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Showing papers in "Economics Letters in 2012"


Journal ArticleDOI
TL;DR: In this article, the authors demonstrate that Big-Five personality traits are stable for working-age adults over a four-year period and mean population changes are small and constant across age groups.

525 citations


Journal ArticleDOI
TL;DR: In this paper, it was shown that cross differences are not relevant for the estimation of the treatment effect in nonlinear "difference-in-differences" models such as probit, logit or tobit.

385 citations


Journal ArticleDOI
TL;DR: In this paper, a new unit root test with a Fourier function in the deterministic term in a Dickey-Fuller type regression framework is proposed, which can complement the Fourier LM and DF-GLS unit root tests.

310 citations


Journal ArticleDOI
TL;DR: This article investigated the effect of foreign aid on corruption using a quantile regression method and showed that foreign aid generally reduces corruption, and its reduction effect is greater in less corrupt countries than in more corrupt countries.

235 citations


Journal ArticleDOI
TL;DR: This paper found that currency union impact on trade is decreasing over time, which suggests that currency unions become less and less important to promote trade and financial globalization, and thus currency unions are less important in promoting trade.

232 citations


Journal ArticleDOI
Yoto V. Yotov1
TL;DR: In this article, the authors propose a simple solution to the distance puzzle in international trade, and show that the impact of distance on trade has fallen steadily over time, contrary to existing estimates of persistent or increasing distance effects.

171 citations


Journal ArticleDOI
TL;DR: This paper assess the impact of financial reforms on income inequality and find that removal of policies towards directed credit and excessively high reserve requirements, and improvements in the securities market reduce inequality in 62 countries for 1973-2005.

161 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigated the relationship between urbanization and CO2 emissions in a sample of 20 emerging countries over the period 1992-2008 using the semi-parametric panel data model with fixed effects.

157 citations


Journal ArticleDOI
TL;DR: This paper developed a simple test a la Pesaran (2007) for the null hypothesis of stationarity in heterogeneous panel data with cross-sectional dependence in the form of a common factor.

156 citations


Journal ArticleDOI
TL;DR: In this article, the authors measured willingness to pay for privacy in a field experiment where participants bought at most one DVD from one of two competing online stores, one store consistently required more sensitive personal data than the other, but otherwise the stores were identical.

154 citations


Journal ArticleDOI
TL;DR: In this paper, the effects of network regulation on investment in complementary services can be either negative or positive, depending on the relative weight consumers assign to infrastructure versus service quality, and they also find constellations where regulation can enhance perceived total quality.

Journal ArticleDOI
TL;DR: This article found that women have greater aversion to lying for a small monetary benefit than men in sender-receiver games than men, and they tested the robustness of this gender difference in a sender/receiver game with larger stakes and found no difference in lying by gender.

Journal ArticleDOI
TL;DR: In this article, the job creation effect of business R&D is tested applying the dynamic LSDVC estimator to a longitudinal database covering 677 European companies over the period 1990-2008.

Journal ArticleDOI
TL;DR: This paper found a statistically significant positive relation between income and democracy for a postwar period sample of up to 150 countries, accounting for the dynamic nature and high persistence of income and the persistence of democracy.

Journal ArticleDOI
TL;DR: Li et al. as mentioned in this paper empirically examined some listed Chinese firms' political connection, ownership, and financing constraints and found that politically connected firms display no financing constraints whereas firms without connection experience significant constraints.

Journal ArticleDOI
TL;DR: The authors provided a meta-analysis based on 701 language effects collected from 81 academic articles and found that on average, a common (official or spoken) language increases trade flows directly by 44%.

Journal ArticleDOI
TL;DR: In this paper, the authors extend the canonical model of contagion proposed by Pesaran and Pick and find evidence for significant contagion effects among long-term bond yield premia between 1, January 2008 and 1, February 2012.

Journal ArticleDOI
TL;DR: The authors argue that tests of overidentifying restrictions give little information on the validity of the moment conditions implied by the underlying economic model, and therefore are mute about the possibility of identifying the parameters of interest.

Journal ArticleDOI
TL;DR: This paper revisited the classic discussion of the endogenous choice of a price or a quantity contract, but in a mixed duopoly, and found that choosing the price contract is a dominant strategy for both firms, whether the goods are substitutes or complements.

Journal ArticleDOI
TL;DR: This paper found that countries with high-IQ populations enjoy less corruption and that intelligent people have longer time horizons than average people, and proposed that this is due to their longer time horizon.

Journal ArticleDOI
TL;DR: In this article, a modified version of the Granger causality test proposed by Toda and Yamamoto is used to investigate causality between GDP and healthcare expenditure in OECD countries, and the findings indicate that bidirectional Granger causal is predominant.

Journal ArticleDOI
TL;DR: This paper used a unique data set of trust game replications to validate the commonly used “trust” question from the World Values Survey and found that trust as measured by the WVS is positively correlated with experimentally measured trust.

Journal ArticleDOI
TL;DR: This article investigated parochial altruism, the combination of in-group altruism and out-group hostility, in an experimental conflict game preceded by a prisoners' dilemma, and found that the data are consistent with parochially altruism but cannot be explained by ingroup pro-sociality or outgroup hostility alone.

Journal ArticleDOI
TL;DR: This article found that undervaluation does not affect the tradable sector, but does lead to greater domestic savings and investment, as well as employment, for developing countries, and that, in particular, for the developing countries of India and Brazil, it leads to higher domestic savings, investment, and employment.

Journal ArticleDOI
TL;DR: The authors assess how other US aid agencies and non-US donors reacted to MCC decisions and find that positive signaling effects tend to dominate possible substitution effects not only for overall US aid but also for multilateral donors.

Journal ArticleDOI
TL;DR: This article showed that under sufficiently strong network effects this result is reversed, i.e. the mode of strategic delegation in general depends on more variables apart from whether managers’ strategies are complements or substitutes.

Journal ArticleDOI
TL;DR: In this article, a direct measure of imported materials by industry for the United States in 1997 is presented, showing that there is a correlation of 0.68 between the offshoring shares made with and without the proportionality assumption, and a higher correlation when the shares are value weighted.

Journal ArticleDOI
Karlo Kauko1
TL;DR: In this paper, the authors analyzed the deterioration of bank credit quality during the recent financial crisis in a cross-national sample and showed that rapid credit growth in 2000-2005 predicted the relative amount of non-performing loans only if it was combined with a current account deficit.

Journal ArticleDOI
TL;DR: In this article, the authors suggest that rejection of the unit root hypothesis should be interpreted as evidence that a statistically significant proportion of the units are stationary and that the economic importance of the rejection can be measured by the magnitude of this proportion.

Journal ArticleDOI
TL;DR: Using a panel of international student test scores, 1980-2000, panel fixed effects estimates suggest that government spending decentralization is conducive to student performance, but the effect does not appear to be mediated through levels of, or decentralization in, educational spending.