{"title":"“One-size-fits-all” public works contract does it better? An assessment of infrastructure provision in Italy","authors":"Massimo Finocchiaro Castro , Calogero Guccio , Ilde Rizzo","doi":"10.1016/j.jpolmod.2023.07.003","DOIUrl":"https://doi.org/10.1016/j.jpolmod.2023.07.003","url":null,"abstract":"<div><p>Public infrastructure procurement is a crucial policy tool, a prerequisite for public and private investments and for economic and social capital growth. Low performance in execution severely hinders infrastructure provision and benefits delivery. One of the most sensitive phases in public infrastructure procurement is the design because of the strategic relationship that it potentially creates between procurers and contractors in the execution stage, affecting the costs and the duration of the contract. In this paper, using recent developments in non-parametric frontiers and propensity score matching<span>, we evaluate the performance in the execution of public works in Italy. The analysis provides robust evidence of significant improvement of performance where procurers opt for design and build contracts, which lead to lower transaction costs, allowing contractors to better accommodate the project in the execution. Our findings bear considerable policy implications.</span></p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 994-1014"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49746156","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Philippe De Lombaerde , Dominik Naeher , Hung Trung Vo , Takfarinas Saber
{"title":"Regional economic integration and machine learning: Policy insights from the review of literature","authors":"Philippe De Lombaerde , Dominik Naeher , Hung Trung Vo , Takfarinas Saber","doi":"10.1016/j.jpolmod.2023.07.001","DOIUrl":"10.1016/j.jpolmod.2023.07.001","url":null,"abstract":"<div><p>Due to its focus on prediction rather than causal inference, machine learning has long been treated somewhat neglectfully in the economic literature. For several reasons, however, interest in machine learning has surged recently and is slowly finding its way into the econometric<span> toolbox. Within the economic literature, regional integration has been one of the research areas at the forefront of this development, with various studies experimenting with different machine learning techniques to shed light on the complex dynamics governing regional integration processes. This paper provides the first systematic review of the literature that uses machine learning to study regional economic integration. The focus is twofold, first analysing studies along various thematic and methodological features (and the links between them), and then discussing the scope and nature of policy insights derived from the surveyed body of literature.</span></p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 1077-1097"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45967648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abdelaziz Hakimi , Helmi Hamdi , Mohamed Ali Khemiri
{"title":"Banking in the MENA region: The pro-active role of financial and economic freedom","authors":"Abdelaziz Hakimi , Helmi Hamdi , Mohamed Ali Khemiri","doi":"10.1016/j.jpolmod.2023.06.003","DOIUrl":"10.1016/j.jpolmod.2023.06.003","url":null,"abstract":"<div><p>The main purpose of this paper is to check whether bank profitability benefits from bank diversification by considering the moderating role of the economic freedom (EF) and financial freedom (FF). This paper uses a sample of 83 conventional banks operating in the MENA countries over the period 2005–2020 and, performs an empirical approach based on the System Generalized Method of Moments (SGMM). To get a better understanding and reliable results on the impact of NII on bank profitability, we split the MENA region in two sub-regions. The first block contains the Gulf Cooperation Council (GCC) countries with a sample of 40 banks and, the second covers the non-GCC countries with a sample of 43 banks. Empirical findings of the aggregate analysis reveal that bank profitability is more sensitive to bank diversification and, benefits from more EF and FF. Furthermore, we found that the interaction between bank diversification, EF and FF negatively affects the level of profitability. The results of the disaggregated analysis confirm the same findings concerning the positive effect of EF and FF and the negative effect of the interactional relationship. However, the effect of bank diversification differs across the two sub-samples.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 1058-1076"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44176323","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial markets, inflation and growth: The impact of monetary policy under different political structures","authors":"Abdorasoul Sadeghi , Seyed Komail Tayebi , Soheil Roudari","doi":"10.1016/j.jpolmod.2023.08.003","DOIUrl":"10.1016/j.jpolmod.2023.08.003","url":null,"abstract":"<div><p><span>This study assesses the likely effects of different political structures on economic growth by the effects of interest rate<span> on the linkage between financial markets. For this aim, we chose two developing economies with different governance structures, Iran and Argentina. There is a political structure in Iran influenced by religion, whereas Argentina’s political structure does not deal with religion. We first assess the causality amongst the financial markets of the stock market, bank deposits, and the foreign currency market (CM). Then, the effects of the markets and </span></span>inflation<span><span> on economic growth are assessed using Granger-causality tests and Markov-switching models. The results show that there are bidirectional causalities between the financial markets in Iran, and unidirectional causalities in Argentina. The markets affect economic growth in the both countries. For Iran, the monetary policy instrument of </span>interest rate indicates no causalities to the markets, whereas there are strong causalities from interest rate to the markets in Argentina. As a result, Argentinian Central Bank can affect economic growth through the money flow between the markets by freely changing interest rate proportioned with the economic situation. Whereas there is no such a possibility for Iran’s Central Bank. In other words, an active Central bank against the inflation volatility in Argentina versus a passive Central Bank in Iran is one of the consequences of the interest rate repression in a political structure influenced by religion.</span></p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 935-956"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43327745","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Can authorities curtail falsified trade & investment data that hide capital movements? Evidence from flows between BRICS and the USA","authors":"Subhasish Das , Amit K. Biswas","doi":"10.1016/j.jpolmod.2023.09.001","DOIUrl":"10.1016/j.jpolmod.2023.09.001","url":null,"abstract":"<div><p>Usually developing and transitional countries are characterised by foreign exchange and capital scarcities and hence resort to stringent trade and capital control<span> policies. This might become counterproductive and provide incentives to the international traders and investors to go for corrupt practices. This paper investigates how do these tight policies might encourage illegal or hidden capital movements across borders. By presenting both a theoretical and an empirical analysis, where traders and investors rationally misreport to evade stringent trade and investment barriers, we first show that illegal capital outflow takes place through trade misreporting and interestingly, export and import misreporting are cointegrated. Secondly and more importantly illegal capital inflow might take place through overreporting of FDI values and illegal capital outflow and inflow are cointegrated too. Based on the thorough investigation of the BRICS – USA bilateral trade and FDI data, we propose that a less regulated trade and investment regime might benefit these countries more as tight and restrictive policies seem to be self-defeating. Our study comes up with policy conclusions that might minimise the cross-border illegal capital movements.</span></p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 957-974"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41615335","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The impact of public subsidies on investment and growth: Policy about evaluation, selection and monitoring","authors":"László Kállay , Tibor Takács","doi":"10.1016/j.jpolmod.2023.09.003","DOIUrl":"https://doi.org/10.1016/j.jpolmod.2023.09.003","url":null,"abstract":"<div><p>Public subsidy, a frequently applied tool of economic development is often provided to the business sector assuming that it promotes investments, employment, and income generation. In this paper a micro economic model based empirical analysis is presented that shows the possible impact of public subsidy on economic growth. The outcomes are derived by investigating the investment decision of the enterprise with and without public subsidy. It is demonstrated that public subsidy may increase social welfare, but under certain circumstances it also may decrease it, partly because authorities deciding about them fail to consider the information on the investment projects that determines the outcome. The empirical analysis of corporate subsidies proves that both cases occur. The number of firms that performed well and presumably had not enough own resources to fund the investment was less than 10% of all subsidized firms. The programs had an overall negative impact on economic growth. We provide recommendations on how methods of evaluations, project selection and monitoring should be modified to achieve better results of subsidy programs.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 895-909"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49746182","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic and welfare effects of immigration policy: Lessons from the experience of Kuwait","authors":"Ayele Gelan, Shaima Al-Shamali, Wafa Awadh","doi":"10.1016/j.jpolmod.2023.06.006","DOIUrl":"10.1016/j.jpolmod.2023.06.006","url":null,"abstract":"<div><p>Immigration has increasingly caused heated debates in many countries. Political populism has often given rise to anti-immigrant attitude among the public. Immigration policy decisions have often been based on perceptions and attitudes rather than evidences, specifically considerations of net benefits to the host country. The main objective of this study is to quantify economic impacts of immigration policy, focusing on economic and welfare consequences of reducing the size of immigrant labor. This is illustrated by using the case of Kuwait. The authorities have recently decided to reduce the size of immigrant population. This study set out with the aim of measuring consequences of reducing immigrant labor. A multi-sectoral and economy-wide model was utilized. The model was specified appropriately to capture most features of a segmented labor market. Simulation experiments were conducted in scenarios related to the existing policy, the proposed policy of reducing the number of immigrants, and mitigations required to minimize adverse impacts of the immigration policy reform. The focus was on macro-economy, sectoral and welfare and income distribution impacts. The results obtained indicated inevitable adverse economic and welfare impacts on natives unless the reduction in immigrant labor was accompanied with productivity enhancing policies.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 1015-1035"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42345074","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Syed Muhammad All-e-Raza Rizvi , Marie-Ange Véganzonès-Varoudakis
{"title":"Institutional determinants of internal conflicts in fragile developing countries","authors":"Syed Muhammad All-e-Raza Rizvi , Marie-Ange Véganzonès-Varoudakis","doi":"10.1016/j.jpolmod.2023.06.004","DOIUrl":"10.1016/j.jpolmod.2023.06.004","url":null,"abstract":"<div><p><span>In this article, we use fixed-effect Poisson regressions (FEPR) with robust standard errors and </span>instrumental variables (IV) to study the economic, social, and institutional determinants of internal conflicts in 58 fragile developing countries from 2004 to 2017. We show that effective institutions (measured by judicial efficiency and governance) and higher incomes could help reduce conflict in fragile countries. In contrast, trade reform does not seem to reduce violence, and education and democratic institutions may fuel conflict in some cases. These results imply that education and trade liberalization do not have the expected effects in fragile countries, which should probably first improve their social, economic, and institutional situation, before reaping the benefits of economic reforms and education. This may also be the case for political reforms, because democratic experience seems to lead to increased violence in some countries in our sample.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 910-934"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45293082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The COVID-19 green certificate’s effect on vaccine uptake in French and Italian regions","authors":"Raffaella Santolini","doi":"10.1016/j.jpolmod.2023.06.005","DOIUrl":"10.1016/j.jpolmod.2023.06.005","url":null,"abstract":"<div><p>The COVID-19 green certificates were introduced in many countries in 2021 to encourage vaccine uptake against the COVID-19 virus in order to reduce the spread of severe infection among the population, ensure the safety of cross-border movements, and facilitate the resumption of social life and economic activities. This study uses a single-group interrupted time series approach to examine the effect of the green certificate announcement on the first doses of the COVID-19 vaccine in 20 Italian and 18 French regions during the summer of 2021. The estimation results show that the green certificate announcement mitigated regional disparities in vaccine uptake. It persuaded undecided people to have their first doses of the COVID-19 vaccine, especially in regions lagging in the mass vaccination campaign. It was less effective in those regions where there was already a high level of vaccine protection. The announcement also proved to be an effective political strategy with which to increase the first-dose rates immediately, but not in the long term.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 1036-1057"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42911941","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How bilateral trade deals get in the way of multilateral agreements: Why WTO is marginalized","authors":"Jayson Beckman, Maros Ivanic, Saleem Shaik","doi":"10.1016/j.jpolmod.2023.05.006","DOIUrl":"10.1016/j.jpolmod.2023.05.006","url":null,"abstract":"<div><p>We use a ‘Nash in Nash’ framework within a computable general equilibrium model to determine the welfare maximizing set of bilateral trade agreements for countries in the Trans-Pacific Partnership. Comparing these agreements to an agreement involving all countries/sectors, we find that welfare is always larger in the multilateral agreement. This is because several sectors are often excluded from the bilateral agreements, and not all countries would have a bilateral agreement with others. The sectors that are often excluded from the agreements are agriculture, as these sectors are often deemed ‘sensitive’ in negotiations and are protected by high initial tariffs.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 5","pages":"Pages 877-894"},"PeriodicalIF":3.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46995922","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}