In this paper, we develop and explore the implications of an economic model that links the incidence of terrorism in a country to the economic circumstances facing that country. We briefly sketch out a theory, in the spirit of Tornell (1998), that describes terrorist activities as being initiated by groups that are unhappy with the current economic status quo, yet unable to bring about drastic political and institutional changes that can improve their situation. Such groups with limited access to opportunity may find it rational to engage in terrorist activities. The result is then a pattern of reduced economic activity and increased terrorism. In contrast, an alternative environment can emerge where access to economic resources is more abundant and terrorism is reduced. Our empirical results are consistent with the theory. We find that for democratic, high income countries, economic contractions (i.e. recessions) can provide the spark for increased probabilities of terrorist activities.
The Albanian economy after the 90'S entered in the tracks of the market economy. Entering into a new phase or a new economic system did not come as a result of an evolution or evolutionary process moving from feudalism to capitalism and from capitalism in its highest stage in imperialism but as a result of a revolutionary process1 which was followed by the overthrow of the socialist system. So Albanian economy moved from a fully centralized to a decentralized system based on private property and free initiative. This passage was made through a most constrained and not gradual passing. In this shift there are many positive but also negative issues. These advantages and disadvantages were also reflected in the attitudes of this economy facing the world global recession. In this section we will analyze the Albanian economic model facing global recession in 2008 and in the following years. We will perceive the economic model through the degree of privatization of economic factors, and not by the rate of application of political instruments to achieve macroeconomic indicators. We will treat the mentioned ones in light of Classical and Keynesian theory. DOI:10.5901/ajis.2013.v2n3p27
The advances that have been characterizing spatial econometrics in recent years are mostly theoretical and have not found an extensive empirical application yet. In this work we aim at supplying a review of the main tools of spatial econometrics and to show an empirical application for one of the most recently introduced estimators. Despite the numerous alternatives that the econometric theory provides for the treatment of spatial (and spatiotemporal) data, empirical analyses are still limited by the lack of availability of the correspondent routines in statistical and econometric software. Spatiotemporal modeling represents one of the most recent developments in spatial econometric theory and the finite sample properties of the estimators that have been proposed are currently being tested in the literature. We provide a comparison between some estimators (a quasi-maximum likelihood, QML, estimator and some GMM-type estimators) for a fixed effects dynamic panel data model under certain conditions, by means of a Monte Carlo simulation analysis. We focus on different settings, which are characterized either by fully stable or quasi-unit root series. We also investigate the extent of the bias that is caused by a non-spatial estimation of a model when the data are characterized by different degrees of spatial dependence. Finally, we provide an empirical application of a QML estimator for a time-space dynamic model which includes a temporal, a spatial and a spatiotemporal lag of the dependent variable. This is done by choosing a relevant and prolific field of analysis, in which spatial econometrics has only found limited space so far, in order to explore the value-added of considering the spatial dimension of the data. In particular, we study the determinants of cropland value in Midwestern U.S.A. in the years 1971-2009, by taking the present value model (PVM) as the theoretical framework of analysis.
The last decades are characterized more and more by the catching-up of former communist and developing countries especially in Central and Eastern Europe as well as in East Asia. But which economic system is able to develop an economic successful catching-up combined with human development and poverty reduction? In this paper the author argues that especially New Industrializing Countries (NICs) can learn a lot from developed market economies, not only in the positive sense but also from their mistakes. NICs are already quite developed and reached a level of functioning institutions which allow focussing on developed role models. Therefore, in this paper first catching-up strategies of Less Developed Countries (LDCs) and NICs in the past are described briefly. Then, common experiences from OECD countries and different role models are discussed. As possible role models for NICs five country groups were established: (1) Anglo-Saxon Free Market Economy, (2) Nordic Welfare State, (3) Social Market Economy, (4) Mediterranean Capitalism, and (5) Asian Capi-talism. As can be shown, emerging economies can use the experiences of these countries to improve their catching-up strategies. Therefore, advantages and disadvantages of the role models are discussed in comparative perspective. It results, that no single peak economy exists. But the role models can give political deciders an impression which model may be helpful to find adaptive institutions for the own catch-ing-up process.
Tax compliance is an issue that can be traced back to the introduction of taxes, which is the reason such compliance remains a significant topic in the current literature of academia and practice. Prior studies on the topic of tax compliance or non-compliance can be categorized into two, namely economic and social/psychological theories. In a more serious note, tax evasion has remained a key issue among governments all over the globe, with Jordan being no exception. Jordan has undertaken different fiscal measures to increase compliance in the domestic front in the past decades, but based on annual reports, the country is still experiencing a considerable increase in net public debt and fiscal deficit that can be traced back to the increased tax non-compliance rate. This is specifically true in the case of sales tax in Jordan. To compound the matter further, literature concerning the determinants of sales tax compliance as well as other determinants that drive non-compliance is still scarce, with a universal tax compliance model able to explain the issue with clarity still being elusive. Hence, this work proposed the determinants of sales tax compliance in the context of small and medium-sized enterprises (SMEs) in Jordan, extending Fischer's model of tax compliance, and adding the moderating role of tax knowledge and direct effect of tax service quality. This study proposed a model encapsulating the social, psychological and economic factors to provide insight into the sales tax compliance of Jordanian SMEs.
In Indonesia, the various mining commodities and the amount of resources and reserves are promising, as evidence there are numerous large-scale mining companies and small-scale mines in operation. In 2014 there were 41 companies that held the CoW (mineral contract of work) and 13 companies active in production; and 76 CCoW (coal contract of work) holders, and 57 companies active in production. As well as this, there are more than a thousand small-scale mining companies active for mining commodities. However, mining commodities provide a resource that is not renewable. This will potentially lead to prolonged problems when mining companies do not adhere to good mining practices, particularly in the closing stages of the mine. Mine closure is the final stage in the process of mining activity. In certain circumstances, closure activities can take a long time and of course can have huge costs. In fact, at this stage, the company is no longer making profit, only incurring costs for the project closure. To prevent problems that may arise after the mine is closed, such as abandoned post-mining land, and the bankruptcy of the company at the end of mining operations, etc., then through specific rules, ie rules of the Minister of Energy and Mineral Resources No. 18 of 2008, the mining company in Indonesia must provide a certain amount of money as a financial guarantee to finance the planned closure project; it must be approved by the government before entering this phase. However, problems are encountered in practice. The government may become overloaded because they have to quickly make a decision on the closure plan submitted by the company. So a tool is needed that can be used to assess the feasibility as soon as the mine closure plan is proposed by a company, these tools can provide an overview and a variety of options for decision making. In this dissertation methodology was developed to create a systems dynamic model of mine closure. The model developed can be applied to a variety of mining methods and for various mining commodities. The model can be used to determine the closure costs, to choose the closure project-financing scenario, and up to micro and macro economic analysis of mining activities in the region. In the case studies conducted in this dissertation, the best scenario of the mine closure planning is to include the everlasting fund in the form of time deposits, and convert the post-mining land for agriculture. The amount of deposit money is about USD 358,986,500 should be spare at the end of mine production, and the total of mine closure cost to be approximately USD 440,757,384. Agriculture, the economic sector as a substitute for the mining sector, the added value to the GRDP (Gross Regional Domestic Product) is about 0.25 % / a for the province, and 1.68 % for the regency, but the contribution of the mining sector to GRDP was 30% / a at province scale, and 90% / a at regency scale. So that the substitution value is less significant to GRDP growth. However, this scenario is the best scenario among others, due to consideration is the certainty of ecological and economic sustainability. it is the best goal of corporate social responsibility to the environment in the post- mining land.
Spain is a country made up with a multilevel structure of government. The Autonomous Communities are the institutions responsible for providing education services, health and social services. However, taxes collection is mainly done by the national administration. The current system of financing this multi-level government is not completely satisfactory. For instance, there are large disparities in per capita funding among the 17 regions. Some communities can fund basic services using just 55% of the resources that they are transferred, whereas others need to invest up to 80%. The case of the Valencian Region is the most dramatic, because, despite being in the queue of per capita spending on essential public services, it suffers a structural deficit by insufficient income. This article discusses the causes of this situation and outlines a fair reform of the current system, which also enables correct the anomaly that represents that the Valencian Region being the only region of Spain that having a per capita income below the average (12%) be a net contributor to the system ; España es un país compuesto, con una estructura de gobierno multinivel. Las Comunidades Autónomas son las encargadas de proveer los servicios de educación, sanidad y servicios sociales. La recaudación de recursos, sin embargo, se realiza fundamentalmente por la administración central. El actual sistema de financiación de este gobierno multinivel no acaba de ser satisfactorio. Por ejemplo, entre las comunidades autónomas, algunas pueden financiar los servicios básicos empleando sólo el 55% de los recursos que le son transferidos, mientras otras precisan invertir hasta el 80%. El caso de la Comunitat Valenciana es el más dramático, pues, a pesar de estar a la cola en gasto por habitante en servicios públicos fundamentales, genera un déficit estructural por la insuficiencia de ingresos. En este artículo se esbozan las causas de esta situación y se propone una reforma del actual sistema que permita además subsanar la anomalía que supone que la Comunitat Valenciana sea la única región de España que teniendo una renta per cápita por debajo de la media (12%) sea contribuyente neto del sistema.
The paper attempts an explanation of the alleged "lack of adequate economic models" to predict and eventually avoid - through certain policy recommendations - the recurrent global or individual economic or financial and fiscal crises. In the author's opinion, in the controversy over the "rational expectation approach" and the design of dynamic and stochastic models, have been neglected some important underlying issues in economic performance, such as the very crucial institutional enforcement basis on which economic agents operate, including particularly government agents. The Public Choice School and modern Institutional Economics can help to understand the limitations and possibilities faced when seeking to improve the economic theory in its status as "science". ; Departamento de Economía
Considering soil as an ecosystem, we build a simple bio-economic model with two interelated stocks. One is the soil organic matter, basis of several ecosystem services, and the other one is the stock of nutrients directly contributing to the plant's biomass elaboration. Humification process of the crops residues contributes to the SOM, while mineralisation process contributes to the stock of nutrients. The production function is a Linear Liebig with plateau. The economic part of the model relies on the long term profit maximisation in the context of private management. We retained two controls: the mineral fertilization adding to the stock of nutrients, and the rate of biomass given back to soil. By combining both controls, we identified management regimes and defined the set of stationaries states. Going beyong that standard step of analysis, we simulated optimal time path for differents initial conditions and different set of parameter values. We specifically focused on the role of the price of fertilizers relative to the price of the agricultural products. Results show that private management of soil natural capital drives to the quasi depeletion of SOM. As a consequence, there is a need for public incentives to promote ecosystems services non supported by market.
We suggest a two-country, two-sector model as a basis for the control of global climate change in which the dynamic time path of the world economy is analysed under the provision that the outcomes of a negotiation game generate the global optimal solution.
In: Nixon , E , Rose , H & Wall , R 2017 , ' Treatment strategies for sheep scab : an economic model of farmer behaviour ' , Preventive Veterinary Medicine , vol. 137 , no. A , pp. 43-51 . https://doi.org/10.1016/j.prevetmed.2016.12.015
Ovine psoroptic mange (sheep scab) is a debilitating and damaging condition caused by a hypersensitivity reaction to the faecal material of the parasitic mite Psoroptes ovis. Farmers incur costs from the use of prophylactic acaricides and, if their sheep become infected, they incur the costs of therapeutic treatment plus the economic loss from reduced stock growth, lower reproductive rate, wool loss and hide damage. The unwillingness of farmers to use routine prophylactic treatment has been cited as a primary cause of the growing incidence of sheep scab in the United Kingdom (UK) since the disease was deregulated in 1992. However, if farmers behave rationally from an economic perspective, the optimum strategy that they should adopt will depend on the risk of infection and the relative costs of prophylactic versus therapeutic treatment, plus potential losses. This calculation is also complicated by the fact that the risk of infection is increased if neighbours have scab and reduced if neighbours treat prophylactically. Hence, for any farmer, the risk of infection and optimum approach to treatment is also contingent on the behaviour of neighbours, particularly when common grazing is used. Here, the relative economic costs of different prophylactic treatment strategies are calculated for upland and lowland farmers and a game theory model is used to evaluate the relative costs for a farmer and his/her neighbour under different risk scenarios. The analysis shows that prophylaxis with organophosphate (OP) dipping is a cost effective strategy, but only for upland farmers where the risk of infection is high. In all other circumstances prophylaxis is not cost effective relative to reliance on reactive (therapeutic) treatment. Hence, farmers adopting a reactive treatment policy only, are behaving in an economically rational manner. Prophylaxis and cooperation only become economically rational if the risk of scab infection is considerably higher than the current national average, or the cost of treatment is lower. Should policy makers wish to reduce the national prevalence of scab, economic incentives such as subsidising the cost of acaricides or rigorously applied financial penalties, would be required to make prophylactic treatment economically appealing to individual farmers. However, such options incur their own infrastructure and implementation costs for central government.
During the last 25 years, the economy of the Baltic States has been developing in the conditions of sovereignty, both de facto and de jure. This period has been sufficient to identify regular patterns in the national economic models. Studies into the nature of the economic development of the Baltic States have a considerable practical and scientific significance. On the one hand, the three Baltic States are a part of the postSoviet space. The nature, success or failures of their economies contribute to a more accurate assessment of Russia's development. On the other hand, it is the second decade of the Baltic States' EU membership, and the countries' experience is very relevant. The article identifies and analyses key characteristics of the Baltic States' economic model. The author puts forward a hypothesis on two stages of the economic transformation undergone by the Baltic States. The first stage is characterised by a combination of transformation and modernisation whereas the second — by transformation accompanied by a number of destructive trends in the economy. The current economic model demonstrates limited stability, partly due to deliberately severed economic ties with Russia.
Computer models of the economy are regularly used to predict economic phenomena and set financial policy. However, the conventional macroeconomic models are currently being reimagined after they failed to foresee the current economic crisis, the outlines of which began to be understood only in 2007-2008. In this article we analyze the most prominent of this reimagining: Agent-Based models (ABMs). ABMs are an influential alternative to standard economic models, and they are one focus of complexity theory, a discipline that is a more open successor to the conventional chaos and fractal modeling of the 1990s. The modelers who create ABMs claim that their models depict markets as ecologies, and that they are more responsive than conventional models that depict markets as machines. We challenge this presentation, arguing instead that recent modeling efforts amount to the creation of models as ecological machines. Our paper aims to contribute to an understanding of the organizing metaphors of macroeconomic models, which we argue is relevant conceptually and politically, e.g., when models are used for regulatory purposes.
In my topic, I would like to present theoretical approaches and concrete direction of the new economic model that Albania should follow, based on the current situation that Albania experienced in global economy. In this paper, initially, I will present an overview of the Albanian economic transition and then I will suggest a heap of conclusions based on 20 years of history of success and failures. Primarily,concerning Europe means to have clear concepts, in order to build and to consolidate a system of economic and social-capitalistcomprehension. Have you ever thought to raise a question, and more we tried to make a qualitative analysis of policy which responses to specific questions or queries following correctly: what is the most appropriate model for Albania capitalism?Are we building a coherent and structured model or are we building a mosaic of elements of capitalism for Albania, whose portrait we do not know any more and that we didn`t ''projected" yet and no one else has done it in a long-term vision? The best response is a response expected of the type `as far as our final objective is the European Union, and then our model of capitalism will be European capitalist model, then the problem starts here. Capitalism has some basic principles and rules that form the core of it, but on the other hand each country is profiling capitalism according to the specifications of his choices. France has chosen the model of "capitalism of State", Germany and the Nordic countries "social-democraticcapitalism", ''liberal capitalism of England'' as English-Saxon one, etc.In this regard the experts or politicians, should not reduce any debate, analysis or summary only of certain elements of the system of market, individual freedom, comparative advantages, social policy, which means the role and presence of the state in the economy, system of taxation, social security and the system of pensions, in order to build a port in its entirety capitalist model that we really need in Albania. DOI:10.5901/mjss.2017.v8n1p210
