On the assessment of the performance in earnings management for the banking industry: the case of China’s banks

Earnings management is popular in the banking industry. Earnings can be manipulated by discretionary loan loss provisions (DLLP). Analysing the trajectories of banks’ DLLP (i.e. their change in DLLP over time) is an effective way to assess the performance in earnings management for the banking industry, but seems not to have been addressed in the earnings management literature. In this study, we analyse the trajectories of DLLP with the yearly data from 2007 through 2012 for four types of banks in China. The results have indicated that state-owned banks, policy banks and city commercial banks seem to manage earnings well. Cautionary notes about bank risks are provided.     

On the divergence of evolutionary research paths in the past 50 years: a comprehensive bibliometric account

In the last two decades, there has been a noticeable increase in published research on evolutionary economics. The general perception is that formalization lags behind appreciative work. Notwithstanding, this general reading has yet to be supported by real data analysis. This work presents a survey on evolutionary economics, aimed at exploring the main research paths and contributions using bibliometric methods. The documentation is based on an extensive review of the abstracts from articles published in all economic journals over the past 50 years gathered from the Econlit database. Evolutionary contributions have apparently not converged to an integrated approach. Two rather extreme main research strands emerged: ‘History of Economic Thought and Methodology’ and ‘Games’. Whereas formal approaches have a reasonable and increasing share of published papers, purely empirical-related works are relatively scarce, representing a meagre and stagnant percentage of published works. This highlights the need to redirect the evolutionary research agenda.     

The international spillover of china’s monetary policy: a case study of a developing country

This paper aimed to investigate the evidence on the transmission of China’s monetary policy shocks to macroeconomic variables in Iran. Since 1990, China has become one of the main trading partners of Iran; therefore, it is expected that China’s macroeconomic shocks have some consequences on Iran’s Economy. In this study, a structural vector autoregressive model is used to explore such a transmission. The findings of the study reveal that the China’s monetary policy changes significantly affect the Consumer Price Index (CPI) as Iran’s CPI meaningfully increases with the expansion of China’s money supply. Furthermore, it was found that Iran’s other economic variables, including the real GDP, real effective exchange rate, and interest rate, do not significantly reflect the China’s monetary shocks; even though confirm the expected sign and direction.     

On the redistributive effects of Germany’s feed-in tariff

This article assesses the redistributive effects of a key element of German climate policy, the promotion of renewables in the electricity generation mix through the provision of a feed-in tariff. The tariff shapes the distribution of households’ disposable incomes by charging a levy that is proportional to household electricity consumption and by transferring financial resources to households who are feeding green electricity into the public grid. Our study builds on representative household survey data, providing information on various socio-demographics, household electricity consumption, and ownership of photovoltaic facilities. The redistributive effects of the feed-in tariff are evaluated by means of inequality indices. All the indices indicate that Germany’s feed-in tariff is regressive.     

Factor analysis and structural equation model for patent analysis: a case study of Apple’s technology

In this study, we analyse patent data for technology analysis (TA) because patents are rich in information on developed technology. The results of TA can be used to perform more efficient research and development (R&D) planning. Most companies are trying to develop new and innovative technologies to improve their competitive positions. Research involving TA has been introduced in a variety of fields. Most of the published research analysed original variables related to a target technology. However, it is necessary to analyse the latent variables as well as the original variables included in the technology to achieve a better TA model. Therefore, we propose a factor analysis and a structural equation model for patent analysis. In addition, we use Apple’s patents to determine the target technology. In our case study, we analyse Apple’s technologies by latent variables. Our case study shows how the proposed model is applied to Apple’s R&D planning.     

On Hegel’s Interpretation of the Conflict in Antigone

This essay will argue that Hegel’s balanced interpretation of the Antigone is the correct one on the grounds that any interpretation that favors either Creon or Antigone or reduces the conflict to one of personalities and not values would render Antigone a weaker tragedy.     

On the origin of money,or Menger’s one-sided reading of Genovesi’s Lezioni

Abstract

By examining Menger’s interpretation of Genovesi’s arguments on the origin of money, this note shows that Genovesi is a subtle theorist managing to blend the Cartalist with the Mengerian approaches to the origins of money. Far from resting exclusively on the Mengerian unattended consequences of the uncoordinated behaviours of rational agents trying to minimise their transaction costs, Genovesi shows how governments can and do create fiat money with a positive value in connexion with their ability to raise taxes. For Genvesi both trust (à la Menger) and authority (à la Cartalist) are necessary to explain the positive value of money.     

The value of a year’s general education for reducing the symptoms of dementia

We present a method for estimating the benefits of years of education for reducing dementia symptoms based on the cost savings that would accrue from continuing independent living rather than relying on formal or informal carers. Our method for estimating the benefits of education involves three steps: first taking a year of education and seeing how much this lowers dementia, second using this dementia reduction and estimating how much independent living is affected and third applying the change in caregiving costs associated with the independent living change. We apply our method for estimating education benefits to a National Alzheimer’s Coordinating Center sample of 17,239 participants at 32 US Alzheimer’s disease centres over the period September 2005 and May 2015.     

On the optimality and sustainability of Turkey’s current account

We analyze Turkey’s current account optimality and sustainability between 1992 and 2004. Using the intertemporal benchmark model for Turkey’s current account we test for its intertemporal solvency. Based on traditional and alternative tests (which account for persistence in the current account), we conclude that Turkey breached the intertemporal solvency condition in the sample period. In addition, stationarity tests of the deviation between actual and optimal net external liabilities series confirm that Turkey’s current account deficit was unsustainable for that period. However, further econometric investigation and analysis of reforms causes us to question our conclusions of non-optimality and unsustainability of the Turkish current account for the latter part of the period. We are indebted to two anonymous referees for insightful comments and suggestions. We would also like to thank seminar participants at Middle Eastern Technical University, Ankara, Turkey, for comments on an earlier version of this paper. Responsibility for all errors remains with the authors.     

In search of the good samaritan: estimating the impact of ‘altruism’ on voters' preferences

This paper continues the development of a theoretical foundation for measuring ‘altruistic’ behaviour with respect to tax versus expenditure preferences in three specific spheres: health, education and welfare payments. Particular emphasis is placed on analysing the choice theoretic calculus that underlies individual preferences. Using this theoretical foundation, econometric techniques allow progress to be made in measuring the characteristics of the underlying utility function. The empirical work relates to the UK and confirms that both self-interest and public interest (with a slight emphasis on the latter) determine overall preferences. The implications of this for the public choice school are then examined.     

On the ‘Origins’ of Sraffa’s Production Equations: A Reply to de Vivo

In this rejoinder to de Vivo’s comment on Gehrke and Kurz (2018, ‘Sraffa’s constructive and interpretive work, and Marx.’ Review of Political Economy) we first ask what could possibly be meant by seeking to identify the ‘origins’ of Sraffa’s production equations. We then show that in his comment de Vivo has abandoned his original view, according to which the magnitudes in Sraffa’s ‘first equations’ are to be interpreted in Marxian (labour) value terms, without advising the reader. In addition, we show that his ‘new’ view is not supported by evidence from Sraffa’s papers. De Vivo misconstrues several propositions of Sraffa and misunderstands his ‘reduction method’ by means of which the values of commodities are reduced to some basic product or to labour. The criticisms de Vivo levels at the interpretation advocated by us are without any foundation.     

Decentralized planning in a market economy? On the nature of Coase’s research program

By drawing attention to the planning islands of firm organizations in a market economy, Coase makes us believe that besides the price mechanism, there is another means of coordination, namely deliberate coordination. With the firm as an exemplary case of deliberate coordination was introduced into landscape of economics, Coase initiated a new research program which is to inquire into how efficiency is (and could be) achieved via various kinds of institutional arrangements, from the price mechanism, to firms, to government regulations. This paper acknowledges the positive role Coase has played in drawing economists’ attention to the generally neglected field of organizational research. It criticizes, however, his research program for viewing the economy, or society, from the perspective of some concrete decision-making entity.     

On the Fundamentals of a Successful Reform for National Prosperity--An Economic Analysis Based on the Practice of China＇s Reform

This paper discusses the fundamentals required for successful reform, i.e., the necessary institutional changes required to make a nation grow sustainably wealthier. It argues that enriching the people is a prerequisite for a prosperous nation and further reveals the inherent logic behind the statement ＂in order to enrich the people, they must be given private rights, and in order to protect the people＇s private rights, public power must be limited.＂ Based on this argument, we examine and analyze the experience of China＇s reform over the past 30 years and come to the conclusion that it is necessary to transform government functions and further deepen market-oriented reform. We hold that China＇s economic performance bears no special or exceptional economic law, and there does not exist the so-called ＂China Model＂ characterized by government taking the leading role as a relatively mature, stable, and widely applicable development model, but that there does exist a Chinese development path or experience featuring the inherent logic of ＂prospering the nation through enriching its people＂ that can be employed by countries all over the world.     

On the employment effects of outward FDI: the case of Spain, 1995–2011

In this article, we analyse the impact on domestic employment resulting from outward FDI performed by Spanish firms, using industry data for the period 1995–2011. Together with the effects on the total employment, we differentiate the effects according to the particular groups of countries and activities to which those FDI outflows are addressed. In addition, the impact of outward FDI on the demand for labour is also analysed separately for high and low skill levels of the labour force.     

Strategic intent and the strategic position of smallholders: a case study of a smallholders’ organization in the Ghanaian cocoa industry

Abstract

Despite their clear relevance in western business society, many strategic management literature insights are neglected in the development debate regarding smallholders in third world countries. This article explores if strategic intent may be a useful tool in the smallholder debate, by conducting a case study of a smallholders’ organization in the Ghanaian cocoa industry. The case study shows that the strategic intent of the smallholders’ organization and the commitment of its members are inadequate. Group goals are lacking, farmers are participating in side-selling, and do not actively engage in the cooperative. These problems may be resolved by propositions provided by the strategic management literature, such as the introduction of an entrance fee to participate in the cooperative.