energy consumption and economic growth relationship evidence from panel data for low and middle income countries abstract this paper uses the panel data of energy consumption ec and economic growth gdp for 51 countries from 1971 to 2005 these countries are divided into three groups low income group lower middle income group and upper middle income group countries firstly a relationship between energy consumption and economic growth is investigated by employing pedroni 1999 panel cointegration method secondly panel causality test is applied to investigate the way of causality between the energy consumption and economic growth finally we test whether there is a strong or weak relationship between these variables by using pedroni 2001 method the empirical results of this study are as follows i energy consumption and gdp are cointegrated for all three income group countries ii the panel causality test results reveal that there is long run granger causality running from gdp to ec for low income countries and there is bidirectional causality between ec and gdp for middle income countries iii the estimated cointegration factor is not close to 1 in other words no strong relation is found between energy consumption and economic growth for all income groups considered in this study the findings of this study have important policy implications and it shows that this issue still deserves further attention in future research

multi region input output analysis of co2 emissions embodied in trade the feedback effects energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output framework despite the increasing interest in using the multi regional input output mrio model by researchers few studies have looked into the mechanism of feedback effects we introduce a method called the stepwise distribution of emissions embodied in trade swd eet to reveal how the emissions embodied in trade are absorbed by a country s final demands through a series of allocation steps a country s indirect absorption patterns and its indirect trade balance of emissions from bilateral trade with other countries are also studied based on the proposed method an empirical study using the data of asian economies shows significant differences in the consumption based emission estimates for some economies due to feedback effects through international trade the differences can be largely captured by the first step or the first two steps of the adjustment procedure in the swd eet analysis other findings and some recommendations are also presented

energy taxes and endogenous technological change abstract this paper studies the effects of a tax on energy use in a growth model where market structure is endogenous and jointly determined with the rate of technological change because this economy does not exhibit the scale effect a positive relation between tfp growth and aggregate r d the tax has no effect on the steady state growth rate it has however important transitional effects that give rise to surprising results specifically under the plausible assumption that energy demand is inelastic there may exist a hump shaped relation between the energy tax and welfare this shape stems from the fact that the reallocation of resources from energy production to manufacturing triggers a temporary acceleration of tfp growth that generates a shaped time profile of consumption if endogenous technological change raises consumption sufficiently fast and by a sufficient amount in the long run and households are sufficiently patient the tax raises welfare despite the fact that in line with standard intuition it lowers consumption in the short run

the role of investment specific technological change in the business cycle this is a quantitative investigation of the importance of technological change speci c to new investment goods for postwar us aggregate uctuations a growth model that incorporates this form of technological change is calibrated to us data and simulated using the relative price of new equipment to identify the process driving investmentspeci c technology shocks the analysis suggests that this form of technological change is the source of about 30 of output uctuations 2000 elsevier science b v all rights reserved

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

energy consumption and economic growth new insights into the cointegration relationship abstract this paper examines the long run relationship between energy consumption and real gdp including energy prices for 25 oecd countries from 1981 to 2007 the distinction between common factors and idiosyncratic components using principal component analysis allows to distinguish between developments on an international and a national level as drivers of the long run relationship indeed cointegration between the common components of the underlying variables indicates that international developments dominate the long run relationship between energy consumption and real gdp furthermore the results suggest that energy consumption is price inelastic causality tests indicate the presence of a bi directional causal relationship between energy consumption and economic growth

energy consumption synchronization between europe united states and japan a spectral analysis assessment abstract this paper aims to advance a model able to explain the synchronization tendency in energy consumption under the impact of international technology transfers the key argument is related to the differences in energy consumption efficiency of local and foreign technologies one direct testable consequence of the model is that there might be a certain correlation between the energy consumption between countries and or economic areas where a free movement of capital goods and technologies takes place hence it is further tested in the framework of a multivariate spectrum analysis the case of energy consumption synchronization between europe and respectively united states and japan for a time span between 1981 and 2011 based on the data provided by u s energy information administration there are evidences of a leading behavior of energy consumption in united states and japan in respect to europe as well as of short run phase delays of 2 up to 5 months

trade finance specialization and synchronization i investigate the determinants of business cycle synchronization across regions the linkages between trade in goods financial openness specialization and business cycle synchronization are evaluated in the context of a system of simultaneous equations the main results are as follows i specialization patterns have a sizable effect on business cycles most of this effect is independent of trade or financial policy but directly reflects differences in gdp per capita ii a variety of measures of financial integration suggest that economic regions with strong financial links are significantly more synchronized even though they also tend to be more specialized iii the estimated role of trade is closer to that implied by existing models once intra industry trade is held constant the results obtain in a variety of data sets measurement strategies and specifications they relate to a recent strand of international business cycle models with incomplete markets and transport costs and on the empir

responsibility and trade emission balances an evaluation of approaches this paper compares two concepts to evaluate the international responsibility of a country with respect to its emissions using a multi regional input output model we show that the trade emission balance and the responsibility emission balance yield the same result in practical work however a lack of data availability implies that the same technology assumption has been commonly adopted in that case also a third alternative exists which simply evaluates the emissions embodied in the trade balance of the country this third alternative yields the same results as the other two approaches at the aggregate level at the level of individual products however the results are clearly different and it turns out that the third alternative answers a different question that is it is appropriate for measuring the emission content of the products that cross the border in our empirical application we consider spain in 1995 and 2000 distinguishing nine different gases co 2 ch 4 n 2 o sf 6 hfcs pfcs so 2 nox and nh 3 c 2010 elsevier b v all rights reserved

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

race ethnicity and credit card marketing there is a vast literature on discrepancies in consumer credit related to race and ethnicity i explore a pattern that was first identified in aggregate data by han keys and li 2011 in their study of credit access blacks were approximately 27 less likely to receive offers from credit card lenders during the sample period even after controlling for variables such as credit history household income and local economic conditions hispanics were 17 less likely to receive an offer after including controls the discrepancy is robust to lender specific regressions and the inclusion of a large number of explanatory variables my findings imply that marketing is an important area for analysis of discrimination in consumer credit due to the likely need for confidential information in further analysis investigation by an appropriate regulatory agency such as the consumer financial protection bureau would be useful

electricity consumption and economic growth nexus in portugal using cointegration and causality approaches the aim of this paper is to re examine the relationship between electricity consumption economic growth and employment in portugal using the cointegration and granger causality frameworks this study covers the sample period from 1971 to 2009 we examine the presence of a long run equilibrium relationship using the bounds testing approach to cointegration within the unrestricted error correction model uecm moreover we examine the direction of causality between electricity consumption economic growth and employment in portugal using the granger causality test within the vector error correction model vecm as a summary of the empirical findings we find that electricity consumption economic growth and employment in portugal are cointegrated and there is bi directional granger causality between the three variables in the long run with the exception of the granger causality between electricity consumption and economic growth the rest of the variables are also bi directional granger causality in the short run furthermore we find that there is unidirectional granger causality running from economic growth to electricity consumption but no evidence of reversal causality

the real costs of credit access evidence from the payday lending market using geographic differences in the availability of payday loans i estimate the real effects of credit access among low income households payday loans are small high interest rate loans that constitute the marginal source of credit for many high risk borrowers i find no evidence that payday loans alleviate economic hardship to the contrary loan access leads to increased difficulty paying mortgage rent and utilities bills the empirical design isolates variation in loan access that is uninfluenced by lenders location decisions and state regulatory decisions two factors that might otherwise correlate with economic hardship measures further analysis of differences in loan availability over time and across income groups rules out a number of alternative explanations for the estimated effects counter to the view that improving credit access facilitates important expenditures the results suggest that for some low income households the debt service burden imposed by borrowing inhibits their ability to pay important bills copyright 2011 oxford university press

economic development and the demand for energy a historical perspective on the next 20 years abstract this paper draws on evidence from the last two centuries of industrialisation analysing the evolution of energy intensity over the long and short run we argue that the increased specialisation of the fuel mix coupled with accelerating convergence of both the sectoral and technological composition of economies will continue to improve energy intensity of economic output and to reduce the reliance on any single energy resource this analysis suggests that even high growth in per capita income over the next 20 years need not be constrained by resource availability

a review of recent multi region input output models used for consumption based emission and resource accounting abstract the interest in consumption based emission and resource accounting has grown significantly many studies juxtapose consumer emissions carbon footprint and producer territorial emissions of greenhouse gases in order to demonstrate the effects of trade on the national emission budget to this end a respectable number of studies have been undertaken worldwide in order to estimate emissions embedded in international trade of numerous countries and world regions input output approaches and increasingly multi region input output mrio models are commonly chosen as they provide an appropriate methodological framework for complete carbon footprint estimates at the national and supra national level with increasing processing capabilities of computers and a wider availability of economic accounts environmental accounts and trade data such models are now being implemented on a wide scale after a brief overview of salient single region input output studies i provide an in depth review of the most recent multi region input output models used for the purpose of consumption based environmental accounting the main methodological features and important results are described for around twenty studies covering the years 2007 to 2009 this is followed by a detailed review of studies dealing with uncertainty in mrio analysis an area which has not received a lot of attention so far i conclude that further research is mainly needed in two areas a improvements in data availability and quality and b improvements in the accuracy of mrio modelling

will economic restructuring in china reduce trade embodied co2 emissions we acknowledge the support of the national social science foundation of china project no project no 09 zd029 and the institute for energy environment and economy at tsinghua university which is supporting tianyu qi s doctoral research as a visiting scholar at the massachusetts institute of technology we further acknowledge the support of eni s p a icf international and shell international ltd initial sponsors of the china energy and climate project in the mit joint program on the science and policy of global change at mit none of the sponsoring organizations played a role in the study design collection analysis or interpretation of the data used for this study nor did they influence our decisions to submit the article for publication and all errors are our own we also acknowledge general industrial and government sponsors of the joint program on the science and policy of global change http globalchange mit edu sponsors all

the importance of lender heterogeneity in mortgage lending abstract previous studies of the mortgage lending process which fail to adequately account for inter lender differences suffer from a potentially serious omitted variables bias using a sample of 23 094 home purchase mortgage applications from pinellas county st petersburg florida over the 1993 1995 interval i demonstrate that the inclusion of lender characteristics enhances the predictive power of accept reject decision models of mortgage origination in addition the inclusion of lender attributes is shown to substantially influence the coefficient estimates of additional model parameters of interest such as the applicant race and neighborhood racial composition variables finally this study provides unique and supportive evidence regarding the existence and persistence of information externalities in home purchase mortgage markets

china s carbon emissions embodied in normal and processing exports and their driving forces 2006 2012 abstract this paper constructed a time series extended input output dataset 2006 2012 to analyze china s carbon emissions embodied in both normal and processing exports at a detailed 135 sector level the structural decomposition analysis sda was further applied to shed light on the driving forces behind the changes in their embodied emissions over the entire time period this empirical study confirms the importance of using the extended model for analyzing the trade related embodiment especially for processing exports the embodied emissions in both normal and processing exports first increased from 2006 to 2008 then dropped during the global financial crisis 2008 2009 and then rose again after 2009 the embodied emissions as a percentage of total co2 emissions were quite stable before and after the global financial crisis at around 24 over the 2006 2008 period and 18 over the 2010 2012 period from 2006 to 2012 emission intensity played the key role in reducing the embodied emissions around 595 mt co2 while the total export effect contributed the most to the increase in embodied emissions around 552 mt co2 similar analysis can be applied to other indicators such as energy water ghg emissions pollutants and materials

the new econometrics of structural change dating breaks in u s labor productivity we have seen the emergence of three major innovations in the econometrics of structural change in the past fifteen years 1 tests for a structural break of unknown timing 2 estimation of the timing of a structural break and 3 tests to distinguish unit roots from broken time trends these three innovations have dramatically altered the face of applied time series econometrics in this paper we review these three innovations and illustrate their application through an empirical assessment of u s labor productivity in the manufacturing durables sector

primary energy and greenhouse gases embodied in australian final consumption an input output analysis input output modeling of primary energy and greenhouse gas embodiments in goods and services is a useful technique for designing greenhouse gas abatement policies the present paper describes direct and indirect primary energy and greenhouse gas requirements for a given set of australian final consumption it considers sectoral disparities in energy prices capital formation and international trade flows and it accounts for embodiments in the gross national expenditure as well as the gross domestic product primary energy and greenhouse gas intensities in terms of mj and kg co2 e are reported as well as national balances of primary energy consumption and greenhouse gas emissions

discrimination in the small business credit market we use data from the 1993 and 1998 national surveys of small business finances to examine the existence of racial discrimination in the small business credit market we conduct an econometric analysis of loan outcomes by race and find that black owned small businesses are about twice as likely to be denied credit even after controlling for differences in creditworthiness and other factors a series of specification checks indicates that this gap is unlikely to be explained by omitted variable bias these results indicate that the racial disparity in credit availability is likely caused by discrimination

the role of soft information in a dynamic contract setting evidence from the home equity credit market credit underwriting is a dynamic process involving multiple interactions between borrower and lender during this process lenders have the opportunity to obtain hard and soft information from the borrower we analyze more than 108 000 home equity loans and lines of credit applications to study the role of soft and hard information during underwriting our data set allows us to distinguish lender actions that are based strictly on hard information from decisions that involve the collection of soft information our analysis confirms the importance of soft information and suggests that its use can be effective in reducing overall portfolio credit losses ex post

assessing regional and global water footprints for the uk article i nfo the concept of the water footprint has been recently introduced as an important indicator for human induced water consumption the water footprint is defined as the total volume of water used during production and consumption of goods and services as well as direct water consumption by humans water is not only consumed directly but also indirectly in production processes therefore calculating the water footprint enables us to quantify total water consumed along the whole global supply chain in this paper we develop a regional input output io model extended by water consumption coefficients to quantify the respective domestic water footprint for different consumption categories for the south east and north east of england and the uk i e the water consumed directly and indirectly along the regional supply chain in addition we calculate the total water footprints which include both domestic water consumption and the water required in other countries to produce goods and services imported and consumed in the region under investigation through applying a multi regional input output mrio model both footprints also include households direct consumption of water with regards to the two regions we can observe a very pronounced regional disparity of regional domestic and total water footprints between the relatively water scarce south east and the water rich north east of england we find that the domestic water footprint per capita in the south east is 22 higher than the domestic water footprint per capita in the north east the key water consumers include agriculture food products electricity and gas production and hotel and catering the total water footprints per capita in the south east 1257 m 3 year are more than twice the ones in the north east 597 m 3

assessment of regional trade and virtual water flows in china the success of china s economic development has left deep marks on resource availability and quality some regions in china are relatively poor with regards to water resources this problem is exacerbated by economic growth flourishing trade activities on both domestic and international levels have resulted in significant amounts of water withdrawal and water pollution hence the goal of this paper is to evaluate the current inter regional trade structure and its effects on water consumption and pollution via virtual water flows virtual water is the water embedded in products and used in the whole production chain and that is traded between regions or exported to other countries for this assessment of trade flows and effects on water resources we have developed an extended regional input output model for eight hydro economic regions in china to account for virtual water flows between north and south china the findings show that the current trade structure in china is not very favorable with regards to water resource allocation and efficiency north china as a water scarce region virtually exports about 5 of its total available freshwater resources while accepting large amounts of wastewater for other regions consumption by contrast south china a region with abundant water resources is virtually importing water from other regions while their imports are creating waste water polluting other regions hydro ecosystems

specification and aggregation errors in environmentally extended input output models this article considers the specification and aggregation errors that arise from estimating embodied text co 2 emissions and embodied water use with environmentally extended national input output io models instead of with an environmentally extended international io model model specification errors result from the use of domestic environmental and domestic technology coefficients to estimate emissions or resources that are embodied in international trade for text co 2 footprints unacceptably large overestimations arise from using domestic emission coefficients which are only partly canceled out by using domestic technology coefficients for water use footprints both specification errors are smaller but hardly cancel out sectoral aggregation errors occur when combining the 129 exiopol industries to 59 eu industries and 10 broad sectors the latter aggregation creates the largest errors spatial aggregation errors arise from combining 43 individual exiopol countries in four broad regions and the rest of the world substantial unacceptable errors occur again now especially in relation to water use

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

rates for vehicle loans race and loan source a household s vehicle purchases are among its largest expenditure outlays moreover unlike housing purchases which a typical household may make once or twice over a lifetime a house hold may well buy several cars over the same interval the magnitude and relative frequency of vehicle purchases suggest that differential treatment by race in the vehicle market may have important implications for differences in wealth and financial well being by race yet whereas a robust literature in economics has studied virtu

household borrowing after personal bankruptcy a large body of literature has examined factors leading to filing for personal bankruptcy but little is known about household borrowing after bankruptcy this paper augments the existing literature with a comprehensive analysis of postbankruptcy borrowing using data from the survey of consumer finances we find that filers generally have more limited access to unsecured credit but borrow more secured debt after bankruptcy than comparable households that have never filed for bankruptcy filers also pay higher interest rates on all types of debt in addition as more time passes after filing credit access and borrowing costs improve however filers remain more prone than comparable nonfilers to experience financial distress accumulate less wealth and use expensive credit sources like payday loans even more than 10 years after filing

do liquidity constraints and interest rates matter for consumer behavior evidence from credit card data this paper utilizes a unique new dataset of credit card accounts to analyze how people respond to changes in credit supply the data consist of a panel of thousands of individual credit card accounts from several different card issuers with associated credit bureau data we estimate both marginal propensities to consume mpcs out of liquidity and interest rate elasticities we also evaluate the ability of different models of consumption to rationalize our results distinguishing the permanent income hypothesis pih liquidity constraints precautionary saving and behavioral models we find that increases in credit limits generate an immediate and significant rise in debt counter to the pih the average mpc out of liquidity ddebt dlimit ranges between 10 14 the mpc is much larger for people starting near their limits consistent with binding liquidity constraints however the mpc is significant even for people starting well below their limit we show this response is consistent with buffer stock models of precautionary saving nonetheless there are other results that conventional models cannot easily explain e g why so many people are borrowing on their credit cards and simultaneously holding low yielding assets unlike most other studies we also find strong effects from changes in account specific interest rates the long run elasticity of debt to the interest rate is approximately 1 3 less than half of this elasticity represents balance shifting across cards with most reflecting net changes in total borrowing the elasticity is larger for decreases in interest rates than for increases which can explain the widespread use of temporary promotional rates the elasticity is smaller for people starting near their credit limits again consistent with liquidity constraints

a carbon footprint proportional to expenditure a case for norway abstract motivated by the importance of consumption as an underlying driver of co 2 emissions we examine the link between consumption and co 2 emissions for norwegian households the main goal is to investigate whether there is a decoupling of consumption expenditures and the environmental impact as we move up the income ladder by combining a 2007 norwegian consumer expenditure survey with emission coefficients from an environmental input output model reflecting emissions embodied in both domestically produced and imported goods and services we calculate the per capita carbon footprint the results from the analysis suggest that the per capita carbon footprint is directly proportional to expenditure with an estimated elasticity close to unity implying no decoupling the finding is partly driven by a near zero emission power sector which leads to comparatively low emissions embodied in domestically produced goods and services

energy consumption and growth in south america evidence from a panel error correction model abstract this study examines the relationship between energy consumption and economic growth for a panel of nine south american countries over the period 1980 2005 within a multivariate framework given the relatively short span of the time series data a panel cointegration and error correction model is employed to infer the causal relationship pedroni s heterogeneous panel cointegration test reveals a long run equilibrium relationship between real gdp energy consumption the labor force and real gross fixed capital formation with the respective coefficients positive and statistically significant the granger causality results indicate both short run and long run causality from energy consumption to economic growth which supports the growth hypothesis

credit card redlining abstract this paper evaluates the presence of racial disparities in the issuance of consumer credit using a database of credit histories i link location based information on race with individual credit files after controlling for place specific factors such as housing vacancy rates and general population demographics i find qualitatively large differences in the amount of credit offered to similarly qualified applicants living in black versus white areas high data quality allows distinguishing between issuer provision supply and utilization of credit demand additional estimates using information on payday lending provide support for idea that issuers condition lending on location

revisiting drivers of energy intensity in china during 1997 2007 a structural decomposition analysis the decline of china s energy intensity slowed since 2000 during 2002 2005 it actually increased reversing the long term trend therefore it is important to identify drivers of the fluctuation of energy intensity we use input output structural decomposition analysis to investigate the contributions of changes in energy mix sectoral energy efficiency production structure final demand structure and final demand category composition to china s energy intensity fluctuation during 1997 2007 we include household energy consumption in the study by closing the input output model with respect to households results show that sectoral energy efficiency improvements contribute the most to the energy intensity decline during 1997 2007 the increase in china s energy intensity during 2002 2007 is instead explained by changes in final demand composition and production structure changes in final demand composition are mainly due to increasing share of exports while changes in production structure mainly arise from the shift of chinese economy to more energy intensive industries changes in energy mix and final demand structure contribute little to china s energy intensity fluctuation from the consumption perspective growing exports of energy intensive products and increasing infrastructure demands explain the majority of energy intensity increase during 2002 2007

the failure of competition in the credit card market the bank credit card market containing 4 000 firms and lacking regulatory barriers casually appears to be a hospitable environment for the model of perfect competition nevertheless this article reports that credit card interest rates have been exceptionally sticky relative to the cost of funds moreover major credit card issuers have persistently earned from three to five times the ordinary rate of return in banking during the periods 1983 88 the failure of the competitive model appears to be partly attributable to consumers making credit card choices without taking account of the very high probability that they will pay interest on their outstanding balances copyright 1991 by american economic association

quo vadis mrio methodological data and institutional requirements for multi region input output analysis abstract in order to understand wider sustainability impacts of consumption and to successfully promote and implement sustainable consumption and production policies there is a need to capture the whole life cycle impact of products and services across international supply chains multi region input output mrio databases are a well described and suitable foundation for global sustainability analyses addressing a wide range of policy and research questions in this paper we reflect on the reasons for the recent boom in mrio compilation summarise the current state of development and discuss future options for mrio analysis we list in detail the requirements for efficient and effective mrio research and propose systemic and institutional changes we deliberately try to go beyond existing ambitions for mrio compilation and thus intend to stimulate discussion and to lay out the options for the future of mrio research

the importance of adverse selection in the credit card market evidence from randomized trials of credit card solicitations analyzing unique data from multiple large scale randomized marketing trials of preapproved credit card solicitations by a large financial institution we find that consumers responding to the lender s inferior solicitation offers have poorer credit quality attributes this finding supports the argument that riskier type borrowers are liquidity or credit constrained and thus have higher reservation loan interest rates we also find a more severe deterioration ex post in the credit quality of the booked accounts of inferior offer types relative to superior offers after controlling for a cardholder s observable risk attributes demographic characteristics and adverse economic shocks we find that cardholders who responded to the inferior credit card offers are significantly more likely to default ex post our results provide evidence on the importance of adverse selection effects in the credit card market

why has the u s economy become less correlated with the rest of the world in this paper we do two things first we document that over the last 40 years the u s business cycle has become less synchronized with the cycle in the rest of the world second we try to explain why this has happened we use a general equilibrium model as a tool to discriminate between two alternative explanations i a change in the nature of real shocks and ii an increase in u s financial integration with the rest of the world our results indicate that financial integration has played the major role in producing the observed changes in international co movement

the role of globalization on the recent evolution of energy demand in india implications for sustainable development using annual data for the period 1971 2012 this study explores the relationship between globalization and energy consumption for india by endogenizing economic growth financial development and urbanization the cointegration test proposed by bayer hanck 2013 is applied to estimate the long run and short run relationships among the variables after confirming the existence of cointegration the overall results from the estimation of an ardl energy demand function reveal that in the long run the acceleration of globalization measured in three dimensions economic social and overall globalization leads to a decline in energy demand in india furthermore while financial development is negatively related to energy consumption economic growth and urbanization are the key factors leading to increased energy demand in the long run these results have policy implications for the sustainable development of india in particular globalization and financial development provide a win win situation for india to increase its economic growth in the long run and become more environmentally sustainable

energy consumption and income a semiparametric panel data analysis this paper proposes a semiparametric analysis for the study of the relationship between energy consumption per capita and income per capita for an international panel dataset it shows little evidence for the existence of an environmental kuznets curve for energy consumption energy consumption increases with income for a majority of countries and then stabilizes for very high income countries neither changes in energy structure nor macroeconomic cycle technological change have significant effect on energy consumption