US Federal Funding Research Articles

The US Federal Funds Rate and Income Inequality - Where Is the Rate Bound to Go?

Currently the hottest two domestic macroeconomic issues in the United States are the dynamics of the federal funds rate (FFR) and the deterioration of income inequality. Amid the great uncertainty over the FFR, this paper attempts to predict where the FFR is bound to go in the near and foreseeable future with income inequality as a central determinant in the analysis. Interest rate and income inequality are traditionally studied in isolation from each other by two different groups of economists. Nevertheless, this paper hypothesizes a causal relationship between income inequality and interest rate and the hypothesis is verified by the US and Japanese data. Upon the hypothesis and its empirical evidence, the paper tentatively predicts that the Federal Reserve would have to reverse its QT operation and the FFR would be bound to go down again and slip towards zero, if income inequality in the US is not to reduce.

Pediatric Antibacterial and Antifungal Trials From 2007 to 2017.

The impact of the Best Pharmaceuticals for Children Act (BPCA) and the Pediatric Research Equity Act (PREA) on pediatric antibacterial or antifungal drug trials is unknown. Our objective was to identify and characterize trials conducted under the BPCA and/or the PREA. Pediatric antibacterial and antifungal drug trials with industry or US federal funding registered in clinicaltrials.gov from 2007 to 2017 were identified. Those conducted under BPCA and/or PREA were identified through US Food and Drug Administration and National Institute of Child Health and Human Development databases. Of 17 495 pediatric trials registered on clinicaltrials.gov between October 2007 and September 2017, 122 systemic antibacterial or antifungal drug trials with industry or US federal funding were identified. Of these 122 trials, 98 (80%) involved antibacterials only, 23 (19%) antifungals only, and 1 (1%) both antibacterials and antifungals. These represented <1% (122 of 17 495) of pediatric trials. Neither pediatric antibacterial nor antifungal drug trials commonly enrolled neonates 0 to 30 days old (30% [30 of 99] vs 42% [10 of 24], respectively). Pediatric antibacterial and antifungal trials were commonly industry funded (79% [78 of 99] and 83% [20 of 24], respectively). In total, 65% (79 of 122) of pediatric antibacterial and/or antifungal drug trials were conducted under BPCA and/or PREA. Researchers in trials conducted under BPCA and/or PREA, relative to non-BPCA and/or PREA trials, more often collected pharmacokinetic data (70% [55 of 79] vs 26% [11 of 43]). Although the majority of pediatric antibacterial and/or antifungal drug trials were conducted under BPCA and/or PREA, the overall number was low. Greater effort is needed to stimulate such trials.

Epstein-Barr virus load is higher in long-term Hodgkin lymphoma survivors compared to their unaffected twins and unrelated controls.

Epstein-Barr virus load is higher in long-term Hodgkin lymphoma survivors compared to their unaffected twins and unrelated controls.

The Ethics of Chimera Creation in Stem Cell Research

To summarize and clarify the main ethical issues surrounding the generation and use of human-animal chimeras in stem cell research. US federal funding remains restricted for certain forms of human-animal chimera research despite the widespread promulgation and acceptance of national and international stem cell-specific research guidelines. Stem cell-based human-animal chimera research can promote advances in basic human developmental biology, disease modeling, and new drug discoveries. National and international guidelines for this form of stem cell research have been developed over the past several years but ethical concerns persist around human dignity and the possible moral humanization of chimeric animals. These concerns can be defused and ought to be replaced with a more tractable focus on animal welfare.

Assessing Volatilities of Monetary Policy and their Effects on the Islamic and Conventional Stock Markets in Indonesia

The main objective of this study is to empirically assess the volatilities of the monetary policy instruments and their effects on the Indonesian Islamic and conventional stock market. The changes in exchange rate, interest rates, and money supply and their effects on the stock markets are investigated using the using the Generalized Autoregressive Conditional Heteroskedasticity frameworks. As a big-open economy, the capital market of Indonesia is vulnerable to the global monetary shocks changes, thus the US federal funds rate is also incorporated into the GARCH model. The study documented that, with the exception of the US interest rate, the volatilities of all monetary policy variables of interest rate, exchange rate, and money supply were documented affecting the volatilities of both Islamic and conventional stock markets. These findings imply that the volatilities of Islamic and conventional stock markets have similar determinants, thus to stabilize the markets, the investigated monetary policy variables should be controlled for by the policy-makers. Any monetary policy design imposed by the policy-makers would have a similar effect on both conventional and Islamic stocks in Indonesia.DOI: 10.15408/sjie.v7i2.7352

The Macroeconomic Impact of Shocks in the US Federal Funds Rate on the Republic of South Africa: An SVAR Analysis

This study empirically examines the influence of shocks in the US federal funds rate on the Republic of South Africa’s output gap, consumer prices, 91-day T Bill rate and the Rand-US Dollar exchange rate from the first quarter of 1981 to the last quarter of 2014 with the use of a structural vector autoregressive (SVAR) model. Shocks in the US federal funds rate are found to have more of an impact on the South African inflation rate relative to other domestic macro variables. Domestic developments were found to play the most significant role in explaining the fluctuations of South Africa’s macro-variables. In light of the SARB’s inflation targeting monetary policy regime, it is recommended that it remains mindful of domestic developments as well as movements in the US federal funds rate in order to determine their upside risks to inflation before deciding on a policy stance.

Impact of Participatory Health Research: A Test of the Community-Based Participatory Research Conceptual Model

Objectives A key challenge in evaluating the impact of community-based participatory research (CBPR) is identifying what mechanisms and pathways are critical for health equity outcomes. Our purpose is to provide an empirical test of the CBPR conceptual model to address this challenge. Methods A three-stage quantitative survey was completed: (1) 294 US CBPR projects with US federal funding were identified; (2) 200 principal investigators completed a questionnaire about project-level details; and (3) 450 community or academic partners and principal investigators completed a questionnaire about perceived contextual, process, and outcome variables. Seven in-depth qualitative case studies were conducted to explore elements of the model not captured in the survey; one is presented due to space limitations. Results We demonstrated support for multiple mechanisms illustrated by the conceptual model using a latent structural equation model. Significant pathways were identified, showing the positive association of context with partnership structures and dynamics. Partnership structures and dynamics showed similar associations with partnership synergy and community involvement in research; both of these had positive associations with intermediate community changes and distal health outcomes. The case study complemented and extended understandings of the mechanisms of how partnerships can improve community conditions. Conclusions The CBPR conceptual model is well suited to explain key relational and structural pathways for impact on health equity outcomes.

Cryptocurrency Reaction to FOMC Announcements: Evidence of Heterogeneity Based on Blockchain Stack Position

We examine the response of a broad set of digital assets to US Federal Fund interest rate and quantitative easing announcements, specifically examining associated volatility spillover and feedback effects. We classify each digital asset into one of three categories: Currencies; Protocols; and Decentralised Applications (dApps). Currency-based digital assets experience idiosyncratic spillovers in the period immediately after US monetary policy announcements, while application or protocol-based digital assets are largely immune to policy volatility spillover and feedback. Mineable digital assets are found to be more susceptible to monetary policy volatility spillovers and feedback than non-mineable. Responses indicate a diverse market within which, not all assets are comparable to Bitcoin.

Globalization and changing trends of biomedical research output.

The US continues to lead the world in research and development (R&D) expenditures, but there is concern that stagnation in federal support for biomedical research in the US could undermine the leading role the US has played in biomedical and clinical research discoveries. As a readout of research output in the US compared with other countries, assessment of original research articles published by US-based authors in ten clinical and basic science journals during 2000 to 2015 showed a steady decline of articles in high-ranking journals or no significant change in mid-ranking journals. In contrast, publication output originating from China-based investigators, in both high- and mid-ranking journals, has steadily increased commensurate with significant growth in R&D expenditures. These observations support the current concerns of stagnant and year-to-year uncertainty in US federal funding of biomedical research.

Potential Therapeutic Effects of Psilocybin.

Psilocybin and other 5-hydroxytryptamine2A agonist classic psychedelics have been used for centuries as sacraments within indigenous cultures. In the mid-twentieth century they were a focus within psychiatry as both probes of brain function and experimental therapeutics. By the late 1960s and early 1970s these scientific inquires fell out of favor because classic psychedelics were being used outside of medical research and in association with the emerging counter culture. However, in the twenty-first century, scientific interest in classic psychedelics has returned and grown as a result of several promising studies, validating earlier research. Here, we review therapeutic research on psilocybin, the classic psychedelic that has been the focus of most recent research. For mood and anxiety disorders, three controlled trials have suggested that psilocybin may decrease symptoms of depression and anxiety in the context of cancer-related psychiatric distress for at least 6 months following a single acute administration. A small, open-label study in patients with treatment-resistant depression showed reductions in depression and anxiety symptoms 3 months after two acute doses. For addiction, small, open-label pilot studies have shown promising success rates for both tobacco and alcohol addiction. Safety data from these various trials, which involve careful screening, preparation, monitoring, and follow-up, indicate the absence of severe drug-related adverse reactions. Modest drug-related adverse effects at the time of medication administration are readily managed. US federal funding has yet to support therapeutic psilocybin research, although such support will be important to thoroughly investigate efficacy, safety, and therapeutic mechanisms.

Persistence and cycles in the us federal funds rate

This paper uses long-range dependence techniques to analyse two important features of the US Federal Funds effective rate, namely its persistence and its cyclical behaviour. It examines annual, monthly, bi-weekly and weekly data, from 1954 until 2017. Two models are considered. One is based on an I(d) specification with AR(2) disturbances and the other one on two fractional differencing structures, one at the zero and the other at a cyclical frequency. Thus, the two approaches differ in the way the cyclical component of the process is modelled. In both cases we obtain evidence of long memory and fractional integration with cycles repeating approximately every 8years. The in-sample goodness-of-fit analysis supports the second specification in the majority of cases. An out-of-sample forecasting experiment also suggests that the long-memory model with two fractional differencing parameters is the most adequate one, especially over long horizons.

Stakeholders' Perspectives on Stakeholder-engaged Research (SER): Strategies to Operationalize Patient-centered Outcomes Research Principles for SER.

US federal funding agencies increasingly incentivize stakeholder-engaged research which represents a paradigm shift toward incorporating a range of stakeholders in research design, conduct, and dissemination. We use qualitative methods to capture experience-based recommendations on how to operationalize 4 Patient-Centered Outcomes Research (PCOR) principles in stakeholder-engaged research, specifically: (1) reciprocal relationships; (2) colearning; (3) partnership; and (4) trust, transparency, and honesty. We conducted semistructured interviews with members of a stakeholder panel who participated in a 2-year comparative effectiveness study of cholesterol screening and treatment among young adults. Participants included 8 young adults and parent panelists and 11 professional panelists (clinicians, researchers, policy developers, and disseminators). The interview guide included questions about the 4 PCOR principles and queried preferred strategies to attain them. Interview transcripts were analyzed using an a priori and emergent coding structure. Participants provided strategies to promote the 4 PCOR principles. Although some stakeholder-identified strategies were complementary, others conflicted due to (1) competing ideologies identified among the principles, and (2) distinct stakeholder preferences. Illustrative of competing ideologies, participants simultaneously preferred receiving relevant articles before calls (to facilitate colearning) but also minimal outside reading (to achieve partnership). Illustrative of distinct stakeholder preferences, young adult and parent panelists generally preferred calls to occur on weekends/evenings, whereas professional panelists preferred mid-week work hours. Our exploratory study provides stakeholder-identified strategies to achieve the 4 PCOR principles, and demonstrates the need to identify, acknowledge, and address potentially conflicting strategies due to the potential for competing ideologies or variation in stakeholder preferences.

Behavioral Economic View: The Episode of Won/USDollar Exchange Rate during the Crisis

Background/Objectives: This paper is motivated by recent evidence that the relation between Korean Won-US Dollar exchange rate and US federal funds rate is time-varying unlike conventional belief on the relation. Methods/Statistical Analysis: We employ the rolling window approach to figure out the influence of the crisis on the relation between the Won/ US-Dollar exchange rate and the US interest rate. The rolling window approach is used in time series analysis especially when the available sample period is short. This approach can be applied in order to check the predictive performance using a finite number of windows within a considered time span. Findings: The evidences resulting from the rolling window approach show that the Won/US-Dollar exchange rate and the US interest rate appear to be negatively correlated in some periods and positively correlated in others. Those time-varying patterns in the relation between exchange rate and interest rate are difficult to be explained from the traditional view of uncovered interest parity. On the other hand, behavioral macroeconomic perspectives provide various explanations for theoretically unconventional finding in the context of rational expectation formation. Application/Improvements: Our empirical observation remains with the conjecture that investors’ fear near the crisis may lead to some anomaly. The latter hypothesis should be further studied by the behavioral macroeconomic view.

Incorporating practitioner inquiry into an online professional development program: the Prime Online experience

Engagement in practitioner inquiry by classroom teachers is a promising mechanism for teacher professional learning. While much has been learned about the positive role inquiry can play in traditional professional development efforts, we know less about the impact of inquiry in a rapidly advancing technological age that includes the proliferation of online professional development institutes and programs. The purpose of this article is to explore the role of inquiry in online professional development by providing a detailed description of a year-long program called Prime Online. Supported by US federal funding, this program was designed to help teachers develop the mathematics content and pedagogical content knowledge necessary to implement research-based practices in inclusive elementary classrooms within a framework of practitioner inquiry. A detailed description of this program is presented followed by an examination of the inquiry projects completed by the participants. Implications of this effort for teacher learning and online professional development endeavors are offered.

The case of a needle exchange policy debate in Fresno, California.

Needle exchange is one of the most effective public health interventions to prevent the transmission of infectious disease by injecting drug users. Despite the preponderance of scientific evidence, US federal funding for needle exchange programmes has been banned since 1988. This prohibition has resulted in the lack of a centralised policy on needle exchange and has given birth to a patchwork of diverse practices and regulations throughout the nation. This article focuses on how various local players interpreted the meaning of needle exchange through the debate on an unauthorised site in Fresno, California. In exploring a specific context, this study delineates the narratives used to outline competing views about needle exchange and to offer a snapshot of how the issue of widespread injecting drug use was handled in an impoverished and socially conservative region of the United States.

Directed giving enhances voluntary giving to government

Giving to private charities is commonplace, and the chance to direct one’s gift is a standard fundraising strategy. But voluntary donations to government organizations are less widely known, and the impact of the opportunity to direct a gift is unexplored. We investigate the effect of directed giving on voluntary contributions to government organizations using a “real donation” lab experiment. We compare giving to the US federal general revenue fund with directed giving to particular government organizations. Directed giving more than doubles both the likelihood of giving and the size of contributions, indicating that individuals are responsive to the opportunity to direct their gifts in the government context. Our results suggest that the revenue-raising potential of directed voluntary gifts to government may be underutilized.

Firm value, investment and monetary policy

This paper presents empirical evidence on the effects of three nominal risk factors, local interest spreads, US interest spread, and US federal funds rate signal-to-noise ratio on the value of firms and on the cross-listing decision of firms destined to three major markets in North America, Asia, and Europe. We use firm-level data in 29 countries of cross-listing origin over a six year period, from 2000-2005. We find consistent and robust evidence that the US federal funds rate signal-to-noise ratio risk factor in the Sharpe sense provides an important benchmark for firm value across the universe of publicly traded companies; and this effect is larger for smaller firms that cross-list abroad. Countries in Asia, Europe, and South America tend to seek more funds abroad through cross-listing relative to other regions in this sample. In general, we find that the lagged local interest risk factor is positively related to current probability of cross listing. Small firms located in Asia, medium firms located in Europe, and large firms located in Asia, Europe, and South America have a higher relative probability of cross listing abroad.

No Exceptions: Documenting the Abortion Experiences of US Peace Corps Volunteers.

Since 1979, US federal appropriations bills have prohibited the use of federal funds from covering abortion care for Peace Corps volunteers. There are no exceptions; unlike other groups that receive health care through US federal funding streams, including Medicaid recipients, federal employees, and women in federal prisons, abortion care is not covered for volunteers even in cases of life endangerment, rape, or incest. We interviewed 433 returned Peace Corps volunteers to document opinions of, perceptions about, and experiences with obtaining abortion care. Our results regarding the abortion experiences of Peace Corps volunteers, especially those who were raped, bear witness to a profound inequity and show that the time has come to lift the "no exceptions" funding ban on abortion coverage.

A Structural Vector Autoregression Model for Monetary Policy Analysis in India

A structural vector autoregression (SVAR) model is proposed for analysing the impact of monetary policy stances on real variables in the Indian economy, in the context of its continuous exposure to global factors like oil price shocks and changes in global financial health. The empirical findings based on monthly data relating to the post-liberalisation period (April 1992–December 2012) suggest that contractionary monetary policy has had a considerable adverse impact on output for a year, which appears to be consistent with the prevailing economic outlook. But the same policy measure fuels inflation further for the first eight months in contrast to its expected decline, and the rise in inflation raises the issue of a ‘price puzzle’ in the Indian context. Monetary policy-induced exchange rate appreciation hampers industrial production due to outperformance of high import demand over export competitiveness and causes an increase in the average price level. Global factors like oil price shocks leave detrimental effects on output for a long time horizon of 10–12 months and raise inflation for nearly half a year, whereas an increase in the US federal funds rate results in a temporary decline in output growth of Indian industries. JEL Classification: C01, E43, E52

Monetary Policy, Risk-Taking, and Pricing: Evidence from a Quasi-Natural Experiment*

We analyse the impact of monetary policy on bank risk-taking and pricing. Bolivia provides us with an excellent experimental setting to identify this impact. Its small economy is not synchronized with the US economy but its banking system is almost fully dollarized. Consequently the US federal funds rate is the appropriate measure of monetary policy. We study the impact of the federal funds rate on the riskiness and pricing of new bank loans granted in Bolivia between 1999 and 2003, a period of significant variation in the federal funds rate. We find robust evidence that a decrease in the US federal funds rate prior to loan origination raises the monthly probability of default on individual bank loans. We also find that initiating loans with a subprime credit rating or loans to riskier borrowers with current or past non-performance become more likely when the federal funds rate is low. However, loan spreads do not increase, seemingly even decrease, in changes in the probability of default. Hence banks do not seem to price the additional risk taken. Furthermore, banks with more liquid assets and less funds from foreign financial institutions take more risk when the federal funds rate is low, and reduce loan spreads more despite the additional risk they seemingly take.