Share Of Output Research Articles

Labour Share and Productivity Dynamics

Abstract We pose technology shocks where the innovation is biased towards more recently installed plants. On one extreme, the shock is like a neutral technological shock, while on the other end it resembles investment-specific technological shocks. We embed these shocks in a model with putty–clay technology and estimate it requiring that the model replicates the volatility properties of the Solow residual and the overshooting property of the labour share of output. Our estimates show that putty–clay nature of technology, a time bias towards new plants and competitive wage setting replicate well the overshooting property.

Regional inflation persistence in Turkey

AbstractThe purpose of the current study is to investigate the degree of inflation persistence, its geographical variation, sources of cross‐regional variation, and presence of geographical/sectoral aggregation bias in national monetary policy. Our data set covers 26 NUTS‐2 level Turkish regions and monthly CPI inflation over the period 2003–2019. We first estimate the degree of regional inflation persistence by autoregressive regressions, check its robustness against the presence of structural breaks (by Bai–Perron's algorithm) and nonlinearities (by Markovian Regime Switching regressions). Second, we examine the possibility of geographical and sectoral aggregation bias. Third, we investigate the cross‐regional determinants of inflation persistence by panel data analysis, employing hybrid‐effects spatial panel regressions. We analyze the direct and indirect effects of the determinants and test for regional spillover effects. Three main results are obtained. First, estimated persistence degrees are heterogeneous across regions. The geographical pattern is empirically robust against structural breaks and nonlinearities. We find that inflation persistence is distributed in a spatially correlated manner. Second, when sectoral and regional aggregation bias is tested, only sectoral aggregation indicates a considerable level of bias. Third, we find that the presence of large firms in the region and a higher share of agricultural output in GDP leads to lower persistence, while an increased share of industrial output, and increased trade volume leads to higher inflation persistence. Moreover, we find spatial spillovers of price variability evident in regression analysis. From a policy standpoint, it is required that structural policy programs are targeted to maintain flexibility in the regions where persistence is high (i.e., providing market entry/exit, institutional quality, policy credibility, stimulation of SMEs). Moreover, sectors that have high persistence, such as Hotels and Restaurants (persistence degree 0.55) and Health Services (0.39) should be weighted more in CPI calculations.

Income Tax Evasion: Tax Elasticity, Welfare, and Revenue

This paper provides a general equilibrium model of income tax evasion. As functions of the share of income reported, the paper contributes an analytic derivation of the tax elasticity of taxable income, the welfare cost of the tax, and government revenue as a percent of output. It shows how an increase in the tax rate causes the tax elasticity and welfare cost to increase in magnitude by more than with zero evasion. Keeping constant the ratio of income tax revenue to output, as shown to be consistent with certain US evidence, a rising productivity of the goods sector induces less evasion and thereby allows tax rate reduction. The paper derives conditions for a stable share of income tax revenue in output with dependence upon the tax elasticity of reporting income. Examples are provided with less and more productive economies in terms of the tax elasticity of reported income, the welfare cost of taxation and the tax revenue as a percent of output, with sensitivity analysis with respect to leisure preference and goods productivity. Discussion focuses on how the tax evasion analysis may help explain such fiscal tax policy as the postwar US income tax rate reductions with discussion of tax acts and government fiscal multipliers. Fiscal policy with tax evasion included shows how tax rate reduction induces less tax evasion, a lower welfare cost of taxation, and makes for a stable income tax share of output.

Land Tenure System and Its Effect on Productivity, Profitability and Efficiency of Boro Rice Production in Northern Part of Bangladesh

Access to land in Bangladesh is governed by the state rule but informal tenure arrangement is existing all over the country. Land productivity differs with the contractual arrangement between landlord and tenant. Inefficiency may arise due to sharecropping which is known as Marshallian inefficiency. This study investigated the productivity the productivity, profitability and efficiency of different tenure arrangement of Boro rice cultivation selecting 120 farmers from Rangpur district of Bangladesh. The stochastic frontier production function was employed to determine the efficiency. Moreover, t-test was performed to see whether any significant difference exist among tenure categories in terms of productivity, profitability and efficiency. Four types of tenure arrangements were identified as cash tenant, fifty-fifty input-output sharing arrangement, only output sharing arrangement and owner farmers. Result revealed that productivity and profitability was higher for owner and cash tenant compared to others. Significant productivity and profitability difference were found between owner farmers and cash tenants versus sharecroppers. Result also found that inefficiency level was significantly high for fifty-fifty input-output share tenant and only output share tenant compared to cash tenant and owner operator implying that Marshallian inefficiency exist due to sharecropping system in the Boro rice production.

Income tax evasion: tax elasticity, welfare, and revenue

This paper provides a general equilibrium model of income tax evasion. As functions of the share of income reported, the paper contributes an analytic derivation of the tax elasticity of taxable income, the welfare cost of the tax, and government revenue as a percent of output. It shows how an increase in the tax rate causes the tax elasticity and welfare cost to increase in magnitude by more than with zero evasion. Keeping constant the ratio of income tax revenue to output, as shown to be consistent with certain US evidence, a rising productivity of the goods sector induces less evasion and thereby allows tax rate reduction. The paper derives conditions for a stable share of income tax revenue in output with dependence upon the tax elasticity of reporting income. Examples are provided with less and more productive economies in terms of the tax elasticity of reported income, the welfare cost of taxation and the tax revenue as a percent of output, with sensitivity analysis with respect to leisure preference and goods productivity. Discussion focuses on how the tax evasion analysis may help explain such fiscal tax policy as the postwar US income tax rate reductions along with discussion of government fiscal multipliers. Fiscal policy with tax evasion included shows how tax rate reduction induces less tax evasion, a lower welfare cost of taxation, and makes for a stable income tax share of output.

SPATIAL DISTRIBUTION OF ECONOMIC ACTIVITIES AND INTERNAL ECONOMIC INTEGRATION IN ROMANIA

This paper aims to consider two tendencies in economy simultaneously: internal integration within the country and localization of economic activities. Firstly, we examine the quantitative measurement of internal economic integration in Romania. Different methods of economic integration measuring have been developed over time, so we have defined and discussed three approaches. To estimate a level of internal integration the link between the region's share in the total output and production factors was estimated and the pattern of distribution of these shares among the regions of Romania was assessed. The calculations have underlined an increasing tendency to deepen the internal economic integration of the Romanian economy. Secondly, the analysis of spatial distribution of economic activity has demonstrated that the capital region Bucharest-Ilfov concentrates the biggest share of employment and production. This indicates that initially there were higher economic activities and a labor deficit has been created, which was later covered by moving employees from other regions. As a result, the capital region concentrates 14.35% of the civil economically active population and 26.78% of the regional gross domestic product in 2014. By computing the location coefficient, we have observed that the counties with the biggest shares in the total GDP are characterized by a higher level of specialization simultaneously in many sectors.

How to Lockdown an Economy: an Input Output Analysis of the Italian Case

This paper employs the most recent Input Output tables to discuss the Italian lockdown after the COVID-19 epidemics. We define “basic activities” and derive a ranking of industries which more intensively contribute to them. Confronting our results with the choices of the Italian government, we find that these were broadly correct in terms of industrial composition. However, we find that the lockdown of industries such as construction, real estate and manufacture of basic metals reveal a very conservative preferences in terms of the target share of output of essential activities (below 85 %).

How to Lockdown an Economy: an Input Output Analysis of the Italian Case

This paper employs the most recent Input Output tables to discuss the Italian lockdown after the COVID-19 epidemics. We define “basic activities” and derive a ranking of industries which more intensively contribute to them. Confronting our results with the choices of the Italian government, we find that these were broadly correct in terms of industrial composition. However, we find that the lockdown of industries such as construction, real estate and manufacture of basic metals reveal a very conservative preferences in terms of the target share of output of essential activities (below 85 %).

Investment policy of the state as a tool for economic growth of the country

The investment policy of the state is an important tool for diversifying the economy. This paper analyzes the share of capital investment in GDP, the index of fixed capital investment for 2015–2019, and assesses the investment policy determinants of the state of developed countries and emerging countries. Correlation-regression analysis methods were used to determine the relationship between real GDP, the share of industrial output in GDP, and the index of fixed capital investment in countries with economies in transformation. As a result, it was determined that in the vast majority of countries studied, the increase in investment in fixed assets contributes to the acceleration of economic growth, and the level of economic growth determines the investment potential of countries; that the heterogeneity of the impact of investment on the level of economic growth in countries with transformational economies is due to their raw material orientation, insufficient level of validity and predictability of the implemented investment policy of the state; the state’s investment policy is an important tool for ensuring macroeconomic stability and stimulating economic growth in a recession. Using the data of the panels for the period from 2015 to 2019, it is substantiated that the creation of conditions for macroeconomic balance will increase business activity of enterprises, which is the result of purposeful influence of state investment policy on economic processes by ensuring quality transformation and innovation of the national economy. The obtained results show that the level of influence of the state investment policy on the level of economic growth varies significantly depending on the level of development of financial institutions in the country and the infrastructure of the financial market.

The application of the complexity theory to public health interventions: a review of the literature

Abstract Background There is a growing recognition of the limitations of a linear cause-and-effect rationality in planning and evaluating public health interventions. Although this perspective is amenable to programme planning and evaluation, it leaves aside a whole array of mechanisms of change triggered by interactions taking place in complex social systems. Generative causality is one and recognized under a number of works referring to the complexity paradigm. Here we review the state of knowledge on what is often referred to as the complexity theory (CT), and present the results of a review of the literature on its application in public health. Methods We searched PubMed for articles, commentaries, editorials published in English, French and Italian, using the keywords 'Complexity Theory' (also plural). We categorized the fields of application of the CT according to the three core WHO's Essential Public Health Operations, i.e., Health Promotion, Prevention and Protection. All papers addressing issues related to health care services (but not prevention) were included in the category “health care services” while others were tagged as “others”. Results We found 203 papers meeting our inclusion criteria. The largest share of the research output applying the CT was in health care services (n = 167), followed by Health Promotion (5), Prevention (3) and Protection (2). 26 papers were labelled others. In health promotion/ prevention, applications of the CT have yet to integrate most of its concepts. Most authors tap into both the linear and generative rationality perspectives. Conclusions Although regularly deemed as promising in uncovering mechanisms for change triggered by public health intervention, applications of the complexity theory remain uncommon and has made little inroads in the public health domain. This is particularly the case for health promotion where one would assume that participatory community-based interventions would be an incentive to integrate this perspective. Key messages Although deemed promising the complexity theory has made little inroads in public health. Health promotion with its participatory community-based interventions can benefit from its application.

Financial globalization and its consequences for productive government expenditure

This paper employs a stochastic growth model to study the impact of international financial liberalization on the share of productive government expenditure in GDP. Financial liberalization is specified to take the form of reducing the costs of both lending to, and borrowing from, abroad. This is shown to impinge on the economy through (i) its interaction with the volatility of returns to domestic capital, and (ii) the impact on agents’ allocation of their portfolio across domestic and foreign assets, and its effect on domestic activity. Reduced foreign lending costs tend to divert resources from the domestic economy, requiring the government to compensate by increasing the share of domestic output allocated to productive activity. Reducing borrowing costs have the opposite effects. Empirical evidence, using a dataset of 97 countries over the period 1970 to 2015 provides convincing support for these findings and the underlying mechanism.

Open access at the national level: A comprehensive analysis of publications by Finnish researchers

Open access (OA) has mostly been studied by relying on publication data from selective international databases, notably Web of Science (WoS) and Scopus. The aim of our study is to show that it is possible to achieve a national estimate of the number and share of OA based on institutional publication data providing a comprehensive coverage of the peer-reviewed outputs across fields, publication types, and languages. Our data consists of 48,177 journal, conference, and book publications from 14 Finnish universities in 2016–2017, including information about OA status, as self-reported by researchers and validated by data-collection personnel through their Current Research Information System (CRIS). We investigate the WoS, Scopus, and DOI coverage, as well as the share of OA outputs between different fields, publication types, languages, OA mechanisms (gold, hybrid, and green), and OA information sources (DOAJ, Bielefeld list, and Sherpa/Romeo). We also estimate the role of the largest international commercial publishers compared to the not-for-profit Finnish national publishers of journals and books. We conclude that institutional data, integrated at national and international level, provides one of the building blocks of a large-scale data infrastructure needed for comprehensive assessment and monitoring of OA across countries, for example at the European level.

Labor Share and Productivity Dynamics

We present a novel way to model technological shocks, with the feature that it can be biased towards more recently installed production units. We show that at one extreme, the shock is like a neutral technological shock, while at the other end of the spectrum, it resembles investment specific technological shocks, since it affects newly created machines the most. To make these ideas operational, we embed our proposed shocks in a model with putty-clay technology (where the notion of new and old firms is clear). We estimate the process for the shocks requiring that the model replicates the volatility properties of the Solow residual and the overshooting property of the labor share of output. Our estimates point to three factors to be capable of replicating well such overshooting property: putty-clay nature of technology, a time bias in the shocks towards new plants and competitive wage setting.

Nudging farmers in crop choice using price information: Evidence from Ethiopian Commodity Exchange

AbstractThe lack of reference price information is often regarded as one of the most pervasive aspects of incomplete commodity markets in developing countries. Previous studies on the effects of price information emphasize the market participation and performance of rural households. This paper argues that access to reference price information influences farmers’ crop choice decisions, the most important decision in farming activity. The study exploits the variation in timing and spatial distance of the publicly run Ethiopian Commodity Exchange (ECX) price tickers as an indicator for variation in the intensity of access to reference price information among rural villages in Ethiopia. The paper finds that access to price information increases the average farm‐gate prices for traded commodities and incentivizes farmers to allocate more land, fertilizer and improved seeds to commodities traded in the ECX. It also nudges farmers to produce more of the traded commodities, increasing the output share of ECX‐traded commodities.

The Empirics of Economic Growth and Industrialization Using Growth Identity Equation

This study examines the determinants of economic growth and industrialization based on the Growth Identity Equation. This identity links total output growth with the performance of the three economic sectors (agriculture, industry and services) measured by their sectorial rates of output growth and weighted by each sector’s output share in GDP. Using the data from 164 countries from 1970 to 2010 our study examines and explains economic growth and industrialization with economic, institutional, and other variables. We identify the causal variables for industrialization that are reflected in the structural shifts of the output ratios in the three sectors.

Trade Liberalization and Productivity Growth: A Firm-Level Analysis from Kenya

We analyze the impact of trade liberalization on firm productivity growth in Kenya’s manufacturing sector, using a panel spanning 8 years; 1992-1999. Our analysis reveals that liberalizing trade generates high productivity improvements in the manufacturing sector. We find that a one-unit reduction in import duties as a percentage of total imports significantly increases firm-level productivity in the manufacturing sector by 5.7%. When we examine this effect on the firm’s share of exported output, we find that lowering of import duties significantly increases the share of output exported by 0.7%. Further, we sought to assess how the effect of import duties varied across the different industries in our sample. Examining the effect of import duties on industrial performance, we find a negative and statistically significant relationship in some of the industries. Our results show heterogeneous effect of reduction of import duties on industrial performance. Not all industries benefited from the lowering of import duties, especially the food and bakery, and garment industry, where productivity did not increase. These findings have important policy implications for improving the manufacturing sector. Consequently, formulating policies that effectively relax restrictive barriers to trade in the economy could speed up firm-level productivity in the manufacturing sector.

Sketching landscapes in discourse analysis (1978–2018): A bibliometric study

John Swales’ 1986 article ‘Citation analysis and discourse analysis’ was the first to apply citation analysis to describe in-text citations in the field of discourse analysis. Howard White’s 2004 article ‘Citation analysis and discourse analysis revisited’ was written by an information scientist and primarily focused on citation analysis and discourse analysis. Here, we cast a wider net by conducting a bibliometric analysis of discourse analysis to sketch its scientific landscape between 1978 and 2018. Our findings show that discourse analysis has emerged as a major, and increasingly distinctively sociological, contribution to the analysis of language in social life. It is evident that discourse analysts are increasingly interested in such topics as corpus linguistics, digital conversation analysis, discursive news values approach, membership categorization analysis, multimodal analysis and social media. It is a general trend that the United States is no longer the only dominating publication powerhouse in the field. Countries such as the United Kingdom, Australia and China are wielding a growing share of research output.

An investigation of a partial Dutch disease in Botswana

Diversification of resource-driven economies has proven to be a very stubborn problem. Even relatively successful countries struggle to achieve a structural change towards manufacturing and high-tech industries. Botswana has been often cited as one of the few countries that escaped the resource curse and performed well in terms of economic growth. However, a significant share of the domestic output and most of the exports are still coming from the mining sector. In this paper we present the spending effect as a possible explanation for the lack of economic diversity. Using a nonlinear autoregressive distributed lag model, we investigate the cointegration of the diamond price index and the pula exchange rate against the currencies of Botswana's main trading partners on monthly time-series data. Our analysis is based on a recent dataset that covers the period from the introduction of the crawling band exchange regime until 2018. The results highlight a partial Dutch disease phenomenon related to Botswana's trade union partners: Namibia and South Africa.

Strategic perspectives of rural households development in Ukraine

The article studies the peculiarities of functioning of rural households, the substantiation of strategic scenarios for their development and the development of an effective mechanism for strengthening their role in the formation of agri-food resources of Ukraine. Taking into account the current state of the agricultural sector and real conditions of rural households existence, several alternative ways of their development are defned: individual (independent) development; integration of rural households with agricultural and processing enterprises; cooperation with other rural households and with small businesses. The analysis of the structure of agricultural production in terms of rural households that can be consumer oriented, consumer – production oriented and production oriented allows us to conclude that a long-term development of rural households will lead to a change in their commodity proposal. The results of the design analysis of the average growth rates of all three resource components showed: the average annual growth rate of labour remuneration - 24.3%; average annual growth rate of fnancial assistance - 21.5%; average annual growth rate of rural household income - 14.6%; the average annual growth rate of total revenues (resources) - 18.7%. Having used the statistical package "STATGRAPHICS",we analyzed the tendencies of decrease of incomes share of rural households from own labor and capital; as well as growth of incomes from hired labor. Having used the ARIMA model, we made a forecast until 2025, and found that the share of population incomes from rural households will decrease to 20.2%. However, the decrease in income from own labor and capital should be offset by an increase in income from remuneration of labor received in the real sector of the economy. In addition, the share of gross output of households in the total gross output of agriculture is calculated. The Brown model (exponential smoothing model) with the parameter alpha = 0.3639 was used for the forecast. According to the results of calculations, it can be concluded that in the future the share of gross agricultural output will decrease and may reach 35.7% by 2025. Today it is also obvious that production oriented rural household, in conditions of increase of marketability level and effective mechanisms for the sale of manufactured products, can be the base for the development of entrepreneurship in agricultural production. This can be created through the organization of a system of purchasing manufactured products from the population, or through the organization of a system of consumer cooperation. Based on this, we believe that the development of land mortgage lending is important to meet fnancial resources needs of small agricultural producers in Ukraine, to achieve maximum economic effect from the realization of land potential, and as a result, to reduce risks in agricultural production. The mechanism for solving this problem, to our opinion, is the creation of mortgage funds of entity at the state level or at the level of united territorial communities. Key words: rural household, incomes of rural households, family farms, rural territories, mortgage lending, cooperation.

The Long‐Run Dynamics of the Labor Share in Japan

The structural transformation started in Japan during the last decades of the past century and the institutional adjustments that followed have significantly reshaped personal and functional income distribution patterns. In this paper we investigate the long‐term drivers of the share of output accruing to labor in Japan. Our contribution lies in extending the theoretical SK schedule model by Bentotila and Saint‐Paul to multiple inputs and in providing new empirical evidence on Japan over the period 1970–2012. Results indicate that low‐knowledge‐intensive market services were mainly responsible for the decline in the labor share in Japan over the four decades considered. This was related to technological change and, more importantly, to labor and product market structural and institutional features. These drivers could have significantly contributed to reducing the bargaining power of labor vis‐à‐vis employers and, consequently, the labor share.