determinants of electricity consumption function in pakistan old wine in a new bottle abstract the objective of the study is to re investigate the multivariate electricity consumption function for pakistan particularly economic growth foreign direct investment and population growth over a 36 year time period i e between 1975 and 2010 the study employed the bounds testing procedure for cointegration which examines the short run and long run estimates dynamic short run causality test is applied to determine the causality direction between electricity consumption and its determinants by using wald f statistics the results reveal that determinants of electricity consumption function are cointegrated and influx of foreign direct investment income and population growth is positively related to electricity consumption in pakistan however the intensity of these determinants is different on electricity consumption if there is 1 increase in income foreign direct investment and population growth electricity consumption increases by 0 973 0 056 and 1 605 respectively this infers that income foreign direct investment and population growth induce an increase in electricity consumption in pakistan dynamic short run causality test indicates that there has been unidirectional causality which is running from population growth to electricity consumption in pakistan

financial liberalization financial regulation and bank efficiency a multi country analysis this article investigates the impact of financial reforms on bank efficiency more specifically we distinguish between two different types of financial reforms i e financial liberalization measures and measures of the quality of bank regulation and supervision i e financial regulation and study their relationship to bank efficiency separately moreover we analyse whether the impact of financial liberalization on bank efficiency is conditional on the quality of regulation and supervision of the banking system we apply stochastic frontier analysis to calculate bank efficiency at the individual bank level and use a new and detailed database that measures different aspects of financial reforms the data set consists of 87 312 bank year observations covering 61 countries for the period 1996 2005 overall we show that the impact of financial liberalization policies on bank efficiency is conditional on the extent to which bank regulation and supervision has been adopted and developed

distance constraints the limits of foreign lending in poor economies how far does mobility of multinational banks solve problems of financial development using a panel of 80 000 loans over 7 years i show that greater cultural and geographical distance between a foreign bank s headquarters and local branches leads it to further avoid lending to informationally difficult yet fundamentally sound firms requiring relational contracting greater distance also makes them less likely to bilaterally renegotiate and less successful at recovering defaults differences in bank size legal institutions risk preferences or unobserved borrower heterogeneity cannot explain these results these distance constraints can be large enough to permanently exclude certain sectors of the economy from financing by foreign banks

investment risks under uncertain climate change policy abstract this paper describes results from a model of decision making under uncertainty using a real options methodology developed by the international energy agency iea the model represents investment decisions in power generation from the perspective of a private company the investments are subject to uncertain future climate policy which is treated as an external risk factor over which the company has no control the aims of this paper are to i quantify these regulatory risks in order to improve understanding of how policy uncertainty may affect investment behaviour by private companies and ii illustrate the effectiveness of the real options approach as a policy analysis tool the study analysed firms investment options of coal and gas fired power plants and carbon capture and storage ccs technologies policy uncertainty is represented as an exogenous event that creates uncertainty in the carbon price our findings indicate that climate policy uncertainty creates a risk premium for power generation investments in the case of gas and coal fired power generation the risk premium would lead to an increase in electricity prices of 5 10 in order to stimulate investment in the case of ccs the risk premium would increase the carbon price required to stimulate investment by 16 37 compared to a situation of perfect certainty the option to retrofit ccs acts as a hedge against high future carbon prices and could accelerate investment in coal plant this paper concludes that to minimise investment risks in low carbon technologies policy makers should aim to provide some long term regulatory certainty

does urbanization lead to more direct and indirect household carbon dioxide emissions evidence from china during 1996 2012 china is experiencing a stage of rapid urban development the energy consumption and related carbon dioxide emissions of households continue to increase this paper calculates direct and indirect carbon dioxide emissions of households based on the input output method in china from 1996 to 2012 the results reveal that there were more total carbon dioxide emissions from urban households than from rural households far more indirect emissions from urban households than from rural households slightly more direct emissions from urban households than from rural households and differences in direct carbon dioxide emissions from various fuels and in indirect emissions from various sectors between urban and rural households to examine the causal relationship between urbanization and the carbon dioxide emissions of households cointegration and granger causality tests are applied a unidirectional causal relation was found running from urbanization to both direct and indirect household carbon dioxide emissions and the direct and indirect carbon dioxide emissions of households would increase 2 9 and 1 1 respectively for every increase of one percent in urbanization we discuss the reasons of why the development of urbanization will lead to more household direct and indirect carbon dioxide emissions and suggest certain policy implications for urbanization and carbon dioxide emissions based on the results of this study

productivity and efficiency dynamics in indian banking an input distance function approach incorporating quality of inputs and outputs summary banking technology is typically characterized by multiple inputs and multiple outputs that are associated with various attributes such as different types of deposits loans number of accounts classes of employees and location of branches these quality differentials in inputs and outputs are mostly ignored in empirical studies these omissions make the practical value of productivity studies in organizations like banks questionable because quality is a key component of performance this paper proposes using hedonic aggregator functions as a tool of aggregating inputs and outputs with quality attributes within an input distance function framework and analyzes the impact of banking deregulation on efficiency and total factor productivity tfp change in the indian banking industry using panel data for the period 1996 2005 empirical results indicate that banks have improved their efficiency from 61 in 1996 to 72 in 2005 during the post deregulation period and the gain in efficiency of state owned banks has surpassed that of private banks improvement in capital base as indicated by increased capital adequacy ratio played an important role in ushering efficiency gain the return to scale estimate suggests that state owned banks are operating far above their efficient scale and cost savings can be obtained by reducing their size of operations overall tfp growth was above 3 5 annually both technical progress and technical efficiency change consistently played an important role in shaping tfp growth copyright 2010 john wiley sons ltd

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

a note on the electricity growth nexus in lao pdr abstract this paper investigates the relationship between electricity consumption and economic growth in laos by applying the ardl bounds testing approach to cointegration and granger causality tests our results confirm the existence of a long run relationship between electricity consumption and economic growth in addition we found unidirectional causality running from economic growth to electricity consumption in the long run supporting the conservation hypothesis

banking deregulation and allocative efficiency in pakistan abstractthis article examines the impact of deregulation policies on allocative efficiency of banks in pakistan it investigates whether deregulation has impacted the pattern of allocative efficiency of banks and explores which bank ownership segment has been more responsive it uses data from 1991 to 2005 and explicitly models allocative inefficiency by using the translog shadow cost share system empirical results show that overregulation and imperfect market structure hampers the ability of banks to make competitive decisions we find evidence of allocative inefficiency leading to over utilization of labour and deposits vis a vis operating cost empirical results for time varying allocative efficiency show declining levels of allocative inefficiency for state owned and private banks in post reform period deregulation policies induce state owned banks to decrease over utilization of labour relative to deposits and operating cost while private banks succeed in using operating cost closer to optimal leve

liability dollarization exchange market pressure and fear of floating empirical evidence for turkey the objective of this article is to examine the relationship between liability dollarization and the exchange market pressure emp in turkey within an autoregressive distributed lag ardl and granger causality framework using monthly data from 1991 12 to 2006 08 the findings suggest that there exists a long term equilibrium relationship between emp and liability dollarization where liability dollarization granger causes emp both in the short and long run with no evidence of reverse causality this suggests that the predominance of foreign currency liabilities in the banks balance sheets in turkey induces a selling pressure in the exchange market as well as a fear of floating

equilibrium and options on real assets in aggregate options on real and financial assets can have very different properties typically the good or service produced by a real asset has a finite elasticity of demand and developers have finite capacities also the supply of options can be limited and developers can be less than perfectly competitive in a subgame perfect nash equilibrium with these properties the optimal exercise policy and resulting values of developed and undeveloped assets are calculated explicitly the novel comparative statics are discussed in detail article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

the causal relationship between electricity consumption and economic growth in the asean countries abstract this paper investigates the causal relationship between electricity consumption and economic growth among the association of south east asian nations asean 4 members namely indonesia malaysia singapore and thailand using modern time series techniques for the period 1971 2002 the results indicate that there is a bi directional causality between electricity consumption and economic growth in malaysia and singapore this means that an increase in electricity consumption directly affects economic growth and that economic growth also stimulates further electricity consumption in the two countries however uni directional causality runs from economic growth to electricity consumption in indonesia and thailand without any feedback effect thus electricity conservation policies can be initiated without deteriorating economic side effects in the two countries

enjoying the quiet life under deregulation not quite summary most empirical studies in the banking literature assume that the alternative profit function is linearly homogeneous in input prices we show that such an assumption is theoretically unwarranted and that its use may yield misleading results we use koetter et al review of economics and statistics 2012 94 2 462 480 as a benchmark to showcase how empirical results can be sensitive to the linear homogeneity assumption contrary to koetter et al we find a positive relation between market power and profit efficiency when this assumption is dropped this relation is slightly weakened after the wave of intrastate and interstate deregulation but not enough to support the quiet life hypothesis copyright 2014 john wiley sons ltd

energy consumption employment output and temporal causality evidence from taiwan based on cointegration and error correction modelling techniques in this study a cointegration analysis and a vector autoregressive model var are used to examine the causal relationships among energy consumption employment and output for taiwan over the period january 1982 to november 1997 johansen 1988 and johansen and juselius 1990 cointegration test result indicates these three variables are cointegrated with one cointegrating vector the results from granger causality tests based on vector error correction models vecm suggest bidirectional grange causality for employment output and employment energy consumption but only unidirectional causality running from energy consumption to output furthermore the impulse responses and variance decompositions are also incorporated into the analysis the results from impulsive response and variance decomposition analysis tell similar stories energy consumption appears to have led to output growth in taiwan over this period the policy implication of this finding is that energy conservation will restrain the outpu

an international literature survey on energy economic growth nexus evidence from country specific studies in this paper an extensive review of the rapidly growing in the literature on the nexus between economic growth and four types of energy consumption total energy consumption electricity consumption nuclear consumption and renewable consumption the various hypotheses associated with the causal interaction between these variables along with a survey of the empirical literature are also discussed the survey focuses on country coverage periods modeling techniques and empirical conclusions a general observation from these studies that results are found to be sensitive to methodology and type of energy considered the empirical results for the specific countries surveyed show that i for energy consumption growth nexus 29 supported the growth hypothesis 27 the feedback hypothesis 23 the conservation hypothesis and 21 the neutrality hypothesis ii for the electricity consumption growth nexus 40 supported the growth hypothesis 33 the feedback hypothesis and 27 conservation hypothesis iii for the nuclear consumption growth nexus 60 supported the neutrality hypothesis and 40 the growth hypothesis and iv for the renewable consumption growth nexus 40 supported the neutrality hypothesis 40 the conservation hypothesis and 20 the growth hypothesis these mixed results may be attributed to the different used data selected variables and econometric approaches undertaken

investigating the relationship between electricity consumption and economic growth evidence from south africa abstract this paper explores the causal relationship among electricity consumption economic growth financial development and co 2 emissions for south africa over the period 1971 2012 the autoregressive distributed lag ardl bounds test is used to test for the presence of cointegration whereas the toda and yamamoto augmented granger causality test is used for direction of causality the results of ardl bounds test validate the existence of cointegration among the included variables further the toda and yamamoto granger causality test affirms that there is no causality between electricity consumption and economic growth this signifies that neutrality hypothesis holds for south africa during the period under the study additionally there is a unidirectional causality running from co 2 emissions to electricity consumption as well as a unidirectional causality running from financial development to co 2 emissions the empirical finding suggests that policy makers should establish concrete plans to increase investment in the electricity sector to ensure reliability of supply moreover policy makers need to address the pressing environmental concern by tapping into the sizeable renewable energy potential of the country consequently it will assist in promoting sustainable economic growth and development

financial sector liberalization bank privatization and efficiency evidence from pakistan abstract the pakistani banking system has been transformed over the past 15 years through liberalization the entry of private banks the privatization of public sector banks and the tightening of prudential regulations the effects of these changes on bank productivity and relative efficiency are investigated using various techniques bank productivity in terms of profits has increased and new entrants have been efficient but the dispersion of efficiency remains wide the privatized banks improved their profit efficiency in the period immediately following their privatization but in the subsequent years only one significantly improved its efficiency whereas the other did not differentiate itself in terms of efficiency from the remaining state owned banks the new private domestic banks generally proved to be among the most efficient and sometimes out performed the foreign banks

optimal design of feed in tariffs to stimulate renewable energy investments under regulatory uncertainty a real options analysis feed in tariffs fits are widely used as policy instruments to promote investments in renewable energy sources res while fits are often regarded as the most effective res support scheme regulators around the world continuously review their fit schemes in the light of budget constraints and evolving policy goals we assess the impact of adjustments to fit schemes by quantifying the relationship between fit levels i e the guaranteed amount paid per quantity of electricity produced and the propensity to invest in res through a regime switching model we quantify the impact of regulatory uncertainty induced by regulators considering moves from a fit scheme to a more market oriented regulatory regime our focus is on market independent fixed fits the dominant scheme in europe receiving increasing attention globally we find that res investment projects under market independent fixed fit schemes become now or never decisions and derive fit thresholds required to induce investment we show that uncertainty regarding future regulatory regimes delays or even reduces investment activity for fit levels near electricity market prices and high probabilities of an imminent regime switch

energy consumption and economic growth evidence from china at both aggregated and disaggregated levels using a neo classical aggregate production model where capital labor and energy are treated as separate inputs this paper tests for the existence and direction of causality between output growth and energy use in china at both aggregated total energy and disaggregated levels as coal oil and electricity consumption using the johansen cointegration technique the empirical findings indicate that there exists long run cointegration among output labor capital and energy use in china at both aggregated and all three disaggregated levels then using a vec specification the short run dynamics of the interested variables are tested indicating that there exists granger causality running from electricity and oil consumption to gdp but does not exist granger causality running from coal and total energy consumption to gdp on the other hand short run granger causality exists from gdp to total energy coal and oil consumption but does not exist from gdp to electricity consumption we thus propose policy suggestions to solve the energy and sustainable development dilemma in china as enhancing energy supply security and guaranteeing energy supply especially in the short run to provide adequate electric power supply and set up national strategic oil reserve enhancing energy efficiency to save energy diversifying energy sources energetically exploiting renewable energy and drawing out corresponding policies and measures and finally in the long run transforming development pattern and cut reliance on resource and energy dependent industries

the dynamic links between energy consumption economic growth financial development and trade in china fresh evidence from multivariate framework analysis abstract this study investigates the relationship between energy use and economic growth by incorporating financial development international trade and capital as important factors of production function in case of china over the period of 1971 2011 the ardl bounds testing approach to cointegration was applied to examine long run relationship among the series while stationarity properties of the variables was tested by applying structural break test our empirical evidence confirmed long run relationship among the variables the results showed that energy use financial development capital exports imports and international trade have positive impact on economic growth the granger causality analysis revealed that unidirectional causal relationship running from energy use to economic growth financial development and energy use granger cause each other there is bidirectional causality between international trade and energy use the feedback relation exists between financial development and international trade there is also bidirectional causality exists between capital and energy demand financial development and economic growth and international trade and economic growth this paper makes significant contribution in energy economics and opens up new direction for policy makers to explore new and alternative sources of energy which would be helpful in meeting the rising demand of energy due to sustained rate of economic growth

electricity supply employment and real gdp in india evidence from cointegration and granger causality tests abstract this study probes nexus between electricity supply employment and real gdp for india within a multivariate framework using autoregressive distributed lag ardl bounds testing approach of cointegration long run equilibrium relationship has been established among these variables for the time span 1970 71 to 2005 06 the study further establishes long and short run granger causality running from real gdp and electricity supply to employment without any feedback effect thus growth in real gdp and electricity supply are responsible for the high level of employment in india the absence of causality running from electricity supply to real gdp implies that electricity demand and supply side measures can be adopted to reduce the wastage of electricity which would not affect future economic growth of india

electricity consumption real gdp causality nexus evidence from a bootstrapped causality test for 30 oecd countries the goal of this paper is to examine any causal effects between electricity consumption and real gdp for 30 oecd countries we use a bootstrapped causality testing approach and unravel evidence in favour of electricity consumption causing real gdp in australia iceland italy the slovak republic the czech republic korea portugal and the uk the implication is that electricity conservation policies will negatively impact real gdp in these countries however for the rest of the 22 countries our findings suggest that electricity conversation policies will not affect real gdp

energy consumption and gdp causality relationship in g 7 countries and emerging markets abstract the causality relationship between energy consumption and income is a well studied topic in energy economics this paper studies the time series properties of energy consumption and gdp and reexamines the causality relationship between the two series in the top 10 emerging markets excluding china due to lack of data and g 7 countries we discover bi directional causality in argentina causality running from gdp to energy consumption in italy and korea and from energy consumption to gdp in turkey france germany and japan hence energy conservation may harm economic growth in the last four countries

electricity consumption and economic growth in the gcc countries panel data analysis applying recent advances in panel data analysis we investigate the relationship between electricity consumption and economic growth in the gcc countries using annual data from 1975 to 2012 within a framework which takes into consideration dynamics heterogeneity and cross sectional dependence in the panel we show that the results obtained from using the pmge demeaned pmg amg mge and dfe models indicate a long run equilibrium relationship between electricity consumption and economic growth in order to determine the appropriate model and decide the preferred estimator the hausman test was performed the pmge model emerged as the most efficient of the three estimators also the results obtained revealed a bi directional causality between economic growth and electricity consumption in these countries which supports the feedback hypothesis as a result this implies that if these countries adopt or implement any energy or electricity conservation policies this may have a negative impact on its economic growth

energy consumption prices and economic growth in three ssa countries a comparative study in this paper we examine the causal relationship between energy consumption and economic growth in three sub saharan african countries namely south africa kenya and congo drc we incorporate prices as an intermittent variable in a bivariate setting between energy consumption and economic growth thereby creating a simple trivariate framework using the ardl bounds testing procedure we find that the causality between energy consumption and economic growth varies significantly across the countries under study the results show that for south africa and kenya there is a unidirectional causal flow from energy consumption to economic growth however for congo drc it is economic growth that drives energy consumption these findings have important policy implications insofar as energy conservation policies are concerned in the case of congo drc for example the implementation of energy conservation policies may not significantly affect economic growth because the country s economy is not entirely energy dependent however for south africa and kenya there is a need for more energy supply augmentations in order to cope with the long run energy demand in the short run however the two countries should explore more efficient and cost effective sources of energy in order to address the energy dependency problem

electricity consumption employment and real income in australia evidence from multivariate granger causality tests this paper examines the relationship between electricity consumption employment and real income in australia within a cointegration and causality framework we find that electricity consumption employment and real income are cointegrated and that in the long run employment and real income granger cause electricity consumption while in the short run there is weak unidirectional granger causality running from income to electricity consumption and from income to employment

environmental kuznet s curve for india evidence from tests for cointegration with unknown structuralbreaks this study revisits the cointegrating relationship between carbon emission energy use economic activity and trade openness for india using threshold cointegration tests with a view to testing the environmental kuznet s curve hypothesis in the presence of possible regime shift in long run relationship of the variables for the period 1971 to 2008 the article confirms the existence of regime shift or threshold cointegration among the variables and environmental kuznet s curve for india it challenges previous empirical works for india which fail to establish cointegrating relationship among these variables and explains its logical and econometric reasons the study finds that the carbon emission is highly elastic with respect to real per capita income and energy use in india this finding is critical and warns successful design and execution of energy and environmental policy framework which would pave the low carbon sustainable growth path inindia

energy growth conundrum in energy exporting and importing countries evidence from heterogeneous panel methods robust to cross sectional dependence abstract this article uses the panel methods for energy exporting and importing countries that discuss the heterogeneity and cross sectional dependence in investigating the linkages between energy consumption and economic growth the findings of the study suggest that the energy consumption is an important input not only in the energy importing but also in energy exporting countries furthermore the results of the present paper suggest that the policy options should be different for the different countries in the back drop of heterogeneous slope coefficients

can african countries efficiently build their economies on renewable energy abstract the translog production model is estimated to provide insights on the effectiveness of renewable energy for africa the analysis shows that capital labor renewable energy and nonrenewable energy drive output in african countries with renewable energy being a higher driver of growth than the conventional fossil fuels over the sample period this finding is reflective of the fact that renewable sources like wind hydro and solar account for a greater share of power generation in most african countries output elasticities computed for both energy types reaffirm the results and suggest that eastern and central african countries are more renewable energy dependent than the other three regions in addition technological progress is driven mainly by the efficiency with which various factors and energy inputs are used while africa has great potential of facing out conventional fossil energy the discussion provided in this study suggests that such transition is limited in practice due to issues of scale economics and sitting problems

evolution of bank efficiency in brazil a dea approach abstract this paper investigates cost technical and allocative efficiencies for brazilian banks in the recent period 2000 2007 we use data envelopment analysis dea to compute efficiency scores brazilian banks were found to have low levels of economic cost efficiency compared to banks in europe and in the us for the period with high macroeconomic volatility 2000 2002 the economic inefficiency in brazilian banks can be attributed mainly to technical inefficiency rather than allocative inefficiency state owned banks are significantly more cost efficient than foreign private domestic and private with foreign participation there is no evidence of differences in economic efficiency due to type of activity and bank size these results may provide some useful guidance for financial regulators and bank managers

causal nexus between energy consumption and economic growth for high middle and low income countries using frequency domain analysis abstract this study aims to investigate the causal nexus between energy consumption and economic growth for 119 countries from all over the world having at least 30 years of available data on candidate variables including 30 high income oecd 13 high income non oecd 65 middle income and 11 low income countries the study employs granger causality in the frequency domain context for empirical analysis which allows one to examine the causal nexus over different frequencies and thus provides relatively a better picture of the causal nexus between the candidate variables in particular we examine the temporary short run as well as at permanent long run causal nexus between energy consumption and economic growth the empirical results suggest that 18 countries including 5 high income oecd 2 high income non oecd 10 middle income and 1 low income confirm the existence of feedback hypothesis 25 countries including 4 high income oecd 3 high income non oecd 14 middle income and 4 low income confirm growth hypothesis out of total 119 countries similarly 40 countries including 6 high income oecd 6 high income non oecd 27 middle income and 1 low income suggest conservation hypothesis while 36 countries comprising of 15 high income oecd 2 high income non oecd 14 middle income and 5 low income hold neutrality hypothesis between energy consumption and economic growth out of 119 countries the findings of the study suggest that an appropriate and effective public policy is required for all sample countries both in the short and long term while considering sustainable economic growth and development

renewable energy investments under different support schemes a real options approach abstract this paper adopts a real options approach to analyze investment timing and capacity choice for renewable energy projects under different support schemes the main purpose is to examine investment behavior under the most extensively employed support schemes namely feed in tariffs and renewable energy certificate trading we consider both multiple sources of uncertainty under each support scheme and uncertainty with respect to any change of support scheme and we obtain both analytical when possible and numerical solutions in a nordic case study based on wind power we find that the feed in tariff encourages earlier investment nevertheless as investment has been undertaken renewable energy certificate trading creates incentives for larger projects in our baseline scenario and taking the fixed feed in tariff as a base the revenue required to trigger investments is 61 higher with renewable certificates at the same time investment capacity is 61 higher

long memory in us disaggregated petroleum consumption evidence from univariate and multivariate lm tests for fractional integration previous studies that have tested for a unit root in aggregate energy consumption have potentially reached misleading conclusions because they fail to allow for the possibility that energy consumption might be fractionally integrated and do not distinguish between different types of energy consumption this study tests for long memory in disaggregated petroleum consumption in the united states using univariate and multivariate lagrange multiplier lm tests for fractional integration the results point strongly to the need to distinguish between different forms of energy consumption and allow for a generalization of the i 0 i 1 dichotomy when considering the order of integration of energy consumption allowing for short run dynamics the univariate test suggests that less than 50 of the series are fractionally integrated consistent with expectations the non stationary series are found to have the highest mean and standard deviation the multivariate test suggests that petroleum consumption in the commercial and industrial sectors is clearly fractionally integrated when allowing for short run dynamics and as such exhibits persistent effects while petroleum consumption in the residential sector is a stationary process

the relationship between energy consumption energy prices and economic growth time series evidence from asian developing countries this paper estimates the causal relationships between energy consumption and income for india indonesia the philippines and thailand using cointegration and error correction modelling techniques the results indicate that in the short run unidirectional granger causality runs from energy to income for india and indonesia while bidirectional granger causality runs from energy to income for thailand and the philippines in the case of thailand and the philippines energy income and prices are mutually causal the study results do not support the view that energy and income are neutral with respect to each other with the exception of indonesia and india where neutrality is observed in the short run c 2000 elsevier science b v all rights reserved jel classifications c22 q43 q48

trends in efficiency in response to regulatory reforms the case of indian and pakistani commercial banks this paper attempts to estimate trends in the efficiency levels of indian and pakistani commercial banks between 1985 and 2003 a time period which encompasses two phases of significant change to the regulation of the financial sector in both countries our efficiency estimates show that during the initial years of the post reform period a reduction in efficiency is observed for banks in both countries however efficiency levels were found to have increased subsequently suggesting a period of initial adjustment throughout much of the 1990s followed by a subsequent correction in the latter part of the sample period

the electricity consumption and gdp nexus for the fiji islands fiji is a small open island economy dependent on energy for its growth and development hence the relationship between energy consumption and economic growth is crucial for fiji s development in this paper we investigate the nexus between electricity consumption and economic growth for fiji within a multivariate framework through including the labour force variable we use the bounds testing approach to cointegration and find that electricity consumption gdp and labour force are only cointegrated when gdp is the endogenous variable we use the granger causality f test and find that in the long run causality runs from electricity consumption and labour force to gdp implying that fiji is an energy dependent country and thus energy conservation policies will have an adverse effect on fiji s economic growth

value based trading of real assets in shipping under stochastic freight rates the article uses a real options valuation model with stochastic freight rates to investigate market efficiency and the economics of switching between the dry bulk and the tanker markets in international shipping a dry bulk carrier is replaced with a tanker when the expected net present value of such a switch is optimal from a real options based decision rule depending on the development of the markets a reversal may take place later the cost and demand parameters upon which the decisions to switch are made including the stochastic characteristics of freight rates are estimated from an empirical analysis that is updated every week throughout a 12 year time period from 1993 to 2005 the second hand market for bulk ships seems to have been efficient most of these years in the sense that market switching usually did not pay off with one major exception it seemed profitable in expectation to leave the dry bulk market and enter the tanker market over a significant period of time shortly after the millenn

factor demand technical change and inter fuel substitution in africa abstract the translog production function has been widely used in applied production analysis due to its flexibility and superiority over other functional forms this study develops a translog production function for a group of african countries the random effects model is estimated using generalized least squares estimator the main findings are first output in africa is driven by a more intensive use of petroleum and electricity and to a lesser extent capital labor and coal relative to technological progress second african production technology exhibits increasing returns to scale suggesting a path towards market entry barriers third technical change is scale biased and factor augmenting albeit very slow fourth all energy inputs are substitutes indicating africa s potential to proportionally switch towards cleaner fuels without adversely affecting economic growth finally and perhaps more generally the study reinforces the assertion that imposing restrictions like homotheticity homogeneity or separability on the production technology is unrealistic and should rather be a testable hypothesis within any applied analysis in view of the documented findings relevant implications for africa are discussed

on electricity consumption and economic growth in china abstract the invention and application of the electric power technology triggered the second industrial revolution in human history which marked the human society entered the age of electricity electricity provides the sustainable power for economic and social development with the rapid development of economy the electricity consumption is also increasing the increase of electricity consumption has further promoted the progress of the industrial economy in order to achieve the goal of improving the level of economic development while reducing energy consumption it is necessary to reveal the relationship between electricity consumption and economic growth this study is an extensive overview of the literature surrounding this topic in this paper we focus on the relationship between electricity consumption and economic growth in china we first analyze the general situation of china s electricity consumption and economic development then we explore the relationship between china s electricity consumption and economic growth from three dimensions i e the time dimension the regional dimension and the industrial dimension finally we study the key issues in the research of the relationship between electricity consumption and economic growth including variable selection model construction and results discussion this work suggests that the nature of the nexus in china should and can be explored from a wider perspective by developing a suitable integrated methodological framework

electricity consumption and economic growth in algeria a multivariate causality analysis in the presence of structural change this article addresses the issue of electricity consumption petroleum price and economic growth in algeria the primary objective is to investigate and analyze the causal relationship between electricity consumption ec brent oil price bop and economic growth gdp for algeria over the period of 1971 2010 to examine short run long run and joint causality relationships we used a multivariate cointegration approach based on the recent advances in time series econometrics e g zivot andrews test gregory hansen cointegration test vector error correction models vecm the empirical results show that there is evidence of short run and a strong long run bi directional causal relationship between ec and real gdp in algeria findings indicate also the absence of causal relationship between bop and ec our empirical findings support the idea that there a link between electricity consumption and economic growth and disproves the neo classical assumption referred to as the neutrality hypothesis

a dynamic panel study of economic development and the electricity consumption growth nexus abstract this study examines the relationship between electricity consumption and economic growth for 88 countries categorized into four panels based on the world bank income classification high upper middle lower middle and low income within a multivariate panel framework over the period 1990 2006 the larsson et al 2001 panel cointegration test indicates there is a long run equilibrium relationship between real gdp coal consumption real gross fixed capital formation and the labor force for the high upper middle and lower middle income country panels the results from the panel vector error correction models reveal 1 bidirectional causality between electricity consumption and economic growth in both the short and long run for the high income and upper middle income country panels 2 unidirectional causality from electricity consumption to economic growth in the short run but bidirectional causality in the long run for the lower middle income country panel and 3 unidirectional causality from electricity consumption to economic growth for the low income country panel

evaluating natural resource investments notwithstanding impressive advances in the theory of finance over the past 2 decades practical procedures for capital budgeting have evolved only slowly the standard technique which has remained unchanged in essentials since it was originally proposed see dean 1951 bierman and smidt 1960 derives from a simple adaptation of the fisher 1907 model of valuation under certainty under this technique expected cash flows from an investment project are discounted at a rate deemed appropriate to their risk and the resulting present value is compared with the cost of the project this standard textbook technique reflects modern theoretical developments only insofar as estimates of the discount rate may be obtained from crude application of single period asset pricing theory but see brennan 1973 bogue and roll 1974 turnbull 1977 constantinides 1978 the inadequacy of this approach to capital budgeting is widely acknowledged although not widely discussed its obvious deficiency is its the evaluation of mining and other natural resource projects is made particularly difficult by the high degree of uncertainty attaching to output prices it is shown that the techniques of continuous time arbitrage and stochastic control theory may be used not only to value such projects but also to determine the optimal policies for developing managing and abandoning them the approach may be adapted to a wide variety of contexts outside the natural resource sector where uncertainty about future project revenues is a paramount concern

an investigation of co integration and causality between energy consumption and economic activity in taiwan applying hsiao a version of the granger causality method this paper examines the causality between energy and gnp and energy and employment by applying recently developed techniques of co integration and hsiao s version of the granger causality to taiwanese data for the 1955 1993 period the phillips perron tests reveal that the series with the exception of gnp are not stationary and therefore differencing is performed to secure stationarity the study finds causality running from gdp to energy consumption without feedback in taiwan it is also found that causality runs from gdp to energy but not vice versa

investment with uncertain tax policy does random tax policy discourage investment we consider the impact of tax policy uncertainty on firm level and aggregate investment comparing investment behaviour when uncertainty is due to a shock following geometric brownian motion gbm versus when random discrete jumps in tax policy occur expectations of the likelihood of a tax policy switch have an important negative impact on the gain to delaying investment in the latter model and time to investment can fall with increasing tax policy uncertainty aggregate investment simulations indicate that capital formation is adversely affected by increases in uncertainty in the traditional gbm model but can be enhanced in the jump process model

are energy conservation policies effective without harming economic growth in the gulf cooperation council countries abstract this study explores the fossil fuels electricity consumption growth of the gross domestic product gdp relationship in the six gulf cooperation council gcc countries for the period 1980 2012 the aim of this study is to examine whether energy conservation policies are appropriate for these countries to reduce their high levels of electricity consumption the autoregressive distributed lag ardl and the toda yamamoto dolado lutkepohl tydl methodologies were employed to investigate this relationship the ardl results revealed that fossil fuels electricity consumption has a long run positive effect on gdp growth in the gcc countries however the tydl granger causality revealed different causality relationships among the countries a bi directional causality was found between fossil fuels electricity consumption and gdp growth in bahrain and the united arab emirates uae while one way causality from fossil fuels electricity consumption to gdp growth was found in oman and qatar on the other hand no causality was concluded between the variables in kuwait and saudi arabia from the results it is clear that energy conservation is not an ideal policy for the bahrain uae oman and qatar because it will have a negative consequence on their output however this policy can be implemented in kuwait and saudi arabia since it will not harm their output

privatization matters bank efficiency in transition countries abstract to investigate the impact of bank privatization in transition countries we take the largest banks in six relatively advanced countries namely bulgaria the czech republic croatia hungary poland and romania income and balance sheet characteristics and efficiency measures computed from stochastic frontiers are compared across four bank ownership types our empirical results support the hypotheses that foreign owned banks are most efficient and government owned banks are least efficient in addition the importance of attracting a strategic foreign owner in the privatization process is confirmed however counter to the conjecture that foreign banks cherry pick the most profitable opportunities we find that domestic banks have a local advantage in pursuing fee for service business finally we show that both the method and the timing of privatization matter to performance specifically voucher privatization does not lead to increased efficiency and early privatized banks are more efficient than later privatized banks even though we find no evidence of a selection effect

the impact of regulatory reforms on cost structure ownership and competition in indian banking this paper evaluates the impact of financial sector reforms on the cost structure characteristics and on the ownership cost efficiency relationship in indian banking it also examines the impact of reforms on the dynamics of competition in the lending market we find evidence that deregulation improves banks performance and fosters competition in the lending market results suggest technological progress once indian commercial banks have adjusted to the new regulatory environment this however does not translate in efficiency gains there is also evidence of an ownership effect on the level and pattern of efficiency change finally competition keeps building pace even in the re regulation period and technological improvements are not hampered by the tightening of prudential norms

do government owned banks trade market power for slack the quiet life hypothesis qlh posits that banks with market power have less incentives to maximize revenues and minimize cost especially government owned banks with a public mandate precluding profit maximization might succumb to a quiet life we use a unified approach that simultaneously measures market power and efficiency to test the quiet life hypothesis of german savings banks we find that average local market power declined between 1996 and 2006 cost and profit efficiency remained constant nonparametric correlations are consistent with a quiet life regarding cost efficiency but not regarding profit efficiency the quiet life on the cost side is negatively correlated with bank size quality of loan portfolio and local per capita income the last result indicates that the quiet cost life is therefore potentially due to benevolent excess consumption of local input factors by public savings banks

output and substitution elasticities of energy and implications for renewable energy expansion in the ecowas region abstract this study estimates output and substitution elasticities of renewable energy and nonrenewable energy for the economic community of west african states ecowas and discusses implications for expanding the former the results show that nonrenewable energy promises greater benefits for ecowas economic transition with output elasticities averaging between 0 052 0 579 and 0 055 to 0 223 for nonrenewable energy and renewable energy respectively overall estimated technological progress is low 0 5 to 2 6 the bulk coming from input efficiency substitution elasticities 0 02 0 94 suggest potential for switching towards renewable energy notwithstanding scale economics and sitting problems inherent in renewable power generation challenge the opportunities for energy substitution a sustainable policy solution therefore appears to be one favoring scaled and efficient electricity generation from fossil energy in the short run with a gradual switch towards renewable power in the long run in general the applied model provides insights that energy efficiency enhances sustainable growth by propelling technological advancement especially when technical change is scale biased and factor augmenting the study also provides insights that impacts of exogenous shocks to inputs are temporary and hence do not jeopardize efforts aimed at scaling output through increased and efficient use of labor capital and energy especially nonrenewable energy

the role of renewable energy to validate dynamic interaction between co2 emissions and gdp toward sustainable development in malaysia abstract closing the gap between economy activity and environmental quality is one of the solutions for reaching sustainable development in malaysia to do so the cubic polynomial functional form of ekc is utilized by accommodating renewable energy into the base of the ekc model and validating its hypothesis between co 2 emissions and gdp growth for the 1971 2015 period the f bounds vecm granger causality cusum and cusumsq tests are utilized the estimated results consistently show that the inverted n shaped ekc hypothesis holds in malaysia ceteris paribus the co 2 emissions will be declined when the gdp reach rm2841 9 billion in 2030 which is beyond the sample period the renewable energy has a negative significant effect on co 2 emissions and the direction of causality is running from co 2 emissions to renewable energy also the gdp growth will be the remedy for environmental pollution problems and that renewable energy is one of important elements to be considered for improving environmental quality a tighter and concentrated environmental policy is needed to direct the environment economic growth nexus toward a downward trend consequently these results may help malaysian policymakers to establish an energy policy that guarantees a balance between economic growth and environmental prosperity

banks responses to deregulation profits technology and efficiency the deregulation of interest rates in the early 1980s raised bank funding costs and lowered profits in response banks raised fees for deposit services reduced branch operating costs and shifted to higher earning assets rates of return did not regain their prederegulation levels until the early 1990s our goal is to decompose the change in bank profits following deregulation into i intemal bank initiated adjustments to the new regulatory structure and ii external contemporaneous changes in banks business environment this decomposition will depend in part on the assumed competitive structure of the banking industry with perfect competition output and input prices are part of the external environment and banks responses are limited to changes in output and input quantities an alternative approach assumes imperfect competition where banks have some control over output prices deposit fees minimum balance requirements and interest rates on certain loans and output quantities and input prices comprise the external environment the altemative model is supported by the data using this model large banks but not smaller banks are found to have relied primarily on changing output prices and input use to mitigate and reverse the negative effects of deregulation on profits the adjustment to deregulation was essentially complete after four years following this additional changes in bank profitability during the late 1980s were primarily due to changes in banks business environment

option exercise games an application to the equilibrium investment strategies of firms under the standard real options approach to investment under uncertainty agents formulate optimal exercise strategies in isolation and ignore competitive interactions however in many real world asset markets exercise strategies cannot be determined separately but must be formed as part of a strategic equilibrium this article provides a tractable approach for deriving equilibrium investment strategies in a continuous time cournot nash framework the impact of competition on exercise strategies is dramatic for example while standard real options models emphasize that a valuable option to wait leads firms to invest only at large positive net present values the impact of competition drastically erodes the value of the option to wait and leads to investment at very near the zero net present value threshold copyright 2002 oxford university press

a multivariate cointegration analysis of the role of energy in the us macroeconomy abstract this paper extends my previous analysis of the causal relationship of gdp and energy use in the usa in the post war period a majority of the relevant variables are integrated justifying a cointegration analysis the results show that cointegration does occur and that energy input cannot be excluded from the cointegration space the results are plausible in terms of macroeconomic dynamics the results are similar to my previous granger causality results and contradict claims in the literature based on bivariate models that there is no cointegration between energy and output

revisiting the environmental kuznets curve hypothesis evidence from the asean 5 countries with structural breaks abstractthis paper tests if the environmental kuznets curve ekc hypothesis exists for asean 5 countries in an annual sample data that covers 1971 2013 by utilizing auto regressive distributed la

impact of financial reforms on efficiency of state owned private and foreign banks in pakistan this article uses a unique bank level data from 1991 to 2000 and evaluates how financial reforms affect banking efficiency of domestic and foreign banks in pakistan the results suggest that banking efficiency falls during initial reform period when banks adjust to enhanced competition but increases in more advanced stages of reform while in general foreign and private banks show superior efficiency and factor productivity than do state owned banks the relative performance of foreign banks worsens after the consolidation stage of the financial reforms is over we show the importance of link between bank size asset quality and bank branches with efficiency indexes and also note that every 10 increase in share of nonperforming to total loans decreases banking efficiency by 6 to 10

economies of scale technical change and persistent and time varying cost efficiency in indian banking do ownership regulation and heterogeneity matter abstract banks with different ownership types adjust differently to changes in regulatory environments although this topic has been widely studied all the previous studies fail to control for bank heterogeneity bank specific effects in estimating cost structure and efficiency we propose a model where we control for bank heterogeneity and introduce persistent and time varying inefficiency additionally we incorporate determinants of both persistent and time varying inefficiency as well as production risks furthermore our model allows estimation of different technologies for different ownership types jointly we use this model to analyze the effect of regulation in indian banking we find that private banks have not exhausted their economies of scale foreign banks are operating under diseconomies of scale especially after the reforms and scale economies of state owned banks are unaffected by regulation banks of all ownership types have enjoyed technical progress however foreign banks have benefited the most followed by state owned banks only state banks were able to improve their cost efficiency while private banks and especially foreign banks were lagging behind their cost frontiers

privatization as an agency problem auctions versus private negotiations abstract this paper investigates the design of privatization mechanisms in emerging market economies characterized by political constraints that limit the set of viable privatization options our objective is to explain the striking diversity of mechanisms observed in practice and the frequent use of an apparently sub optimal privatization mechanism private negotiations we develop a simple model in which privatization is to be carried out by a government agent who plays favorites among bidders but is potentially disciplined by losing his private benefits of staying in office if the political environment is such that the privatization agent himself aims at raising the fair value for the company then privatization auctions and private negotiations are equally successful in raising public revenues if however political considerations distort the agent s incentives it may be that a seemingly transparent auction will raise less revenue than opaque private negotiations we also show that information disclosure laws may have negative welfare implications they may help the privatization agent to collude with some of the bidders to the disadvantage of non colluding bidders

electricity consumption and economic growth in india abstract this paper tries to examine the granger causality between electricity consumption per capita and gross domestic product gdp per capita for india using annual data covering the period 1950 51 to 1996 97 phillips perron tests reveal that both the series after logarithmic transformation are non stationary and individually integrated of order one this study finds the absence of long run equilibrium relationship among the variables but there exists unidirectional granger causality running from economic growth to electricity consumption without any feedback effect so electricity conservation policies can be initiated without deteriorating economic side effects

renewable electricity consumption and economic development new findings from the baltic countries abstract this study employed homogeneous and heterogeneous panel methods to examine the relationship between renewable and non renewable electricity consumption and economic development in three transition economies in the baltic region namely estonia latvia and lithuania for the period of 1992 2011 the study put forward four hypotheses to examine the renewable electricity development nexus the findings indicated that there existed a unidirectional causality from the economic development to renewable electricity consumption thus the results obtained from the statistical analyses have provided empirical evidence in support of the conservation hypothesis that postulates that economic development causes the expansion of renewable electricity consumption but not vice versa

the impact of financial liberalization on bank efficiency evidence from latin america and asia this article investigates the impact of financial liberalization on bank efficiency using data for a sample of over 4000 bank year observations from ten emerging economies for the period 1991 2000 we use data envelopment analysis dea to calculate bank efficiency at the individual bank level bank efficiency measures are then aggregated at the country level to investigate the relationship between financial liberalization and bank efficiency using a panel least square fixed effects model overall we find strong support for the positive impact of financial liberalization programmes on bank efficiency

co2 emissions in australia economic and non economic drivers in the long run abstractaustralia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries per capita co2 emissions tend to be highest amongst oecd countries creating new challenges to cut back emissions towards international standards this research explores the long run dynamics of co2 emissions economic and population growth along with the effects of globalization tested as contributing factors we find economic growth is not emission intensive in australia while energy consumption is emissions intensive second in an environment of increasing population our findings suggest australia needs to be energy efficient at the household level creating appropriate infrastructure for sustainable population growth high population growth and open migration policy can be detrimental in reducing co2 emissions finally we establish globalized environment has been conducive in combating emissions in this respect we establish the beneficial effect of economic globalization

exploring the effects of energy consumption on output per worker a study of albania bulgaria hungary and romania in this article we explore the long run cointegration between output capital and energy consumption in per worker terms for albania bulgaria hungary and romania we use the augmented solow 1956 model and the ardl bounds procedure pesaran et al 2001 to examine the short run and long run effects of energy and capital on output in per worker terms we also conduct causality test using the toda and yamamoto 1995 non causality procedure our results show the existence of long run cointegration between output per worker and energy per worker for all the four countries we find that energy per worker have a dynamic short run positive effect in albania 0 37 bulgaria 0 25 hungary 0 36 and romania 0 68 and a long run positive effect in bulgaria 0 32 and romania 0 63 which duly indicate that energy consumption has a momentous long run effect in these two countries the causality results indicate a unidirectional causation from output per worker to energy per worker for all the four countries and from capital per worker to energy per worker for albania and romania consequently a balance between effective energy consumption and sound energy conservation policies are likely to support economic growth in the four countries

causal independence between energy consumption and economic growth in liberia evidence from a non parametric bootstrapped causality test abstract this contribution investigates causal interdependence between energy consumption and economic growth in liberia and proposes application of a bootstrap methodology to better reflect causality employment is incorporated as additional variable the study demonstrates evidence of distinct bidirectional granger causality between energy consumption and economic growth additionally the results show that employment in liberia granger causes economic growth and apply irrespective of the short run or long run evidence from a monte carlo experiment reveals that the asymptotic granger causality test suffers size distortion problem for liberian data suggesting that the bootstrap technique employed in this study is more appropriate given the empirical results implications are that energy expansion policies like energy subsidy or low energy tariff for instance would be necessary to cope with demand exerted as a result of economic growth in liberia furthermore liberia might have the performance of its employment generation on the economy partly determined by adequate energy therefore it seems fully justified that a quick shift towards energy production based on clean energy sources may significantly slow down economic growth in liberia hence the government s target to implement a long term strategy to make liberia a carbon neutral country and eventually less carbon dependent by 2050 is understandable

do urbanization income and trade affect electricity consumption across chinese provinces abstract the aim of this paper is to investigate the short and long run links among urbanization output gross domestic product gdp trade openness and electricity consumption in china using a rich dataset at the provincial level the short run granger causality analysis discloses a unidirectional causal relationship running from electricity to output and weak feedback effects between trade and urbanization the long run granger causality analysis shows output urbanization and trade trigger electricity consumption whereas trade urbanization and electricity cause output the group mean and lambda pearson causality tests reveal a large heterogeneity in the long run effects which suggests there is no one size fits all policy and each region should formulate a differentiated urbanization growth strategy based on its own characteristics to control electricity utilization

energy consumption real income and temporal causality results from a multi country study based on cointegration and error correction modelling techniques abstract unlike previous studies on the causal relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multivariate cointegration tests preceded by various unit root or non stationarity tests we test for cointegration between total energy consumption and real income of six asian economies india pakistan malaysia singapore indonesia and the philippines non rejection of cointegration between variables rules out granger non causality and imples at least one way of granger causality either unidirectional or bidirectionial secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample granger exogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total impact of an unanticipated shock to each of the variables beyond the sample period into proportions attributable to shocks in the other variables including its own in the bivariate system results based on these tools of methodology indicate that while all pair wise relationships shared common univariate integrational properties only relationships for three countries india pakistan and indonesia were cointegrated for these countries temporal causality results were mixed with unidirectional causality from energy to income for india exactly the reverse for indonesia and mutual causality for pakistan the vdcs were not inconsistent with these results and provided us with an additional insight as to the relatively more dominant direction of causation in pakistan simple bivariate vector autoregressive models for the three non cointegrated systems did not indicate any direction of causality significantly in either direction

tests for parameter instability in regressions with i 1 processes this article derives the large sample distributions of lagrange multiplier lm tests for parameter instability against several alternatives of interest in the context of cointegrated regression models the fully modified estimator of phillips and hansen is extended to cover general models with stochastic and deterministic trends the test statistics considered include the supf test of quandt as well as the lm tests of nyblom and of nabeya and tanaka it is found that the asymptotic distributions depend on the nature of the regressor processes that is if the regressors are stochastic or deterministic trends the distributions are noticeably different from the distributions when the data are weakly dependent it is also found that the lack of cointegration is a special case of the alternative hypothesis considered an unstable intercept so the tests proposed here may also be viewed as a test of the null of cointegration against the alternative of no cointegration the tests are applied to three data se

the impact of islamic banking on the cost efficiency and productivity change of malaysian commercial banks this study employs stochastic frontier analysis sfa to analyse malaysian commercial banks during 1996 2002 and particularly focuses on determining the impact of islamic banking on performance we derive both net and gross efficiency estimates thereby demonstrating that differences in operating characteristics explain much of the difference in costs between malaysian banks we also decompose productivity change into efficiency technical and scale change using a generalized malmquist productivity index on average malaysian banks experience moderate scale economies and annual productivity change of 2 68 with the latter driven primarily by technical change tc which has declined over time our gross efficiency estimates suggest that islamic banking is associated with higher input requirements however our productivity estimates indicate that full fledged islamic banks have overcome some of these cost disadvantages with rapid tc although this is not the case for conventional banks operating islamic windows merged banks are found to have higher input usage and lower productivity change suggesting that bank mergers have not contributed positively to bank performance finally our results suggest that while the east asian financial crisis had a short term costreducing effect in 1998 the crisis triggered a long lasting negative impact by increasing the volume of nonperforming loans

distribution of cost and profit efficiency evidence from indian banking this paper uses the nonparametric dea methodology to estimate cost and profit efficiency of indian banks during the post reform period the results show considerable variation in average levels of profit efficiency across various ownership categories of banks in general state owned banks are found to be more efficient than their private counter parts further efficiency tends to be low among the small banks assets up to rs 50 billion indicating that at the existing scale of operations these banks are operating far below the efficient frontier we also examine the distribution of efficiency using nonparametric kernel density estimates the analysis reveals a rightward shift of the efficiency distribution over the years a major part of this shift comes from the state owned banks based on the conditional distribution the study finds strong evidence of ownership explaining the efficiency differential of banks additionally bank size and product mix are also found to be important although to a lesser extent

the electricity consumption versus economic growth of the polish economy abstract the aim of this contribution is an investigation of causal interdependences between electricity consumption and gdp in poland our research was conducted for total electricity consumption as well as for the industrial consumption of electricity in order to reflect the causality between gdp and electricity consumption properly we performed our investigations in a three dimensional framework with employment chosen as an additional variable we used reliable quarterly data from the period q1 2000 q4 2009 in order to check the stability of the causalities the investigations were performed on two samples a full sample and a pre crisis i e q1 2000 q3 2008 subsample we applied both traditional methods and some recently developed econometric tools we found feedback between total electricity consumption and gdp as well as between total electricity consumption and employment we also found unidirectional causality running from industrial electricity consumption to employment and no direct causal links between industrial electricity consumption and gdp in addition all these findings were in general not seriously affected by the financial and economic crises of 2008 a significant exception is the causal effect of industrial electricity consumption on employment which was more pronounced after the crisis of 2008

bank ownership privatization and performance evidence from a transition country abstract this paper combines the static effect of ownership and the dynamic effect of privatization on bank performance in china over 1995 2010 reporting a significantly higher performance by private intermediaries joint stock commercial banks and city commercial banks relative to state owned commercial banks however publicly traded banks subject to multiple monitoring and vetting in capital markets perform better regardless of ownership status the privatization of banks has improved performance with respect to revenue inflow and efficiency gains in the short or long run initial public offerings the positive long run effect is more relevant and significant for banking institutions with minority foreign ownership moreover this paper innovatively estimates interest income efficiency and non interest income efficiency at the same time the results suggest that chinese banks are much more efficient in generating interest income than raising non interest revenue although the latter aspect has improved significantly during the sample period

technology choice under emission regulation uncertainty in international container shipping abstract we present a real options approach to evaluate technology and capacity choices under regulatory uncertainty our two phase regime switching model includes the option of investing in different technologies as well as a charter and layup option respectively for a base case version of this model we derive an analytical solution before studying the effect of regulatory uncertainty in a numerical extension that relaxes certain restrictive assumptions we then describe three regulatory regimes an emissions cap an emissions tax and a cap and trade market and compare how effectively each reduces emissions applying the model to maritime container shipping we develop insights on the optimal technology choice for reducing sox emissions we find that regulatory uncertainty can increase not only project values but also owned capacity from a regulatory perspective an emissions cap reduces emissions more effectively whereas an emissions tax reduces the cost of regulation the cap and trade market emerges in many respects as superior to an emissions tax finally we show that setting the emissions cap level or deciding on the level above which an emissions tax or emissions trade apply is critical because reduction in total industry emissions are not necessarily continuous

electricity consumption and economic growth across australian states and territories this study investigates the long run and short run dynamics between electricity consumption along with traditional inputs such as labour and capital on economic output for a panel of seven austra

commercial bank ownership and performance in china this study examines the determinants of bank performance based on proxy variables that assess the quality of assets profitability liquidity and overall performance using a sample of 111 chinese commercial banks over the period of 2000 2012 we find that foreign banks appear to have better asset quality and overall performance although lower profitability compared to domestic banks in contrast the state owned banks tend to be more profitable and have better liquidity position compared with other domestic banks and foreign banks at bank level equity liability ratio exerts significant influence on overall bank performance while at the macroeconomic level per capital gdp gdp growth inflation and unemployment rates appear to have a bearing on bank performance

the effects of deregulation on the performance of financial institutions the case of spanish savings banks this paper examines the impact of regulatory reform on the performance of spanish savings banks the focus is whether increased competition brought on by deregulation affected performance of banks over time output technical efficiency which is defined in terms of the production possibility frontier is also examined empirical results show declining levels of output technical efficiency along with a significantly high rate of technical progress in spite of declining technical efficiency during this period evidence of an increasing trend in productivity growth is found

co integration and causality testing of the energy gdp relationship a cross country study in this paper the energy gdp relationship in per capita terms is analysed for a sample of 16 countries over the time period 1950 51 to 1984 85 co integration theory is first used to test whether a long run equilibrium relation exists between the two variables after co integration has been established causality measures are constructed to quantify various types of feedback between energy and gdp for each country it is then examined whether the causality measures are longitudinally related to certain basic economic indicators of the countries in the sample

entry and exit decisions based on a discount factor approach abstract entry and exit decisions under price uncertainty are discussed by a discount factor approach to investment the approach makes it possible to express the value of the firm as a function of a set of trigger prices at which investment takes place and to determine the optimal policy by simple maximization starting with a standard entry exit model by dixit 1989 entry and exit decisions under uncertainty journal of political economy 97 3 620 638 the paper expands to construction and scrapping decisions investment lags diminishing production capacity and limits to the number of lay up periods economic implications are investigated using experimental data and empirical shipping data

impact of climate policy uncertainty on the adoption of electricity generating technologies this paper presents a real options model where multiple options are evaluated simultaneously so that the effect of the individual options on each other is accounted for we apply this model to the electricity sector where we analyze three typical technologies based on fossil fuel fossil fuel with carbon capture and renewable energy respectively in this way we can analyze the transition from co2 intensive to co2 neutral electricity production in the face of rising and uncertain co2 prices in addition such a modelling approach enables us to estimate precisely the expected value of perfect information i e the willingness of investors and producers to pay for information about the correct co2 price path as can be expected the expected value of information rises with increasing co2 price uncertainty in addition the larger the price uncertainty the larger are the cumulative co2 emissions over the coming century the reason for this is that the transition to less co2 intensive technologies is increasingly postponed with rising co2 price uncertainty by testing different price processes geometric brownian motion versus jump processes with different jump frequencies we can also make useful recommendations concerning the importance of policy predictability we find that it is better to have climate change policies that are stable over a certain length of time and change abruptly than less abrupt but more frequently changing policies less frequent fluctuations reduce the expected value of information and result in smaller cumulative co2 emissions