financial development and energy consumption evidence from a heterogeneous panel of asian countries abstract this paper examined relationships between financial development and energy consumption in asia for the period of 1980 2012 for the purpose of the empirical analysis it performed the heterogeneous panel causality test suggested by dumitrescu and hurlin 1 the findings of the panel cointegration test indicated that there was a long run equilibrium relationship between finance and energy consumption in the region moreover the heterogeneous panel causality test detected a unidirectional causality from energy consumption to financial development but not vice versa these results indicate that an expansion of energy usage could be a driving force behind financial development in asia

the effect of annuity insurance on savings and inequality this paper examines the amount of precautionary savings and wealth inequality arising from life span uncertainty by comparing saving behavior under perfect insurance arrangements with that arising under imperfect arrangements namely when longevity risk can be pooled only with members of one s own family the central findings of the paper are that 1 perfecting insurance arrangements can sharply lower savings in both intergenerationally altruistic and life cycle economies and that 2 in altruistic economies perfecting annuity insurance can greatly influence inequality indeed in the long run in our model switching from imperfect family insurance to perfect insurance can mean the difference between absolute inequality and absolute equality

the effects of stock market growth and renewable energy use on co2 emissions evidence from g20 countries the primary objective of this study is to empirically examine the effect of stock market growth and foreign direct investment fdi inflows on co2 emissions further this study investigates the impact of renewable energy consumption on co2 emissions and economic output in a panel of the g20 countries the empirical analysis was carried out on the full sample as well as on sub samples of developed and developing economies of the g20 member countries the results confirm a significant long run equilibrium relationship among the variables across the panels further the long run elasticities suggest that fdi significantly reduces co2 emissions in the full sample and developing economies while stock market growth reduces in developed economies similarly the renewable energy consumption substantially reduces co2 emissions and increases economic output across the panels our findings have important policy implications for instance the policy makers have to initiate effective policies to promote the renewable energy sources to meet the increasing demand for energy by replacing the use of conventional energy such as coal gas and oil this will therefore help to reduce the co2 emissions and also ensure sustainable economic development in the g20 nations

an empirical analysis of self employment in the u k the paper formulates a self employment paid employment choice problem that draws upon knight s notion that the individual responds to the risk adjusted relative earnings opportunities in each sector based on a development of such choice theoretic considerations an econometric model is developed with the purpose of empirically examining the determinants of self employment the model features simultaneous determination of employment status and earnings which allows for self selectivity the model is estimated using a sample of 4762 individuals from the general household survey for 1978 the estimation of the earnings equation enables a calculation of the self employment paid employment earnings differential and the estimated probit equation for self employment paid employment status facilitates the prediction of the probability of self employment the paper finds that there is positive selection bias in the observed earnings of employees that the probability of self employment depends positively on the earnings difference between the two sectors and that education and age are significant determinants of self employment

the economics of small business finance the roles of private equity and debt markets in the financial growth cycle abstract this article examines the economics of financing small business in private equity and debt markets firms are viewed through a financial growth cycle paradigm in which different capital structures are optimal at different points in the cycle we show the sources of small business finance and how capital structure varies with firm size and age the interconnectedness of small firm finance is discussed along with the impact of the macroeconomic environment we also analyze a number of research and policy issues review the literature and suggest topics for future research

bequest as a public good within marriage a note bequest to and marriage of children can lead to a pareto inefficient allocation the inefficiency or market failure arises because one family making a bequest to its own child ignores the contribution to the utility of the other family whose child enters the marriage this note shows that an assortative mating rule based on bequests can improve or even restore pareto efficiency when parents take account of the rule in deciding the amount of bequests to their own children

is the long run relationship between economic growth electricity consumption carbon dioxide emissions and financial development in gulf cooperation council countries robust the relationship between carbon dioxide emissions economic growth electricity consumption and financial development in the gulf cooperation council gcc countries is investigated in this study using panel data for the period of 1980 2012 a number of econometric techniques dynamic ordinary least squares dols fully modified ordinary least squares fmols and the dynamic fixed effect model dfe are applied in order to estimate the long run relationship between the variables the long run relationship is found to be robust across these different econometric specifications no significant short run significant relationship was observed electricity consumption and economic growth have a positive long run relationship with carbon dioxide co2 emissions whilst a negative and significant relationship was found between co2 emissions and financial development the findings imply that electricity consumption and economic growth stimulate co2 emissions in gcc countries while financial development reduces it granger causality results reveal that there is a bidirectional causal link between economic growth and co2 emissions and a unidirectional causal link running from electricity consumption to co2 emissions however there is no causal link between financial development and co2 emissions also impulse response and variance decomposition analysis outline forecasted impacts of economic growth and electricity consumption on future co2 emissions

on the causal dynamics between emissions nuclear energy renewable energy and economic growth this paper examines the causal relationship between co2 emissions nuclear energy consumption renewable energy consumption and economic growth for a group of 19 developed and developing countries for the period 1984 2007 using a panel error correction model the long run estimates indicate that there is a statistically significant negative association between nuclear energy consumption and emissions but a statistically significant positive relationship between emissions and renewable energy consumption the results from the panel granger causality tests suggest that in the short run nuclear energy consumption plays an important role in reducing co2 emissions whereas renewable energy consumption does not contribute to reductions in emissions this may be due to the lack of adequate storage technology to overcome intermittent supply problems as a result electricity producers have to rely on emission generating energy sources to meet peak load demand

capital accumulation and the characteristics of private intergenerational transfers many recent studies of the process of family accumulation in general and household response to social security in particular have revealed growing dissatisfaction with the life cycle theory of saving see for example barro 1978 kotlikoff 1979 darby 1979 kotlikoff and summers 1981 kurz 1981 blinder gordon and wise 1981 david and menchik 1982 leimer and lesnoy 1982 an alternative to the life cycle hypothesis is expressed by defining the preference of each family over its own consumption as well as the welfare of the generations that follow thus each family consists of an infinite chain of generations who have interdependent preferences and for this reason we shall call it the inter generational hypothesis it was recently used by barro 1974 1978 to attack the conclusions of the life cycle hypothesis our purpose in this paper is to start the long road of studying the structure of the private inter generational transfer system with the aim of providing additional tests of the two competing hypotheses

the strategic bequest motive although recent research suggests that intergenerational transfers play an important role in aggregate capital accumulation our understanding of bequest motives remains incomplete we develop a simple model of strategic bequests in which a testator influences the decisions of his beneficiaries by holding wealth in bequeathable forms and by conditioning the division of bequests on the beneficiaries actions the model generates falsifiable empirical predictions that are inconsistent with other theories of intergenerational transfers we present econometric and other evidence that strongly suggests that bequests are often used as compensation for services rendered by beneficiaries

estimating tax noncompliance with evidence from unaudited tax returns this article estimates the degree of tax noncompliance using evidence from unaudited tax returns measurements of noncompliance are derived from the relationship between reported charitable contributions and reported income from wages and salary as compared to alternative reported income sources such as self employment farm and other small business income assuming that the source of one s income is unrelated to one s charitable inclinations and that the ratio of true income to taxable income does not vary by income source any difference in the relationship between charitable contributions and the source of income can be attributed to relative underreporting by the individual we find that the implied amount of noncompliance is significant and that it varies by source of income as well as between positive and negative values of each type of income tax evasion creates horizontal inequity and if opportunities for evasion are correlated with income complicates the attempt to achieve vertical equity evasion also imposes economic costs because taxpayers expend resources to facilitate evasion and the tax agency expends resources to contain it the equity and efficiency implications of tax evasion and optimal policy to address it depend on its magnitude and nature which for obvious reasons is difficult to ascertain this article contributes to that effort by developing a new method for estimating the extent and nature of tax noncompliance based on evidence from unaudited tax returns this evidence is derived from the relationship between reported charitable contributions and reported taxable income from various sources such as wages and salaries selfemployment nonfarm small business and farm income and is based on the assumptions that the source of one s income is unrelated to one s charitable inclinations and that the ratio of true income to taxable income does not vary by income source we find that the implied amount of noncompliance on non wageand salary income is substantial and that it varies among these sources of income as well as between positive and negative values of each type of income on average reported positive self employment nonfarm small business and farm income must be multiplied by a factor of 1 54 4 54 and 3 87 respectively in order to obtain true income even those individuals who report zero income for a specific income source but file the schedule for that source are estimated to have true positive income finally those households that report negative schedule income may actually have greater true income than those households that report positive income

credits and non interest rate determinants of loan demand a spanish case study this article uses bivariate probit analysis to model the potential relationship between the condition of being credit unconstrained and holding loans as well as to ascertain determinants of a household being credit unconstrained and likely holding consumer and real estate loans it documents that family size education permanent and transitory incomes among others affect spanish households desire and capacity to hold loans furthermore these factors were found to affect demands for real estate and consumer loans differently in general the above and other results from this research provide insights that would interest credit consumers credit suppliers and policy makers in spain

natural gas trade and sustainable growth empirical evidence from the top gas consumers of the developing world abstractnatural gas is the key non renewable source of energy for a low carbon economy the research applies heterogeneous panel techniques to investigate the impact of natural gas consumption on economic growth across a panel of top 15 natural gas consumers of the developing world we establish long run dynamics with cross sectional dependence and heterogeneity across the sample countries the long run output elasticities suggest that the natural gas consumption and trade variables have significant positive effect on the output in a panel of developing economies further we establish feedback relationship among gas consumption output and trade in the short run given the significance of natural gas as the low emission source of energy we suggest governments and policy advisers of these major natural gas consumers to focus on developing pipeline infrastructure for adequate supply reforming natural gas sector with a competitive price structure to combat excess demand in individual natural gas market w

home ownership as status competition some theory and evidence abstract in this paper we explore the implications of home ownership as a status good for housing prices more concretely if a family s housing wealth relative to others is an important sorting variable for relative attractiveness in the marriage market then competition for marriage partners might motivate people to pursue a bigger and more expensive house apartment to test the hypothesis we explore regional variations in the sex ratio for the pre marital age cohort across china as a proxy for differential strength for concerns for status we find that the evidence is consistent with the status competition hypothesis

tough love and intergenerational altruism tough love and intergenerational altruism this article develops and studies a tough love model of intergenerational altruism we model tough love by modifying the barro becker standard altruism model in two ways first the child s discount factor is endogenously determined so lower childhood consumption leads to a higher discount factor later in life second the parent evaluates the child s lifetime utility with a constant high discount factor our model predicts that parental transfers will fall when the child s discount factor falls this is in contrast with the standard altruism model which predicts that parental transfers are independent of exogenous changes in the child s discount factor

inter vivos transfers and bequests in three oecd countries reforms reducing the generosity of pensions have distributional effects on future generations if individuals care about their descendants welfare but only affect elderly individuals if bequests are the unintentional result of precautionary savings and safety net programmes such as unemployment insurance may displace sources of private help such as that provided by living parents to their children in need this paper provides comparable measures of how expected bequests and transfers vary with cumulated parental earnings in the united states west germany and the united kingdom the strength of bequest motives is empirically very weak in the available data private inter vivos transfers which appear to depend on the recipients economic situation are partly crowded out by public unemployment insurance programmes together involuntary bequests and intentional inter vivos transfers appear to be an important channel of intergenerational inequality transmission and strengthen substantially the relationship between an individual s and his parents economic status ernesto villanueva

does globalization affect growth evidence from a new index of globalization the study develops an index of globalization covering its three main dimensions economic integration social integration and political integration using panel data for 123 countries in 1970 2000 it is analysed empirically whether the overall index of globalization as well as sub indexes constructed to measure the single dimensions affect economic growth as the results show globalization indeed promotes growth the dimensions most robustly related with growth refer to actual economic flows and restrictions in developed countries although less robustly information flows also promote growth whereas political integration has no effect

incentives and social norms in household behavior in a broad psychological perspective both economic incentives and social norms may be be regarded as giving rise to purposesful or rational behavior by this i simply mean that individuals act in accordance with expected reward or punishment even though the form these take differs substantially in the two cases whereas economic incentives imply material rewards or favors that can be traded for such rewards including leisure social norms imply social rewards the latter basically take the form of approval or disapproval from others and related feelings of pride or shame moreover once a social norm has been internalized in an individual s own value system behavior in accordance with or against the norm will also result in feelings of self respect or guilt all this suggests that not only economic incentives but also social norms may be analyzed by means of utility theory as will be illustrated below many social norms may not have much to do with economic incentives elster 1989 in some cases it is however useful to study the interaction between them indeed this is the basic message of the paper my discussion will be limited to three norms of apparent importance for household behavior i work norms ii norms against wage underbidding and iii saving and consumption norms thus the paper deals with norms concerning willingness to work ability to get a job and the use of income this abstract was borrowed from another version of this item

is everything neutral in his well known analysis of the national debt robert barro introduced the notion of a dynastic family this notion has since become a standard research tool particularly in the areas of public finance and macroeconomics in this paper we critique the assumptions on which the dynastic model is predicated and argue that this framework is not a suitable abstraction in contexts in which the objective is to analyze the effects of public policies we reach this conclusion by formally considering a world in which each generation consists of a large number of distinct individuals as opposed to one representative individual we point out that family linkages form complex networks in which each individual may belong to many dynastic groupings the resulting proliferation of linkages between families gives rise to a host of neutrality results including the irrelevance of all public redistributions distortionary taxes and prices since these results are not at all descriptive of the real world we conclude

population policies demographic structural changes and the chinese household saving puzzle abstract using combined data from population censuses and urban household surveys we study the effects of demographic structural changes on the rise of household savings in china variations in fines across provinces for unauthorized births under the one child policy and in cohort specific fertility influenced by the implementation of population control policies are exploited to facilitate identification we find evidence that older households with fewer adult children saved more middle aged households with fewer dependent children experienced increase in savings and younger households with fewer siblings also saved more these findings lend support to a simple economic model in which the effects of population control policies are investigated in the context of household saving decisions in china

connectedness network and dependence structure mechanism in green investments abstract we present an empirical study of renewable energy stock returns and their relation to four major investment asset classes stocks currency us treasury bonds and oil and several sources of uncertainty applying nonlinear causality and connectedness network analysis on data covering the period 2004 2016 we investigate the directionality and connectedness among different asset classes as well as between uncertainties first from the results of the estimation of directionality and network spillovers it can be concluded that the european stock market has a strong market dependence on renewable energy stock prices second uncertainties have an economically significant impact on both return and volatility spillover in energy investments third most of the uncertainties are net transmitters of volatility connectedness during the global financial crisis gfc and european sovereign debt crisis esdc

bequests and the size of population when population is endogenous the consequences of interfamily bequests and endogenous population size for optimal and competitive population sizes and bequests are explored when individuals utility is a function of own consumption the number of children and the welfare of their children when a bequest benefits each member of a second generation family we show that competition leads to underprovision for future generations under a separability assumption the number of children is also shown to be too large

the contribution of foreign direct investment to clean energy use carbon emissions and economic growth the paper investigates the contributions of foreign direct investment fdi net inflows to clean energy use carbon emissions and economic growth the paper employs cointegration tests to examine a long run equilibrium relationship among the variables and fixed effects models to examine the magnitude of fdi contributions to the other variables the paper analyzes panel data of 19 nations of the g20 from 1971 to 2009 the test results indicate that fdi has played an important role in economic growth for the g20 whereas it limits its impact on an increase in co2 emissions in the economies the research finds no compelling evidence of fdi link with clean energy use given the results the paper discusses fdi s potential role in achieving green growth goals

pay as you go social security and the distribution of altruistic transfers this paper studies the impact of an unfunded social security system on the distribution of altruistic transfers in a framework where savings are due to both life cycle and random altruistic motivations we show that the effect of social security on the distribution of these transfers depends crucially on the strength of the bequest motive in explaining savings behaviour we measure this strength by the expected weight that individuals attach to the utility of future generations on the one hand if the bequest motive is strong then an increase in the social security tax raises the bequests left by altruistic parents on the other hand when the importance of altruism in motivating savings is sufficiently low the increase in the social security tax could result in a reduction of the bequests left by altruistic parents under some conditions on the attitude of individuals toward risk and on the relative returns associated with private saving and social security some implications concerning the transitional effects of introducing an unfunded social security scheme are also discussed

financial development and energy consumption in central and eastern european frontier economies this study examines the impact of financial development on energy consumption in a sample of 9 central and eastern european frontier economies several different measures of financial development are examined including bank related variables and stock market variables the empirical results obtained from dynamic panel demand models show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using banking variables like deposit money bank assets to gdp financial system deposits to gdp or liquid liabilities to gdp of the three stock market variables investigated only one stock market turnover has a positive and statistically significant impact on energy consumption both short run and long run elasticities are presented the implications of these results for energy policy are discussed

testing for granger causality between energy use and foreign direct investment inflows in developing countries abstract foreign direct investment inflows fdi and emissions exhibit a two way relationship in particular this research studies the relationship between fdi inflows and emissions from energy use in developing countries this is done through conducting a granger causality test on the direction of the relationship between fdi inflows and energy use for that a fixed effect panel data model with heterogeneous slopes is used heterogeneous slopes specification is selected to account for individual differences within countries error correction model is the chosen estimation approach the empirical results highlight the presence of a two way relationship between fdi inflows and emissions from energy use when testing for short and long run effects jointly however this result varies when testing for no long run effect within individual countries policy implications for developing countries are also given

do economic financial and institutional developments matter for environmental degradation evidence from transitional economies abstract several studies have examined the relationship between environmental degradation and economic growth however most of them did not take into account financial developments and institutional quality moreover stern stern d 2004 the rise and fall of the environmental kuznets curve world development 32 8 1419 1439 noted that there are important econometric weaknesses in the earlier studies such as endogeneity heteroscedasticity omitted variables etc the purpose of this paper is to fill this gap in the literature by investigating the linkage between not only economic development and environmental quality but also financial development and institutional quality we employ the standard reduced form modelling approach to control for country specific unobserved heterogeneity and gmm estimation to control for endogeneity our study considers 24 transition economies and panel data for 1993 2004 our results support the ekc hypothesis while confirming the importance of both institutional quality and financial development for environmental performance we also found that financial liberalization may be harmful for environmental quality if it is not accomplished in a strong institutional framework

motivations to remit evidence from botswana in this article a theory of motivations to send remittances is described and tested with data from botswana altruism is one of the motivations tested and found to be an insufficient explanation for remittances among migrants in botswana a refinement of the model stipulates a modified altruism or enlightened self interest in this model the relationship between the migrant and family is tempered by an implicit understanding of mutual benefit the household strategy may be to encourage some members to migrate as a means of spreading risk and sharing gains the household strategy is similar to an insurance policy where migration is to places where market potential is high the risks incurred might be high the example is given of migration during a drought in botswana migrant remittances were greater in households with more cattle or households with more to lose drought alone was not statistically related to remittances increases in remittances were related to increased levels of education it is suggested that repayment was the motive for parents investment in migrants education migrants gains are identified as the potential for an inheritance the security of channeling investments through a trusted family member and security in having a home to return to it is pointed out that the altruism and family remittances from urban migration were strategies that bridged the simple dynamic of either urban development or rural development impacting on family welfare it is suggested that household models of economy adopt some measure to express the relationship of household wealth to remittances from urban migrants

globalization and climate change new empirical panel data evidence globalization and climate change whether globalization is good or bad for the environment has been studied intensively in recent years however few studies have explicitly provided a general picture of globalization around the world or considered the rich dimensions of globalization outside of economic globalization by applying the new kof globalization index in a panel data sample of 166 countries over the 1990 2009 period our results suggest that on average overall carbon emissions rise with higher levels of economic social and political globalization although the effect varies by oecd and non oecd country group after decomposing the main contributors of carbon emissions our further data from the manufacturing and construction sector yield evidence consistent with a pollution haven effect in terms of climate change

economic growth energy consumption financial development international trade and co2 emissions in indonesia this study examines the linkages among economic growth energy consumption financial development trade openness and co2 emissions over the period of 1975q1 2011q4 in the case of indonesia the stationary analysis is performed by using zivot andrews structural break unit root test and the ardl bounds testing approach for a long run relationship between the series in the presence of structural breaks the causal relation between the concerned variable is examined by the vecm granger causality technique and robustness of causal analysis is tested by innovative accounting approach iaa our results confirm that the variables are cointegrated it means that the long run relationship exists in the presence of structural break stemming in the series the empirical findings indicate that economic growth and energy consumption increases co2 emissions while financial development and trade openness compact it the vecm causality analysis has shown the feedback hypothesis between energy consumption and co2 emissions economic growth and co2 emissions are also interrelated i e bidirectional causality financial development granger causes co2 emissions the study opens up a new policy insights to control the environment from degradation by using energy efficient technologies financial development and trade openness can also play their role in improving the environmental quality

the effect of social security on lifetime wealth accumulation and bequests this paper is an empirical study of the effects of social security on lifetime wealth accumulation and bequests using a sample of wisconsin males we have matched lifetime earnings records from income tax returns with their social security account records and their bequests obtained from probate court records since the cohort of males was born between 1890 and 1899 they represent a cohort that saw a great change in the size and coverage by occupation of the system hence there is substantial within cohort variation in social security wealth from which effects can be estimated for nearly 30 years the life cycle theory of savings has enjoyed an enormous amount of academic support in the no bequest variant individuals save with the sole intention of consuming their savings in later years the economy wide stock of capital can therefore be generated by this pattern without any reliance on bequests modigliani 1966 such a model will lead to rather strong predictions about the effect of a pay as you go public pension hereafter social security on private savings as feldstein 1974 points out social security should displace private savings as well as reduce macro saving since the programme is unfunded this result follows from the assumption that each household will consume all of its assets during its own lifetime some recent research however has been at odds with the no bequest variant of the life cycle model see kurz 1984 and included references darby 1979 claims that life cycle assets savings consumed later in the life cycle constitute only 13 29 per cent of total assets kotlikoff and summers 1981 report that the major share nearly 80 per cent of capital stock in the united states is due to intergenerational transfers 2 indeed these authors write life cycle models of savings that emphasize savings for retirement as the dominant form of capital accumulation should give way to models that illuminate the determinants of intergenerational transfers p 706 in addition recent empirical work suggests that people tend to accumulate or fail to significantly decumulate wealth wealth in old age a finding at odds with the strict life cycle model 3 given the potentially large role of bequests in the process of capital accumulation it is important to know how bequests are affected by the large public programme that social security has become even if social security depresses private savings among those near or at retirement if people bequeath it is conceivable that saving during retirement is augmented by the programme 4 aside from the issue of savings effects the response of people s bequests to their old age benefits might allow one to assess the target efficiency of the social security system since the original objective of the system was to ensure adequate levels of consumption among the elderly a finding that benefits

determinants of canadian bilateral aid allocations humanitarian commercial or political in this paper we examine the determinants of the allocation of canadian bilateral aid over the period 1984 2000 we draw on models of donor behaviour that allow us to incorporate humanitarian commercial and political considerations the trinity of mixed motives that affect canadian aid we find that allocations are moderately altruistic recipient country human rights and membership in the commonwealth and la francophonie also affect aid flows most strikingly our results suggest that canadian aid flows became less altruistic over this period and commercial motives became increasingly important jel classification h50 o10 les determinants des allocations de l aide humanitaire canadienne humanitaires commerciaux ou politiques ce memoire etudie les determinants de l allocation de l aide bilaterale canadienne dans la periode 1984 2000 on utilise des modeles de comportement de donateur qui permettent de prendre en considerations les motivations humanitaires commerciales et politiques la trinite de motifs mixtes qui affectent l aide canadienne on decouvre que les allocations sont moderement altruistes le fait pour un pays de defendre bien les droits de la personne et d etre membre du commonwealth et de la francophonie affecte les flux d aide plus important peut etre les resultats suggerent qu au cours de cette periode les flux d aide canadienne deviennent moins altruistes et les motifs commerciaux de plus en plus importants

motives for private transfers over the life cycle an analytical framework and evidence for peru abstract this paper tests for the motives for private income transfers we consider two motives altruism and exchange the question of private transfer motives is important because such motivation can influence the effects of public income transfers on the distribution of income using a household survey for peru we find that transfer amounts received increase with recipient pre transfer income which contradicts a key prediction of the strong form of the altruism hypothesis but is consistent with exchange we also find that capital market imperfections are likely to be an important cause of private transfers and that social security benefits crowd out the incidence of private transfers

the impact of economic globalization on renewable energy in the oecd countries abstract this paper analyzes the determinants of renewable energy consumption in the panel data of 30 oecd countries for the period from 1970 to 2015 the unique role is given to the effect of economic globalization on renewable energy we consider several measures of economic globalization and apply different econometric techniques we find the positive impact of the per capita income the per capita carbon dioxide emissions and the real price of oil on renewable energy also a higher level of economic globalization promotes renewable energy and the evidence is robust to the different measures of economic globalization in line with our findings promoting the economic aspects of globalization will enhance renewable energy thus it can suppress the adverse effect of climate change and global warming on living human beings and natural habitats in the long run therefore we need to enhance our knowledge of how globalization promotes renewable energy not only for the oecd countries but also for other developing and developed economies from a policy perspective we suggest that policymakers and governments in oced countries should consider economic globalization as a renewable energy promoting mechanism while designing their energy demand policy for the protection of natural environmental health

greenhouse gas emissions energy consumption and economic growth a panel cointegration analysis from canadian industrial sector perspective abstract this paper investigates the long run and the causal relationship between greenhouse gas emissions energy consumption and economic growth for canadian industrial sectors over the period 1990 2007 the empirical findings suggest that in the long run equilibrium energy consumption has a positive and statistically significant impact on greenhouse gas emissions whereas a non linear relationship is found between greenhouse gas emissions and economic growth consistent with the environmental kuznets curve the short run dynamics conveys that there is a unidirectional granger causality running from energy consumption to greenhouse gas emissions from economic growth to greenhouse gas emissions and a weak unidirectional causality running from greenhouse gas emissions to energy consumption from economic growth to energy consumption in the long run however there seems to be a weak one way causality flowing from energy consumption and economic growth to greenhouse gas emissions

as an economy becomes more developed do people become less altruistic abstractinter household private transfers are one of the main informal insurance mechanisms that prevalently implemented in developing countries unfortunately most of the literatures investigates

linking financial development economic growth and energy consumption in pakistan abstract this paper aims at exploring the finance growth energy nexus for pakistan over the 1972 2012 period by employing the system gmm estimation technique the study tries to capture the impact of financial development over energy consumption through economic growth channel and includes energy prices and urbanization in the structural model the study finds positive and significant impact of economic growth and urbanization on energy consumption while the effect of energy prices over energy consumption is significant but negative financial development positively and significantly affects energy consumption through the economic growth channel our analysis is important for policy makers for effective energy demand planning and conservation policies that would ensure sustainable economic development as well as serve as motivation to search alternative energy sources to meet the bourgeoning energy demand in pakistan

the role of intergenerational transfers in aggregate capital accumulation this paper uses historical u s data to directly estimate the contribution of intergenerational transfers to aggregate capital accumulation the evidence presented indicates that intergenerational transfers account for the vast majority of aggregate u s capital formation only a negligible fraction of actual capital accumulation can be traced to life cycle or hump savings a major difference between this study and previous investigations of this issue is the use of more accurate longitudinal age earnings and age consumption profiles these profiles are simply too flat to generate substantial life cycle savings this paper suggests the importance of and need for substantially greater research and data collection on intergenerational transfers life cycle models of savings that emphasize savings for retirement as the dominant form of capital accumulation should give way to models that illuminate the determinants of intergenerational transfers

the heterogeneous effect of democracy political globalization and urbanization on pm2 5 concentrations in g20 countries evidence from panel quantile regression abstract pm2 5 emissions have serious adverse impacts on health and impede transport activities especially air and highway consequently policymakers and economists have focused on this issue the primary objective of this study is to investigate the effect of democracy political globalization and urbanization on pm2 5 concentrations within g20 countries ecological modernization theory is used to gain the best understanding of the impact of these driving forces on pm2 5 concentrations and obtains an analytical framework the method utilized is the panel quantile regression which takes into account the unobserved individual and distributional heterogeneity the results demonstrate that first the direct effect of democracy on pm2 5 concentrations is significantly positive in countries with higher emissions and has no impact on lower emission countries second the direct effect of political globalization on pm2 5 concentrations is significantly positive and especially greater in extremely low and high emission countries third persuasive evidence proves the existence of an environmental kuznets curve between urbanization and pm2 5 concentrations additionally this paper further assesses the direct and indirect influence mechanisms of democracy and political globalization on pm2 5 concentrations across pollution levels both have a positive negative indirect effect on pm2 5 concentrations in countries with higher lower emissions through its effect on gdp per capita the total effect appears positive suggesting that the increase in democracy and political globalization degrade environmental quality these results provide policymakers with critical policy recommendations that contribute to the reduction of pm2 5 concentrations and ensure sustainable economic development in the g20 countries

saving and bequest in china an analysis of intergenerational exchange particularly high saving rates among the elderly in both rural and urban china call for an investigation of the involved bequest motive utilizing unique survey data from a diverse group of chinese households we document that the magnitude of the bequest from parent to child is associated with the level of personal assistance from child to parent moreover we find indicative evidence that both bequest and assistance are increasing in the parent s income and decreasing in the child s income comparing with the predictions from a stylized intergenerational model these findings are consistent with an exchange based bequest motive our findings have potential implications for how public policies and transfer schemes should be designed in order to contribute to the chinese government objective of increased private consumption our results are conditional on the inclusion of housing wealth as part of the bequest which indicates that transfer of housing is key to understanding the intergenerational assistance and bequest motives and subsequently the high saving levels among the elderly in china

the chinese saving rate long term care risks family insurance and demographics abstract a general equilibrium model that properly captures the risks in old age the role of family insurance changes in demographics and the productivity growth rate is capable of generating changes in the national saving rate in china that mimic the data well our findings suggest that the combination of the risks faced by the elderly and the deterioration of family insurance due to the one child policy may account for approximately half of the increase in the saving rate between 1980 and 2010 changes in the productivity growth rate account for the fluctuations in the saving rate during this period

investigating the validity of pollution haven hypothesis in the gulf cooperation council gcc countries this study investigated the validity of the pollution haven hypothesis in the gulf cooperation council gcc countries using a multivariate framework to achieve the goal of this study the non stationary panel techniques were used to examine the hypothesis from 1980 to 2009 based on the pedroni cointegration test results it was found that the variables are cointegrated moreover the fully modified ols results showed that energy consumption and gdp growth increase co2 emission while foreign direct investment inflows have a long run negative relationship with co2 emission furthermore based on the short run granger causality test results fdi has no short run causal relationship with co2 emission and energy consumption while energy consumption and gdp growth have a positive causal relationship with co2 emission thus the results of this study indicate that energy consumption and gdp growth are the source of pollution in the gcc countries and not the foreign direct investment inflows thus the study recommended that these countries should utilize policies to encourage inward foreign investment since it plays an important role in stimulating gdp growth

the asymmetric effects of foreign direct investment on clean energy consumption in brics countries a recently introduced hidden cointegration test abstract this study investigates the effects of foreign direct investment and the trade openness on clean energy consumption for brics countries brazil russia india china and south africa during the period 1985 2017 for that purpose the study employs fourier adl autoregressive distributed lag and hidden fourier adl cointegration tests and fourier toda yamamoto approach to granger causality considering both raw data and the asymmetric components of the series empirical results reveal that these variables are cointegrated in russia china and south africa regarding hidden fourier adl cointegration test while they are cointegrated only in south africa considering the fourier adl test it is found that trade positively affects clean energy use in south africa in the context of negative components foreign direct investment has a positive impact on clean energy use in russia while its effect is insignificant in china and south africa moreover trade openness influences clean energy consumption negatively in russia china and south africa according to the fourier toda yamamoto and asymmetric fourier toda yamamoto causality tests results regarding negative components there is unidirectional causality from foreign direct investment inflows to clean energy consumption in china findings of this study may provide beneficial information to the policymakers to design proper environmental policies such as the imposition of the carbon tax and subsidy on cleaner energy consumption

funding self employment the role of consumer credit this paper investigates whether self employed households use consumer loans in particular installment loans and overdrafts to finance business activities controlling for financial and non financial household variables the authors show that self employed households particularly use personal overdrafts significantly more often than employee households when analyzing the correlation between consumer loan take ups and consumption of self employed in comparison to employee households the authors find first evidence that overdrafts are used by self employed to finance their business as well this indicates that intermingling constitutes a financing strategy when regular business loans may not be accessible this paper is structured as follows section one gives introduction section two reviews previous empirical research results and outlines research agenda section three details the methodology section four presents the results of the empirical analysis section five reviews the limits of the study and makes recommendations for future research finally conclusions are provided in section six

do oil consumption and economic growth intensify environmental degradation evidence from developing economies the purpose of this article is to empirically investigate the impact of economic growth oil consumption financial development industrialization and trade openness on carbon dioxide co2 emissions particularly in relation to major oil consuming developing economies this study utilizes annual data from 1980 to 2012 on a panel of 18 developing countries our empirical analysis employs robust panel cointegration tests and a vector error correction model vecm framework the empirical results of three panel cointegration models suggest that there is a significant long run equilibrium relationship among economic growth oil consumption financial development industrialization trade openness and co2 emissions similarly results from vecms show that economic growth oil consumption and industrialization have a short run dynamic bidirectional feedback relationship with co2 emissions long run error correction term bidirectional causalities are found among co2 emissions economic growth oil consumption

the life cycle model of consumption and saving a central implication of life cycle models is that agents smooth consumption we review the empirical evidence on smoothing at frequencies from within the year up to across a lifetime we find that life cycle models particular those which incorporate realistic features of markets and goods have more empirical successes than failures we also show that some apparent deviations from theoretical predictions imply very small welfare losses for agents finally we emphasize that the coherence of life cycle models imposes an important discipline when incorporating new features into models

is there an intrahousehold flypaper effect evidence from a school feeding programme are public transfers targeted toward children neutralised by the household as the theory of altruism implies or is there an intrahousehold flypaper effect whereby such transfers stick to the child this paper studies the impact of a school feeding programme on child caloric intake in the philippines using a quasi experimental methodology the empirical results confirm an intrahousehold flypaper effect indeed they indicate virtually no intrahousehold reallocation of calories in response to the feeding programme in poorer households however children s gains from the programme appear to be taxed more heavily

globalization and climate change new empirical panel data evidence whether globalization is good or bad for the environment has been studied intensively in recent years however few studies have explicitly provided a general picture of globalization around the world or considered the rich dimensions of globalization outside of economic globalization by applying the new kof globalization index in a panel data sample of 166 countries over the 1990 2009 period our results suggest that on average overall carbon emissions rise with higher levels of economic social and political globalization although the effect varies by oecd and non oecd country group after decomposing the main contributors of carbon emissions our further data from the manufacturing and construction sector yield evidence consistent with a pollution haven effect in terms of climate change

the effect of foreign direct investment and stock market growth on clean energy use across a panel of emerging market economies this study investigates the impact of both fdi inflows and stock market developments on clean energy use across 20 emerging market economies spanning the period 1991 2012 it accounts for cross sectional dependence and heterogeneity in the analysis and employs robust panel econometric techniques the empirical results on long run elasticities display that economic output fdi inflows and stock market developments have all a significant positive impact on clean energy consumption finally the results on heterogeneous panel non causality tests indicate the presence of unidirectional causality running from fdi to clean energy consumption in the short run for robustness purposes the paper also estimates long run elasticities for individual countries with the findings documenting that both fdi inflows and stock market developments have a considerable positive impact on clean energy uses the findings urge that both policy makers and governments in these emerging market economies should initiate effective public private partnership investments in clean energy projects by providing lucrative incentives which in turn will encourage both domestic and foreign investors to invest more in clean energy projects and eventually moving these economies towards sustainable economic growth

the impact of financial development on energy consumption in emerging economies abstract financial development is often cited as a very important driver of economic growth in emerging economies and it is thus likely that financial development affects energy demand this study uses generalized method of moments estimation techniques to examine the impact of financial development on energy consumption in a sample of emerging countries several different measures of financial development are examined using a panel data set on 22 emerging countries covering the period 1990 2006 the empirical results show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using stock market variables like stock market capitalization to gdp stock market value traded to gdp and stock market turnover the implications of these results for energy policy are discussed

motives for private income transfers private income transfers are becoming increasingly recognized as a key aspect of the u s economy the majority of private income transfers occur inter vivos i e between living persons but very little is known about this type of transfer behavior this paper tests alternative hypotheses concerning motivation for inter vivos transfers two motives are considered altruism and exchange evidence presented here casts doubt on the altruistic model of transfer behavior observed patterns for inter vivos transfers are more consistent with exchange related motives this finding has important implications for the effects of public transfer programs on the distribution of economic well being

the family inheritance and the intergenerational transmission of inequality unequal inheritance of material wealth is commonly considered a major cause of inequality in consumption however theoretical models of the intergenerational transmission of inequality by becker blinder and ishikawa imply that unequal inheritance may either increase or reduce consumption inequality differences in inherited wealth resulting from unequal parental incomes increase inequality in recipients consumption however unequal bequests caused by differences among families in the endowed ability of children or the costs of producing human capital are equalizing empirical results confirm these predictions the inheritance received by children is inversely related to both children s income and parental education thus bequests are compensatory in that ceteris paribus low income children inherit more than their advantaged contemporaries

the long run and causal analysis of energy growth openness and financial development on carbon emissions in turkey abstract the aim of this paper is to examine the causal relationship between financial development trade economic growth energy consumption and carbon emissions in turkey for the 1960 2007 period the bounds f test for cointegration test yields evidence of a long run relationship between per capita carbon emissions per capita energy consumption per capita real income the square of per capita real income openness and financial development the results show that an increase in foreign trade to gdp ratio results an increase in per capita carbon emissions and financial development variable has no significant effect on per capita carbon emissions in the long run these results also support the validity of ekc hypothesis in the turkish economy it means that the level of co 2 emissions initially increases with income until it reaches its stabilization point then it declines in turkey in addition the paper explores causal relationship between the variables by using error correction based granger causality models

the joint determination of household membership and market work the case of young men except in special cases market work and household membership are jointly chosen a nash bargaining model of family behavior is used to specify stochastic structural relationships two indirect utility functions and a market and a reservation wage function that jointly determine work consumption and household membership the maximum likelihood estimates of the implied trinomial probit model differ sharply from those obtained when either market work or household membership is taken as exogenous this application to white male youths from the national longitudinal surveys shows the insurance function of families parents insure their sons against poor market opportunities

financial bootstrapping in small businesses examining small business managers resource acquisition behaviors in recent years small businesses have received much attention from policy makers and researchers in that these businesses are considered important for economic growth and job creation at the same time small businesses are assumed to face major problems in securing long term external finance which is regarded as restraining their development and growth small business managers are assumed to use institutional finance as a means of meeting the need for resources and as a consequence the major part of the research on small business finance has focused on constraints in the supply of institutional market finance as we see it most small business managers handle the need for resources using means other than external finance by applying different kinds of financial bootstrapping methods financial bootstrapping refers to the use of methods for meeting the need for resources without relying on long term external finance from debt holders and or new owners however these other means of resource acquisition have with few exceptions not been focused on within earlier research on small business finance against this background the purpose of this study is to describe small business managers use of different financial bootstrapping methods and more importantly to develop concepts that can help its better understand small business managers financial bootstrapping behaviors the research process was initiated with a number of unstructured interviews conducted with small business managers accountants consultants bank officials and researchers in order to identify different financial bootstrapping possibilities on the basis of the interviews and an earlier study on financial bootstrapping resulting in the identification of 32 bootstrapping methods a questionnaire was constructed and sent to 900 small business managers in sweden given the limited knowledge within the area of financial bootstrapping the study is based on explorative factor analysis and cluster analysis from the cluster analysis six clusters of bootstrappers were identified differing from each other with respect to the bootstrapping methods used and the characteristics of the business on the basis of this information the different clusters were labeled i delaying bootstrappers 2 relationship oriented bootstrappers 3 subsidy oriented bootstrappers 4 minimizing bootstrappers 5 non bootstrappers and 6 private owner financed bootstrappers the groups of financial bootstrappers show differences in their orientation toward resource acquisition representing different aspects of art internal mode of resource acquisition a social mode of resource acquisition and a quasi market mode of resource acquisition we find that the delaying bootstrappers private owner financed bootstrappers and minimizing bootstrappers all represent an internal mode of resource acquisition the relationship oriented bootstrappers follow a socially oriented mode of resource acquisition whereas the subsidy oriented bootstrappers apply quasi market oriented resource acquisition this study contributes to our empirical understanding by providing knowledge about the financial bootstrapping methods used in small businesses furthermore by developing concepts this study contributes to the conceptual development of our knowledge about financial bootstrapping the implication of this study is that financial bootstrapping is a phenomenon which deserves more attention in future research on small business finance at the same time financial bootstrapping behavior is probably a more general phenomenon appearing in different contexts such as r d activities in large businesses financing startups etc finally the study points out implications for small business managers consultants teachers etc practitioners often tend to focus on market solutions to resource needs this study shows however that this strong focus cart be questioned resources needed in small businesses can in many situations be secured using financial bootstrapping methods referring to internally oriented and socially oriented resource acquisition strategies

conditional cooperation and climate change it is widely believed that international cooperation can arise through strategies of reciprocity in this paper we investigate whether citizens in the united states and 25 other countries support reciprocity to deal with climate change we find little public enthusiasm for intrinsic reciprocity in which countries restrain their consumption of fossil fuels if and only if other countries do the same in contrast we find significant support for extrinsic reciprocity in which countries enforce cooperation by linking issues citizens support economic sanctions against polluters and are willing to shame them in international forums especially when the polluters are violating a treaty cooperation could therefore emerge from efforts to link climate with other issues and to embed climate commitments in international law

the retirement savings puzzle reviewed the role of housing and bequests the so called retirement savings puzzle is a phenomenon by which contrary to what the standard life cycle model predicts households do not run down their wealth significantly during retirement in this review paper we survey the literature on the retirement savings puzzle and we connect it with the literature on housing equity during retirement to establish a link between these two streams of literature we use as a framework the work of nakajima and telyukova 2013a home equity in retirement ucsd working paper and nakajima and telyukova 2017 reverse mortgage loans a quantitative analysis journal of finance 72 911 950 who find that home ownership interacts with factors that explain the retirement savings puzzle notably with the bequest motive we complement the results by nakajima and telyukova by relating them to the literature on altruistic bequests strategic bequests and housing as a commitment device all of which give further insights on the connection between home ownership and bequests we complement our review of the literature with descriptive evidence using the netherlands as a case study

taxation and wealth transmission in france abstract this paper studies inter vivos transfers and bequests in france and their relation to the french inheritance law and taxation using administrative records and a national households survey transmission behavior is highly responsive to changes in the fiscal system inter vivos gifts increased after a 1992 law made them partly tax free moreover the probability of giving to children is greater ceteris paribus if parents wealth is taxable for children the probability of receiving a gift over the life cycle increases with their permanent income the amount received increases with current income it increases or bears no relation to permanent income depending on the specification thus we find no direct support for the altruistic nor for the exchange motive these results are compatible with a model where parents transfer to the best endowed child

choosing between gifts and bequests how taxes affect the timing of wealth transfers abstract a number of theories have been advanced to explain the size and timing of intergenerational transfers one factor only recently explored is the effects of taxes and in particular the estate tax on such transfers this paper represents the first attempt to explore how capital gains and gift taxes in addition to the estate tax interact to influence incentives in the timing of transfers using estate tax data and exploiting variations in state inheritance gift and capital gains tax rates this paper finds taxes to be an important consideration in the choice between gifts and bequests in particular each of capital gains and gift taxes are found to be important determinants of the timing of transfers these findings are robust to a number of specifications that control for borrowing charitable bequests marital status and the portfolio composition of wealth transfers

the impact of foreign direct investment on environmental quality a bounds testing and causality analysis for turkey abstract this study aims to investigate the impact of foreign direct investment fdi together with gross domestic product gdp the square of gdp and energy consumption on carbon dioxide co2 emissions in turkey over the period 1974 2010 we employ both the bounds test approach which has superior properties especially in small samples and the hatemi j test which takes structural breaks into consideration in the co integration analysis due to the co integration relationship between co2 emissions and other variables the autoregressive distributed lag ardl model is used in order to investigate short and long run elasticity between the variables the long run coefficients of the ardl model indicate that the effect of fdi on co2 emissions is positive but relatively small while the effects of the gdp and energy consumption on co2 emissions are quite considerable moreover the short run coefficients obtained by the error correction model ecm are found to be similar to those of the long run model the findings support the validity of the environmental kuznets curve ekc hypothesis in both time horizons the vector ecm based granger causality test is also applied to investigate the causal link the causality test results indicate the existence of a causality running from all explanatory variables to co2 emissions in the long run overall the findings suggest that turkey should promote energy efficiency with sustainable growth and encourage more fdi inflows particularly in technology intensive and environment friendly industries to improve environmental quality

imperfect commitment altruism and the family evidence from transfer behavior in low income rural areas in this paper we examine empirically whether risk pooling is more advantageous among altruistic compared to selfish agents in a framework where individuals cannot make binding commitments in particular we incorporate altuism into a model of risk sharing under imperfect commitment and use simulation methods to establish tests of the roles of both altruism and commitment problems in determining the extent of insurance and the intertemporal movements in interhousehold transfers the tests are carried out using three panel data sets from two countries of rural south asia that provide detailed information on transfers and enable the measurement of income shocks the estimates provide strong support for the notion that imperfect commitment substantially constrains informal transfer arrangements whether kin based or not but also provide evidence that altruism plays an important role in ameliorating commitment constraints and thus in increasing the gains from income pooling

financing clean energy projects through domestic and foreign capital the role of political cooperation among the eu the g20 and oecd countries abstract there is a growing concern among both individuals and policy makers in relevance to increasing co 2 emissions across the world as a result international organizations have started to pressurize economies to minimize their carbon emissions by increasing the share of clean energy consumption in total energy use hence the goal of this paper is to empirically explore to what extent both domestic stock market and foreign fdi inflows capital affect clean energy uses across the eu the g20 and oecd spanning the period 1993 2012 the results of long run elasticities document that both fdi and stock market developments play a significant role in promoting clean energy uses across all three country groups the results also suggest that clean energy consumption has a considerable positive and negative effect on economic output and co 2 emissions respectively while the political globalization has a substantial negative impact on carbon emissions across the eu the g20 and oecd economies