Download or read book Essays in Public Finance Under Uncertainty written by Jonathan H. Hamilton and published by . This book was released on 1982 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in Public Finance written by Kenji Wada and published by . This book was released on 1999 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in Public Finance and Environmental Economics written by Radhika Goyal and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation focuses on topics concerning public finance, state capacity, and the environment. In the first chapter, we study the role of proximity to administrative power in explaining spatial inequality in access to public goods. Using a natural experiment in India that quadrupled the number of sub-districts (the lowest level of administrative jurisdiction), we explore the impact of redistribution of political power on spatial inequality of public good investment. By analyzing digitized high-resolution data encompassing approximately 10,000 villages spanning over 55 years, we demonstrate that reducing the distance to local government headquarters helps in bridging the gap in the provision of essential public amenities for remote villages, and furthermore, yields evidence of long-term improvements in state capacity. In the second chapter, we focus on turning points in tax collection. Our method detects both sustained accelerations and decelerations of tax collection (relative to GDP) in a global and historical sample of 150 countries since 1965. Turning points are prevalent (238 events in total), persistent for at least 15 years in many cases, and occur more frequently at lower levels of the country's development. We show that changes in the political environment are strong statistical predictors of accelerations, tax reforms, and economic changes less so. Decelerations appear more unpredictable than accelerations. In the third chapter, we study the ecological gains of place-based environmental measures to ramp up conservation efforts. By combining geo-referenced Indian village maps overlaid with digitized protected area maps and a fuzzy regression discontinuity design, we find that protected areas help improve forest cover. Villages located within protected areas also experienced improved economic activity, attributed in part to the growth of the tourism sector, particularly in wildlife sanctuaries. Moreover, our findings suggest that states which allocate a higher share of expenditure to the forestry sector exhibit stronger forest conservation outcomes.
Download or read book Risk Uncertainty and Profit written by Frank H. Knight and published by Cosimo, Inc.. This book was released on 2006-11-01 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.
Download or read book Essays in Public Finance written by Tatiana Damjanovic and published by . This book was released on 2002 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Public Economics and Banking written by Hua Cheng (Ph. D.) and published by . This book was released on 2017 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation presents two lines of research on public finance and banking respectively. The research on public finance explores the source of China’s state capacity, including fiscal capacity and the bureaucracy, and whether such state capacity promotes economic development. The research on banking discusses the discrimination in China’s bank loan markets, and the role of political connections and policy uncertainty in affecting bank risk-taking in the United States. My first chapter is about the state capacity in China. We offer a comprehensive study on the causal effects of state capacity in explaining China's spectacular economic growth, using rich historical variation and various outcomes in economic performance, education, health care, finance, and social unrest. Our estimates indicate that fiscal capacity has significantly positive impacts. However, a large size of bureaucracy plays a much weaker role, and it cannot reduce the incidence of protests, suggesting the existence of overstaffing in the public sector. The second chapter analyzes costly discrimination related to physical attractiveness and gender in bank loan markets using a market structure-based method. The rationale is that a concentrated market provides more space for loan officers to discriminate against a certain group of borrowers. We find that loan officers prefer good-looking people and males in relatively risky commercial/industrial loan markets. On the other hand, females and especially young good-looking females have an advantage in mortgage loan markets. We interpret these different patterns of favoritism as a result of differential risk levels associated with the two types of loans. The third chapter studies how political connections and their interaction with economic policy uncertainty affect banks' risk-taking. Our hypothesis is that policy uncertainty increases the option value of waiting but political connections can reduce such option value. We find when policy uncertainty is low, politically connected banks have a weaker tendency to take on more risk than those without political connections and enjoy the quiet life. However, when policy uncertainty is high, politically connected banks have much larger amounts of loans, but smaller amounts of loss provision than those without political connections.
Download or read book Uncertainty and Economic Evolution written by John L. Lott Jr. and published by Routledge. This book was released on 2005-06-23 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: The theory of the firm has recently undergone a dramatic transformation, drawing heavily on the pathbreaking work of Armen Alchian. This volume explores his contribution to the debate, including essays by Harold Demetz, Ben Klein, Jerry Jordan and Art Devany.
Download or read book Essays in Political Economy and International Public Finance written by Áron Kiss and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays in Financial Economics written by Sung Bin Sohn and published by . This book was released on 2012 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays in financial economics. The first two essays explore how initial public offerings are affected by various stock market conditions. In the third essay, I study the meaning of innovations in investor sentiment. In the first essay, I use cointegration techniques to decompose stock market shocks into permanent and transitory shocks, building on the idea that transitory shocks should not have long-run effects on dividends and stock prices. The decomposed shocks improve on existing valuation measures by indicating the extent to which market value is driven by permanent or transitory fluctuations. I then examine the effects of these shocks on several aspects of IPOs, and find that (1) despite the lack of long-run effects on firms' value, more firms go public in response to stronger transitory shocks; (2) firms that go public after stronger transitory shocks underperform their benchmark more severely in the long run; (3) during the book-building period, managers are more likely to limit secondary share sales after stronger transitory shocks; and (4) managers who limit secondary share sales further during the book-building period exhibit more severe long-run underperformance. These findings are consistent with the hypothesis that transitory shocks induce more IPOs that opportunistically exploit temporarily higher market valuation than IPOs that finance profitable projects in better market conditions. The findings are also consistent with the hypothesis that managers are more prone to become overconfident after stronger transitory shocks and that the resulting overconfidence leads to long-run underperformance. The decomposition methodology can also be applied to other corporate finance decisions such as SEOs, mergers and investments. The second essay establishes a model that incorporates both uncertainty and dispersion of opinion to examine how these two factors affect IPO stock performance. The model predicts that, unlike uncertainty, dispersion of opinion has nonlinear effects. There is a threshold of dispersion of opinion below which the dispersion does not affect IPO stock performance. Above the threshold, on the other hand, larger dispersion of opinion bids up the stock price higher and consequently yields the lower long-run return. The level of the threshold is increasing in the amount of free-floating shares in the market. Since IPO firms tend to have relatively small free-floating shares than other listed firms, IPO stocks are more subject to the dispersion of opinion. Thus, empirical researches that do not control the dispersion of opinion can produce misleading results on IPO performance. The model also predicts IPOs observations are subject to self-selection bias. Private firms would decide not to go public under the combination of high uncertainty and small dispersion of opinion, which could actually yield high long-run returns. This prediction helps explain the time variation of IPO volume and the general pattern of IPO long-run underperformance. The third essay tries to understand the meaning of innovations in investor sentiment. The role of investor sentiment in the stock market has attracted attentions of economists. Previous papers show that investor sentiment has return predictability and it is more pronounced among stocks that are more difficult to value and to arbitrage, and emphasize the behavioral role of investor sentiment. However, it still remains unclear whether this predictability is due to a causal effect of autonomous animal spirits or not. Alternatively, investor sentiment may reflect systematic risks and the predictability could be mere coincidence, not causation. For a structural interpretation, I introduce a modified version of the long-run risks model in which sentiment innovations arise from both animal spirit shocks and several risk shocks, and animal spirit shocks could affect stock returns. By matching impulse responses from data simulated according to the theoretical model to those from actual data, I estimate parameters in the model. The estimated model moderately replicates the historical data in the actual stock market. The estimation results show that a substantial amount of variation in investor sentiment is explained by systematic risk shocks as well as by animal spirit shocks, and that animal spirit shocks can have significant effects on stock returns. The findings suggest that investor sentiment is a noisy proxy of animal spirits and that autonomous animal spirits are at least in part responsible for the apparent return predictability of investor sentiment.
Download or read book Economics of Public Finance written by and published by Atlantic Publishers & Distri. This book was released on 1984 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Markets Information and Uncertainty written by Professor of Economics Graciela Chichilnisky and published by Cambridge University Press. This book was released on 1999-01-28 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leading theorists offer insights on the role of uncertainty and information in the market.
Download or read book Essays on Economic Decisions Under Uncertainty written by Jacques Drèze and published by CUP Archive. This book was released on 1990-05-25 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt: Professor Dreze is a highly respected mathematical economist and econometrician. This book brings together some of his major contributions to the economic theory of decision making under uncertainty, and also several essays. These include an important essay on 'Decision theory under moral hazard and state dependent preferences' that significantly extends modern theory, and which provides rigorous foundations for subsequent chapters. Topics covered within the theory include decision theory, market allocation and prices, consumer decisions, theory of the firm, labour contracts, and public decisions.
Download or read book Essays in Macroeconomics and Finance written by Congyan Tan and published by . This book was released on 2011 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: For the past two decades, economists have focused intensive effort on building Macroeconomics on a firm Microeconomic foundation. As Macroeconomic research are more integrated with Microeconomics, more and better micro evidence has been examined to verify Macroeconomic theories. One recent development in this line of research uses detailed firm-level evidence to modify current Macroeconomic theories. In this dissertation extensive firm-level evidence are studied to shed light on important macro issues such as investment dynamics, financial frictions, regulations and productivity growth. In this study firm behaviors are studied and modeled by utilizing theories from a variety of fields in Corporate Finance, Public Finance, International Economics, Macroeconomic Dynamics etc. Implications of these evidence on the economic theory are carefully examined and subsequent extension of existing models are proposed. This dissertation consists of three chapters. All chapters study firm behaviors and their implications on macroeconomics, however, the focus of each is different. The first chapter studies issues of credit conditions, uncertainty and investment; the second chapter (co- authored with Zhiyong An) engages the issues of taxation and international corporate finance; the third chapter show how regulations are likely impact foreign investment. The first chapter explores the heterogeneity in firms' response to high economic uncertainty. I show that the effect of high economic uncertainty on firms' investment varies significantly with the degree of financial constraints. Firm decisions are studied in a model of non-convex adjustment costs and time-varying second moment shocks, with financial constraints. In my model, uncertainty makes financially-constrained firms cautious in capital spending and creates long periods of under-investment for these firms. Estimates from firm-level data show that publicly-traded companies' investment-to-capital ratio falls by an average of around 15% in response to a one standard deviation increase in uncertainty. Firms with easier access to credit are found to be much less responsive to uncertainty, consistent with the model's predictions. This implies that the effectiveness of stimulus policy may largely depend on firms' accessibility to credit in episodes of high uncertainty. The second chapter (co-authored with Zhiyong An) studies how firms respond to a quasi-experiment in China. China's new Corporate income Tax Law was passed in March 2007 and took effect on January 1, 2008. It increases the effective corporate income tax rate from about 15% to 25% for foreign investment enterprises (FIEs), while keeps that unchanged at 25% for domestic enterprises (DEs). This study uses a difference-in-differences approach to investigate FIEs' response to the law. Employing the Chinese Industrial Enterprises Database (2002-2008) to implement the analysis, we find evidence that FIEs are responding to the law by shifting their income out of China. Second, the magnitude of the estimated response is larger for enterprises larger in size, which suggests the greater capability of shifting income across countries for larger enterprises. In addition, the response is more acute for investment enterprises from Hong Kong, Macau, or Taiwan (HMT) than that for other FIEs, which is consistent with the tax haven status of Hong Kong and Macau. The third chapter studies productivity spillovers to domestic firms from foreign direct investment (FDI). Such productivity gain from FDI is considered to be the basis of policies that promote FDI in many countries. In this chapter, firm-level panel data from six European countries are examined to test a number of hypotheses regarding the impact of FDI on the productivity of domestic firms. I find evidence for the backward linkage channel of the FDI spillovers. Using a new dataset, Investing Across Borders 2010 that documents and scores regulations for FDI in 87 countries, this study goes further to explore how FDI-specific policies and institutions impact the spillovers from FDI inflows. Empirical evidence shows that good investment climate is associated with productivity gains, either by direct productivity contribution or by productivity increase in upstream industries. Higher ownership limit is shown to be significantly and positively correlated with productivity. However, productivity impact varies greatly across different investment climate measures.
Download or read book Policy and Choice written by William J. Congdon and published by Brookings Institution Press. This book was released on 2011 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: Argues that public finance--the study of the government's role in economics--should incorporate principles from behavior economics and other branches of psychology.
Download or read book The New Dynamic Public Finance written by Narayana R. Kocherlakota and published by Princeton University Press. This book was released on 2010-07-01 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research.
Download or read book Essays in Economic Analysis written by Association of University Teachers of Economics and published by CUP Archive. This book was released on 1976-06-10 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: UK. Collection of conference papers on economic analysis - discusses such subjects as macroeconomics, trade and the balance of payments, and employs utility functions, economic models, econometrics, etc. Diagrams, graphs, references and statistical tables. Conference held in sheffield 1975 apr.
Download or read book Public Finance written by and published by . This book was released on 1994 with total page 522 pages. Available in PDF, EPUB and Kindle. Book excerpt:
