Showing papers on "Shadow (psychology) published in 2018"
TL;DR: In this article, the authors study how two forces, regulatory differences and technological advantages, contributed to the growth of shadow banks in residential mortgage origination, concluding that traditional banks contracted in markets where they faced more regulatory constraints; shadow banks partially filled these gaps.
584 citations
TL;DR: In this article, the authors present an extended discussion of the latest developments about the existing and new estimation methods of the shadow economy for 158 countries all over the world are presented over 1991 to 2015.
Abstract: We undertake an extended discussion of the latest developments about the existing and new estimation methods of the shadow economy. New results on the shadow economy for 158 countries all over the world are presented over 1991 to 2015. Strengths and weaknesses of these methods are assessed and a critical comparison and evaluation of the methods is carried out. The average size of the shadow economy of the 158 countries over 1991 to 2015 is 31.9 percent. The largest ones are Zimbabwe with 60.6 percent, and Bolivia with 62.3 percent of GDP. The lowest ones are Austria with 8.9 percent, and Switzerland with 7.2 percent. The new methods, especially the new macro method, Currency Demand Approach (CDA) and Multiple Indicators Multiple Causes (MIMIC) in a structured hybrid-model based estimation procedure, are promising approaches from an econometric standpoint, alongside some new micro estimates. These estimations come quite close to others used by statistical offices or based on surveys.
341 citations
TL;DR: In this paper, the authors study how monetary policy in China influences banks' shadow banking activities and develop and estimate the endogenously switching monetary policy rule that is based on institutional facts and at the same time tractable.
Abstract: We study how monetary policy in China influences banks' shadow banking activities. We develop and estimate the endogenously switching monetary policy rule that is based on institutional facts and at the same time tractable in the spirit of Taylor (1993). This development, along with two newly constructed micro banking datasets, enables us to establish the following empirical evidence. Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and hampering the effectiveness of monetary policy on total bank credit. We advance a theoretical explanation of our empirical findings.
259 citations
TL;DR: Wang et al. as discussed by the authors developed a theoretical model to explain the relationship among the environmental regulation, shadow economy, and environmental quality in China, using panel data from 30 provinces for the period of 1998-2012, the generalized method of moments (GMM) method is employed to control for potential endogeneity and introduce dynamic effects.
229 citations
01 Jun 2018
TL;DR: In this paper, various methods used for estimating the size of the shadow economy are evaluated and its strengths and weaknesses are discussed, as well as results each method yields, and the very definition of shadow economy and factors contributing to its growth are presented.
Abstract: This paper presents various methods used for estimating the size of the shadow economy. Each method is evaluated and its strengths and weaknesses are discussed, as well as results each method yields. The purpose of the paper is threefold: Firstly, to demonstrate that there is no single infallible method for estimating the size and development of the shadow economy and results can differ significantly between different approaches. The MIMIC approach, discussed in greater detail, is often used due to its flexibility. Secondly, the paper discusses the very definition of the shadow economy and factors contributing to its growth. Finally, latest estimations of the size of the shadow economies of 143 countries over the period 1996 to 2014 are presented.
86 citations
TL;DR: The Digital Shadow with all of its subsystems is designed as a next generation information system to allow a more efficient operation of value creation systems.
53 citations
Book•
26 Jan 2018
52 citations
Posted Content•
TL;DR: Wang et al. as discussed by the authors developed a stylised shadow banking map for China with the aim of providing a coherent picture of its structure and the associated financial system interlinkages, revealing a marked shift in the relative importance of different shadow banking activities.
Abstract: We develop a stylised shadow banking map for China with the aim of providing a coherent picture of its structure and the associated financial system interlinkages. Five key characteristics emerge. One defining feature of the shadow banking system in China is the dominant role of commercial banks, true to the adage that shadow banking in China is the "shadow of the banks". Moreover, it differs from shadow banking in the United States in that securitisation and market-based instruments play only a limited role. With a series of maps we show that the size and dynamics of shadow banking in China have been changing rapidly. This reveals a marked shift in the relative importance of different shadow banking activities. New and more complex "structured" shadow credit intermediation has emerged and quickly reached a large scale, while the bond market has become highly dependent on funding channelled through wealth management products. As a result, the structure of shadow banking in China is growing more complex.
51 citations
TL;DR: The global expansion of mass schooling has greatly increased opportunities for low-income families, and governments have devoted much effort to equalising access and quality in education systems as mentioned in this paper. But, as a result, the quality of education has been degraded.
Abstract: The global expansion of mass schooling has greatly increased opportunities for low-income families, and governments have devoted much effort to equalising access and quality in education systems. A...
50 citations
30 Oct 2018
TL;DR: The authors found that approximately one-third of all 15-year-old students from 64 countries/economies across the world use shadow education and that students from poorer countries more extensively rely on shadow education than students from wealthier countries after controlling for other variables.
Abstract: Building on the first cross-national study that had demystified various assumptions about the worldwide use of shadow education two decades ago, we analyze data from the 2012 Programme for International Student Assessment to examine the cross-national pattern of the use of shadow education by families in 64 nations and use improved statistical estimation methods. Focusing on fee-paying out-of-school classes, we find a continued, and likely an intensified pattern of the cross-national use of shadow education in the contemporary world. Approximately about one-third of all 15-year-old students from 64 countries/economies across the world use this form of shadow education. Students of higher socioeconomic status, females, and students in urban areas and general programs are more likely to use fee-paying services, while families and students turn to these services to address academic deficiencies in general. In addition, students from poorer countries more extensively rely on shadow education than students from wealthier countries after controlling for other variables. Students in South-Eastern and Eastern Asian countries are more likely to pursue shadow education than their counterparts in many other regions. Implications of these findings for theories of education and society as well as for educational policy in relation to shadow education are discussed.
50 citations
TL;DR: In this paper, the authors find that shadow bank money creation significantly expands during monetary tightening cycles and suggest that monetary tightening could unintentionally increase financial fragility by driving deposits into the uninsured shadow banking sector.
Abstract: I find that shadow bank money creation significantly expands during monetary tightening cycles. This “shadow banking channel” offsets reductions in commercial bank deposits and dampens the impact of monetary policy. Using a structural model of bank competition, I show that the difference in depositor clienteles between commercial and shadow banks quantitatively explains their different responses to monetary policy. Facing a more yield-sensitive clientele, shadow banks pass through more rate hikes to depositors, thereby attracting more deposits when the Federal Reserve raises rates. My results suggest that monetary tightening could unintentionally increase financial fragility by driving deposits into the uninsured shadow banking sector.
01 Jan 2018
TL;DR: The authors examines why Japan has one of the highest enrolment rates in cram schools and private tutoring worldwide and sheds light on the causes of this high dependence on shadow education and its implications for social inequalities, showing that shadow education does not inevitably result in increasing or persisting inequalities, but also inherits the potential to let students overcome their status-specific disadvantages and contributes to more opportunities in education.
Abstract: This book examines why Japan has one of the highest enrolment rates in cram schools and private tutoring worldwide. It sheds light on the causes of this high dependence on ‘shadow education’ and its implications for social inequalities. The book provides a deep and extensive understanding of the role of this kind of education in Japan. It shows new ways to theoretically and empirically address this issue, and offers a comprehensive perspective on the impact of shadow education on social inequality formation that is based on reliable and convincing empirical analyses.
Contrary to earlier studies, the book shows that shadow education does not inevitably result in increasing or persisting inequalities, but also inherits the potential to let students overcome their status-specific disadvantages and contributes to more opportunities in education. Against the background of the continuous expansion and the convergence of shadow education systems across the globe, the findings of this book call for similar works in other national contexts, particularly Western societies without traditional large-scale shadow education markets. The book emphasizes the importance and urgency to deal with the modern excesses of educational expansion and education as an institution, in which the shadow education industry has made itself (seemingly) indispensable.
This book:
• Is the first comprehensive empirical work on the implications of shadow education for educational and social inequalities.
• Draws on quantitative and qualitative data and uses mixed-methods.
• Has major implications for sociological, international and comparative research on the topic.
• Introduces a general theoretical frame to help future research in approaching this under-theorized field.
TL;DR: In this paper, the authors show that a contractionary monetary policy shock has a persistent negative impact on the level of commercial bank assets, but increases the assets of shadow banks and securitization activity.
Abstract: Summary
Using VAR models for the USA, we find that a contractionary monetary policy shock has a persistent negative impact on the level of commercial bank assets, but increases the assets of shadow banks and securitization activity. To explain this “waterbed” effect, we propose a standard New Keynesian model featuring both commercial and shadow banks, and we show that the model comes close to explaining the empirical results. Our findings cast doubt on the idea that monetary policy can usefully “get in all the cracks” of the financial sector in a uniform way.
TL;DR: In this paper, the authors argue that shadow banking improves welfare because it provides a channel to escape excessive regulation that is asymmetrically more valuable for banks with access to efficient investment opportunities, and propose a novel intervention that improves welfare further by taxing shadow activities, subsidizing regulated activities and allowing banks to self-select into being regulated or not.
Abstract: Banking regulation is beneficial because it constrains banks' portfolios to prevent excessive risk taking. But given that regulators usually know less than a bank about its investment opportunities, regulation comes at the cost of foregoing profitable investments. I argue that shadow banking improves welfare because it provides a channel to escape excessive regulation that is asymmetrically more valuable for banks with access to efficient investment opportunities. I propose a novel intervention that improves welfare further by taxing shadow activities, subsidizing regulated activities and allowing banks to self-select into being regulated or not.
TL;DR: This paper investigated the impact of globalisation on the shadow economy using panel data for 119 countries, and found that political globalisation reduces shadow economy, whereas economic and social globalisations have limited statistical support after controlling for important factors that affect the size of shadow economy.
Abstract: We investigate the impact of globalisation on the shadow economy using panel data for 119 countries. Our evidence suggests that globalisation matters in mitigating shadow development. More specifically, we find that political globalisation reduces the shadow economy, whereas economic and social globalisations have limited statistical support after controlling for important factors that affect the size of the shadow economy. Overall, these results are robust after accounting for an alternative measure of the shadow economy, outliers, endogeneity and alternative model specifications.
Book•
31 Oct 2018TL;DR: Schneider et al. as mentioned in this paper developed and tested a theoretical framework of the intergovernmental dimension of responsive governance in the European Union, using evidence amassed over nearly ten years of multi-method research.
Abstract: The EU faces a serious crisis of democratic legitimacy. Citizens believe that the EU is run by distant and non-responsive political elites. The EU's perceived lack of responsiveness to ordinary citizens poses a threat to its very survival. This timely book presents a comprehensive account of how EU governments signal responsiveness to the interests of their citizens over European policies. Schneider develops and tests a theoretical framework of the intergovernmental dimension of responsive governance in the European Union, using evidence amassed over nearly ten years of multi-method research. The findings show that European cooperation in the Council of the European Union takes place in the shadow of national elections. Governments signal responsiveness to their publics by taking positions that are in the interests of politically relevant voters at the national level, defending these positions throughout negotiations in the Council, and seeking appropriate policy outcomes at the EU level.
TL;DR: In this paper, the authors examined the impact of economic freedom on the shadow economy and found that economic freedom is effective at reducing the spread of shadow economy, after disaggregating economic freedom into its five main components.
Abstract: This article examines the impact of economic freedom on the shadow economy. Using panel data on over 100 countries from 2000 to 2015, we find that economic freedom is effective at reducing the spread of the shadow economy. Moreover, after disaggregating economic freedom into its five main components, the results suggest that all aspects of economic freedom significantly mitigate shadow activities with freedom from regulation exhibiting the largest impact. Overall, these findings are robust after accounting for alternate measures of the shadow economy, simultaneity, outliers, and nonlinearities. Thus, countries aiming to combat the spread of shadow activities would benefit from policies that support economic freedom.
TL;DR: The concept of hidden curriculum has become well established as discussed by the authors, addressing the contexts of learning, the actions of students' peers and teachers, and other domains which shape learning but are not...
Abstract: The concept of hidden curriculum has become well established. It addresses the contexts of learning, the actions of students’ peers and teachers, and other domains which shape learning but are not ...
TL;DR: In this paper, the authors argue that shadow banking in developing and emerging countries oscillates between two semantic poles: one definition is typically deployed by scholars for the narrow analysis of non-bank financial intermediation as viable alternative to banking; the other, more recent, circulates in the policy world to capture a new agenda of engineering (securities market-based finance.
Abstract: Shadow banking in developing and emerging countries (DECs) oscillates between two semantic poles. One definition is typically deployed by scholars for the narrow analysis of non-bank financial intermediation as viable alternative to banking. The other, more recent, circulates in the policy world to capture a new agenda of engineering (securities) market-based finance. The second, the paper argues, is the essential but neglected aspect of DECs shadow banking. The ‘shadow banking into market-based finance’ narrative reaffirms the celebratory tone of the financial globalization cum liberalization thesis dominant before the global financial crisis. It seeks to depoliticize contentious debates about capital flows and the constraints that globalized finance poses to development, instead asking DECs to abandon capital controls, encourage portfolio flows, relax the regulatory grip on shadow funding markets and tap into the growing global demand for securities that marks the new age of asset management.
TL;DR: A new but actively growing literature is now emerging at their intersection as discussed by the authors, which is called shadow banking and the Chinese economy, which are two subjects that have independently garnered much attention.
TL;DR: This article examined how two distinct types of international economic engagement (economic openness and participation in International Monetary Fund (IMF) programs) affect the growth of shadow (informal) sectors.
Abstract: The existence of shadow economies is an important, yet understudied, issue for international political economy and development. This study examines how two distinct types of international economic engagement—economic openness and participation in International Monetary Fund (IMF) programs—affect the growth of shadow (informal) sectors. We theorize that increased economic openness will reduce the size of countries’ shadow sectors. More specifically, we posit that eliminating market-distorting trade barriers will decrease the incentives for shadow sector activities such as smuggling. Additionally, we posit that increased participation in global production and supply chains is likely to lead to a positive, “climb to the top” effect on states’ regulatory and labor policies that enhance the prospective benefits associated with formal sectors. Conversely, we argue that participation in IMF structural adjustment programs can lead to great shadow sector activity as IMF-imposed structural conditions might cause significant near-term economic hardship and degrade states’ regulatory capacity. The results from a panel of 145 countries from 1971 to 2012 indicate that economic openness reduces the size of the shadow economy, while participation in IMF programs is significantly related to a larger shadow economy. These findings have important implications for understanding how the divergent forms of international economic engagement might affect shadow economies.
Book•
22 Mar 2018
TL;DR: White-collar crime is defined as economic crime committed by a person of respectability and high social status in the course of an occupation as mentioned in this paper, and it is a specific type of crime.
Abstract: One of the theoretical challenges facing scholars is to develop an accepted definition of white-collar crime. The main characteristic is that it is economic crime committed by a person of respectability and high social status in the course of an occupation. While Edwin Sutherland’s concept of white-collar crime has enlightened sociologists, criminologists, and management researchers, the concept may have confused attorneys, judges and lawmakers. One reason for this confusion is that white-collar crime in Sutherland’s research is both a crime committed by a specific type of person, and it is a specific type of crime. Later research has indicated, as applied in this book, that white-collar crime is no specific type of crime, it is only a crime committed by a specific type of person.
TL;DR: In this paper, the shadow state and the water sector in Jordan are investigated and the current challenges posed by the shadow states to efficient operations of the water institutions as well as wider government, and the difficulties they encounter in responding with reforms in Jordan.
TL;DR: The authors assess differentiated upper secondary education with homogeneous student backgrounds and find that a high concentration of students from families of higher socioeconomic sta... and a high proportion of students who come from families from higher socioeconomic strata.
Abstract: By assessing differentiated upper secondary education with homogeneous student backgrounds, previous studies indicate that a high concentration of students from families of higher socioeconomic sta...
03 May 2018
TL;DR: In this article, the authors show that despite cultural and socio-economic differences, East Asian societies are moving in the same direction in both mainstream and shadow education, albeit with some parts of the region having moved earlier than others.
Abstract: East Asia is perhaps the best-known of the world’s regions for shadow education in the form of both specialist enterprises and informal private tutoring. Japan is known for its juku, South Korea for its hagwons, and Taiwan for its buxiban. These institutions have been prominent in public consciousness for decades. In more recent times, Hong Kong and Mainland China have been “catching up” with other parts of the region.
This chapter begins with statistics showing the scale of shadow education, modes of operation, and socio-economic patterns of demand in the five societies mentioned. It then comments on the interplay between policy discourses in mainstream education and the expansion of shadow education, focusing particularly on commonalities. The chapter shows that despite cultural and socio-economic differences, East Asian societies are moving in the same direction in both mainstream and shadow education, albeit with some parts of the region having moved earlier than others. Policymakers and practitioners can learn from comparisons within and beyond the region. On the theoretical front, the study proposes a preliminary framework for conceptualising convergent policy enactment in societies of similar cultural traits from the perspective of shadow education.
TL;DR: In this paper, the authors explored the structure and motivation of the population to participate in the illegal flow of money and calculated the aggregate economic damage from all types of population incomes that are not undocumented by revenue authorities.
Abstract: The subject matter of the article is a problem that is relevant for developing economies. A legal foundation for economy operation development is consolidated slowly; instead, an illegal flow of money and corruption the population gets actively involved into are expanding. According to official records, the number of unaccounted employees who avoid taxation has exceeded 15 million in Russia. When studying this phenomenon, researchers mainly refer to shadow economy whose scale and financial damage inflicted on the country are known. Population masses involved in the illegal flow of money operate in the shadows, since the latency of corruption processes makes it difficult to explore this phenomenon and invokes sociological methods along with economic methods. The purpose of the article is to show the structure of Russian population’s involvement in the illegal cash flow turnover in terms of three aspects: presence in the shadow economy, involvement in corrupt practices, and concealment of a fraction of income aiming to non-payment of taxes. When solving these problems, the authors were to use the method of applied sociology with a subsequent transformation of aggregated information into empirical indicators by economic methods. Based on the research, the authors have explored the structure and motivation of the population to participate in the illegal flow of money, calculated the aggregate economic damage from all types of population incomes that are not undocumented by revenue authorities. By revealing the latent structure of the illegal cash flow, the research findings enable to more accurately plan priority directions of efforts to be made by fiscal bodies to neutralize the population participation in illegal economic and financial activities.