Saturday , September 21 2019
Home / Tag Archives: Academic research & research papers

Tag Archives: Academic research & research papers

How advent of pension policy led to lower education in children: Case of Indonesia and Ghana

Prof Natalie Bau of UCLA in this voxeu piece point to really interesting findings from her new research. She says that families funded children’s education so that latter could take care of former during old age. However, as pension policy was introduced, this old age care was not needed which led to decline in education! In the paper, I examine whether the introduction of government pension plans changed cultural practices in Indonesia and Ghana. I study a set of cultural traditions...

Read More »

Let hundred Dwijendra Tripathis (business historians) bloom

This post reviews the proceedings of ‘The International Conference on Indian Business and Economic History’ held at IIM Ahmedabad on 29-31 Aug 2019. The conference was held in the memory of Prof Dwijendra Tripathi, who taught business history in IIMA for four decades. Prof Tripathi passed away last year on Teacher’s day! It was a tragedy that the course was not taught for next 25 years before Chinmay Tumbe started teaching it once again in IIMA. This conference was organised by a team...

Read More »

Liquidity and funding for banks under resolution

Should the central bank provide liquidity to banks under resolution? A bank needs both capital and liquidity to survive. A bank fails if it has either of the two. Torbjørn Hægeland, Executive Director of Norges Bank Financial Stability, in this speech discusses the policy options: resolved or not, a bank not only needs sufficient capital, but also needs sufficient liquidity. Payment intermediation is a vital core function of banks. Being a bank means participating in the settlement of...

Read More »

History of GDP goes beyond the usual narrative

Jacob Assa in this paper says GDP is more of a political construct and symbol of power: Histories of Gross Domestic Product (GDP) – both critical and favorable – have become somewhat of a cottage-industry since the global financial crisis of 2008. Following the Stiglitz Commission, numerous general-audience books have appeared, describing the rise of GDP, analyzing its limitations, and offering reforms or alternatives. These histories, however, suffer from three key problems. First,...

Read More »

How Do Private Digital Currencies Affect Government Policy?

Max Raskin, Fahad Saleh, and David Yermack in this paper show support for digital currencies: This paper provides a systematic evaluation of the different types of digital currencies. We express skepticism regarding centralized digital currencies and therefore focus our economic analysis on private digital currencies. Specifically, we highlight the potential for private digital currencies to improve welfare within an emerging market with a selfish government. In that setting, we...

Read More »

The Well-meaning Economist: Choosing an appropriate “mean” matters..

Adam Gorajek of RBA in this paper writes why choosing “mean” matters: Economists usually inform policymakers with conclusions that come from studying the conditional expectation, i.e. arithmetic mean, of some potential outcome. But there are other means to study, from the same ‘quasilinear’ family. And they can support very different conclusions. In trade research, for instance, studying other means can transform the perceived roles of colonial history, geography, and trade wars. In...

Read More »

Switching costs in the Finnish retail deposit market

Tuomas Takalo of Bank of Finland in this paper: I calibrate switching cost for the Finnish retail deposit market by using the approach developed by Oz Shy (2002). It turns out that switching costs faced by deposit customers of the main banks are high, ranging from 200 euros to nearly 1,400 euros. Over the past 20 years, switching costs have increased by roughly 50% in real terms, but in relation to average account balance, switching costs have not essentially changed. I conjecture that...

Read More »

Jihadi attacks, media, and local anti-Muslim hate crime

Ria Ivandic, Tom Kirchmaier and Stephen Machin in this piece reflect on the role of media in hate crime: The attacks on mosques in Oslo and Christchurch have again called attention to the rise in anti-Muslim sentiment that is increasingly becoming normalised in media and on social platforms. This column studies the role the media plays in local increases in Islamophobic hate crime following jihadi terror attacks. Data from Greater Manchester Police reveal a spike in Islamophobic hate...

Read More »

British stock markets from 1829-1929

Interesting piece by Gareth Campbell, Richard Grossman and John Turner: Although long-run stock market data are an important indicator, obtaining them is challenging. This column constructs new long-run broad-based indices of equities traded on British securities markets for the period 1829-1929 and combines them with a more recent index to examine the timing of British business cycles and compare returns on home and foreign UK investment. One finding is that the capital gains index of...

Read More »

Is China Fudging Its GDP Figures? Evidence from Trading Partner Data

John G. Fernald, Eric Hsu, and Mark M. Spiegel in this FRBSF paper: We propose using imports, measured as reported exports of trading partners, as an alternative benchmark to gauge the accuracy of alternative Chinese indicators (including GDP) of fluctuations in economic activity. Externally-reported imports are likely to be relatively well measured, as well as free from domestic manipulation. Using principal components, we derive activity indices from a wide range of indicators and...

Read More »