Template-Type: ReDIF-Article 1.0
Author-Name: Trond Arne Borgersen
Author-Name-First: Trond Arne
Author-Name-Last: Borgersen
Author-Email: trond.a.borgersen@hiof.no
Author-Workplace-Name: Østfold University College
Title: Social Housing Policy in a Segmented Housing Market: Indirect Effects on Markets and on Individuals  
Abstract: This paper analyses indirect effects of social housing policy (SHP) in a segmented housing market. A two segment-housing ladder, where equity determines up trading, shows how SHP-measures targeting either housing supply or housing demand impact market developments and individual housing careers. When addressing market developments the paper considers house prices and housing supply. Analysing housing careers we highlights the ability of households indirectly exposed to SHP to trade up a housing ladder. The segmented housing market model contains both multipliers, along the lines of the Balanced Budget Multiplier of Haavelmo (1945), and non-neutral price effects across segments. These features allow some novel results when discussing indirect effects of SHP. Relating SHP to up-trading and a housing ladder where households simultaneously act as buyers and sellers, we first of all show the effect of SHP on the supply of used homes, an important part of housing supply. Second, this framework makes us able to position crowding-out across market segments. Both features are novel in the SHP-discussion. The paper also shows how SHP might create negative indirect effects on the up-trading ability of households that do not benefit from SHP measures.
Classification-JEL: R21, R31, I38
Keywords: Housing market structure, social housing policy, indirect effects
Journal: International Journal of Economic Sciences
Pages: 1-21
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21986
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21986?download=1
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:1-21
Template-Type: ReDIF-Article 1.0
Author-Name: Fatih  Deyneli
Author-Name-First: Fatih 
Author-Name-Last: Deyneli
Author-Email: fdeyneli@pau.edu.tr
Author-Workplace-Name: Pamukkale University
Title: Does Performance Budgeting System Affect Fiscal Performance in OECD Countries?
Abstract: Fiscal institutions tend to affect government deficit besides the macroeconomic variables. Fiscal institutions cover all rules and regulations in the budgetary process. Countries already have a standard performance budgeting framework to allocate budget resources. However, some countries don?t connect performance information with budget results, which means that performance information has no effect on the budgetary result if targets are not met.This article investigates the relationship between budget deficit and performance budgeting system (II). More specifically, our aim is to investigate the relationship between general government deficit and performance budgeting system when there are no budgetary consequences if targets are not met.For this purpose, the 2016 OECD Performance Budgeting Survey data will be used to define the performance budgeting variables. The results show that countries which have budgetary consequences if targets are not met tend to have a lower government deficit.
Classification-JEL: H61, H63
Keywords: Performance budgeting, fiscal performance, government deficit, OECD countries, performance information
Journal: International Journal of Economic Sciences
Pages: 22-34
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17550
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17550?download=2
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:22-34
Template-Type: ReDIF-Article 1.0
Author-Name: John Harter
Author-Name-First: John
Author-Name-Last: Harter
Author-Email: John.Harter@eku.edu
Author-Workplace-Name: Eastern Kentucky University
Title: Endogenous Firm Location with a Decreasing Density of Consumers
Abstract: This note will use the Hotelling?s line model with a non-uniform distribution of consumers.  Instead, a linear, decreasing density is employed to represent a decreasing population density as distance from a metropolitan area is increased along some transportation artery. Entry is sequential, and the number of firms is assumed endogenous after an initial firm is located, making the entrants consider the possibility of later firms. Entrants into this market have neither maximum nor minimum differentiation. Earlier entrants generally locate closer to the population center with the possible exception of the equilibrium location closest to the densest point on the line.  The differentiation increases as the firms are farther from the population center.
Classification-JEL: L19, R32, D21
Keywords: LocationProduct differentiationHotelling model
Journal: International Journal of Economic Sciences
Pages: 35-44
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17502
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17502?download=3
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:35-44
Template-Type: ReDIF-Article 1.0
Author-Name: Bozena Kaderabkova
Author-Name-First: Bozena
Author-Name-Last: Kaderabkova
Author-Email: Kaderabb@fsv.cvut.cz
Author-Workplace-Name: Faculty of Civil Engineering, Czech Technical University in Prague
Author-Name: Emilie Jasova
Author-Name-First: Emilie
Author-Name-Last: Jasova
Author-Email: ekonomka_2@hotmail.com
Author-Workplace-Name: Ministry of Labour and Social Affairs
Title: DEVELOPMENT OF REAL UNIT WAGE COSTS ON THE MACRO- AND MEZO-LEVEL OF THE CZECH REPUBLIC
Abstract: The aim of the paper is to analyse the development and the level of cost inflation pressures originating from the labour market in terms of the different levels of the Czech Republic. At first, we will mention several definitions of unit labour costs and the reasons for their examination and monitoring. Then we will select the concept of the nominal and real unit wage costs and data for the macro-level and mezzo-level in the Czech Republic. It is also evaluated the development of real unit wage costs indicator on individual levels of the Czech Republic and extent the wage inflation potential on them. Finally, we localize the first clues about the negative impact of wages on prices on the mezzo-level, which can be used for creating the prediction of the national economy in the near future.
Classification-JEL: E24, E32, E37
Keywords: Wage cost inflation pressures, nominal unit wage costs, real unit wage costs, mezzo-level, macro-level, wage cost inflation potential
Journal: International Journal of Economic Sciences
Pages: 45-59
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17526
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17526?download=4
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:45-59
Template-Type: ReDIF-Article 1.0
Author-Name: Aamir Khan
Author-Name-First: Aamir
Author-Name-Last: Khan
Author-Email: aamirhaider4343@gmail.com
Author-Workplace-Name: COMSATS University, Islamabad, Pakistan
Author-Name: Aneel Salman
Author-Name-First: Aneel
Author-Name-Last: Salman
Author-Email: aneel.salman@comsats.edu.pk
Author-Workplace-Name: COMSATS University, Islamabad
Author-Name: Muhammad Arshad Khan
Author-Name-First: Muhammad Arshad
Author-Name-Last: Khan
Author-Email: arshad.khan@comsats.edu.pk
Author-Workplace-Name: COMSATS University, Islamabad, Pakistan
Title: Is Exchange Rate Effect Trade Balance in Pakistan?  Evidence Based on J- Curve
Abstract: This study aims to find out the relationship of how exchange rate effect the balance of trade in Pakistan over the period 1982-2016 within the context of J-curve phenomenon. We employed an Autoregressive Distributed Lag (ARDL) approach to cointegration. To investigate the short run dynamics of the study, we have estimated an error correction model. The unit root results provide a mix of I(0) and I(1) variables. The results of diagnostic tests indicate no econometric problem in the estimated model. The CUSUM and CUSUM of squared test confirms the stability of the estimated model. We summarize the estimated results as follow: first, we found an evidence of cointegration among the variables. Second, the long run results shows significant effect of REER on trade balance in Pakistan. Third, we found an evidence of J-curve in case of Pakistan.
Classification-JEL: F14, F31
Keywords: Trade Balance, Real Effective Exchange Rate, J-Curve, ARDL
Journal: International Journal of Economic Sciences
Pages: 60-79
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-6822
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-6822?download=5
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:60-79
Template-Type: ReDIF-Article 1.0
Author-Name: Oumansour Nor-Eddine
Author-Name-First: Oumansour
Author-Name-Last: Nor-Eddine
Author-Email: noreddine.oumansour@um5.ac.ma
Author-Workplace-Name: Mohammed V University in Rabat
Author-Name: Chkiriba Driss
Author-Name-First: Chkiriba
Author-Name-Last: Driss
Author-Email: d.chkiriba@fsjes.umi.ac.ma
Author-Workplace-Name: Moulay Ismail University in Meknes
Title: External public debt and economic growth in Morocco: assessment and impacts
Abstract: This paper has the aim to study the impact of the external public debt on the economic growth in Morocco. The estimates cover the period 1988-2016. The econometric instrument used for estimating the model parameters is based on the "ARDL bound testing" method. The results confirm the high public debt has a negative and largely significant effect on the economic growth, for the short as well as for the long term. The effect is much more important in the short term than in the long term. The results corroborate most studies stating that the external debt has a negative impact on economic growth.
Classification-JEL: C32, F43, F34
Keywords: External Public Debt, economic growth, ARDL bound testing, debt overhang
Journal: International Journal of Economic Sciences
Pages: 80-95
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17445
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17445?download=6
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:80-95
Template-Type: ReDIF-Article 1.0
Author-Name: Tomislava Pavic Kramaric
Author-Name-First: Tomislava
Author-Name-Last: Pavic Kramaric
Author-Email: tpavic@oss.unist.hr
Author-Workplace-Name: University of Split - University Department of Professional Studies
Author-Name: Ivan Pavic
Author-Name-First: Ivan
Author-Name-Last: Pavic
Author-Email: pavic@efst.hr
Author-Workplace-Name: University of Split - Faculty of Economics
Author-Name: Marko Miletic
Author-Name-First: Marko
Author-Name-Last: Miletic
Author-Email: mamiletic@oss.unist.hr
Author-Workplace-Name: University of Split - University Department of Professional Studies
Title: Does Bancassurance Affect Performance of Non-life Insurance Sector ? Case of EU Countries 
Abstract: The aim of this paper is to test the influence of bancassurance as a distribution channel on performance of non-life insurance sector in selected European countries. The analysis refers to 2009 ? 2015 period and it is conducted using static panel analysis. Performance measures employed comprise of sales profitability as well as of profitability ratio of technical activity whereas independent variables used in the model include share of bancassurance, market share, gross written premium growth rate, claims growth rate, insurance density, share of premium in GDP, share of reinsurance and number of insurance companies. The results of the analysis in both models reveal that market share prove to be statistically significant determinant of insurance sector performance negatively affecting performance. Furthermore, insurance density has statistically significant and positive influence on performance measured with profitability ratio of technical activity.
Classification-JEL: G22, L10, O16
Keywords: bancassurance, non-life insurance industry performance, EU countries, static panel analysis
Journal: International Journal of Economic Sciences
Pages: 96-108
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17507
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17507?download=7
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:96-108
Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Strunz
Author-Name-First: Ulrich
Author-Name-Last: Strunz
Author-Email: ulrich.strunz@fom-net.de
Author-Workplace-Name: Universidad Católica San Antonio de Murcia
Author-Name: Christian Chlupsa
Author-Name-First: Christian
Author-Name-Last: Chlupsa
Author-Email: christian.chlupsa@fom.net
Author-Workplace-Name: FOM University of Economics and Management
Title: Overcoming Routine: A 21st Century Skill for a 21st Century Economy
Abstract: The aim of this study is to show that overcoming routine holds efficiency potential in complex decision environments and to find an indication on what percentage of decision-makers will successfully overcome routine, when thinking time is not incentivized. Curiosity might favor non-routine behavior, as it is the recognition, pursuit and desire to explore uncertain and ambiguous events. Two hundred sixty-two US-American Mturks completed both a curiosity questionnaire and an experiment in the form of a cognitive puzzle game. High values in self-reported ?Joyous Exploration? were not associated with larger numbers of experimental decisions. Contrary to findings where exploration served as a predictor for performance in human-computer interaction and as a mediator for ?error learning? (Frese, 1994), participants who performed better relied less on exploratory decisions. Only about 10 % were able to overcome their routine behavior, confirming that induced routine can have a strong influence on behavior (Betsch, Haberstroh, Glöckner, Haar, & Fiedler, 2001). Those who overcame routine reported higher response times when being framed by unexpected feedback, but solved the experiment more efficiently. This is in line with research that fast, intuitive decisions increase framing effects (Guo et al., 2017) and exploration is time-costly (Athukorala, 2015). As described in research, this study further strengthens insights that performance in solving complex problems relies heavily on rule identification, rule knowledge and rule application (Wüstenberg, Greiff, & Funke, 2012).
Classification-JEL: D81, D83, D91
Keywords: complex problem solving, dynamic decision making, response time, decision bias, mental model, cognitive reflection, minimal complex system, overcoming routine, non-routine task, curiosity, emotion
Journal: International Journal of Economic Sciences
Pages: 109-126
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21983
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21983?download=8
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:109-126
Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Szilagyiova
Author-Name-First: Silvia
Author-Name-Last: Szilagyiova
Author-Email: s.szilagyiova@yorksj.ac.uk
Author-Workplace-Name: York Business School, York St John University
Title: Exploitation of payday loan users: Fact or fiction? 
Abstract: This paper explores the existence of different forms and underpinning reasons of exploitation at households level. The empirical analysis, based on data from the British Household Panel Survey (BHPS) collected for the purpose of understanding the social and economic change in Britain, aims to identify underpinning factors of mixed conclusions from empirical evidence on the existence of exploitation of payday loan users. This paper goes beyond traditional economic explanation and focuses on factors defining conditional relative advantage exploitation leading to voluntary exploitation. The results suggest that due to an ?act in desperation?, current regulations on payday loan lending are powerless and cannot prevent households being voluntary exploited. In addition, results show that increased household financial burden and additional borrowing increase the likelihood of households to take a gamble in order to provide basic needs. The results provide more insight into why current policy regulations fail to tackle the problem of payday loan lending.
Classification-JEL: D14, G02, I31
Keywords: Payday loan; voluntary exploitation; absolutely disadvantaged households
Journal: International Journal of Economic Sciences
Pages: 127-147
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21981
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21981?download=9
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:127-147
Template-Type: ReDIF-Article 1.0
Author-Name: Vida Varahrami
Author-Name-First: Vida
Author-Name-Last: Varahrami
Author-Email: vida.varahrami@gmail.com
Author-Workplace-Name: Shahid Beheshti University, Tehran
Author-Name: Arghavan Novin Vajari
Author-Name-First: Arghavan
Author-Name-Last: Novin Vajari
Author-Email: a.novin66@gmail.com
Author-Workplace-Name: Tehran University
Title: FDI, Government Budget and Efficiency of Public Infrastructure Capital 
Abstract: This paper surveys relation between government budget, foreign direct investment (FDI) and public capital efficiency role in the infrastructure sector for attracting FDI. To achieve this goal, dynamic optimization methods are used for extracting the growth path of public consumption expenditure of government within a neoclassical growth model framework. The results suggest that FDI has a direct and positive effect on the optimal growth rate of public consumption expenditure. In fact, if the government invests more in the infrastructure sector and it is more efficient to attract FDI, the optimal growth rate of public consumption will be higher in long run respect to short run. The equation for the growth rate of public consumption is derived and estimated on the basis of data during the period 1971 - 2014 in Iran. 
Classification-JEL: F21, H54, O40
Keywords: Foreign Direct Investment, Infrastructures, Public Consumption Expenditure, Long Run Growth Path, Dynamic Optimization
Journal: International Journal of Economic Sciences
Pages: 148-158
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17482
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17482?download=10
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:148-158
Template-Type: ReDIF-Article 1.0
Author-Name: Ilko Vranki?
Author-Name-First: Ilko
Author-Name-Last: Vranki?
Author-Email: ivrankic@efzg.hr
Author-Workplace-Name: Faculty of Economics and Business Zagreb
Author-Name: Mira Krpan
Author-Name-First: Mira
Author-Name-Last: Krpan
Author-Email: moraic@net.efzg.hr
Author-Workplace-Name: Faculty of Economics and Business Zagreb
Author-Name: Jasminka ?ohinger
Author-Name-First: Jasminka
Author-Name-Last: ?ohinger
Author-Email: jsohinger@efzg.hr
Author-Workplace-Name: Faculty of Economics and Business Zagreb
Title: Economic Analysis of Technology and Properties of Legendre-Fenchel Transformations
Abstract: This paper examines a two-way relationship between convex analysis and microeconomic theory. Motivation for this paper are the observed similarities in the structure of the theory of consumer behavior and production theory. The fact that the behavior of variables is not determined by their nature but, rather, by their relationships is best illustrated and explained by using convex sets and convex analysis, which occupy central place in microeconomic theory. This paper is the result of efforts to make complex results of convex analysis and its application in microeconomic theory more transparent. Starting with the well-known economic phenomenon of profit maximization the authors derive in a novel way general results within the framework of convex analysis. From those results follow, directly and indirectly, the conclusions of the theory of consumer and producer behavior. The authors show that applying the Fundamental Theorems of Calculus opens up a new perspective in which the marginal cost curve can be interpreted as the marginal profit curve. This enables the derivation of Hotelling's lemma in a new way. Using the new interpretation of Hotelling's lemma, the authors reconstruct the cost function and confirm the Conjugate Duality Theorem of Legendre-Fenchel transformations. Relaxing the assumption of differentiability by describing the graph of the cost function as the envelope of its tangents, the authors rederive the properties of Legendre-Fenchel transformations and show that they hold in general. The path from the well-known economic facts to completely general conclusions of convex analysis is continued by applying the Conjugate Duality Theorem of Legendre-Fenchel transformations to the profit function. The essence of the dual characterization of technology by the profit function is illustrated by the graphical representation of linear homogeneity of the profit function. It results in the possibility to reconstruct the production function while using only the First Order Conditions to rederive Hotelling's lemma. It is this inductive-deductive approach used to examine the properties of Legendre-Fenchel trasformations and their application in the theory of consumer and producer behavior that establishes a two-way relationship between convex analysis and microeconomic theory.
Classification-JEL: C02, D01, D21
Keywords: Hotelling?s lemma, Legendre-Fenchel transformations, convexity, duality, inversion, sub-differentiability, monotonicity, cyclical monotonicity.
Journal: International Journal of Economic Sciences
Pages: 159-183
Volume: 8
Issue: 2
Year: 2019
Month: December
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17615
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-17615?download=11
Handle: RePEc:sek:jijoes:v:8:y:2019:i:2:p:159-183