Time Series Analysis of Deregulatory Dynamics and Technical Efficiency: The Case of the U.S. Airline Industry

As markets worldwide become less regulated, it becomes increasingly possible and timely to establish the presence of an empirical relationship between technical efficiency and market forces compelling agents to economize. This article, taking an innovative approach to test the hypothesis that competitive pressure enhances efficiency, constructs a methodology to examine time series of technical efficiency indices for cointegration and convergence. A panel of U.S. airlines, observed quarterly between 1970 and 1990, is used as a case study. Cointegration results are suggestive of long-run relationships between carriers; furthermore, convergence tests document less dispersion in firm performance over time.     

A Partial Equilibrium Analysis of Trade with Decreasing Transport Costs

Decreasing transport costs are incorporated in the standard partial equilibrium analysis of trade by allowing the divergence—introduced by transport costs—between export and import price to decrease with the volume of trade. When the excess demand (supply) curve is steeper than the long run average cost curve for imports (exports), we observe that an import (export) tariff raises (lowers) the domestic price by an amount exceeding the tariff. Further, when the excess demand (Supply) curve is less steep than the long run average cost curve for imports (exports), the possibility exists that an import (export) tariff may lower (raise) the domestic price. These results lead to the important conclusion that tariffs cannot be used as measures of nominal protection across industries. [F10]     

Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies

The purpose of this article is to empirically investigate the impact of economic growth, oil consumption, financial development, industrialization and trade openness on carbon dioxide (CO₂) emissions, particularly in relation to major oil-consuming developing economies. This study utilizes annual data from 1980 to 2012 on a panel of 18 developing countries. Our empirical analysis employs robust panel cointegration tests and a vector error correction model (VECM) framework. The empirical results of three panel cointegration models suggest that there is a significant long-run equilibrium relationship among economic growth, oil consumption, financial development, industrialization, trade openness and CO₂ emissions. Similarly, results from VECMs show that economic growth, oil consumption and industrialization have a short-run dynamic bidirectional feedback relationship with CO₂ emissions. Long-run (error-correction term) bidirectional causalities are found among CO₂ emissions, economic growth, oil consumption, financial development and trade openness. Our results confirm that economic growth and oil consumption have a significant impact on the CO₂ emissions in developing economies. Hence, the findings of this study have important policy implications for mitigating CO₂ emissions and offering sustainable economic development.     

The mixed attribute model in SFAS 133 cash flow hedge accounting: implications for market pricing

In this study, we examine the pricing of cash flow hedge adjustments reported in other comprehensive income (OCICF), under the mixed attribute model in SFAS 133 Accounting for Derivative Instruments and Hedging Activities. Our OCICF pricing investigation integrates empirical research on the derivatives use that gives rise to such mark-to-market adjustments with the accounting information pricing literature. Based on this integration, we generalize mispricing theory for the SFAS 133 mixed attribute model and predict both the direction and magnitude of OCICF pricing. Screening on U.S. multinationals with ex ante exposure to currency risk, we provide evidence of OCICF mispricing in the expected direction, consistent with the notion that SFAS 133 cash flow hedge accounting results in a mixed attribute problem (Gigler et al. in J Account Res 45:257–287, 2007). Moreover, we find that both OCICF gains and losses are inversely related to future cash flows and of the expected magnitude, consistent with our predictions based on valuation theory (for example, Ohlson in Rev Account Stud 4:145–162, 1999). Our results support the Financial Accounting Standards Board’s concern that the SFAS 133 mixed attribute model does not provide the information necessary for investors to understand the net economic effects of derivatives use (FASB in Accounting for financial instruments and revisions to the accounting for derivative instruments and hedging activities. FASB, Norwalk, 2010).     

How terrorism affects the economic performance? The case of Pakistan

We examine application of the Economics of Crime Monitoring Model (ECM-Model) Ruiz Estrada and Ndoma (J Policy Model 36:867–882, 2014) on Pakistan terrorism activities. The application of ECM-Model is used to evaluate the impact of terrorism on the economic performance of Pakistan economy. First part of the research work is related to introduction and background of study. The second section is associated with the theoretical and conceptual frame work that explains how terrorism affects the economy. The third part of the paper describes the methodology of the model. The fourth part of this research paper elaborates the results of the study. The second last part of the paper is the econometrics techniques and results which support the model and last part of the research work is conclusion and recommendations.     

Policy preferences of experts seeking to raise and stabilise farm incomes in the Eastern Gangetic Plains

Poverty is endemic in the highly populated Eastern Gangetic Plains where agriculture is critical to more than half the population. However, the mechanisms to support agriculture for development are contested. For example, some have advocated a strong role for government support and assistance due to market weaknesses, while others have promoted the need for more market-oriented approaches. We use an elicitation process focussed on expert policymaking communities, employing stated preference techniques to explore these options. Differences in perceptions about the effectiveness of policies and their delivery are reported between countries, while also empirically examining the influence of the respondents' organisational background. The results show support for policies that improve farmers' access to inputs, especially when delivered by private sector actors. The research provides an important contribution to the literature on policies for agricultural development.     

Measuring technical efficiency of banks vis-à-vis demonetization: an empirical analysis of Indian banking sector using CAMELS framework

Quality & Quantity - The present paper examines the banking industry’s technical efficiency for the pre-and post-demonetization period, using the case of India. A two-stage analysis has...