings demonstrate the crucial information role of accounting in enhancing decentralization monitoring mechanisms and in thereby reducing corruption.     

Financial development and economic growth in a microfounded small open economy model

The global financial crisis since 2008 revived the debate on whether or not and to what extent financial development contributes to economic growth. This paper reviews different theoretical schools of thought and empirical findings on this nexus, building on which we aim to develop a unified, microfounded model in a small open economy setting to accommodate various theoretical possibilities and empirical observations. The model is then calibrated to match some well-documented stylized facts. Numerical simulations show that, in the long run, the welfare-maximizing level of financial develop is lower than the growth-maximizing level. In the short run, the price channel (through world interest rate) dominates the quantity-channel (through financial productivity), suggesting a vital role of international cooperation in tackling systemic risk of the global financial system.     

Risk spillover between Bitcoin and conventional financial markets: An expectile-based approach

In order to challenge the existing literature that points to the detachment of Bitcoin from the global financial system, we use daily data from August 17, 2011–February 14, 2020 and apply a risk spillover approach based on expectiles. Results show reasonable evidence to imply the existence of downside risk spillover between Bitcoin and four assets (equities, bonds, currencies, and commodities), which seems to be time dependent. Our main findings have implications for participants in both the Bitcoin and traditional financial markets for the sake of asset allocation, and risk management. For policy makers, the findings suggest that Bitcoin should be monitored carefully for the sake of financial stability.     

Improving forecasting performance using covariate-dependent copula models

Copulas provide an attractive approach to the construction of multivariate distributions with flexible marginal distributions and different forms of dependences. Of particular importance in many areas is the possibility of forecasting the tail-dependences explicitly. Most of the available approaches are only able to estimate tail-dependences and correlations via nuisance parameters, and cannot be used for either interpretation or forecasting. We propose a general Bayesian approach for modeling and forecasting tail-dependences and correlations as explicit functions of covariates, with the aim of improving the copula forecasting performance. The proposed covariate-dependent copula model also allows for Bayesian variable selection from among the covariates of the marginal models, as well as the copula density. The copulas that we study include the Joe-Clayton copula, the Clayton copula, the Gumbel copula and the Student’s $t$-copula. Posterior inference is carried out using an efficient MCMC simulation method. Our approach is applied to both simulated data and the S&P 100 and S&P 600 stock indices. The forecasting performance of the proposed approach is compared with those of other modeling strategies based on log predictive scores. A value-at-risk evaluation is also performed for the model comparisons.     

Is it U.S. GAAP or IFRS? Understanding how R&D costs affect ratio analysis

While financial reporting standards under U.S. GAAP and IFRS are fundamentally similar, differences do exist that may affect our analysis of company financial statements. This is particularly true when comparing a U.S. company following U.S. GAAP to a firm that uses IFRS. To illustrate, we compare research and development (R&D) accounting methods under both sets of standards and illustrate how they affect the analysis of financial results of firms in a specific industry—automotive manufacturers. Our results provide insight into settings in which differences in R&D accounting may have the greatest impact on financial analysis.     

The ‘Blogosphere’ as a platform for interpretative phenomenological analysis: the case of TEFL tourism

The use of the Internet is becoming increasingly integral to the day-to-day operations of society, facilitating an interconnected and globalised world, where geographic barriers are no longer a defining criteria for communication. This opens the researcher up to a realm of research opportunities, which to-date have been under-exploited. This paper contributes to the wider body of literature addressing the concept of Online research, demonstrating in practice how it can be utilised in the context of interpretative phenomenological analysis. It is argued that netnography is akin to interpretative phenomenological analysis (IPA) in that it accounts for an individual’s personal perception or account of an event or state, as opposed to attempting to produce an objective record. This paper outlines how blog analysis can be utilised in the context of IPA, demonstrating how this worked in practice during the initial exploratory research phase of the teaching English as a foreign language tourism phenomenon.     

Understanding the trend to mobile-only internet connections:A decomposition analysis

A growing portion of internet users rely solely on mobile devices such as smartphones for their online access. The percentage of “mobile-only” households increased from 9% in 2011 to 20% in 2015, more than doubling in only four years. As this shift continues, it leads to the question of what factors are driving the rise in mobile-only adoption. Using nationally representative data, this study uses logistic regressions and a decomposition technique to understand the trend. The decomposition reveals that a significant portion (65%) of the growth was due to an increase in the download speeds of mobile networks. An increased acceptance of mobile-only access by households aged 55 and older was also partly responsible. Understanding (and developing a response to) the trend towards mobile-only adoption will be important as organizations and governments continue to work to close the digital divide.     

Nicknames as identity badges: How self-reflective nicknames can facilitate users’ online social interactions

An Internet nickname is essential in facilitating online interpersonal interactions. It is a pivotal element of interaction that provides other users with an initial impression and affects the decisions and behaviors of users during their online interactions. Although the existing literature has found that nicknames are relevant to users’ psychology and behavior, direct research on the motivation for and the effect of choosing a particular Internet nickname has been very limited. Borrowing from relevant theories on avatars, this paper summarizes the motivations behind Internet nickname choices in terms of three aspects: virtual exploration, social navigation and contextual adaptation. Moreover, from the perspective of collective self-esteem (CSE) and group identification, this research explores the influence mechanism between the motivations underlying Internet nickname choices and users’ online social interactions. A total of 394 samples were obtained from online communities in China to test our research model. We found that virtual exploration, social navigation and contextual adaptation are three motivations for creating Internet nicknames, and they have direct effects on the online social interactions of users. CSE has a full mediating effect between virtual exploration and online social interaction and acts as a mediated variable between social navigation and online social interaction. Group identification fully mediates the relationship between social navigation and online social interaction as well as that between contextual adaptation and online social interaction. The conclusion of this paper provides not only a new perspective for the study of Internet nicknames but also a potentially feasible way to stimulate users’ online social interactions.     

The mechanism of credit risk contagion among internet P2P lending platforms based on a SEIR model with time-lag

The credit risk contagion of Internet peer-to-peer (P2P) lending platforms is an important part of Internet financial risk management and supervision. This study analyzes the contagion path of credit risk in Internet P2P lending. Based on complex network theory and the theory of infectious disease dynamics, the characteristics of Internet P2P lending development are combined to construct a SEIR model of credit risk transmission among Internet P2P lending platforms with time lag, and the robustness of the model is analyzed and proven. The influence of platform correlations, the susceptible immune rate, the platform elimination rate, contagion latency, the saturation coefficient, and the susceptibility input rate on credit risk contagion behavior among Internet P2P lending platforms is analyzed, using the equilibrium point and threshold value. The impact of each variable is analyzed by simulation. Corresponding countermeasures and suggestions are proposed to prevent and control credit risk contagion among these platforms.