Challenges of Fiscal Policy in Emerging and Developing Economies

This article presents a systematic analysis of the availability and use of fiscal space in emerging and developing economies. We report two major results. First, emerging and developing economies built fiscal space in the run-up to the Great Recession of 2008–2009, which was then used for stimulus. Since then, fiscal space has shrunk and remains narrow as these economies have taken advantage of historically low interest rates. Second, fiscal policy in emerging and developing economies has become countercyclical (or less procyclical), i.e., “graduated,” since the 1980s, as most clearly demonstrated during the Great Recession. The move towards graduation is most pronounced for those economies with greater fiscal space, which suggests that fiscal space matters for a government’s ability to implement countercyclical fiscal policy.     

Explaining micro-enterprise survival in rural Vietnam: a multilevel analysis

To date, most of the empirical work conducted on enterprise survival has focused on enterprises in developed countries, while studies on enterprise survival in rural areas of emerging markets remain scarce. This paper attempts to address this gap in the research by using mixed-effects parametric survival models to analyze the effects of factors, at different explanatory levels, on the survival probability of micro-enterprises in rural Vietnam. The results show that enterprise-specific factors dominate with regard to explaining the survival probability of such micro-enterprises. However, the empirical results also indicate that the linkages of micro-enterprises with their broader economic environment, as well as some location-specific factors, such as access to markets and financial services, contribute significantly towards explaining the survival probability of micro-enterprises in rural Vietnam.     

Does demographic change affect land use patterns?: A case study from Germany

Recent demographic change, mainly characterised by a decreasing and ageing population, is seen as one of the main factors for future land use development in Europe. However, there is still insufficient evidence about the relationship between demographic changes and land use changes since quantitative studies dealing with these interactions are still rare. We aim to fill that gap by presenting the first comprehensive study that investigates statistical relationships and spatial differentiations between demographic and land use change for the whole of Germany. Our study is based on data for the period from 1995/1996 to 2003/2004. The results clearly show that in most growing regions in the West of Germany a correlation was found between land use, natural population growth and net-migration, whereas for land use change in the shrinking regions in the East of Germany economic variables are of noticeable importance. A cluster analysis reveals “gaining” and “shrinking” regions concerning both urbanisation and demographic change. Neither a decreasing nor an ageing population imply reduced land consumption for housing and transportation. Furthermore we found a decreasing settlement population density for almost all German districts regardless of population growth or shrinkage.     

Banking Market Structure and Macroeconomic Stability: Are Low‐Income Countries Special?

Does the structure of banking markets affect macroeconomic volatility and, if yes, is this link different in low‐income countries? In this paper, we explore the channels through which the structure of banking markets affects macroeconomic volatility. Our research has three main findings. First, we study whether idiosyncratic volatility at the bank level can impact aggregate volatility. We find weak evidence for a link between granular banking sector volatility and macroeconomic fluctuations. Second, a higher share of domestic credit to GDP coincides with higher volatility in the short run. Third, a higher level of cross‐border asset holdings increases volatility in low‐income countries.     

Evaluating irrigation investments in Malawi: economy‐wide impacts under uncertainty and labor constraints

Irrigation expansion is critical to increase crop yields and mitigate effects from climate change in Sub‐Saharan Africa, but the low profitability has led to little irrigation investments in the region so far. Using an integrated modeling framework, we simultaneously evaluate the returns to irrigation arising from both economic and biophysical impact channels to understand what determines the profitability of irrigation in Malawi. Our results confirm that the returns to irrigation cannot cover the costs in Malawi. While labor‐intensive irrigation expansion leads to unfavorable structural change in the short‐run, the profitability hinges on low irrigated yields that fall far from expectations due to insufficient input use and crop management techniques. On the other hand, we find that the nonmonetary benefits of irrigation regarding higher food security, lower poverty, and reduced vulnerability to climate change make investments in irrigation worthwhile to improve the livelihoods of smallholders.     

Methoden zur Messung individueller Zahlungsbereitschaften: Ein Überblick zum State of the Art

Zusammenfassung Werbeslogans wie z. B. ,,Geiz ist geil“ (Saturn), ,,Preise gut, alles gut“ (C&A) oder ,,Bei diesen Preisen muss man reisen“ (1-2-Fly) verdeutlichen, dass der Preis im Fokus der Marketingstrategie vieler Unternehmen steht. Die im Markt erzielten Preise haben einen wesentlichen Einfluss darauf, ob und in welchem Maße Unternehmen mit dem Verkauf ihrer Produkte Gewinne erzielen. Zur optimalen Gestaltung und Umsetzung preispolitischer Maßnahmen ist die Kenntnis der Zahlungsbereitschaft von Nachfragern essentiell. Der vorliegende Beitrag gibt einen Überblick über die wissenschaftlichen Erkenntnisse zur Messung von Zahlungsbereitschaften. Dazu werden die in der wissenschaftlichen Literatur vorgeschlagenen Ansätze zur Ermittlung von individuellen Zahlungsbereitschaften systematisiert, erläutert und ihre Eignung kritisch beurteilt. Der Beitrag zeigt damit, welche Methoden der Zahlungsbereitschaftsmessung zur Verfügung stehen und bietet Hilfestellung bei der Methodenauswahl. JEL classifications C81, D81, D12, M31     

Who moves first? An intensity-based measure for information flows across stock exchanges

In this paper we propose an innovative measure for information flows between stock exchanges. We develop an intensity-based information share using Russell’s (1999) autoregressive conditional intensity model. Thereby we maintain the irregular nature of financial high frequency data and use durations and timing of price changes to determine the informationally dominant market. From our empirical application to US-listed Canadian stocks we conclude that the home market mostly reflects information first. On the basis of a cross-sectional analysis we find a positive correlation between the intensity-based information share and liquidity.     

Gamifying employer branding: An integrating framework and research propositions for a new HRM approach in the digitized economy

The digital age calls for digital HRM approaches, as the “digitized” workforce confronts companies with changing requirements regarding their human resource practices. Most importantly, companies need to build strong employer brands to attract, motivate, and retain employees. One promising approach to employer branding in the digital age is to gamify companies' employer branding activities by means of serious games (i.e., digital games with an educational purpose). Both serious games and employer branding share the key characteristic of facilitating learning to create knowledge. Despite existing research on employer branding and serious games in separate streams, virtually no research addresses their relationship, albeit its strong relevance for researchers and practitioners alike. The authors discuss both domains and their relation, propose a conceptual framework building on a novel learning-based extension of the affective events theory, and derive directions for future research to advance the understanding of gamifying employer branding in the digitized economy.     

Switching the lights off: The impact of energy tariff increases on households in the Kyrgyz Republic

This paper describes an analysis of the impact that higher energy tariffs would have on households in the Kyrgyz Republic using micro-data from the 2009 Kyrgyz Integrated Household Survey. This analysis was conducted to determine which households would be most affected by higher energy tariffs and to what extent mitigation measures, such as lifeline tariffs or direct cash transfers, might lessen the impact for poor and vulnerable households. The analysis focused on first-order effects and used benefit incidence analysis and static micro-simulation to estimate the expected costs and benefits of higher energy prices and the corresponding mitigation measures. The results suggest that both the type of energy and the level of connectedness matter. Increasing tariffs for thermal power used for central heating and hot water mainly affects richer households in urban areas. Reducing implicit electricity subsidies affects the entire population due to nearly complete country coverage with electricity connections. Both lifeline tariffs and direct cash transfers could mitigate the effect of higher electricity tariffs at lower costs than universal subsidies.