Progress in economics research Volume 14 / Albert Tavidze, editor.

Format:

Book

Contributor:

Tavidze, Albert.

Series:

Progress in economics research ; v. 14

Language:

English

Subjects (All):

Economics.

Economics--Research.

Economics--Mathematical models.

Physical Description:

x, 277 p. : ill. (some col.).

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

International applications and examples of economic progress are invaluable in a troubled world with economic booms bursting like so many penny balloons. Globalization, outstanding and jobless recoveries present economic issues of concern to millions. This title spans the globe presenting some of the leading research in economics.

Contents:

Intro

PROGRESS IN ECONOMICS RESEARCH, VOLUME 14

CONTENTS

PREFACE

Chapter 1VALUATING CASH FLOWS IN AN INFLATIONARYENVIRONMENT: THE CASE OF WORLD BANK1

Abstract

Introduction

Section One: Approaches to Valuation in an InflationaryEnvironment

Section Two: A Review

Section Three: Implicit Assumptions for Identical NPVs

1. No Taxes

2. All Cash Excess Is Distributed to the Equity and Debt Holders

3. The Price Increases that Actually Occur (Current or Nominal) will beEqual to the Inflation Rate or the Relative or Real Increases are Zero,Included in the Current or Nominal Discount Rate

4. Income and Payments for Goods and Services are in Cash and there areNo Credit Transactions

5. No Salvage Value

6. There Is no Price-Demand Elasticity Effect

7. The Discount Rate at Current or Nominal Prices Has to Be Exactly Equal to(1+ ir)(1+ if)-1 and at constant and real prices the discount rate has to beequal to ir, the real rate of return.

8. The Cost of Debt Kd, has to be Deflated

Section Four: Tax Savings (TS) and Its Relevance in Valuation

Section Five: The World Bank Case

Description of the Model

Common Practice

Valuation with Constant Prices Methodology

Using Constant Leverage in the WACC Calculation when It Is not Constant

Calculation of the Cost of Capital

Inconsistency in the Values

Overestimation of the "Correct" Value

Section Six

A "Proper" Solution

Tariffs Recalculated

Value Using Nominal Prices

A Summary

Section Seven: Concluding Remarks

Appendix 1

Appendix 2

Appendix 3

Appendix 4

Appendix 5

Appendix 6

Appendix 7

Appendix 8

Appendix 9

Appendix 10

References

Chapter 2DOES THE ADOPTION OF INFLATION TARGETINGAFFECT MARKET VOLATILITY?THE CASE OF ISRAEL

1. Introduction.

2. Market Volatility as a Financial Soundness Indicator

2.1. Relevant Analytical Aspects Related to Financial Soundness Indicators

2.2. Proposed Market Volatility Indicator

2.3. Comparison with Alternative Indicators

Duration Indicators

Risk Appetite Indicators

3. Market Volatility in Israel, 1992-2000

3.1. Exchange Rate, Interest Rates, and Stock Prices:Evolution and Volatility Patterns

3.2. A Market Volatility Indicator for Israel

4. A Multivariate-GARCH Model for Israel

4.1. Multivariate GARCH Modeling of Market Volatility for Israel

Data

Tests

Results

Out-of-Sample Data

4.2. Incorporation of MVI into the Multivariate GARCH Model

5. Conclusions

Chapter 3WHEN POINT ESTIMATES MISS THE POINT:STOCHASTIC MODELING OF WTO RESTRICTIONS*

The Stochastic Model

The Stochastic Process

Results and Discussion

Concluding Remarks

Chapter4NONLINEARTOOLSFORANALYZINGANDFORECASTINGFINANCIALTIMESERIES:ANAPPLICATIONTOUSINTERESTRATES

1.Introduction

2.Methodology

2.1.ReconstructionofDynamicsbytheMethodofTimeDelays

2.2.DeterminingtheDimensionofaTimeSeries

2.3.RecurrencePlotAnalysis

2.3.1.WhiteNoise

2.3.2.RandomWalkwithDrift

2.3.3.ChaoticTimeSeries

2.3.4.StructuralBreak

2.4.LocalPredictionMethods

2.4.1.NearestNeighborPredictor

2.4.2.LocallyConstantPredictor

2.4.3.LocallyLinearPredictor

2.5.AssessingStatisticalSignificancewithSurrogateData

3.ApplicationtoUSInterestRates

3.1.Data

3.2.PreliminaryResults

3.2.1.SummaryStatistics

3.2.2.TestforIndependence

3.3.VisualRecurrenceAnalysis

3.4.DimensionAnalysis

3.5.Prediction

3.5.1.Predictors

3.5.2.MeasuringForecastAccuracy

3.5.3.SurrogateDataAnalysis

3.5.4.Results

4.Conclusion

References.

Chapter 5THE CHOICE OF EXCHANGE RATE REGIMESIN TRANSITION ECONOMIES:EVOLUTION AND DETERMINATION

1. Introduction

2. Exchange Rate Regimes in Transition Economies:Classification and Evolution

2.1. Classification of Exchange Rate Regimes

2.2. Evolution of Exchange Rate Regimes: Is There "Hollowing-Out"of the Middle?

Transition Matrix

Tests for the "Hollowing-Out" Hypothesis

Steady-State Distributions

3. Determination of Exchange Rate Regimes in TransitionEconomies

3.1. The Model

3.2. Data and Variables

3.3. Empirical Results

Results of the Static Model

Results of the Dynamic Model

4. Conclusions

Appendix

Explanatory Variables

Chapter 6EXPORTING, CROSS-BORDER INVESTMENTAND EMPLOYMENT DYNAMICS:AN EMPIRICAL INVESTIGATION

I. Introduction

II. Multinationality, Exporting and Business Performance:Some Theoretical Issues

III. Multinationality Exporting and Employment:A Selective Review of the Empirical Literature

IV. Database Construction and Some Sample Characteristics

V. Non-parametric Analysis

VI. Modelling Employment Growth Differentials

VII. In Search of a Causal Relationship between Exporting,Cross-Border Investment and Employment Growth

VIII. Conclusion

Chapter 7THE HICKSIAN NATIONAL INCOME OF CAMBODIA,1988-2004

2. Cambodia's Economic Development: Historical Backgroundand Recent Developments

2.1. Pre-1953 Independence

2.2. Post-1953 Independence to the 1993 Elections

2.3. Post-1993 Elections

3. Theoretical and Empirical Overview of Green GDP

3.1. Theoretical Developments

3.2. The Green GDP Methodology Used in the Cambodian Study

3.3. Empirical Overview of Green GDP Studies

4. Valuation methods Used to Calculate Cambodia's HicksianNational Income.

4.1. Human-Made Capital Depreciation (HCD)

4.2. Defensive and Rehabilitative Expenditures (DRE)

4.3. Natural Capital Depletion (NCD)

Valuing the Cost of Deforestation

Valuing the Cost of Overfishing

Valuing the Cost of Soil Erosion

Valuing the Cost of Air Pollution

5. Results of the SNDP Study

5.1. Cambodia's Real GDP and Hicksian National Income

5.2. Component Items of Cambodia's Hicksian National Income

6. Resource Depletion Issues

6.1. Forestry Issues

6.2. Fisheries Issues

7. Concluding Remarks

Chapter 8STAR-GARCH MODELS FOR STOCK MARKETINTERACTIONS IN THE PACIFIC BASIN REGION,JAPAN AND US

2. Star Models

2.1. Representation of STAR Models

2.2. Hypothesis Testing in STAR Models

2.3. Estimation and Diagnostic Tests in STAR Models

2.4. Evaluating the Forecasting Performance of STAR Models

3. GARCH Models

4. Outliers in STAR and GARCH Models

4.1. Effects of Outliers on STAR Models

4.2. Effects of Outliers on GARCH Models

5. Empirical Analysis

5.1. Data

5.2. Results

6. Conclusion

Acknowledgments

Chapter 9REACTION OF THE BRAZILIAN STOCK MARKETTO POSITIVE AND NEGATIVE SHOCKS

2. The Brazilian Stock Market

3. Theoretical Background

4. Empirical Evidence

5. Data and Methodology

6. Empirical Results

6.1. Impact of Events on Return Volatilities

6.2. Cumulative Abnormal Returns

Conclusion

Chapter 10THE LESSONS TO BE LEARNT FROM THE GREATPOST-COMMUNIST CHANGE

Lesson One

Lesson Two

Lesson Three

Lesson Four

Lesson Five

Lesson Six

Lesson Seven

INDEX.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Includes bibliographical references and index.

ISBN:

1-61209-907-6

OCLC:

701717546