Maximum likelihood estimation and inference methods for the covariance stationary panel AR(1)/unit root model

This paper considers Maximum Likelihood (ML) based estimation and inference procedures for linear dynamic panel data models with fixed effects.     

Location factors of international R&D activities: an econometric approach

A model is developed of the relation between adoption of an innovation by firms and firm size. Decision making is represented as a group assessment of the perceived ratio between expected returns after succesful introduction, and the risk that implementation will fail or will last too long to makc adoption worth while. In view of differences in thc assessment of uncertainty and corresponding demands on the perceived return-to-risk ratio, among influencers of decisions in the firm, decision making is taken as stochastic, with a probability of adoption related to (objective) net benefits, and probability of non-adoption related to risk. The model gives a new way of looking at the fact that small firms lag behind in the adoption of new technology. In contrast with previous models proposed by David and Davies the explanation has nothing to do with there being some critical size below which adoption is not profitable. The present model explains the adoption lag for smaller firms as the result of expected returns being proportional to size while risk of failed implementation is independent of size. The model is tested and estimated empirically on data for the adoption of computers in small scale retailing, in the Netherlands.     

Co-operation in the Dutch Container Transport Industry

During the last 25 years, co-operation within the Dutch container transport industry has served in various ways as Q means of reducing rkk. Co-operation has been aimed chiefly at reducing financial risks, pooling financial resources, and regulating com- petition. In most cases, a direct solution of the problem of match- ing supply and demand has not been an important motive for CO- operation. In the early days of containerisation, industry culture was facilitating co-operation in liner shipping more than in the stevedoring and road haulage industries.     

Measuring peer effects in the Brazilian school system

Using the identification strategy proposed by Graham and Hahn (2005), we estimate the magnitude of classmate effects on math scores using Brazilian data from 2005. In addition, we provide a detailed discussion about the identification of endogenous peer effects in the linear in means models. Our results show that both peer characteristics (exogenous peer effects) – like race, socioeconomic status and gender – and peer actions (endogenous peer effects) are important determinants of students’ outcomes in the fifth grade of elementary school. Our estimates of endogenous peer effects are about 0.008 of 1 SD of math test scores, which can be interpreted as evidence of a so-called ‘conformist’ individual behaviour, under which students face large costs to exert effort levels that are distant from what is believed to be the norm in the classroom. Those estimates of endogenous peer effects imply a social multiplier of about 1.67.     

A Parametric Distance Function Approach for Malmquist Productivity Index Estimation

Malmquistindexes of productivity are generally estimated using index numbertechniques or non-parametric frontier approaches. The aim ofthis paper is to show that Malmquist indexes can be estimatedin a similar way using parametric-deterministic or parametric-stochasticfrontier approaches. To allow a multi-output multi-input technologyand for technical change in production, we adopt an output distancefunction which is specified in a translog form. We then showthat using the estimated parameters, several radial distancefunctions can be calculated and combined in order to estimateand decompose the productivity index. Finally, this approachis applied to a panel of Spanish insurance companies. The mainresults confirm those generally obtained for financial services:very low rates of growth and technical change in spite of a rapidderegulation process and expansion of activity.     

The welfare effects of free trade agreements in quantitative trade models: A comparison of studies about Transatlantic Trade and Investment Partnership

We compare different methodological approaches to predicting the welfare effects of trade policy experiments. We focus on studies that estimate the economic effects of the Transatlantic Trade and Investment Partnership (TTIP). Methodologically, the studies can be divided into those employing computable general equilibrium (CGE) models and structural gravity (SG) models. We compare and critically discuss differences in the estimated trade cost reductions and in the economic models employed, and how these can explain the relatively wide range of economic effects found in the different TTIP studies. We conclude that reasonable estimates of the welfare effects for the TTIP partners are between 0.5% and 2%.     

The future of food demand: understanding differences in global economic models

Understanding the capacity of agricultural systems to feed the world population under climate change requires projecting future food demand. This article reviews demand modeling approaches from 10 global economic models participating in the Agricultural Model Intercomparison and Improvement Project (AgMIP). We compare food demand projections in 2050 for various regions and agricultural products under harmonized scenarios of socioeconomic development, climate change, and bioenergy expansion. In the reference scenario (SSP2), food demand increases by 59–98% between 2005 and 2050, slightly higher than the most recent FAO projection of 54% from 2005/2007. The range of results is large, in particular for animal calories (between 61% and 144%), caused by differences in demand systems specifications, and in income and price elasticities. The results are more sensitive to socioeconomic assumptions than to climate change or bioenergy scenarios. When considering a world with higher population and lower economic growth (SSP3), consumption per capita drops on average by 9% for crops and 18% for livestock. The maximum effect of climate change on calorie availability is ?6% at the global level, and the effect of biofuel production on calorie availability is even smaller.     

International entrepreneurship: a bibliometric overview

The aim of this paper is to provide an overview of the academic research on International Entrepreneurship (IE). To accomplish this, an exhaustive bibliometric analysis was carried out, involving a bibliometric performance analysis and a graphic mapping of the references in this field. Our analysis focuses on journals, papers, authors, institutions and countries. To perform the performance analysis, the work uses a series of bibliometric indicators such as h-index, productivity and citations. Furthermore, the VOS viewer to graphically map the bibliographic material is used. The graphical analysis uses co-citation, bibliographic coupling and co-occurrence of keywords. The results of both analyzes are consistent among them, and show that the USA is the most influential country in IE research as it houses the main authors and institutions in this research field. Moreover, is observed and expected the continued growth of the field globally. Our research plays an informative and complementary role as it presents most of the key aspects in International Entrepreneurship research.

     

The impact of monitor choice on insurer loss reserves

This paper examines the association between monitoring and earnings management by property-casualty insurers. Prior literature has evaluated the impact of auditors and actuaries on insurer reserving. We extend this work by considering the nonrandom nature of monitor assignment. We model the insurer decisions regarding choice of auditor and actuary jointly using a Heckman selection model. Consistent with prior literature, we account for potential loss reserving incentives that may confound these decisions. We find that the use of internal actuaries is significantly related to higher reserve errors, but this is reduced, but not fully offset, when the internal actuary is an officer of the insurer. We find lower reserve error for auditors from a Big N firm. However, the use of an auditor and actuary from the same Big N firm is significantly related to higher reserve errors.     

On the economic impacts of COVID-19: A text mining literature analysis

The COVID-19 outbreak has affected everyday lives worldwide. As governments started to implement confinement and business closure measures, the economic impact was felt by entire societies immediately. The urgency of such a theme has led researchers to study the phenomenon. Accordingly, the purpose of this research is to provide the state of the art on relevant dimensions and hot topics of research to understand the economic impacts of COVID-19. In this survey, we conduct a text mining analysis of 301 articles published during 2020 which analyzed such economic impacts. By defining a set of relevant dimensions grounded on existing literature, we were able to extract a set of coherent topics that aggregate the collected articles, characterized by the predominance of a few sets of dimensions. We found that the impact on “financial markets” was widely studied, especially in relation to Asia. Next, we found a more diverse range of themes analyzed in Europe, from “government measures” to “macroeconomic variables.” We also discovered that America has not received the same degree of attention, and “institutions,” “Africa,” or “other pandemics” were studied less. We anticipate that future research will proliferate focusing on several themes, from environmental issues to the effectiveness of government measures.