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This paper investigates the impact of pandemic-induced uncertainty on the changes in the level and volatility of tourism demand. We estimate a structural VAR model using U.S. monthly data from January 2000 to December 2021 and find that pandemic-induced uncertainty shock has a negative and significant impact on inbound tourism. Our results reveal that, in the long run, a one-standard-deviation shock in the index of uncertainty induced by global pandemic shock explains about 50 per cent of the variations in the demand for tourism. Our findings on the predictive power of pandemic-induced uncertainty on tourism demand has important policy implications for tourism and hospitality management. [ABSTRACT FROM AUTHOR]

This study examines the impact of fiscal equalization payments on the composition of government spending under endogenous growth theory. Analytical conjectures stemming from the model are tested empirically. As an instrumental variable for within-province variations in provinces' equalization entitlements, we use plausibly exogenous variations in the grant eligibility rule for the Canadian fiscal equalization system. We find that fiscal equalization payments have a significant negative effect on the share of productive expenditures and a significant positive effect on the share of unproductive government expenditures. Furthermore, the results show that fiscal equalization lowers the speed of cross-regional convergence in real gross domestic product per worker. [ABSTRACT FROM AUTHOR]

Theoretical considerations appear to support the conjecture that stock returns are positively related to growth in the long run. However, the empirical literature does not give unanimous support to the theory. Based on a stochastic general equilibrium model it is argued that the long-run relationship between stock returns and per capita income growth is ambiguous and depends on output volatility. Using a century of data for 20 Organization for Economic Co-operation and Development (OECD) countries it is shown that the relationship between stock returns and growth is positive over the period 1916–1951, in which output volatility was persistent. Outside this period no relationship between stock returns and growth is found. These findings are consistent with the predictions of the theoretical model. [ABSTRACT FROM PUBLISHER]

Using the 2007 household survey data collected by Transparency International Bangladesh, we examine corruption in the education sector in Bangladesh. Our main findings are (i) the incidence of corruption and the amount of bribe increase with the level of red tape, (ii) poorer households, households with a less educated household head, and households with girls studying in school are more likely to be victims of corruption, (iii) households with higher social status are more likely to use informal networks to bypass the red tape or pay less amount of a bribe and, as a result, (iv) corruption is likely to be regressive. [ABSTRACT FROM PUBLISHER]

Based on the production-based Capital Asset Pricing Model (CAPM) principle, this article shows that earnings per unit of capital and the output capital ratio are excellent measures of expected stock returns because they are only temporarily affected by earnings shocks but affected permanently by changes in required share returns. Evidence for the US suggests that the risk premium is currently about 2% and that the covariance between consumption growth and expected returns is substantially lower than previously thought of; thus, reducing the equity puzzle substantially. [ABSTRACT FROM PUBLISHER]

This article argues that high historical excess returns to equity were the result of a severe ex post bias in the period from 1915 to ca 1960 because inflation surprises during this period drove a wedge between ex ante and ex post returns to bonds. Furthermore, it is shown that ex ante and ex post returns to stocks are identical in a steady state. Adjusting the ex post equity premium by the ex post bias reduces the equity premium to an arithmetic mean of 3.3-4.4% over the past 132 years. [ABSTRACT FROM AUTHOR]