Distribution,taxation and employment in an open economy

Summary If taxes on labour income are passed on in wages the balanced budget multiplier may be negative. The present paper analyses this problem from a theoretical point of view applying a linearized version of a model for the small open economy. The model is dynamic, because account is taken of capital accumulation. Short-run and long-run solutions are expressed in terms of fiscal policy variables, a wage push variable, the price level abroad and world demand. Numerical examples are supplemented to illustrate the analytical results. Acknowledgement is due for his helpful comment to S.K. Kuipers     

Gold price dynamics and the role of uncertainty

This study focuses on the dynamics of the gold price against bonds, stocks and exchange rates based on a disaggregation of the underlying relationships across different frequencies applying a wavelet decomposition. To analyze joint extreme movements (i.e. tail dependence), we adopt a copula approach, which helps us to assess the dependence between the returns of gold and other assets in calm and turmoil market times and therefore the hedge and safe haven functions of gold. We also examine whether gold prices are directly affected by changes in macroeconomic uncertainty, economic policy uncertainty and/or CPI forecasters disagreement. Analyzing data for nine economies for a sample period starting in 1985, we find that the role of gold changes significantly after the collapse of Lehman Brothers in 2008. Gold is unable to serve as a hedge or safe haven in the classical sense while the findings for the period prior to 2008 mostly suggest that gold is able to shield investors. Uncertainty measures display a surprising and time-varying relationship with the path of the gold price. While economic policy uncertainty is positively correlated with gold price changes, macroeconomic uncertainty and inflation uncertainty among forecasters are both negatively related to gold price changes.     

Tail dependence between gold and sectorial stocks in China: perspectives for portfolio diversification

This article analyzes the relationship between gold quoted on the Shanghai Gold Exchange and Chinese sectorial stocks from 2009 to 2015. Using different copulas, our results show that there is weak but significant tail dependence between gold and Chinese sectorial stock returns. This means that the dependence between extreme movements of the two assets is not pronounced and confirms the role of gold as a safe haven asset. Based on analyzing the efficient frontier, CCC-GARCH optimal weights, hedge ratios and hedging effectiveness, we further show that adding gold into Chinese stock portfolios can help to reduce their risk. Gold appears to be the most efficient diversifier for stocks of the materials sector and the less efficient for the utilities sector. As a robustness check, we also compare gold to oil and indicate that gold is more efficient than oil in the diversification of Chinese stock portfolios.

     

Geographic information system concepts for land management

A Geographical Information System (GIS) has recently been developed for the assessment of the agricultural potential of the Southern African Development Community (SADC) region. The main value of this GIS is the integration of agricultural resource information from the SADC countries in order to support regional planning. The development of GIS technology makes it possible to compile, store, retrieve, analyse and display vast quantities of spatial data on, inter alia, the climate, topography, soils and infrastructure of the region. This article aims to give background information on the nature and general application of a GIS. Attention is given to the capabilities of a GIS, the spatial questions that drive analyses, basic database requirements, analytical and operational functions, as well as the applications of a GIS in land reform. More detail on the spatial agricultural resource data captured and its use by means of the SADC GIS will be described in a later article.     

Die Private Krankenversicherung im Fokus des Verfassungsrechts

Starting with the question as to the extent to which the state may interfere with economic interests at all, a brief historical overview is given through to the regulations currently in force. The Basic Law (Grundgesetz) remains neutral on this issue so that the question cannot be discussed as to whether regulations are at all conceivable and admissible but how far these can go. The noteworthy parameters of the German law on intensifying competition in the statutory health insurance system (GKV-WSG) are then highlighted: the collision of the reform of private health insurance law with the reform of the entire insurance contract law as well as the length of the individual provisions and the correlating remark of member of parliament Merz in the Cicero magazine according to which no single member of parliament had even a rudimentary understanding of he was actually deciding on. From the point of view of substantive law, the main “diseases” of the GKV-WSG are strikingly shown, including in particular the creation and design of the basic rate as well as non-terminability etc. Finally reference is made to the double balancing act with which the private health insurance system is confronted: on the one hand the statutory health insurance system with its allocation principle and the private health insurance system with it superior principle of equivalence that wakens the desires of 4/5 of the German population who live in a poorly functioning system; on the other hand the field of tension between individual and collective consumer protection, i.e. between the high standards which are to be created for individuals which are then ultimately to be borne by the collective.     

A Comment on Dehez and Tellone, “Data games: sharing public goods with exclusion”

This comment shows that the data cost game introduced in Dehez and Tellone (Journal of Public Economic Theory, 2013) coincides with the nonadditive component of the library cost game studied in Driessen, Khmelnitskaya, and Sales (TOP, 2012) where the core, nucleolus, and Shapley value were also investigated.     

Technology Strategies For Economic Development In A Fast Changing Global Economy

East Asian development experience provides the basis for understanding which are the essential elements of effective technology strategy and policy, those that are required for the efficacious development of countries that have not yet embarked on a path of sustained modernization. Globalization has had a profound impact on development, enabling countries that could exploit its propelling forces to pursue a potent strategy of export-led economic and technological development. The policies needed to sustain this strategy are those required to foster institutions that permit effective commerce among economic agents, those necessary to generate the rapid accumulation of human and physical capital, and those essential to ensure that resources are allocated in accord with the economy's dynamic comparative advantage. Of crucial importance among the latter are effectively implemented policies of selective intervention designed to develop infant industries and to foster their fast-paced achievement of international competitiveness through rapid attainment of the requisite technological capabilities.     

Ridge regression and its degrees of freedom

For ridge regression the degrees of freedom are commonly calculated by the trace of the matrix that transforms the vector of observations on the dependent variable into the ridge regression estimate of its expected value. For a fixed ridge parameter this is unobjectionable. When the ridge parameter is optimized on the same data, by minimization of the generalized cross validation criterion or Mallows \(\hbox {C}_{L}\) , additional degrees of freedom are used however. We give formulae that take this into account. This allows of a proper assessment of ridge regression in competitions for the best predictor.     

La segregación ocupacional por horas de trabajo en Europa

En este artículo se cuantifican los niveles de segregación ocupacional entre el trabajo a tiempo parcial y a tiempo completo según los datos de la Encuesta Europea de Población Activa para quince países europeos, tratando de identificar algunos determinantes de la segregación mediante un análisis de regresión con tres grupos de indicadores (cantidad de empleo, calidad del empleo y factores institucionales). Por lo general, la segregación ocupacional por horas de trabajo es más alta para los hombres que para las mujeres y más alta para los trabajadores jóvenes que para los adultos. Así como entre los hombres la segregación se correlaciona solamente con la cantidad de empleo, en el caso de las mujeres adultas y los trabajadores jóvenes inciden variables asociadas a los tres grupos de indicadores.     

Employee shareholders in two privatised utilities

This article draws on a survey of over 400 employees in two privatised companies. It examines the relationship between the depth of share ownership and social class and prior political orientations, and suggests that employee attitudes are best understood as a function of these standard sociological factors.