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China's extensive economic growth has been accompanied with high levels of pollution, and excessive energy consumption has brought serious pollution problems. The use of financial resources to regulate green production modes and encourage high‐quality economic development has become a major focus in academia. At the same time, growth enterprise market (GEM) enterprises, which mainly operate in technology‐intensive industries, are assumed to have a simulating effect on regional innovation. Therefore, this paper utilizes the capital return differences of 4437 listed companies and 920 GEM companies based in 30 provinces of China from 2008 to 2018 to quantitatively analyze the levels of financial misallocation. With two‐stage regression method, the direct effect of financial misallocation on regional green total factor energy efficiency (GTFEE) and the indirect impact observed when taking regional innovation as an intermediary variable are discussed. Furthermore, dynamic threshold panel regression and heterogeneity analysis are used to verify the above nonlinear relationship. The empirical findings indicate that financial misallocation enhances innovation capability and further restrains GTFEE. With an improved degree of marketization and environmental regulation, the inhibitory effect of financial misallocation on GTFEE is more significant. [ABSTRACT FROM AUTHOR]

Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper discusses the economic analysis of modern rich economies. It argues that standard economic theory acknowledges that it does not apply if there is own‐consumption and/or joint production and suggests that successful economic reforms of the 1980s have used markets to drive down costs in sectors where standard economic theory applies. This process has resulted in a situation where rich country economies are increasingly oriented to sectors – predominantly services – where markets work less well, namely those with extensive own‐consumption and joint production, where theory says that factor rewards and other prices cannot be determined by production and consumption conditions. Arguing that this can explain the “wages squeeze,” the paper concludes that other economic mechanisms should and have arisen to secure better welfare gains, thus explaining the recent shift in policy priorities of the ACTU. [ABSTRACT FROM AUTHOR]

The article comments on three papers within the issue: "Long-Term Effects of Government Deficits on the U.S. Output Potential," by George von Furstenburg, "Capital Formation and the Recent Productivity Slowdown," by Peter Clark, and "U.S. Productivity Growth Recession: History and Prospects for the Future," by Michael McCarthy. The author discusses each article and criticizes their shortcomings. He looks at von Furstenburg's use of the Phelps-Shell model of dynamic economic growth and notes the usefulness of neoclassical growth theory. The author feels that his discussion on the effects of government deficits on output growth or productivity represent a fruitful economic analysis innovation.

The purpose of this paper is to reexamine Milton Friedman and Anna J. Schwartz's argument regarding major business cycle movements, limiting the analysis to business cycle peaks and excluding troughs. Friedman-Schwartz argued that appreciable changes in the rate of growth of the stock of money are a necessary and sufficient condition for appreciable changes in the rate of growth of money income. The necessity and sufficiency of a monetary deceleration for a business cycle peak are explored using a definition of monetary deceleration that takes account of both the size and duration of a change in the growth rate of money.

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article presents a discussion of the research paper by Simon Kuznets on the difficulty of making an orderly pattern of long-term change and how it lies in the absence of an effective theory or even of a working hypothesis. The paper deals with economic forecasting. The reviewer presents an analogy to gross national product forecasting. Examined is the rise of the gross national product in 1953 and what it is forecasted to be in 1965. Also commented on is the annual capital increase in real Gross National Product.

The article presents a discussion of papers written by Norris Johnson and John Scanlon. These authors discuss economic forecasting from 1957 to 1967. Particular attention is given to how the demand for capital funds are crowding the supply during most of this period but not in such a manner as to give rise to major capital shortages. The author states that there is no proof positive way of assessing the reliability of the assumptions made in this paper or their implications for the adequacy of funds.

Local governments and enterprises are two important actors in China's environmental governance system. A better understanding of the interaction between corporate environmental responsibility (CER) and governmental environmental responsibility (GER) will help to enhance the collaboration between corporations and the government, craft a good environmental governance system, and achieve coordinated development of economic development and environmental protection. This paper divides GER into three types: policymaking responsibility, implementation responsibility, and supervisory responsibility. Based on panel data on Chinese manufacturing companies listed during the period 2012–2017, this paper analyzes the relationship between GER and CER and explores the impact of the collaboration between the two on regional environmental pollution. The research results show the following: (1) in China, policymaking responsibility significantly promotes CER, whereas implementation responsibility has a significant negative impact on CER, and supervisory responsibility has no significant influence. (2) The collaboration between GER and CER effectively reduces solid waste discharge in a region but does not significantly reduce SO2 emissions or wastewater discharge. [ABSTRACT FROM AUTHOR]

The paper by Lucas (1978) "Asset Prices in an Exchange Economy" initiated a paradigmatic change in the Theory of Equilibrium Pricing of Risky Assets. It was followed by several papers including those by Brock (1979, 1982), Prescott and Mehra (1980) and Donaldson and Mehra (1984) who generalize Lucas' model to a production setting. In this paper, we examine a variation of Lucas' pure exchange model. In Lucas' model the level of consumption follows a Markov process. Observing the large increases in per capital consumption in the past, we postulate that the growth rate of consumption follows a Markov process, an assumption that enables us to capture the nonstationarity in the consumption series. Our extension is particularly relevant for empiricists interested in testing consumption-based asset pricing models in the Lucas-Prescott research tradition. [ABSTRACT FROM AUTHOR]

In the context of global concern for the environment and considering the observation that very few manufacturing companies have taken a more proactive position on sustainability, it has been suggested that the stakeholder approach can contribute to the study of sustainability management. Hence, this paper analyzes the relationship between a set of individual stakeholders pressures (STP) from different groups and the adoption and implementation of some specific sets of sustainability practices (SP) in manufacturing: internal and external monitoring and external collaborative. It also contributes to the open debate around the "monolithic" versus differentiated reaction to perceived STP, showing that companies respond selectively to the different stakeholder groups. Finally, this research also considers the possible influence of different country development contexts (developed vs. emerging countries), which may be very informative in the context of the growing globalization of operations. Using a large, worldwide, multicountry, and multi‐informant sample of manufacturing plants from three industry sectors located in 15 emerging and developed countries, this study shows that the different stakeholders play different roles in the adoption and implementation of different sustainability practices, thus contributing to the open debate around a suitable balance of stakeholder pressures. This research further contributes to the debate around the convergence and divergence perspectives by supporting the "universal" adoption of sustainability practices (convergence perspective) as no statistical differences are found in stakeholder pressures in different country development contexts. [ABSTRACT FROM AUTHOR]

Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

On the path to carbon neutrality, the journey to net‐zero emissions in the industry is achievable, and the green development of industrial parks is crucial for a smooth transition. We examined a sample of 171 green industrial parks certified by China's Ministry of Industry and Information Technology (MIIT). Using the Tapio decoupling model, we conducted decoupling analyses at both the national and regional scales of their economic growth and environmental conservation for three consecutive years. Spatial heterogeneity is found in carbon‐economy decoupling states and carbon‐pollutant synergy effects. Industrial parks in the east of China present better carbon‐economy decoupling states and carbon‐pollutant synergy effects than the other regions. The CO2 emissions determinants were explored by using the STIRPAT model. The variable industrial value‐added per capita, which is representative of economic growth, presents a positive and significant effect on emissions; the energy output and the proportion of high‐tech industries present a negative effect. However, after dividing the parks into groups by their leading industries, the influence of the variables started to show a power discrepancy. The heterogeneity analysis of this study can provide a basis for developing diversified strategies for Chinese industrial parks under the net‐zero emission goal. Plain Language Summary: This paper evaluated the economic development and environmental impacts of the 171 green industrial parks certified by the Ministry of Industry and Information Technology (MIIT) of China, using data and materials that were inventoried and summarized for the first time. The relationship of economic growth and CO2 emissions and other major pollutants was examined using the Tapio decoupling model, and the results suggest strong decoupling states for most of the cases, and a significant carbon‐pollution synergy effect. Further regression analysis indicated that industrial output and green and high‐tech industries are significant drivers of decoupling. The discoveries will guide future actions and policies toward sustainable development for the industrial parks of China. Key Points: Economic growth and environmental impacts are strongly decoupled for most of the studied green industrial parksA significant carbon‐pollution synergy effect is found in the green industrial parksIndustrial output and green and high‐tech industries are significant drivers of CO2 emissions but show discrepancy in different industries [ABSTRACT FROM AUTHOR]

A thorough review of the literature reveals that there is a paucity of studies on integrating wisdom and sustainability disciplines. This paper investigates the role of sustainability in fostering wisdom in the interaction between businesses and their surrounding environment. Wisdom has recently attracted a lot of attention in both academia and the practical world. However, despite the strong emphasis that is put on the necessity of incorporating wisdom into business practices, there is little on how wisdom can be practically integrated in the real business world. To address this issue, this paper draws a linkage between wisdom and sustainability by noting the assumptions that the concepts of wisdom and sustainability share with respect to human flourishing, environmental preservation and economic growth. It is concluded that wisdom manifests through organizational sustainability, and that wisdom promotes organizational sustainability capacity. A model of the interaction between the two practices is proposed. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment [ABSTRACT FROM AUTHOR]

The authors reflect on the changes in China, and increased attention paid to the development of information systems (IS) will underpin national development across sectors of the economy. They present five papers, written by 74 authors in eight countries, that reflect an emerging quality in Chinese IS research.

The relationship between foreign aid and economic growth has been the subject of much controversy. A recent theme suggesting that aid promotes growth, but only in a good policy environment has ratchet up that debate. In this paper, we assess the importance of policy and aid in generating growth when the aid, policy, and growth relationship is nonlinear. This allows us to examine the varying effects of aid and policy in different data segments, which we do without imposing any particular structure on the underlying relationship. We find that policy is an important determinant of growth. We also find partial corroboration of the view that aid is growth enhancing in a good policy environment, and some evidence of diminishing returns to aid. These findings suggest that nonlinearities if not appropriately addressed fail to capture the detailed underlying dynamics and thereby mask some key features of the aid-policy-growth relationship. [ABSTRACT FROM AUTHOR]

The article aims to explain regional economic development and economic convergence under the theme of spatial econometrics. The major idea behind the economic convergence is decreasing returns to capital accumulation. The economic convergence can be achieved by variety of theoretical and statistical models. There are so many advanced studies came out. They will facilitate convergence model specification and statistical testing for better efficiency.

This paper presents an empirical analysis of the factors which promote entrepreneurial activity across a number of transition, developing and developed countries. It produces results which highlight the importance of institutions in promoting entrepreneurial activity. This work is part of an on-going research project on the relationship between the legal system and factors which influence economic development. In particular, it has been shown that legal rules protecting creditors and investors influence the size of financial markets which in turn influence economic development. Our paper thus extends the analysis of the impact of institutions beyond that previously established to demonstrate its influence on another driver of economic development. Copyright © 2005 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

It is the size of the elasticity of substitution that has been the central issue in the long debate over the possibility of continuous growth in the presence of exhaustible resources. This paper reviews the debate and comes to the surprising conclusion that, unnoticed by pessimists, the optimist position has gradually evolved so that it now approximates that of the pessimists. The paper also summarizes some preliminary work by the author that indicates that this common position may not be correct. [ABSTRACT FROM AUTHOR]

This research evaluates the management efficiency of the European Structural Funds according to whether their productive orientation is based on employment or on economic and social development. The data refers to 2000–2020 for the 28 EU countries. The paper includes an analysis of the influence of the country's governance and economic freedom on the production function associated with the funds received. The results show that there is a technological gap between groups of countries defined by their goodness of governance. On the other hand, there is a positive relationship of economic freedom and the efficiency scores of the countries. [ABSTRACT FROM AUTHOR]

This paper examines the determinants of economic growth in developing countries within the standard growth regression framework, with special attention being paid to the experience of landlocked developing countries ( LLDCs). The results confirm that the landlockedness hampers economic growth, but the magnitude of negative impact is sensitive to alternative estimation methods. However, the analysis suggests that good governance, trade openness and coordinating infrastructure development with neighbours explain the significant aspect of the inter-country differences in growth rates among LLDCs. The results also suggest that African landlocked countries are not different from the other LLDCs. Contrary to the 'resource curse' hypothesis, natural resources seem to contribute to economic growth of LLDCs. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including volatility of Chinese economic activities, globalization and industrial performance in China, and regional disparities and productivity in China.

In this paper, we examine the relationship between the conditions of the entrepreneurial environment and high‐potential entrepreneurship according to the stage of economic development of the country. A structural equation model was designed based on data from the Global Entrepreneurship Monitor project, which contains information about 62 countries. Our results suggest that economic development and high‐potential entrepreneurship have a greater impact on the entrepreneurial ecosystem than entrepreneurial activity in general—with special effects on government programs, R&D transfer, and access to the domestic market. Notably, the level of influence of sustainable economic development and high‐potential entrepreneurship depends on the level of economic development of the country. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper attempts to shed new empirical light on infrastructure's role in economic growth using a semiparametric smooth coefficient model to avoid specification problems in some existing studies and admit infrastructure‐induced nonlinearity and parameter heterogeneity. Estimated by a three‐step procedure that controls for endogeneity in both the regressors and the environmental variable (infrastructure), the model is applied to the empirical context of telecommunications infrastructure in a fast‐growing economy, China. The results reveal that telecommunications contribute to output through various sources, namely its neutral and non‐neutral impacts. The total/net effect is positive but largely decreases with telecommunications stocks. [ABSTRACT FROM AUTHOR]

Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this paper is to examine the positive impact that the creation of food processing hubs can have on "smart specialisation" on the economic development of regional Australia. The analysis looks at two existing developments in Australia, as well as providing an economic evaluation of another "regional hub" that is currently being proposed. Our paper provides an economic impact analysis of the proposed establishment of a food processing hub in Victoria. It presents an analysis on its impact both at a regional level (Gippsland), and more widely across Australia. [ABSTRACT FROM AUTHOR]

This paper proposes a dynamic framework of economic organization called the option-creating institution (OCI) model. The claim is made that firm, market, and hybrid governance structures emerge from the need for flexibility in an uncertain world. Each governance structure uniquely provides strategic real options that allow capitalist-entrepreneurs, with unique risk preferences, to better organize their economic activities. The real options perspective on economic organization is developed by drawing insights from the exchange and coordination perspectives. It is proposed that this real options perspective matches practicing decision makers' intuition and that an inductive OCI model will offer a prescriptive guide. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper uses a new methodology based on industry comovement to examine the role of financial market development in intersectoral allocation. Based on the assumption that there exist common global shocks to growth opportunities, we hypothesize that country pairs should have correlated patterns of sectoral growth if they are able to respond to these shocks. Consistent with financial markets promoting responsiveness to shocks, countries have more highly correlated growth rates across sectors when both countries have well-developed financial markets. This effect is stronger between country pairs at similar levels of economic development, which are more likely to experience similar growth shocks. [ABSTRACT FROM AUTHOR]

This paper analyzes a model in which long-term risky assets are illiquid due to adverse selection. The degree of adverse selection and hence the liquidity of these assets is determined endogenously by the amount of trade for reasons other than private information. I find that higher productivity leads to increased liquidity. Moreover, liquidity magnifies the effects of changes in productivity on investment and volume. High productivity implies that investors initiate larger scale risky projects which increases the riskiness of their incomes. Riskier incomes induce more sales of claims to high-quality projects, causing liquidity to increase. [ABSTRACT FROM AUTHOR]

Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the determinants and the time pattern of the subjective well-being of private business owners. We find that both personal and enterprise-level factors have a significant influence on subjective status of private business owners. Meanwhile, we find supportive evidence of Easterlin paradox among Chinese private entrepreneurs: both personal income and operating revenue enhance subjective status in a certain period, but subjective status declines as time goes by, even as incomes continue to rise. A further Oaxaca--Blinder decomposition suggests that the competition and provincial factors are the keys to explaining the paradox. Finally, we try to verify the positive effect of political connection on entrepreneurs' subjective status to provide some helpful advice for the government. [ABSTRACT FROM AUTHOR]

The reform of power spot market in China provides a new profit mode, determining energy trading strategy based on the power spot prices for distributed energy storages. However, individually accessing every distributed energy storage to the dispatch centre results in a high cost and low efficiency, which needs to be improved by connecting through the aggregator. To this end, this paper proposes a regulation mode and strategy for distributed energy storages participating in energy trading through aggregation. First, the optimal centres of distributed energy storages are searched as the aggregation centres according to the electrical distance distributed by the energy storage, and the model of each distributed energy storage aggregation group is established. On this basis, the conditional value at risk (CVaR) method is introduced to quantify the income risk brought by the fluctuation of power spot prices, following with the optimization model for day‐ahead stage and real‐time stage. Finally, case studies under multiple scenarios of power spot market verify that the regulation mode and strategy can effectively guarantee the economic profits of distributed energy storages by setting aggregation groups and reasonable risk preference coefficients. [ABSTRACT FROM AUTHOR]

The increasing penetration of photovoltaic (PV) systems into the electrical energy systems brings forward several technical and economic issues that mostly relate to their unpredictable nature. A promising solution to many of these is the implementation of robust PV generation forecasting models. In this paper a novel hybrid Ensemble Long Short‐Term Memory‐Feed Forward Neural Network (ELSTM‐FFNN) model is proposed, that is able to perform both very‐short and short‐term forecasting. The performance of the proposed model is compared with individual LSTM models, and its forecasting accuracy is assessed in two different forecasting horizons: (a) 15‐min ahead and (b) 1‐h ahead. Moreover, in order to fully examine the contribution of the utilized data to the performance of the model, several scenarios have been formulated for each forecasting horizon. The results indicate that the proposed ELSTM‐FFNN model can increase the forecasting accuracy in both horizons between 3–11.9% and 0.2–17.8%, respectively, considering the Mean Absolute Range Normalized Error (MARNE). [ABSTRACT FROM AUTHOR]

As science becomes increasingly cross‐disciplinary and scientific models become increasingly cross‐coupled, standardized practices of model evaluation are more important than ever. For normally distributed data, mean squared error (MSE) is ideal as an objective measure of model performance, but it gives little insight into what aspects of model performance are "good" or "bad." This apparent weakness has led to a myriad of specialized error metrics, which are sometimes aggregated to form a composite score. Such scores are inherently subjective, however, and while their components may be interpretable, the composite itself is not. We contend that, a better approach to model benchmarking and interpretation is to decompose MSE into interpretable components. To demonstrate the versatility of this approach, we outline some fundamental types of decomposition and apply them to predictions at 1,021 streamgages across the conterminous United States from three streamflow models. Through this demonstration, we hope to show that each component in a decomposition represents a distinct concept, like "season" or "variability," and that simple decompositions can be combined to represent more complex concepts, like "seasonal variability," creating an expressive language through which to interrogate models and data. Plain Language Summary: Models are essential scientific tools for explaining and predicting phenomena ranging from weather and climate, to health outcomes, to economic development, to the origins of the universe, and testing competing models is one of the most basic scientific activites. Yet, how scientists evaluate and justify their models can be inconsistent or even arbitrary. Traditionally, one performance metric—such as mean squared error—is used to identify the best model, but one metric provides little insight into what aspects of a model are "good" or "bad." This paper proposes a basic language for expressing different aspects of a model's performance. On one hand, this is useful for determining which aspects of model may require revision, but it also allows the modeler to separate out the best elements among several models and combine them to form an ensemble, analogous to how an audio engineer mixes together multiple tracks to form the best rendition of a musical piece. Key Points: Mean squared error (MSE) is an objective but somewhat enigmatic measure of model performanceMSE can be decomposed into components that quantify specific aspects of model performance, such as bias and varianceMixing components among models yields a form of ensemble prediction [ABSTRACT FROM AUTHOR]

Abstract: Mediation as a theory testing approach has witnessed considerable adoption among Operations Management (OM) researchers. Although mediation-testing methods have evolved tremendously in the past decade, their dissemination in the OM field has not seen parallel growth. These advanced techniques facilitate the testing of existing and complex hypotheses in a more precise manner. With the intent of critically evaluating existing and alternative methods for conducting mediation analysis needed to support sophisticated empirical research, this paper first reviews OM studies that tested for mediation in the past eleven years (2002–2012) from top-tier OM journals. Four commonly used mediation approaches were identified. Based on principles of good theory building, type of mediation model, and properties of empirical data, we evaluate the existing methodologies and make recommendations on how to improve the rigor of OM mediation testing. Using published OM studies in top journals as examples, we then illustrate the relevance and advantages of these recommendations, as well as their ease of use. Furthermore, we empirically show that more robust and insightful results can be achieved by adopting these techniques, which in turn have the promise of leading to better theory building and testing in the field of operations management. [Copyright &y& Elsevier]

Compliance and enforcement in fisheries are important issues from an economic point of view since management measures are useless without a certain level of enforcement. These conclusions come from the well-established theoretical literature on compliance and enforcement problems within fisheries and a common result is that, it is efficient to set fines as high as possible and monitoring as low as possible, when fines are costless and offenders are risk neutral. However, this result is sensitive to the assumption that fishermen cannot engage in avoidance activities, e.g., activities to reduce the likelihood of being detected when noncomplying. The paper presents a model of fisheries that allows the fishermen to engage in avoidance activities. The conclusions from the model are that, under certain circumstances, fines are costly transfers to society since they not only have a direct positive effect on the level of deterrence, but also an indirect negative effect in the form of increased avoidance activities to reduce the probability of detection. The paper contributes to the literature on avoidance activities by introducing the externality from the illegal behavior as an endogenous effect on other offenders. For an externality, that has an exogenous effect on other actors, Malik shows that fines are only costly transfers for conditional deterrence (when one actor is deterred while another actor is not). For fisheries, we show that fines are also costly transfers under no deterrence (when no agents are deterred). [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper uses various approaches: capital asset pricing, mean-variance, global minimum-variance, Bayes-Stein, Bayesian and multi-prior to develop foreign equity bias measures for Australia’s international equity holdings in 41 countries, over the period 2001 to 2012. Bayesian models allow for various degrees of mis-trust in the ICAPM model. Multi-Prior restricts the expected return for each asset to lie within specified confidence interval around its estimated value. Mean-Variance computes optimal weights by sample estimates of mean and covariance matrix of sample return. Bayes-Stein shrinks each asset’s historical mean return toward the return of the minimum variance portfolio and improves precision associated with estimating the expected return of each asset. The plausible sources of foreign equity bias are trade, GDP per capita, real GDP growth rate, exchange rate volatility, tax credit, stock market development, familiarity and institution variables. The paper finds that economic cost of the observed foreign bias is low. The paper analyses correlation effect on the foreign bias and finds that economic loss decreases with an increase in correlation. [ABSTRACT FROM AUTHOR]

The paper presents a general equilibrium model of a developing economy with a capital intensive formal sector and a large informal sector with sector-specific capital to analyse the effects of investments on the sectoral returns to capital, sectoral wage rates, and composition of output and employment. Beginning with capital market disequilibrium (unequal sectoral rates of return) and labour market distortion (formal-informal wage gap), the model traces the evolution of the economy till capital market equilibrium is attained. The investments in the formal sector equalise the wages (a 'turning point' in growth à la Lewis) and reduces the size of the informal sector. The sectoral rates of returns equalise only if there is no factor intensity reversal, otherwise the economy specialises in the production of formal goods. The investments in the informal sector equalise the rates of return, do not affect the size of the formal sector and finally, a formal-informal wage gap persists provided factor intensities are not reversed. [ABSTRACT FROM AUTHOR]

ABSTRACT The purpose of this paper is to investigate how foreign bank ownership in the banking sector affects domestic bank behaviour and whether this relationship depends on the economic and financial conditions of the host country. This paper contains 795 individual banks in 39 countries covering the period 1999-2006. Foreign ownership is calculated using bank level data as a proxy for the degree of foreign bank ownership in the banking sector. First, we find that foreign bank ownership is associated with a decrease in both the profitability and overhead expenses of the domestic bank after applying the system panel Generalized Method of Moments model. Second, a lower level of economic development of the host country enhances the positive effects of foreign bank ownership on the income, profit and cost of domestic banks. Third, financial development plays an important role in determining the effect of foreign bank ownership. Fourth, while the use of aggregate foreign ownership data may provide us with a big picture, it may not explain why individual banks in the same country perform differently, which this study will answer. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of public investment on regional economic growth and convergence at the NUTS 3 level in Greece. Using a new database of public expenditure per region for the period 1978-2007, it proposes a model which captures not just the impact of public investment in Greek prefectures, but also the spillover effects related to the existence of externalities from neighbouring regions. The results point to a positive long-run impact of public investment per capita on regional economic growth - but not on convergence - which also generates considerable spillover effects. However, the returns vary according to different types of public investment, with education and infrastructure spillovers having the highest impact. In general, public investment externalities seem to be more relevant for regional growth than direct public investment in each region. Finally, the impact of different types of public investment in Greece is mediated by politics and political factors, but the effect of politics disappears once we control for political-period-specific spatial-invariant variables. Resumen Este artículo estima el impacto de la inversión pública en el crecimiento económico regional y la convergencia a nivel NUTS 3 en Grecia. Haciendo uso de una nueva base de datos de gasto público por región para el periodo 1978-2007, se propone un modelo que identifica no solamente el impacto de la inversión pública en las prefecturas griegas, sino también los efectos de spillover relacionados con la existencia de externalidades procedentes de regiones vecinas. Los resultados apuntan a un impacto positivo a largo plazo de la inversión pública per cápita en el crecimiento económico regional - pero no en la convergencia - el cual genera unos efectos de spillover considerables. Sin embargo, los retornos varían de acuerdo con los diferentes tipos de inversión pública, siendo la educación y los spillovers de infraestructura los de mayor impacto. En general, las externalidades de inversión pública parecen tener una mayor relevancia para el crecimiento regional que la inversión pública directa en cada región. Para terminar, el impacto de los diferentes tipos de inversión pública en Grecia se ve influido por sus políticas y otros factores políticos, pero el efecto de las políticas desaparece una vez que se controlan las variables espacialmente-invariantes de tipo político ligadas a un periodo específico. [ABSTRACT FROM AUTHOR]

Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The emergence of food and agriculture global value chains (GVCs) is challenging the way scholars look at trade data, as well as how policy makers establish their trade policies. The common perception is that Sub-Saharan African (SSA) countries, unlike most Latin American and Asian countries, are not deeply integrated into global production networks. Consequently, it is believed that the border protection policies of the former may have a limited impact on GVC participation. This paper challenges this conventional knowledge in two ways. First, by decomposing bilateral gross export into its value added components, we show that the sectoral and bilateral SSA participation in GVC for food and agriculture is substantial. Second, we demonstrate that trade policies impact backward and forward value chain linkages. These results call for a refinement of trade policy priorities in SSA. [ABSTRACT FROM AUTHOR]

This paper introduces a model in which greater inequality reduces growth in economies with low levels of financial development but that this effect is attenuated in economies with more developed systems. The model also predicts that individuals in economies with developed financial markets have a higher tolerance to inequality. Using a panel dataset that covers a large number of countries, this paper shows empirical evidence that is consistent with the main predictions of the model. Overall, this paper's major findings highlight that some of the pernicious effects of inequality can be attenuated by improving access to credit. [ABSTRACT FROM AUTHOR]

The Commonwealth Grants Commission's recommended allocation of some $45 billion of GST (VAT) revenue annually to the states and territories is heavily influenced by its estimate of their revenue-raising capacity, which it argues is primarily a function of the value of a jurisdiction's tax bases. This paper argues that a jurisdiction's revenue-raising capacity is primarily a function of the real household disposable income of residents after allowances for major cost-of-living differences, such as housing and journey-to-work costs, and tax exportation (the ability to tax non-resident income). Using this measure of revenue-raising capacity, we find that the CGC methodology significantly underestimates the real revenue capacity of the Australian Capital Territory (ACT) and Victoria and significantly overestimates the capacity of Queensland and Western Australia. The paper provides numerical estimates of the differences. The paper concludes that the principles on which the CGC determines the distribution of billions of dollars of funds are flawed and should be reformed. [ABSTRACT FROM AUTHOR]