A test of the permanent income hypothesis on Czech voucher privatization

In 1992 the Czech Republic privatized state assets, which resulted in some citizens receiving an unexpected windfall. Whether the windfall was consumed or saved provides a clear test of the permanent income hypothesis in a transitional economy. Analysis of data from a survey conducted specifically to test this hypothesis indicates that only a small number of transferred assets were consumed, a finding which is consistent with the permanent income hypothesis. JEL classification: D31, E21, H24.     

Consumption and disposable income in the EU countries: the role of wealth effects

We investigate the long run relationship between private consumption and disposable income for a sample of EU countries using recently developed panel cointegration techniques. For the ordinary consumption-income model the evidence on cointegration is ambiguous. In addition, the cointegration vector obtained by efficient estimation methods is not consistent with theoretical reasoning, as it reflects a decline in the savings rate over time. Extending the analysis by financial wealth improves the model fit markedly. In particular, the income elasticity is not different from 1 and therefore in line with the life cycle permanent income hypothesis. The marginal propensity to consume out of financial wealth is in a range of 3–5%, thereby confirming recent time series results.     

Testing the uncertainty outcome hypothesis using data from second tier soccer in Ireland

This study estimates a demand relationship for second tier soccer in Ireland to test the uncertainty outcome hypothesis (UOH). Using data from three recent playing seasons, the UOH is found to be upheld. In addition, well-determined effects for fixture quality, recent team performance and travel distance between the competing teams’ stadia are also obtained.     

Measuring uncertainty of the euro area NAIRU: Monte Carlo and empirical evidence for alternative confidence intervals in a state space framework

This paper investigates uncertainty around point estimates of the euro area NAIRU in a state space framework. The relative accuracy of alternative measures of uncertainty for state space models are compared using Monte Carlo simulations. A direct bootstrap method yields confidence intervals with lower coverage probability than confidence intervals based on mean squared errors (MSE) approximations. The degree of uncertainty of the euro area NAIRU is estimated with a trivariate state space model. The direct bootstrap method shows the narrowest confidence interval compared with the MSE approximations. However, the wider intervals based on MSE approximations are narrow enough for the identification of some periods in time where observed unemployment and the NAIRU differ significantly.     

The political economy triangle of government spending,interest-group influence,and income inequality: Evidence and implications from the US states

This paper introduces the political economy triangle (PET) concept of government spending, special interest groups (SIGs) influence, and income inequality, empirically confirming its existence and unveiling its nature while directly addressing key shortcomings of most prior research on the determinants of such inequality. Using static and dynamic panel techniques and data from the US states, it reports several new results: (i) the findings of previous studies regarding the roles of government spending and interest groups, including labor unions, in income distribution are confirmed, however, their estimated inequality effects grossly underestimate those obtained when endogeneity issues are accounted for explicitly; (ii) a dynamic tripartite relationship between the variables of the PET exists; (iii) government spending and SIGs' influence, including union strength, beyond their direct effects on inequality, have a separate positive impact through their interactions; (iv) the effectiveness of government spending in reducing inequality diminishes as the level of SIGs' influence and union strength increase in the short and long run, (v) the aggregate inequality-increasing effect of SIGs is strengthened and the inequality-reducing effects of unions weakened as the spending rises, in the short run and long run. Finally, the broad implications of these findings are discussed.     

On the impact of innovation and inequality in economic growth

We present robust results on the empirical relationship among income inequality, innovation, and economic growth for a panel dataset of 74 countries over the period 1996–2014. We estimate pairwise causality tests to show that there is bidirectional causality between GDP per capita and R&D, while R&D causes the Gini index of income inequality, and it causes human capital. Allowing coefficients to be different across cross-sections of countries, we get in any case a pairwise bi-directionality. By dynamic panel data estimations, when regressing R&D on GDP per capita, we obtain a threshold value of 0.16% of R&D such that for values above it there is economic growth. While regressing R&D on the Gini index, we get a threshold of 0.10% of R&D above which, the income distribution begins to improve. Finally, we estimate a growth equation that depends on R&D, income inequality, and physical capital. We obtain two thresholds, one of 38.79 for the Gini (above which the economic growth decreases), and one of 0.06% for R&D such that above it, economic growth is rising.     

天津财政收入与GDP关系的协整分析与误差修正模型研究

利用协整理论对1978--2006年天津市财政收入与GDP之间的关系进行实证研究,结论是：天津市财政收入与GDP之间存在长期稳定均衡的协整关系和短期动态调整机制;天津市财政收入与GDP之间存在Granger因果关系;通过误差修正模型可以具体解释协整关系背后的内在原因和作用机制。     

Trade integration and regional income disparities in a growth model with the service sector and footloose capital

This paper proposes a North–South growth model of endogenous industry location which is consistent with recent empirical work showing that regional income disparities have increased in many countries with the process of trade integration. The model incorporates a service sector that benefits from intersectoral knowledge spillovers from the manufacturing sector. We find that, when these spillovers are local, trade integration leads to an increase in interregional real income inequality.     

Beyond absorptive capacity in open innovation process: the relationships between openness,capacities and firm performance

The literature has shown that open innovation (OI) can be a winning strategy in improving firm performance. However, in order to adopt and implement it, managers need to resolve practical problems, such as understanding the role played by OI capacities and openness on firm performance. In response to these needs, this study aims to investigate the hierarchical relationships between openness, OI capacities and performance using a structural equation model approach. This paper also attempts to compare the levels of openness between firms in different industries to discover similarities and differences in OI phenomena. The analysis of data obtained from a survey of Korean firms shows significant interrelations between openness, OI capacities and firm performance. Our results go further in developing understanding of the building blocks on which successful OI is built and particularly suggest that desorptive capacity which underpins the out-bound OI process, is in turn strongly supported by knowledge management capacity. It is hoped that the results of this study can enrich our understanding of the OI mechanism and provide managerial and policy implications.     

The process and experiences with creating user-driven innovation programmes in the Netherlands

In 2005 the Netherlands drafted a new innovation policy, consisting of a basic package for all entrepreneurs and a programme-based package aimed at supporting the Dutch industry in achieving global excellence in a limited number of (business) areas. The programme-based package is characterized by an integral approach, resulting in user-driven public-private innovation programmes. In the new approach, industrial foresight processes are integrated with actual policy implementation. In this paper, we include the lessons learned during the process that led to the first innovation programmes. Also, some unresolved issues in the new approach are discussed.     

Pre-commercial procurement,procurement of innovative solutions and innovation partnerships in the EU: rationale and strategy

We discuss public procurement instruments for acquiring innovation, focusing on the European Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships. We analyse, in particular, how firms’ innovation incentives are affected by: (i) economies of scope and externalities between R&D and large-scale production; (ii) the degree of specificity of the innovation; (iii) the presence of Small and Medium Enterprises in the market and the level of market competition; (iv) the risk of market foreclosure and supplier lock-in. Our study contributes to the literature on incentives in demand-side innovation policy by tapping into the contractual design features and by offering relevant implications for academics and policy-makers.     

The process and experiences with creating user-driven innovation programmes in the Netherlands1

In 2005 the Netherlands drafted a new innovation policy, consisting of a basic package for all entrepreneurs and a programme-based package aimed at supporting the Dutch industry in achieving global excellence in a limited number of (business) areas. The programme-based package is characterized by an integral approach, resulting in user-driven public–private innovation programmes. In the new approach, industrial foresight processes are integrated with actual policy implementation. In this paper, we include the lessons learned during the process that led to the first innovation programmes. Also, some unresolved issues in the new approach are discussed.     

Testing J-curve hypothesis and analysing the effect of exchange rate volatility on the balance of trade in India

This study estimates the balance of trade model similar to Rose (1991) to test the J-curve hypothesis and analyse the effect of conditional exchange rate volatility on the balance of trade in India. The model is estimated on quarterly data from 1975:02 to 1996:03 and the exchange rate is measured alternatively in terms of the trade and export weighted real effective exchange rate. The model variables are tied together in a long run equilibrium relationship. The study does not find any evidence for the presence of the J-curve effect in the balance of trade. The study finds the presence of weak ARCH but strong GARCH effects in the exchange rate series. But this exchange rate volatility does not play any significant role in affecting the balance of trade in India.Jel classification: F31, F32, F40, F41I am grateful to Dr. Glenn Otto of the University of New South Wales, Sydney, Australia for his valuable comments and incisive suggestions which helped to improve the paper substantially. I am also gratefull to an anonymous Referee and Editor, Baldev Raj, of the Journal for giving very useful suggestions. However, I am solely responsible for any error and omission that may remain in the paper. The views expressed in the article are my personal views and not of the institution Iam associated with.First version received: October 2000/Final version received: October 2002     

Stock prices,inflation and inflation uncertainty in the U.S.: testing the long-run relationship considering Dow Jones sector indexes

We test for the long-run relationship between stock prices, inflation and its uncertainty for different U.S. sector stock indexes, over the period 2002M7–2015M10. For this purpose we use a cointegration analysis with one structural break to capture the crisis effect, and we assess the inflation uncertainty based on a time-varying unobserved component model. In line with recent empirical studies we discover that in the long run, the inflation and its uncertainty negatively impact the stock prices, opposed to the well-known Fisher effect. In addition we show that for several sector stock indexes the negative effect of inflation and its uncertainty vanishes after the crisis outburst. However, in the short run the results provide evidence in favour of a negative impact of uncertainty, while the inflation has no significant influence on stock prices, except for the consumption indexes. The consideration of business cycle effects confirms our findings, which proves that the results are robust, both for long- and short-run relationships.     

Steady states in the OLG model with seignorage and long-lived agents

This note provides a direct proof of the fact that in a particular version of the overlapping generations model with long-lived agents and fiat money, there can be at most two stationary states. A simple argument showing the Pareto superiority of the low inflation steady state is also given.     

Connecting life science entrepreneurs with resources and expertise: the role of iungens brokerage in life science innovation

Life science innovation demands detailed expertise at each stage of the development of a commercial product. Besides a perceived shortage of venture capital, venturing life science companies face the challenge of limited access to qualified expertise in regulatory affairs and commercialisation. Examining a bio hub initiative at a major pharmaceutical company, a form of in-house incubator wherein life science companies can both take advantage of laboratory facilities and the stock of expertise of the hosting company, it is argued that such initiatives support the life science innovation field. Taking on an iungens brokerage role, the hosting company effectively connects previously separated actors, thus lowering the transaction costs incurred when accessing qualified scientific, regulatory, and commercial know-how, which are all of great value to life science companies during the venturing phase. The iungens brokerage role thus represents a highly valuable position in the field of life science innovation.     

The development of research and innovation policies based on a benchmarking assessment: the case of mobile communications technology R&D in the new member states of the EU

This paper presents the process and the results that led to an objective assessment of 34 research programmes from 14 countries based on a multifactor analysis. The programmes that were analysed come from the EU's new member states and the accession countries. The methodology used was specially developed for policy development purposes and for the design of the roadmaps leading to an open and successful R&D programme in the area of mobile communications. The method and the results obtained and later used for the policy development and road mapping are discussed. The policies designed and strategic objectives derived are briefly described. The consequences expected to follow the policy implementation in the relevant countries are evaluated and discussed.