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Gender, Education and Poverty in DR Congo: A Microeconomic Analysis Based on the Oaxaca-Blinder Decomposition
Dieu-Merci Akonkwa Nyamuhirwa
Issue:
Volume 8, Issue 2, June 2019
Pages:
44-48
Received:
9 January 2019
Accepted:
13 February 2019
Published:
29 April 2019
Abstract: This paper analyzes gender, education and poverty in DRC through a Blinder-Oaxaca decomposition approach. The latter was needed in this study to judge the difference in level of consumption expenditure per adult equivalent per day depending on whether the household is headed by a man or a woman. Preliminary results based on the regression of the variable of interest (consumption expenditure per adult equivalent per day) on the endogenous variables considered (the age of the head of the household and his level of education) showed that age of household head is negatively influences the dependent variable when the head of household is a man and positively when it is a woman. It has also been found that educational attainment significantly influences the dependent variable at all levels of the education system considered in the female-headed household group. The decomposition showed that if female heads of household had the same endowments as men then the consumption expenditure per adult equivalent per day would decrease by approximately $ 0.0334. In short, differences in staffing between male and female head of household are more beneficial to the household when the woman participates in the management of the household.
Abstract: This paper analyzes gender, education and poverty in DRC through a Blinder-Oaxaca decomposition approach. The latter was needed in this study to judge the difference in level of consumption expenditure per adult equivalent per day depending on whether the household is headed by a man or a woman. Preliminary results based on the regression of the va...
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About the Profits of an Entrepreneur in the Cost Approach
Sergey Viktorovich Gribovsky
Issue:
Volume 8, Issue 2, June 2019
Pages:
49-54
Received:
18 March 2019
Accepted:
22 April 2019
Published:
15 May 2019
Abstract: The article is devoted to one of the debatable problems of the theory and practice of valuation - the calculating of the profit of an entrepreneur in the cost approach to real estate valuation. Discusses the interpretation of the entrepreneur profit as a fair reward for the investor for the risk of investment in the creation of the property and its relationship with the entrepreneur incentive that is the driving force of the development process. The shortcomings inherent in the cost approach are analyzed: the assumption of the instant creation of land improvements and the impossibility of taking into account the risks of investing in the process of calculating their value. The proposed formula for calculating the profit of the entrepreneur for objects with different levels of risk, amount of funding and construction time, allowing to level these shortcomings.
Abstract: The article is devoted to one of the debatable problems of the theory and practice of valuation - the calculating of the profit of an entrepreneur in the cost approach to real estate valuation. Discusses the interpretation of the entrepreneur profit as a fair reward for the investor for the risk of investment in the creation of the property and its...
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Socioeconomic Determinants of Food Insecurity Among Rural Households in Wolaita Zone, Southern Ethiopia
Ermias Ganamo Gazuma,
Ayana Anteneh Astatike
Issue:
Volume 8, Issue 2, June 2019
Pages:
55-61
Received:
30 April 2019
Accepted:
2 June 2019
Published:
17 June 2019
Abstract: The major aim of this study was to assess the socioeconomic determinants of food insecurity among rural households in Wolaita Zone, Southern Ethiopia. Data for the study was obtained from 168 randomly selected rural households by using an interview schedule. To select sample respondents, the multi-stage sampling technique was used. The Foster-Greer-Thorbecke (FGT) index and binary logistic regression model were used for data analysis. The finding from FGT index showed that about 66.1 percent of households in the study area were found food insecure and the remaining 33.9 percent were found food secure. The depth and severity of food insecurity were found 15 percent and 4.6 percent, respectively. The logistic regression model result revealed that factors such as land size, income from productive safety net program, credit access, farm income, and non-farm income are the statistically significant factors influencing the households’ food insecurity status. Accordingly, access to credit positively affects households’ food insecurity status, whereas the other significant variables affect it negatively. Consequently, improving productivity of land through better production methods, increasing farmers’ participation in safety net programs, Promoting income diversification, Revising credit repayment policies and promoting rural off-farm employment opportunities are suggested to improve the state of food insecurity in the study area.
Abstract: The major aim of this study was to assess the socioeconomic determinants of food insecurity among rural households in Wolaita Zone, Southern Ethiopia. Data for the study was obtained from 168 randomly selected rural households by using an interview schedule. To select sample respondents, the multi-stage sampling technique was used. The Foster-Greer...
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Business Cycle Synchronization and Optimum Currency Areas: The Case of the Economic Community of West African States
Issue:
Volume 8, Issue 2, June 2019
Pages:
62-72
Received:
7 March 2019
Accepted:
22 April 2019
Published:
8 July 2019
Abstract: This study analyzed the degree of business cycles’ synchronization of ECOWAS economies in order to ascertain whether the formation of a broader monetary union in 2020 will be beneficial to the entire region. Annual real GDP growth rate from 1975 to 2015 was de-trended using the Hodrick-Prescott filter (HP) filter to obtain two components- permanent and transitory components. Lastly, cross country correlations of the different components were used to analyze the business cycles of ECOWAS economies. Result from the transitory component shows that the business cycles of WAEMU sub-economies are similar. But on a general note, the correlation coefficients of both components show that the business cycles of ECOWAS economies differ significantly, suggesting that, a broader monetary union involving both WAEMU and WAMZ economies will not be beneficial to the entire ECOWAS region. However, ECOWAS governments can take the risk of forming a monetary union in 2020 since a high probability of addressing a wide range of macroeconomic differentials across the region is incumbent on ex-post conditions, rather than on ex-ante prerequisite conditions that only focuses on the cost of relinquishing monetary autonomy.
Abstract: This study analyzed the degree of business cycles’ synchronization of ECOWAS economies in order to ascertain whether the formation of a broader monetary union in 2020 will be beneficial to the entire region. Annual real GDP growth rate from 1975 to 2015 was de-trended using the Hodrick-Prescott filter (HP) filter to obtain two components- permanent...
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Asymmetry of Long-Short Cost in Derivatives Market, Heterogeneous Beliefs and Stock Price Crash: A Theoretical Model
Yiming Ma,
Juncheng Li,
Yaguang Li,
Ke Gao
Issue:
Volume 8, Issue 2, June 2019
Pages:
73-87
Received:
17 May 2019
Accepted:
Published:
29 July 2019
Abstract: In this paper, we construct a four-period-double-market model in this paper. By including the stock market with short selling restrictions and the derivative market without short selling restrictions but with long-short costs in the model, we study the relationship between the asymmetry of long-short cost in derivative market, investors' heterogeneous beliefs and the stock price crash risk. According to the conclusion of closed solution of our model, the asymmetry of short cost in derivatives market will distort the implied price of derivatives market, which will send a wrong message to stock market and intertwined with investors' heterogeneous beliefs in the stock market. Moreover, under the general equilibrium model, a derivative market with symmetrical long-short cost can completely eliminate the risk of stock price crash. But if the short-selling cost is relative higher than the buying cost, the stock price will be overvalued in the early periods, and the negative events will result in a more serious stock price crash than the single market situation. Our model emphasizes the distorting effect of long-short cost asymmetry on the price discovery and information flow function of derivatives market, and reminds government departments to improve market mechanism and strengthen supervision when promoting the development of derivatives market. The government should actively guide the derivatives market to play its due role in the financial market.
Abstract: In this paper, we construct a four-period-double-market model in this paper. By including the stock market with short selling restrictions and the derivative market without short selling restrictions but with long-short costs in the model, we study the relationship between the asymmetry of long-short cost in derivative market, investors' heterogene...
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