World Journal of Applied Economics
EISSN : 24590126
Current Publisher: World Journal of Applied Economics (10.22440)
Total articles ≅ 34
Latest articles in this journal
World Journal of Applied Economics; doi:10.22440/econworld
World Journal of Applied Economics, Volume 6, pp 73-89; doi:10.22440/wjae.6.1.5
Macroprudential policies (MPPs) were relatively less used around the world before the 2008 global financial crisis (GFC). In the aftermath of the GFC, they have become popular both in advanced and emerging market countries. Through time, the accumulation of new data across countries has led to a growing body of literature investigating the effectiveness of such policies. In this paper, using a data set of 30 developing and emerging market countries and panel VAR approach with GMM estimation, we contribute to this literature, first, by testing whether MPPs are effective in controlling domestic credit growth after a global liquidity shock. Second, we test whether MPPs are more effective when a combination of MPPs are used to control credit growth. Results indicate that MPPs are effective tools to limit domestic credit growth, especially during the expansion phase of the credit cycle. Second, the number of MPP tools does matter to manage the magnitude and duration of the domestic credit growth effectively. We argue that the insufficient number of MPP implementations are unable to prevent leakages in the system and reduce the effectiveness of MPPs under a global liquidity shock.
World Journal of Applied Economics, Volume 6, pp 55-72; doi:10.22440/wjae.6.1.4
A conventional assumption that deserves testing is that small and medium-sized enterprises (SMEs) are most affected by credit crunch. In this respect, a disequilibrium model is designed to analyse the determinants of credit rationing upon a balanced panel of 2,370 mature French SMEs over the period 2002-2010. According to the estimates of simultaneous equations, the desired demand for bank credit is determined by exogenous factors from the supply-side. The credit supply-side validates best trade-off theory, whereas the credit demand-side validates best pecking order theory. The average share of rationed SMEs is seven per cent of the sample, suggesting that access to bank loans is not a major issue for mature French SMEs.
World Journal of Applied Economics, Volume 6, pp 1-19; doi:10.22440/wjae.6.1.1
The purpose of this study is to deal with economic growth with labor market monopsony. The economy is composed of one sector (like in the Solow model) and two groups of households (like in the Stiglitz model). The sector uses capital and labor as inputs. Capital and output markets are perfectly competitive. The population is classified into two - discriminatory and discriminated - groups. Labor market for the discriminatory group is perfectly competitive, whereas it is characterized by monopsony for the latter group. We model the behavior of the household with the concept of disposable income and utility function developed by Zhang (2013, 2017). The model endogenously determines the prot of the rm which is equally distributed among the discriminatory population. We build the model and provide a computational procedure to quantify the response of the model economy in a comparative dynamic setting. We also compare the model outcomes with a labor market under perfect competition and under monopsony. We show that monopsony harms not only national economic growth but also the discriminatory household in the long term.
World Journal of Applied Economics, Volume 6, pp 91-98; doi:10.22440/wjae.6.1.6
There has been a debate about what measurement is most appropriate for measuring inequality because the classical index does not distinguish between what is fair and unfair distribution of income. In this empirical study, the "Responsibility-Sensitive Egalitarian Theory" is applied for the case of Japan. Our paper firstly tracks the historical evolution of inequalities and concludes that the Japanese accept pre-tax income inequality because they believe their socio-economic class is determined by luck. Secondly, illustrating the Unfairness Lorenz Curve by gender shows that females face more unfairness than males: the pre-tax income of middle-income males increases slightly compared to the fair-income group from 2010 to 2013. However,the opposite is true for females in the bottom and middle classes. Considering there already exists a gender wage gap in Japan, it is necessary to take action to reduce inequality.
World Journal of Applied Economics, Volume 6, pp 41-54; doi:10.22440/wjae.6.1.3
The aim of this study is to examine the effect of the bond portfolio and equity inflows on the exchange rate dynamics for a set of developing countries, including Turkey, Hungary, New Zealand, India, Russia, Poland, Brazil and Argentina over the period 1997:01-2017:12 by using a Markov-switching model. According to the analysis results, the net bond inflows lead to an increase in the likelihood of a high volatility regime in Turkey and Russia and increases the probability of transition from the high volatility regime to the low volatility regime in Hungary. Additionally, the net bond inflows from New Zealand and Poland to the United States (US) rise the possibility of remaining in the low volatility regime. The net equity inflows from Turkey and Poland to the US lead to a rise in the possibility of remaining in the high volatility regime. Besides, the net equity inflows from Brazil and Argentina to the US lead to a decline in the possibility of remaining in the low volatility state. In the light of the empirical results supporting the "return chasing" hypothesis, this paper argues that credit controls on short-term financial inflows could be an effective means in stabilizing the foreign exchange market.
World Journal of Applied Economics, Volume 6, pp 21-39; doi:10.22440/wjae.6.1.2
Throughout the years, the segmentation of the Italian labor market across regions, classes, genders, skill-levels and sectors has beneted from the supply of migrant labor. Among these migrant laborers, Filipinos met the demand for labor across various sectors where native supply is insufficient for local demand. Nevertheless, despite demand, the migration inflow fluctuates in response to variations in economic and geographic conditions. This study investigates the region-specific drivers of the annual inflow of Filipino migrants to the various regions in Italy. Using the annual arrivals of labor migrants from the Philippines to Italy for the period of 2007-2017, this paper uses static and dynamic estimation techniques by utilizing regional economic and demographic indices. The results show adherence to and diversion from migration theories and expected movements. Regardless of the substantial regional differences, the Filipino migrant stock is the most stable and significant variable in influencing regional migration inflow.
Published: 27 November 2019
World Journal of Applied Economics, Volume 5, pp 53-66; doi:10.22440/wjae.5.2.2
Exchange rate fluctuations in a small open economy are closely related to political trust. Various political announcements exert significant influence on the exchange rate by affecting the expectations of economic actors. Due to information technology and social networks, these statements spread quicker and gain more publicity than ever before. In this paper, we present a dynamic model with adaptive expectations to describe the short and long-run effects of political announcements on the exchange rate. We found that relevant announcements cause significant fluctuations in the short-run but do not affect the long-term equilibrium exchange rate. Our results are also supported by case-studies from Hungary.
Published: 27 November 2019
World Journal of Applied Economics, Volume 5, pp 31-51; doi:10.22440/wjae.5.2.1
This study aims to contribute to the research on poverty by analysing the association of income poverty with gender inequalities in time use patterns. Based on South Africa's first time-use data compiled in 2000, we explore whether household income poverty has any influence on the typical patterns of time use of women and men. Controlling for a variety of household and individual characteristics, we assess the extent to which living in income poverty produce long hours of work –-in particular unpaid work hours-- using bivariate and multivariate Tobit estimations. Our results show asymmetric impacts of income poverty on women's and men's time allocations controlling for the widely accepted determining factors. While women in poor households spend more time on unpaid work activities, we do not see any significant change in men's unpaid work time with poverty status. Women's total paid and unpaid work time is higher under poverty as the increase in their unpaid work time extends away from the decline in paid work time. Other findings obtained provide supporting evidence presented in previous research: being married/cohabiting with a partner has an increasing impact on women's unpaid work, whereas an opposite impact is observed for their male counterparts. Women's unpaid work time increases with the number of preschool children, whereas it is the paid work time which rises in case of men's work time.
World Journal of Applied Economics, Volume 5, pp 1-23; doi:10.22440/wjae.5.1.1