This article investigates the impact of government industrial policy and trade protection of the manufacturing sector in Korea. Empirical results are provided, using four-period panel data for the ...years 1963 through 1983, for thirty-eight Korean industries in which trade protection reduced growth rates of labor productivity and total factor productivity, while industrial policies, such as tax incentives and subsidized credit, were not correlated with total factor productivity growth in the promoted sectors. The evidence thus implies that less government intervention in trade is linked to higher productivity growth.
This paper analyzes the robustness of the day-of-the-week (DOW) and weekend effects to alternative estimation and testing procedures. The results show that sample size can distort the interpretation ...of classical test statistics unless the significance level is adjusted downward. Specification tests reveal widespread departures from OLS assumptions. Hypothesis tests results are reported using robust econometric methods and a GARCH model. The strength of the DOW and weekend effect evidence appears to depend on the estimation and testing method. Both effects seem to have disappeared by 1975.
A supply-determined model of housing investment is estimated from quarterly data over the 1963-83 period. The model is built on dynamic marginal cost pricing considerations and allows short- and ...long-run supply elasticities to differ. These are estimated as 1.0 and 3.0, respectively, but most of the long-run response occurs within 1 year. Rapid adjustment speed and the sizable long-run elasticity of supply are important factors in understanding the volatility of housing investment. The data also suggest some anomalies in the expected present value theory of asset pricing for housing capital.
Shows that increasing illegitimacy ratios are primarily the result of declining nuptiality (and rising marital dissolution) and secondarily the result of decreases in marital fertility. Argues that ...the illegitimacy ratio is the better index of the social consequences of out-of-wedlock childbearing and that the high ratios of recent decades are unlikely to abate in the foreseeable future. (Abstract amended)
Cocoa and coffee are the most important crops in Côte d'Ivoire. Until recently, the difference between world and administered producer prices provided an important source of government revenue. As a ...result of a continued decline of world prices of both crops, however, the Ivoirien government was forced to cut producer prices in half. Because 40 percent of Ivoirien households grow either cocoa or coffee, this cut can be expected to have a considerable impact on the welfare level of these households. We use the 1985 Living Standards Measurement Survey to estimate the welfare effects of producer price changes for Ivoirien households, permitting an evaluation of the probable consequences of the recent price cut. Using nonparametric econometric techniques, we find that, although many households will suffer losses of income, the cuts will not have adverse distributional effects: cocoa and coffee farmers are scattered throughout the income distribution, but most are concentrated in the middle.
A Reexamination of the Value of Tax Options Dammon, Robert M.; Dunn, Kenneth B.; Spatt, Chester S.
The Review of financial studies,
01/1989, Letnik:
2, Številka:
3
Journal Article
Recenzirano
This article reexamines the value of tax trading when the tax rate on long-term realizations is less than that on short-term realizations. In particular, the value of the option to realize long-term ...capital gains and repurchase stock in order to increase one's tax basis and restart the option to realize future losses short term is examined empirically. Our estimate of the incremental value of restarting, which is based on the results of simulations of several alternative tax trading policies over a large number of independent return sequences, is generally much smaller than that reported by Constantinides (1984). The incremental value of restarting is shown to depend critically on the particular pattern of realized returns and the assumed tax treatment of unrealized capital gains at the end of the simulation period. The effects of stock price volatility, transaction costs, portfolio offset rules, and realization cutoff levels on the value of tax trading are also investigated.
What has been the recent trend in illegitimacy in the United States? The answer depends on what is being measured. If the focus is on illegitimacy rates, then the trend is mixed. Illegitimacy ratios, ...however, have been skyrocketing. We show that this is primarily the result of declining nuptiality (and rising marital dissolution) and secondarily the result of decreases in marital fertility. We argue that the illegitimacy ratio is the better index of the social consequences of out-of-wedlock childbearing and that the high ratios of recent decades are unlikely to abate in the foreseeable future.
Theoretical rationale for the purchase or sale of portfolio insurance has been developed in prior works, but the relative preference structure for insured portfolios has not been examined ...empirically. This paper provides empirical evidence about performance of insured portfolios constructed from listed put and call options, their underlying stocks, and treasury bills. Efficient portfolios are identified using rules of stochastic dominance and stochastic dominance with a riskless asset from randomly created portfolios. The results illustrate the importance of put and call options to create portfolios containing an insurance component, since insured portfolios represent the majority of dominant assets.
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