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This paper investigates the impact of the Covid‐19 pandemic on trade flows in the case of the European countries. First, an ARDL dynamic panel model is estimated using the PMG method to analyse monthly data covering the most recent period (2019M1–2021M12); then, the GMM and PCSE approaches are applied to a much longer span of quarterly data (2000Q1–2021Q4), which also includes the Global Financial Crisis (GFC) of 2007–2009, in order to compare the trade impact of two different crises. The findings based on the monthly data provide clear evidence of the significant negative effects of the Covid‐19 pandemic on both exports and imports in both the short and the long run, and also suggest that digitalisation was instrumental in mitigating the impact of the crisis and speeding up the recovery. The quarterly analysis over a longer time period indicates that both the GFC and the Covid‐19 pandemic had negative effects on trade but of a different magnitude. The use of digital technology enabling remote work and e‐commerce are again some of the factors likely explaining why international trade fell by less and also rebounded much more quickly during the Covid‐19 pandemic compared to the GFC. [ABSTRACT FROM AUTHOR]

The importance of assessing and estimating the impact of the COVID-19 pandemic on financial markets and economic activity has attracted the interest of researchers and practitioners in recent years. The proposed study aims to explore the pandemic's impact on the economic activity of six Euro area economies. A class of dynamic panel data models and their corresponding Seemingly Unrelated Regression (SUR) models are developed and applied to model the economic activity of six Eurozone countries. This class of models allows for common and country-specific covariates to affect the real growth, as well as for cross-sectional dependence in the error processes. Estimation and inference for this class of panel models are based on both Bayesian and classical techniques. Our findings reveal that significant heterogeneity exists among the different economies with respect to the explanatory/predictive factors. The impact of the COVID-19 pandemic varied across the Euro area economies under study. Nonetheless, the outbreak of the COVID-19 pandemic profoundly affected real economic activity across all regions and countries. As an exogenous shock of such magnitude, it caused a sharp increase in overall uncertainty that spread quickly across all sectors of the global economy. [ABSTRACT FROM AUTHOR]

Public development banks are mission-oriented financial institutions whose purpose is to finance investments on behalf of the policymakers. After the last global financial crisis and the changes in the regulatory framework, the lending activities of commercial banks have declined, and their business models have shown a strong pro-cyclical character. On the other hand, public development banks are gaining considerable importance in maintaining the supply of credit in the event of disruptions in the financial system. Because the activity of public development banks is policy-driven, their credit supply is not affected by the GDP rate movement. The paper not only links the credit activity of public development banks with the indicator of financial stability of commercial banking before and after the establishment of the new banking regulatory framework but also examines the quality of the loan portfolio of public development banks and the movement of the ratio of non-performing loans of the commercial banking sector. The empirical analysis was conducted on a panel sample of EU27 countries using the publicly available database of the World Bank and the Bloomberg database for the 10 largest public development banks in the European Union in the period from 2005 to 2021. A research model with dynamic panels and a systematic one-step GMM estimator was employed. The results of the research confirmed and supported the basic research hypothesis that lending by public development banks is negatively related to the stability of the banking system, which indicates the contribution of public development banks in providing access to finance during the banking system crisis. Furthermore, research results showed that public lending by development banks is not related to GDP growth. The results of the research also confirmed an additional research hypothesis that the quality of lending by public development banks is significantly inversely proportional to the share of non-performing loans in the banking system as a whole. Accordingly, it is associated with a stable business model during economic cycles, solid credit standards, disclosure obligations, and public interest monitoring to avoid adverse shocks. Finally, the research result has confirmed the positive role of European public development banks in case of an increase in the probability of banking system distress due to efficient risk management and credit standards. Its conclusion is that the policymakers need to continue to promote the importance of public development banks in contributing to policy objectives and extending financial inclusion, both during the periods of financial stability and in the periods of indications of financial uncertainties and crises.

This paper examines whether regulatory compliance with governance norms explains the profit efficiency of Indian banks. Using a data envelopment analysis approach, a compliance index is built on 48 governance norms defined on board, audit, risk, remuneration, shareholder relationship, and disclosures. The study also identifies the position of banks on a 2 × 2 matrix based on their governance and profit efficiency levels. The econometric analysis establishes that mere regulatory compliance with governance codes does not necessarily ensure higher profit efficiency. Instead, the panel quantile estimates uncover evidence of a positive externality to governance compliance for banks with low profit efficiency levels. [ABSTRACT FROM AUTHOR]

The importance of assessing and estimating the impact of the COVID-19 pandemic on financial markets and economic activity has attracted the interest of researchers and practitioners in recent years. The proposed study aims to explore the pandemic’s impact on the economic activity of six Euro area economies. A class of dynamic panel data models and their corresponding Seemingly Unrelated Regression (SUR) models are developed and applied to model the economic activity of six Eurozone countries. This class of models allows for common and country-specific covariates to affect the real growth, as well as for cross-sectional dependence in the error processes. Estimation and inference for this class of panel models are based on both Bayesian and classical techniques. Our findings reveal that significant heterogeneity exists among the different economies with respect to the explanatory/predictive factors. The impact of the COVID-19 pandemic varied across the Euro area economies under study. Nonetheless, the outbreak of the COVID-19 pandemic profoundly affected real economic activity across all regions and countries. As an exogenous shock of such magnitude, it caused a sharp increase in overall uncertainty that spread quickly across all sectors of the global economy.

This paper analyses the short‐ and long‐run effects of trade openness on financial development in a panel including data on 35 European countries over the period 2001–2019. For this purpose, it uses the pooled mean group (PMG) estimator for dynamic panels developed by Pesaran et al. (Journal of the American Statistical Association, 1999;94:621). The results differ depending on the income, governance and financial development level of the countries considered. In particular, it appears that in the middle‐income countries trade openness tends to strengthen financial development in the long run but to have an adverse effect in the short run. By contrast, in the case of high‐income countries with better institutions and a higher level of financial development, there is a positive and significant impact in the short run. Some policy implications of these findings are drawn. [ABSTRACT FROM AUTHOR]

This article uses longitudinal bargaining contract data to examine whether third-party dispute resolution procedures improve the health of bargaining relationships and contribute to their preservation. The author uses survival analysis to assess whether the procedures correlate with the likelihood of relationship dissolution. This analysis shows that earlier procedures in the dispute resolution process, such as conciliation and mediation, are related to a lower likelihood of dissolution than are later ones. The author then uses dynamic panel models to consider whether third-party intervention pushes the parties to settle subsequent collective agreements voluntarily or earlier in the process, but he finds no evidence to this effect. [ABSTRACT FROM AUTHOR]

Industrial structure upgrading plays an important role in improving economic development efficiency. Taking Jiangsu as the study subject, the paper selects panel data from 2005 to 2018 and performs dynamic panel models and threshold models to analyze the influence mechanism of foreign direct investment (FDI) and green technology innovation on industrial structure upgrading (including rationalization and advancement). The results show that FDI acts negatively on industrial structure upgrading, exhibiting U-shaped relationship with advancement, in contrast, green technology innovation shows a positive contribution to upgrading. In addition, rationalization is limited by fixed assets growing but increases with rising education levels. An increase in fixed assets and education both have a positive effect on advancement. Further, FDI plays a facilitating role in advancement considering the positive moderating effect of green technology innovation. Therefore, the study provides a theoretical reference for the development path of foreign investment and industrial structure upgrade breakthrough in Jiangsu.

Agricultural structures are quite heterogeneous across the European Union (EU), and it is likely that the underlying technology also differs across regions. In this article, we claim that the heterogeneity of agriculture across the EU affects the process of income creation (i.e. the relative importance of the factors of farm income differ for different agricultural models). A panel of farms representative for 125 regions reporting to the EU Farm Accountancy Data Network (FADN) during the period from 2007 to 2018 is used. In this article, those regions are grouped into three clusters. A system generalised method of moments (GMM) panel estimator is applied to each cluster. The results showed that total factor productivity (TFP), relative prices and agricultural subsidies make different contributions to farm net value added (FNVA). In particular, the income growth of farms in regions dominated by large farms seems to react more to marginal changes of the explanatory variables.

Agricultural support policies, which increase production to excessive levels, have been heavily criticized for their distortional effects on farmers' decisions. High input consumption, which harms the environment, and the distribution of supports, which causes income inequality among farmers, are also the other factors that economists criticize these support policies. However, in recent years, the use and dependence on production and land have been increasing globally due to fears of food insecurity in several countries. In this article, the impact of a support policy on cotton farmers' land in Turkey is evaluated using a detailed farm-level micro dataset. We use the dynamic panel model to consider the production dynamics, unobservable individual heterogeneity, and the endogeneity of the support variable. Our results show that considering the support variable as endogenous significantly increased its impact on farmers' land. A farmer's past land allocation decisions also affected their current lands holdings. However, the results varied considerably between regions and between different land sizes. Therefore, the findings show the importance of heterogeneity in the impact of support policies. We conclude that due to the heterogeneous impact of support policies, it might not be possible to discuss the effect of support policies using an average estimate applicable for all farmers. Therefore, a different support policy considering regional characteristics or farm size is necessary to obtain the desired policy outcomes. [ABSTRACT FROM AUTHOR]

In this paper, we consider the estimation of a dynamic panel data model with non-stationary multi-factor error structures. We adopted the common correlated effect (CCE) estimation and established the asymptotic properties of the CCE and common correlated effects mean group (CCEMG) estimators, as N and T tend to infinity. The results show that both the CCE and CCEMG estimators are consistent and the CCEMG estimator is asymptotically normally distributed. The theoretical findings were supported for small samples by an extensive simulation study, showing that the CCE estimators are robust to a wide variety of data generation processes. Empirical findings suggest that the CCE estimation is widely applicable to models with non-stationary factors. The proposed procedure is also illustrated by an empirical application to analyze the U.S. cigar dataset. [ABSTRACT FROM AUTHOR]

Debates on the intricacies of tourism's potential contribution to economic growth remain imperative and unsettled in sub-Saharan Africa (SSA). Employing dynamic models and multiple robust estimation techniques, this article empirically tests the tourism-led growth hypothesis (TLGH) in the case of SSA. Further investigations on how countries' geographical locations influence the TLGH are conducted. With panel data – spanning from the year 2000 through 2016 – on 40 SSA countries, which were regrouped into coastal, landlocked and islands, the study establishes evidence in support of the TLGH for the full sample. After geographical classifications, tourism's impact on economic growth is, however, observed to be significantly positive for only landlocked and coastal countries. Surprisingly, the impact of tourism on economic growth is significantly negative for islands within the subregion. The findings hold policy implications for the pursuit of tourism-led growth in the SSA region. [ABSTRACT FROM AUTHOR]

Farms in the European Union come in a wide variety of sizes and the effect of farm size on profitability (return on assets - ROA) has not been sufficiently investigated. The principal goal of this paper, therefore, is to study the determinants of farm profitability using the panels of the Farm Accountancy Data Network (FADN) on farms of different economic size between 2007 and 2018. We use a profitability function based on ratios that show the production and financial management strategies used by the farms. We also analyse the impact of subsidies under the Common Agricultural Policy (CAP). To deal with endogeneity, we run dynamic panel models using the system generalised method of moments (sys-GMM) estimators. We highlight the important role of the high level of equity turnover. An increase in production relative to the farm's equity plays a crucial role in the growth of profitability for all groups of farms, but it is especially important for smaller entities. In addition, farm managers should control the level of debt since the debt-to-asset ratio is a highly significant negative determinant of farm profitability in most of the groups. The increase in subsidy rate generally translates into higher ROA, but this variable has a negative impact across the largest holdings.

Health literature shows that unemployment has a gendered effect on health. However, whether men or women are more affected and why remains unclear. We assume that unemployment harms women less than men because of two mechanisms: social roles theories and health selection. First, the availability and centrality in individuals' lives of roles other than employment may reduce the detrimental effect of unemployment for women. Second, the gendered impact of unemployment on health results from the different ways selection mechanisms operate across genders. Moreover, these two mechanisms may operate differently in different contexts – for example, across different gender regimes. We investigate this by pursuing a three‐step comparative approach. The analysis relies on EU‐SILC data covering Italy and Sweden for 2004 to 2015 and SOEP data for Germany (1995–2017) and applies correlated dynamic random‐effects probit models. While we find weak support for the role of health selection in shaping the relations between unemployment, health, and gender, our empirical results are in line with the hypothesis of a larger gendered effect in older (vs younger) cohorts, western (vs eastern) Germany and Italy (vs. Sweden). Future empirical research needs to directly address the role of gender regimes in moderating such complex relationships. [ABSTRACT FROM AUTHOR]

The paper examines the recent developments in the high-technology manufacturing sectors in the EU28 countries, focusing on the β-convergence of gross value added in the Manufacture of computers, electronic, and optical products, and the Manufacture of basic pharmaceutical products and pharmaceutical preparations. We employ two dynamic panel models estimated using the system of generalized method of moments (GMM) to address the risk of an endogeneity bias. The panel data analysis indicates a higher convergence for the Manufacture of computer, electronic, and optical products at 16.4% compared to 2.2% for the Manufacture of basic pharmaceutical products and pharmaceutical preparations, which is consistent with the existence of fewer barriers and higher exposure to competition in the case of the first analyzed sector. In the context of the role of the high-technology manufacturing industries as an engine of growth and the existing performance differences between the EU28 countries in terms of gross value added in the analyzed sectors, we investigated the β-convergence for two groupings EU15 and the new EU member states. We found that the new EU member states display a higher β-convergence rate than EU15, but also that they have a lower capital intensity. The result highlights the potential risk of some of the new EU member states becoming laggers in terms of the underlying factors behind gross value added as investment and labour force. [ABSTRACT FROM AUTHOR]

The paper examines the recent developments in the high-technology manufacturing sectors in the EU28 countries, focusing on the β-convergence of gross value added in the Manufacture of computers, electronic, and optical products, and the Manufacture of basic pharmaceutical products and pharmaceutical preparations. We employ two dynamic panel models estimated using the system of generalized method of moments (GMM) to address the risk of an endogeneity bias. The panel data analysis indicates a higher convergence for the Manufacture of computer, electronic, and optical products at 16.4% compared to 2.2% for the Manufacture of basic pharmaceutical products and pharmaceutical preparations, which is consistent with the existence of fewer barriers and higher exposure to competition in the case of the first analyzed sector. In the context of the role of the high-technology manufacturing industries as an engine of growth and the existing performance differences between the EU28 countries in terms of gross value added in the analyzed sectors, we investigated the β-convergence for two groupings EU15 and the new EU member states. We found that the new EU member states display a higher β-convergence rate than EU15, but also that they have a lower capital intensity. The result highlights the potential risk of some of the new EU member states becoming laggers in terms of the underlying factors behind gross value added as investment and labour force. First published online 06 December 2021

This study examines the influence of housing credit conditions on the time on market (TOM) for residential properties in Italy, using a unique dataset from the Bank of Italy survey on the Italian housing market. The analysis was carried out on a sample of roughly 1000 real estate agents over the period 2011–2015 using panel data techniques. The results support the view that an increase in housing market liquidity, measured by the loan‐to‐value ratio, reduces the average TOM of a property, thus improving the matching process between buyers and sellers. The results are found to be robust to specifications including the traditional determinants of TOM, used as controls (i.e., price revisions, potential buyers, mandates to sell, the role of brokers, and so on). The results also show that a higher price reduction, possibly associated with an initial mispricing by the seller when setting the initial listing price, seems to be associated with a higher TOM for residential properties. [ABSTRACT FROM AUTHOR]

Agricultural structures are quite heterogeneous across the European Union (EU), and it is likely that the underlying technology also differs across regions. In this article, we claim that the heterogeneity of agriculture across the EU affects the process of income creation (i.e. the relative importance of the factors of farm income differ for different agricultural models). A panel of farms representative for 125 regions reporting to the EU Farm Accountancy Data Network (FADN) during the period from 2007 to 2018 is used. In this article, those regions are grouped into three clusters. A system generalised method of moments (GMM) panel estimator is applied to each cluster. The results showed that total factor productivity (TFP), relative prices and agricultural subsidies make different contributions to farm net value added (FNVA). In particular, the income growth of farms in regions dominated by large farms seems to react more to marginal changes of the explanatory variables. [ABSTRACT FROM AUTHOR]

The objective of this paper is to examine the impact of the new banking regulation on the European Union real economic activity in the period following the global financial crisis using a sample of 22 listed banking groups with high systemic importance, using dynamic panel models with a one-step GMM estimator. Higher regulatory capital and liquidity requirements are the main consequences of the global financial crisis, the pro-cyclical contraction of bank credit, and the advanced adaptive consolidation of the banking sector. The strengthened role of the ECB as lender of last resort and market maker may have had a significant impact on eliminating interbank market dysfunctionality and maintaining overall financial stability. In implementing the Basel III regulatory framework banks significantly increased the quality and consistency of the capital structure. On the other hand, the long-term stability of reduced systemic risks and the stimulation of the credit cycle are at stake. The research results clearly show that the necessary increase in a banking firm's regulatory capital and liquidity position have positive effects on real economic activity and potential sustainable economic growth. [ABSTRACT FROM AUTHOR]

The purpose of the article is to recognise whether Michał Kalecki's investment theory works in the functioning of farms in the EU countries. We use the data of farms of the EU FADN (Farm Accountancy Data Network) system. The dynamic panel (the 1st difference generalised method of moments - GMM) estimator model was employed for analysis. The assessments were related to the economic size of farms. The results have allowed the partial confirmation of the validity of Kalecki's model to explain agricultural holdings adjustment mechanisms in the investment sphere. It is about medium-large (ES4) and large farms (ES5). In smaller farms (ES1-3) this mechanism was not recorded, and also in the largest agricultural holdings (ES6) where the development mechanism is more complex. Thus the size of farms determines different changes in investments activity in analysed groups of farms. Results suggest that a demand effect of investment expenditures, in the case of the examined group of farms, predominates to supply effect. It can be attributed to the fact that agriculture through the institutional system (the CAP - Common Agricultural Policy) and the peculiarities of this sector have weakened internal competition. We should be aware that the developmental mechanisms of agricultural holdings in the investment sphere are complex, and Kalecki's theory may somewhat better understand these mechanisms.

The basic purpose of the paper is to research determinants on profitability indicators of the banks in the European Union. Analysed bank profitability indicators considered as a standard are: the return on total bank assets (ROA) and return on total bank equity (ROE). The research model of bank profitability determinants is developed by analysing the systemically important, quoted banks in the European Union, in the 2007–2019 period, by using an adequate panel data analysis technique. The empirical evidence is in line with the initial assumptions: the efficiency of the banking firm, measured by the cost to income ratio and the non-performing loans ratio, has a significant influence on bank profitability, both on ROA and ROE. In the post-crisis period, banking firms ask for efficient cost management in achieving performance objectives. Additional important empirical results of research are the absence of impact of assets size and regulatory capital ratio on profitability indicators. The most important contribution of the paper is related to the sample definition, variable selection and explanatory power of the presented model in explaining global banking tendencies.

The common denominator of the European Union’s (EU) strategic long-run documents is the role of total factor productivity in fostering future growth and competitiveness. Hence, this article analyses the impact of total factor productivity on export competitiveness in EU new member states (NMS). As opposed to the stagnation of the growth of total factor productivity in the advanced economies, EU NMS exhibited stronger growth that was interrupted due to the 2008 economic and financial crisis. After the crisis, the growth continued but it was not as strong as before. The results of the empirical analysis confirm the vital role of total factor productivity for the export competitiveness of the EU NMS. However, the results also point to the fact that the impact of total factor productivity on export competitiveness is not that beneficial in the countries where the value of total factor productivity has not returned to the pre-crisis level.

Objectives Recent evolutionary psychological theory proposes that loneliness is an adaptive mechanism, designed to trigger maintenance and repair of social ties. No population representative analyses have probed loneliness effects on sociality. The present study addressed this gap. Method Data were from the 2006, 2010, 2014, and 2018 waves of the Health and Retirement Study, nationally representative of U.S. adults over age 50. Recently developed cross-lagged models with fixed effects were used to test prospective within-person associations of loneliness with specific dimensions of sociality, taking into account reverse causality as well as all time-invariant confounders with stable effects. Both gender-combined and -specific analyses were conducted. Results Loneliness did not consistently predict overall sociality: sparse linkages were found only among women. The same null pattern held with family ties. Non-family ties, in contrast, were associated with prior loneliness, but in a gender-specific way. Loneliness positively predicted women's social interactions with friends, but seemed linked to withdrawal from these relationships among men. There were indications that lonely men instead used religious attendance as a social outlet. Discussion Loneliness seems to induce domain- and gender-specific sociality responses. Findings suggest implications for evolutionary models of sociality as well as for psychosocial and physical health. Pending replication in independent samples, inferences remain tentative. [ABSTRACT FROM AUTHOR]

This work aims to investigate scale, scope and nature of spatial dependence of agricultural total factor productivity (TFP) by using farm‐level survey data. TFP is measured using transitive index numbers, and the spatial properties of TFP are assessed within a dynamic spatial panel data model designed to separate production fundamentals from productivity spillovers. Because of the statistical issues that typically affect spatial analyses based on survey data, a Bayesian model selection procedure is used to inspect the spatial properties of TFP at different aggregation levels and to search for the most appropriate spatial scale to conduct the investigation. The application concerns Italian FADN farm‐level data over the period 2008–2015 then aggregated at the NUTS3 level. Results suggest that agricultural productivity spillovers significantly occur though over a limited spatial range. The cumulated effects of the estimated diffusion mechanism are described through a set of spatial indicators and presented graphically. [ABSTRACT FROM AUTHOR]

In this paper, we consider the estimation of a dynamic panel data model with non-stationary multi-factor error structures. We adopted the common correlated effect (CCE) estimation and established the asymptotic properties of the CCE and common correlated effects mean group (CCEMG) estimators, as N and T tend to infinity. The results show that both the CCE and CCEMG estimators are consistent and the CCEMG estimator is asymptotically normally distributed. The theoretical findings were supported for small samples by an extensive simulation study, showing that the CCE estimators are robust to a wide variety of data generation processes. Empirical findings suggest that the CCE estimation is widely applicable to models with non-stationary factors. The proposed procedure is also illustrated by an empirical application to analyze the U.S. cigar dataset.

This paper explores the relationship between birth rates and housing prices in China. The empirical literature suggested mixed results in terms of relationships between housing prices and birth rates. Using a panel data of 30 provinces in China from 2002 to 2018, we estimated both static and dynamic panel models and found that there was a negative relationship between housing prices and birth rates in China from 2002 and 2018 from our dynamic model but a positive relationship from the static models. We provide some possible explanations for these findings and conclude with some policy recommendations for increasing birth rates in China. [ABSTRACT FROM AUTHOR]

This paper uses a dynamic panel model to examine the link between democracy and income growth in the Southern African Development Community regional bloc. The democratic capital stock, which captures the nurturing and strengthening of the policy and decision‐making environment and processes, as well as other social institutions in a nation, regardless of the degree of technological development is used as proxy for democracy. This distinguishes our approach from earlier studies of this nature; particularly for developing countries of sub‐Saharan Africa. Our results suggest that democracy has no direct impact, and perhaps no impact at all on income growth, even though there appears to be many complementarities between democratic institutions and the immediate ingredients of economic development. The results of our analysis are also robust to alternative definitions of democracy. Moreover, the conflictual signals that derive from our sensitivity analyses using the indices of ethno‐linguistic fractionalization and the politically relevant ethnic groups further strengthen the nature of the complexities associated with the debate on democracy and income growth in developing countries. In the absence of the democracy variable, our analysis reveals that income growth is significant, even with high ethnolinguistic fractionalization. These no doubt call for additional inquiries and methodological constructs in the income‐growth democracy nexus literature. [ABSTRACT FROM AUTHOR]

Farms in the European Union come in a wide variety of sizes and the effect of farm size on profitability (return on assets - ROA) has not been sufficiently investigated. The principal goal of this paper, therefore, is to study the determinants of farm profitability using the panels of the Farm Accountancy Data Network (FADN) on farms of different economic size between 2007 and 2018. We use a profitability function based on ratios that show the production and financial management strategies used by the farms. We also analyse the impact of subsidies under the Common Agricultural Policy (CAP). To deal with endogeneity, we run dynamic panel models using the system generalised method of moments (sys-GMM) estimators. We highlight the important role of the high level of equity turnover. An increase in production relative to the farm's equity plays a crucial role in the growth of profitability for all groups of farms, but it is especially important for smaller entities. In addition, farm managers should control the level of debt since the debt-to-asset ratio is a highly significant negative determinant of farm profitability in most of the groups. The increase in subsidy rate generally translates into higher ROA, but this variable has a negative impact across the largest holdings. [ABSTRACT FROM AUTHOR]

The scope of this paper is to investigate the impact of market deregulation on the level of farm-gate prices and the competitiveness of raw milk producers in Greece along the suggested lines of OECD. For this purpose, we use a dynamic panel data approach. We argue that the full openness of the relevant milk market segment had significant implications for the level of farmgate prices in the industry. On the one hand, market deregulation causes the increase of farmgate prices and, on the other hand, a fiercer market competition proxied by the increase in the number of firms in the industry results in a decrease in farmgate milk prices. Lastly, our empirical findings remain robust under different methodologies and sample splitting, providing a focal point to policymakers and government officials for the ex-post evaluation of the proposed OECD deregulation strategies. [ABSTRACT FROM AUTHOR]

In the era of globalization, international capital inflows increase dramatically, in specific, ODA and FDI. FDI and ODA would increase employment, GDP and government finance. The impact on GDP and government finance is different, and varies between ODA and FDI. The main purpose of this article is to examine the impacts of ODA and FDI on the government size, considering the trade openness, in specific, and country size. We use simultaneous equations and dynamic panel GMM analysis for seven selected middle income MENA countries for the period 2000-2019. Our results show that FDI reduces government size, meanwhile, ODA increases it. Furthermore, openness and country size are associated positively and negatively with the government size, respectively. We concluded that attracting more FDI and guiding ODA for development purposes is highly recommended. In addition, package of reforms and policies have been recommended to realize such purposes. [ABSTRACT FROM AUTHOR]

The purpose of the article is to recognise whether Michał Kalecki's investment theory works in the functioning of farms in the EU countries. We use the data of farms of the EU FADN (Farm Accountancy Data Network) system. The dynamic panel (the 1st difference generalised method of moments - GMM) estimator model was employed for analysis. The assessments were related to the economic size of farms. The results have allowed the partial confirmation of the validity of Kalecki's model to explain agricultural holdings adjustment mechanisms in the investment sphere. It is about medium-large (ES4) and large farms (ES5). In smaller farms (ES1-3) this mechanism was not recorded, and also in the largest agricultural holdings (ES6) where the development mechanism is more complex. Thus the size of farms determines different changes in investments activity in analysed groups of farms. Results suggest that a demand effect of investment expenditures, in the case of the examined group of farms, predominates to supply effect. It can be attributed to the fact that agriculture through the institutional system (the CAP - Common Agricultural Policy) and the peculiarities of this sector have weakened internal competition. We should be aware that the developmental mechanisms of agricultural holdings in the investment sphere are complex, and Kalecki's theory may somewhat better understand these mechanisms. [ABSTRACT FROM AUTHOR]

Motivation: The problem of income inequalities is a growing one, worldwide. Therefore, it should be investigated how this phenomenon affects the prospects of productivity increase in a particular economy. The answer to this problem will also decide whether the reduction of income inequalities in a society ought to be the main focus of instituted economic policies. Aim: The purpose of the article is to determine the character of the relationship between income inequality and economic growth, and decide whether income inequalities have a positive or negative impact on economic growth. To this end, a theoretical analysis and review of existing research were conducted. Afterwards, an attempt to verify the above-mentioned relationship empirically with the use of dynamic panel models was made. The period covered by the study is 2001-2018. Data were obtained from Eurostat and World Bank databases. Results: The study found that there was a statistically significant, negative relationship between income inequalities (measured by the Gini coefficient) and economic growth in the sample group. The results of this study do not differ from the results of other authors who verified the above relationship for other sample groups. [ABSTRACT FROM AUTHOR]

This unique study examines the interactive role of bank competition and foreign bank entry in explaining the risk-taking of banks over the globe. We used cross-country data for the banking sector from 2000 to 2016. Using the pooled regression model and Two-stage Least Squares model (2SLS with Generalized Method of Moments GMM), we document that foreign bank entry decreases the risk-taking behavior of the banks to a certain level and exhibits an inverted U-shaped relation with financial stability. Furthermore, the joint effect of bank competition and foreign bank entry brings financial fragility because host banks tend to make risky investments due to undue competition induced by foreign bank entry. We support the competition-fragility hypothesis when foreign bank entry goes beyond a certain threshold. Our results also suggest that restrictions on bank activities and capital regulation stringency reduce the level of the risk factor. We also applied various robustness tests, which further confirm our mainstream results. Our findings have policy implications for foreign investors and regulatory authorities. [ABSTRACT FROM AUTHOR]

This article examines the relationship between health and volunteering in advanced age in a cross-national comparison. We used longitudinal data from five waves of the Survey of Health, Ageing and Retirement in Europe covering 13 European countries from 2004 to 2015 and employed dynamic random-effects probit models to study the consequences of declining health on voluntary work. Our results confirm that worsening health conditions (i.e., mobility limitations and depression) reduce the likelihood of volunteering, whereas chronic diseases do not. Most interestingly, we found important differences across countries: Worsening health reduces voluntary work participation, especially in contexts characterized by high rates of volunteering. Our findings have implications for policy makers and voluntary organizations that aim to encourage participation: Individual characteristics and contextual aspects must be taken into account, and people with health problems might need specific support through policies, recruitment, and retention even in contexts of overall high levels of volunteering. [ABSTRACT FROM AUTHOR]

Along with an increasing interest in the plasticity and role of personality across the adult lifespan comes the need for a diverse set of innovative statistical approaches to study it. With this paper, we set out to illustrate some of the possibilities and challenges in modelling age‐related differences and time‐related changes in personality psychology by means of dynamic panel models. To this end, we first distinguish between the study of age‐related differences and time‐related changes and demonstrate how the treatment of age and time as either discrete or continuous variables implies important modelling choices. Second, we present a selection of four example cases that address the topic of age moderation in diverse matters and with different objectives. Based on our cross‐tabulation of age and time as discrete and continuous variables, the first two example cases represent fairly well‐established models (cases A and B), whereas the remaining cases are used to illustrate current developments in the field (cases C and D). We close the paper with some final remarks on current limitation and future research directions. © 2019 European Association of Personality Psychology [ABSTRACT FROM AUTHOR]

Dynamic random-effects probit models are increasingly applied in many disciplines to study dynamics of persistence in dichotomous outcomes. Despite the increasing popularity of these models, an estimation command for them does not exist yet. In this article, we present the xtpdyn command, which implements the model as proposed by Rabe-Hesketh and Skrondal (2013, Economics Letters 120: 346-349). We also present probat, a postestimation command that provides estimates of transition rates and a set of associated statistics. [ABSTRACT FROM AUTHOR]

Highlights • The work empirically assesses the farm-level nexus between GHG and productivity. • The use of micro data allows capturing farms performances' heterogeneity. • Results confirm the productivity-emission nexus varies mainly per farm typology. • Policy implications concern the possible differentiation of GHG targets at sub-sectoral level. Abstract This paper aims to empirically estimate the relationship occurring between farm-level productivity and environmental performance. The productivity performance is measured by the Total Factor Productivity (TFP), while the environmental performance focuses on greenhouse gases (GHG) emissions expressed by the farms' Emission Intensity (EI). The relationship between the two performance indicators is investigated on a panel of Italian (Lombardy) farms observed from 2008 to 2013. The panel specification takes farm heterogeneity into account while the presence of autocorrelation in farm performance due to the typical time-dependence of agricultural production leads to a dynamic panel model estimated via GMM-SYS estimation. Results confirm that a EI-TFP nexus exists but it may significantly differ in direction and magnitude across farm typologies. Policy implications are finally derived. [ABSTRACT FROM AUTHOR]

Compensation payments are considered active labour market policies designed to increase efficiency, to mitigate unemployment and to sustaining employment. We tested this hypothesis for the period 1993-2013, in territorial structures (42 counties) through a dynamic panel model (confirmed by Granger causality tests – Toda-Yamamoto version), and by means of error correction model. We found that the dynamics of regional employment are positively related to expenditure incurred for active policies and there are negatively correlated with the ratio between the unemployment average indemnity (and support allowance) and the average net nominal monthly salary earnings. But, the connexion between employment and compensation payments converges extremely slowly for a long-term stable relationship.

This study investigates the impact of meetings, incentive, exhibitions, and conventions (MICE) on tourism demand in Singapore over a period of 10 years (2003-2012). Past studies have shown that MICE matters a great deal to host destinations but researchers have rarely conducted any empirical research to verify the significance of this sector to tourism demand. Our study intends to fill the gap by using Difference and System generalized methods of moments (GMM) estimators for dynamic panel models. Tourism demand is measured by tourist arrivals from the top 30 origins, and the influence of real income of the tourist generating country and real exchange rate is also examined. The GMM results show a significant positive relationship between tourism demand and MICE (with international meetings as proxies). Additionally, the findings reveal that tourism demand growth is significantly positive (negative) with respect to changes in income (relative prices). The coefficient of lagged tourist arrivals indicates a high level of habit persistence and revisiting. [ABSTRACT FROM AUTHOR]

Considering the heterogeneity of the leveraged investors, this paper build a dynamical financial system composed of two leveraged investors and one non-leveraged investor, to analyze the cyclical nature of the leverage of financial intermediaries from the perspective of risk asset price. Exploiting a quarterly panel data of the listed banks and securities firms in China during 2006-2015, the empirical results indicate: the leverage heterogeneity, which could reduce the target leverages of financial intermediaries, benefits the stability of financial system; the leverage of list banks and securities firms in China is procyclical over the asset price cycle, but there are differences in the periodical behaviors of financial intermediaries; securities companies leverage present a much more significant positive correlation with the stock prices than banks leverage; corresponding to housing prices, the pro-cyclical behavior of banks leverage is more significant than securities companies leverage; and the leverage adjusting directions of banks and securities companies during the boom and bust period are opposite. In this paper, we provide new evidence for the financial intermediaries to use leverage and for the regulatory authorities to improve the regulatory system. [ABSTRACT FROM AUTHOR]

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The appropriateness of fiscal stimulus programs has come into question in light of the Global financial crisis. Indeed the austerity movement has called into question the economic benefits of large public spending programs. There is, however, a genuine dearth of research considering the impact of fiscal stimulus activities employed during the global financial crisis on spending behaviours, particularly when considering Australian stimulus programs. Much of the extant literature focuses on key matters such as quantitative easing and credit easing. The extant literature relating to fiscal stimulus research is typified by the utilisation qualitative methods to analyse the impact of the stimulus on economic activity. Most studies concern themselves with a handful of pertinent macroeconomic factors in an effort to surmise whether any possess any explanatory power, employing qualitative frameworks for analysis. The current study considers the impact of a discretionary stimulus program is affording a once off payment to Australian citizens on spending behaviour specifically the study shall consider the impact of government stimulus activities on gambling behaviours. Employing dynamic panel estimation methods, specifically the system GMM estimator, the study finds that fiscal stimulus significantly increased gambling activity in Australia, pertinently noting differential impacts within high ethnic and low ethnic communities. [ABSTRACT FROM AUTHOR]