Browsing by Subject "C33"

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  • Snellman, Heli (2006)
    Suomen Pankki. E 38
    This study discusses the effects of the Automated Teller Machine (ATM) network market structure on the availability of cash withdrawal ATM services and cash usage.The aim and novelty of the study is to construct the ATM equation.The study also contributes to the earlier discussion on the effects of ATMs on cash usage.The monopolisation of ATM network market structure and its effects on the number of ATMs and on cash in circulation are analysed both theoretically and empirically.The unique annual data set on 20 countries used in the estimations has been combined from various data sources.The observation period is 1988-2003, but the data on some countries are available only for a shorter period.Based on our theoretical discussion, as well as the estimation results, monopolisation of the ATM network market structure is associated with a smaller number of ATMs.Furthermore, the influence of the number of ATMs on cash in circulation is ambiguous. Key words: ATM, ATM network, monopolisation, demand for cash JEL classification: C33, E41, G2, C11
  • Marrouch, Walid; Turk-Ariss, Rima (2012)
    BOFIT Discussion Papers 1/2012
    Published in Journal of International Financial Markets, Institutions and Money, Volume 31, Issue 1, July 2014, Pages 253-267 as Joint market power in banking: Evidence from developing countries.
    We propose a generic oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a rent extraction component resulting from the interaction between the choke price of loans and prevailing banking structures, and a markup on deposit funding costs that captures the transformation efficiency of financial intermediation. We then test our structural specification with longitudinal data for 103 non-OECD countries and find that both the market structure under uncertainty and the deposit rate matter significantly in pricing. However, the role played by the rent-extraction share in pricing, on average, dominates funding costs in developing countries, and so underscores the importance of market structure in banks? pricing power. Keywords: intermediation, bank pricing, market structure, uncertainty, developing countries JEL codes: C33, G21, L13
  • Amstad, Marlene; Ye, Huan; Ma, Guonan (2018)
    BOFIT Discussion Papers 11/2018
    Inflation in emerging markets is often driven by large, persistent changes in food and energy prices. Core inflation measures that neglect or under-weight volatile CPI subcomponents such as food and energy risk excluding information helpful in assessing current and future inflation trends. This paper develops an underlying inflation gauge (UIG) for China, extracting the persistent part of the common component in a broad dataset of price and non-price variables. Our proposed UIG for China avoids the excess volatility reduction that plagues traditional Chinese core inflation measures. When forecasting headline CPI, the proposed UIG outperforms traditional core inflation measures over a variety of samples.
  • Kim, Byung-Yeon; Korhonen, Iikka (2002)
    BOFIT Discussion Papers 15/2002
    Published in Economic Systems vol 29, no 2 (2005), pp. 144-162
    We use a dynamic heterogeneous panel model to estimate real equilibrium exchange rates for advanced transition countries.Our method is based on out-of-sample estimations from middle-income and high-income countries, and we use a pooled mean group estimator.We find that exchange rates have converged in recent years in five transition countries (Czech Republic, Hungary, Poland, Slovakia, and Slovenia) with real equilibrium exchange rates expressed in the US dollars.However, we also find that the currencies of the transition countries studied are substantially overvalued if real effective exchange rates are used. Keywords: exchange rates, transition economies, dynamic heterogeneous panel estimations JEL Classification: C33, F31, P27
  • Krupkina, Anna; Deryugina, Elena B.; Ponomarenko, Alexey (2014)
    BOFIT Discussion Papers 11/2014
    Published in Comparative Economic Studies Vol. 57, Issue 1, March 2015, pp. 168–182
    In the spirit of Borio et al. (2014) we present a model that incorporates information contained in diverse variables when estimating sustainable output growth. For this purpose, we specify a state-space model representing a multivariate HP-filter that links cyclical fluctuation of GDP with several indicators of macroeconomic imbalance. We obtain the parameterization of the model by estimating it over a cross-section of emerging market economies. We show that trend output growth rates estimated using this model are more stable than those obtained with a univariate version of the filter and thus are more consistent with the notion of sustainable output. Keywords: output gap, financial cycle, macroeconomic imbalances, emerging markets JEL classification: E32, E44, C33.
  • Kinoshita, Yuko; Campos, Nauro F. (2004)
    BOFIT Discussion Papers 10/2004
    This paper investigates the importance of factor endowment vis-à-vis institutions in explaining the locational choice of foreign investors during the 1990s.Using dynamic panel estimation on data for transition economies, we find that low labour costs, bureaucratic efficiency ("institutions"), agglomeration economies and natural resource abundance are key factors explaining foreign investors' decisions.However, sampling proves fundamental as these overall determinants mask deep and, so far empirically unexplored, differences between groups of recipient countries.For example, for the former Soviet Union economies we estimate that labour costs are no longer crucial, but abundance of natural resources and (interestingly) lower levels of human capital are.For Eastern Europe, we find that external liberalisation (one aspect of economic reform) is crucial in foreign investor's decisions.The main message is that minimising sampling biases and accounting for previously omitted variables yields a different, much richer picture than previously available. JEL classification: F21, O16, C33, P27 Keywords: Foreign direct investment, dynamic panel estimation, transition economies
  • Funke, Michael; Ruhwedel, Ralf (2003)
    BOFIT Discussion Papers 8/2003
    Published in Economics of Transition vol 13, no 1 (2005), pp. 25-50
    Utilising panel data for 14 East European transition economies, we find support for the hypothesis that a greater degree of export variety relative to the U.S. helps to explain relative per capita GDP levels.The empirical work relies upon some direct measures of product variety calculated from 5-digit OECD trade data.Although the issue is far from settled, the emerging view is that the index of relative export variety across countries correlates significantly with relative per capita income levels. Keywords: Product Variety, Transition Economies, Eastern Europe, Economic Growth, Panel Data JEL classification: C33, F43, O31, O33, O52.
  • Méon, Pierre-Guillaume; Weill, Laurent (2008)
    BOFIT Discussion Papers 20/2008
    Published in World Development 38, 3, 244-259, 2010
    This paper tests whether corruption may act as an efficient grease for the wheels of an otherwise deficient institutional framework. We analyze the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 54 developed and developing countries. Using three measures of corruption and five measures of other aspects of governance, we observe that corruption is consistently detrimental in countries where institutions are effective, but that it may be positively associated with efficiency in countries where institutions are ineffective. We thus find evidence of the grease the wheels hypothesis. Keywords: governance, corruption, income, aggregate productivity, efficiency JEL Classification: C33, K4, O43, O47.
  • Fischer, Christoph (2002)
    BOFIT Discussion Papers 8/2002
    Published in Review of World Economics/Weltwirtschaftliches Archiv vol. 140, no 2 (2004), pp. 179-210
    The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts.The response of a small country's real exchange rate to various shocks is derived in a simple model.It is shown that productivity shocks work not only through a Balassa-type supply channel but also through an investment demand channel. Therefore, empirical evidence apparently in favour of Balassa-Samuelson effects may require a re-interpretation.The model is estimated for a panel of CEE countries.The results are consistent with the model, plausibly explain the observed real appreciation and support the existence of the proposed investment demand channel.JEL classification: F31, F41, C33
  • Staehr, Karsten (2003)
    BOFIT Discussion Papers 1/2003
    Published in The European Journal of Comparative Economics, Vol. 2, n. 2 (2005), pp. 177-202
    Growth regressions have provided important insights into the impact of economic reforms on growth in transition economies.Using principal components to decompose reform variables and construct reform clusters, we address unsettled issues such as the importance of sequencing and reform speed.The results indicate a broad-based reform policy is good for growth, but so is a policy of liberalisation and small-scale privatisation without structural reforms.Conversely, large-scale privatisation without adjoining reforms, market opening without supporting reforms and bank liberalisation without enterprise restructuring affect growth negatively.Swift reform policies allow transition countries to benefit from higher growth for a longer period of time.The speed of reforms otherwise appears to have only limited effects on short-term and medium-term growth. Keywords: Economic reforms, growth, principal components, gradualism versus big-bang JEL classification: P21, P30, C33, H11
  • Barseghyan, Gayane (2019)
    BOFIT Discussion Papers 24/2019
    Taking the multilateral sanctions program launched against Russia in 2014 as a case study, this paper investigates the economic effects of sanctions and counter-sanctions on a target economy. A synthetic control method for comparative case studies is employed to construct counterfactuals. The estimation results demonstrate that in Russia following sanctions and counter-sanctions real GDP per capita, FDI net in flows and income inequality fell, while the ban on agricultural and food imports introduced by Russia boosted the domestic agricultural sector, resulting in higher agricultural productivity and farm worker incomes. Various placebo studies confirm the significance of obtained estimates. Results are robust to random donor samples.
  • Crespo Cuaresma, Jesús; Fidrmuc, Jarko; MacDonald, Ronald (2003)
    BOFIT Discussion Papers 14/2003
    Published in Economics of Transition vol 13, no 2 (2005), pp. 395-416
    A panel data set for six Central and Eastern European countries (the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) is used to estimate the monetary exchange rate model with panel cointegration methods, including the Pooled Mean Group estimator, the Fully Modified Least Square estimator and the Dynamic Least Square estimator.The monetary model is able to convincingly explain the long-run dynamics of exchange rates in CEECs, particularly when this is supplemented by a Balassa-Samuelson effect.We then use our long-run monetary estimates to compute equilibrium exchange rates.Finally, we discuss the implications for the accession of selected countries to the European Economic and Monetary Union.Keywords: Exchange rates, monetary model, panel unit root tests, panel cointegration, EMU JEL classification: C33, F31, F36
  • Kim, Byung-Yeon; Pirttilä, Jukka (2003)
    BOFIT Discussion Papers 4/2003
    Published in Journal of Comparative Economics, Vol.34, No.3 (2006), pp. 446-466 as "Political constraints and economic reform: Empirical evidence from the post-communist transition in the 1990s"
    Using a novel data set from post-communist countries in the 1990s, this paper examines linkages between political constraints, economic reforms and growth.A dynamic panel analysis suggests public support for reform is negatively associated with income inequality and unemployment.Both the ex post and ex ante political constraints of public support affect progress in economic reform, which in turn influences economic growth.The findings highlight that while economic reforms are needed to foster growth, they must be designed so that they do not undermine political support for reform. Keywords: Political constraints, economic reform, transition, growth, dynamic panel models, JEL classification: P26, O11, C33