In an example with monopoly final and intermediate goods firms and substitutable primary and intermediate inputs, it is shown that there exist turnover taxes that yield more revenue than any feasible value-added tax. Second, simultaneously higher welfare, revenue and output are possible with the...

In an example with monopoly final and intermediate goods firms and substitutable primary and intermediate inputs, it is shown that there exist turnover taxes that yield more revenue than any feasible value-added tax. Second, simultaneously higher welfare, revenue and output are possible with the...

This article analyzes the dynamics of electoral promises towards the population and interest groups, focusing on the reaction of voters to the proximity of a candidate to interests groups. In a two-period electoral competition model, we show that a (re)election seeking politician must consider...

The Economic Freedom of the World (EFW) index measures the extent to which nations allow their citizens economic freedom. The freedom of people to trade internationally is a featured area within the index. One component of this area is the size of the trade sector, or rather the deviation of a...

The dominance of conglomerates accords urgency to the need to develop a more consolidated approach to supervising the financial system. Modifications to the legal framework, including passage of a proposed Omnibus Banking Bill, would enable the supervisory authorities to better implement...

China's Shanghai and Shenzhen stock markets have been on a bullish run since the end of the split-share reform. The sharp gains are raising worries about stock overvaluations. We investigate the determinants of booming stock markets in modelling PER (price-earning ratio) over the available...

This study examined the Efficiency Market hypothesis in its weak form using run tests, unit root tests and the Ljung-Box Q-statistics. The motivation was to determine whether foreign exchange rate returns follow a random walk. The data covered the period starting January 1994 to June 2007 for...

This paper documents the co-evolution of social capital, measured as generalized trust, and financial development over the twentieth century. I use cross generations inherited trust of Americans with foreign ancestors to track trust in their home country in 1913 and 1990. The paper documents a...

This paper examines the impact of the convergence of Hong Kong Accounting Standard 40 (HKAS 40) with the International Financial Reporting Standard (IFRS) on the stock prices of firms in the property industry. Using a sample of 22111 firm-day observations, we show that the new standard has a...

This study measures the speed with which the aggregate stock market in 49 countries responds to global market-wide public information. Our empirical results show that there are wide variations in the aggregate price delay values over time and across countries. Subsequent panel analysis confirms...