CHANGING BUSINESS MODELS IN INTERNATIONAL BANK FUNDING

This paper investigates the foreign funding mix of globally active banks. Using BIS international banking statistics for a panel of 12 advanced economies, we detect a structural break in international bank funding at the onset of the great financial crisis. In their postbreak business model, banks rely less on cross‐border liabilities and, instead, tap funds from outside their jurisdictions by making more active use of their subsidiaries and branches, as well as interoffice accounts within the same banking group. (JEL C32, F65, G21)     

ROBUST ESTIMATION OF SMALL‐AREA MEANS AND QUANTILES

Small‐area estimation techniques have typically relied on plug‐in estimation based on models containing random area effects. More recently, regression M‐quantiles have been suggested for this purpose, thus avoiding conventional Gaussian assumptions, as well as problems associated with the specification of random effects. However, the plug‐in M‐quantile estimator for the small‐area mean can be shown to be the expected value of this mean with respect to a generally biased estimator of the small‐area cumulative distribution function of the characteristic of interest. To correct this problem, we propose a general framework for robust small‐area estimation, based on representing a small‐area estimator as a functional of a predictor of this small‐area cumulative distribution function. Key advantages of this framework are that it naturally leads to integrated estimation of small‐area means and quantiles and is not restricted to M‐quantile models. We also discuss mean squared error estimation for the resulting estimators, and demonstrate the advantages of our approach through model‐based and design‐based simulations, with the latter using economic data collected in an Australian farm survey.     

Multivariate Approach for Comparative Evaluations of Customer Satisfaction with Application to Transport Services

In problems related to evaluations of products or services (e.g. in customer satisfaction analysis) the main difficulties concern the synthesis of the information, which is necessary for the presence of several evaluators and many response variables (aspects under evaluation). In this article, the problem of determining and comparing the satisfaction of different groups of customers, in the presence of multivariate response variables and using the results of pairwise comparisons is addressed. Within the framework of group ranking methods and multi criteria decision making theory, a new approach, based on nonparametric techniques, for evaluating group satisfaction in a multivariate framework is proposed and the concept of Multivariate Relative Satisfaction is defined. An application to the evaluation of public transport services, like the railway service and the urban bus service, by students of the University of Ferrara (Italy) is also discussed.     

A multivariate time series model for the analysis and prediction of carbon monoxide atmospheric concentrations

We use a Bayesian multivariate time series model for the analysis of the dynamics of carbon monoxide atmospheric concentrations. The data are observed at four sites. It is assumed that the logarithm of the observed process can be represented as the sum of unobservable components: a trend, a daily periodicity, a stationary autoregressive signal and an erratic term. Bayesian analysis is performed via Gibbs sampling. In particular, we consider the problem of joint temporal prediction when data are observed at a few sites and it is not possible to fit a complex space–time model. A retrospective analysis of the trend component is also given, which is important in that it explains the evolution of the variability in the observed process.     

The banking industry in Jordan

This paper examines the structure and performance of the banking industry in Jordan during the period 2000–2006. The Jordanian banking industry is free of extensive state ownership and government direction of the economy. These positive features are reflected by the absence of dominant state-owned banks and by the limited use of directed credit programs, interest rate controls, and credit ceilings. The banking industry is well developed, with bank assets representing 239.80 percent of the GDP at the end of 2006, which is a high percentage compared with other developing countries in the region.     

Agricultural Exports and the Environment: A Cross‐National Study of Fertilizer and Pesticide Consumption*

Abstract The mass consumption of agrochemicals, including manufactured fertilizers and pesticides, by industrialized agricultural systems worldwide threatens human health and the health of ecosystems. The production of these agricultural inputs is a highly energy‐ and capital‐intensive process, and their application contributes to a variety of direct and indirect impacts on the environment. This study is an analysis of the relationships between international trade in agricultural products and the consumption of these synthetic compounds. Using OLS regression models and data from World Bank and UNFAO, we analyze cross‐national data to examine the relationship between structural factors, such as economic development and export intensity, and both fertilizer and pesticide consumption. The findings are considered from the opposing theoretical perspectives of international political economy (IPE) and neo‐liberal modernization (NLM). The results generally support the claims of IPE and contradict those of NLM, indicating that increases in exports of agricultural products contribute to increases in fertilizer and pesticide consumption within nations. These results call into question policies that promote increased trade liberalization in agricultural products.     

A multiattribute measure of human development

A measure of human development, which is not affected by some relevant drawbacks of the commonly utilized measures, is constructed. It is a function of several attributes associated with various factors — economic, social, environmental — and also includes non-homogeneous attributes. It is non-linear in its variables, so that it includes possible interactions among the attributes. Furthermore, it takes into account public opinion about human development through a well-defined procedure of assessment elicitation. The formulation of the human development function constituting the measure is described when considering just one attribute and then several attributes, and the difference between independence and dependence in assessment is shown. Such a procedure is applied to the measurement of human development in 9 countries of the EU, by using thirteen attributes related to the economic, social and environmental fields as well as to the quality of life.     

Marital disruption and economic well-being: a comparative analysis

Summary.  Though there is a considerable literature concerned with the economic consequences of marital breakdown, there is still substantial disagreement in terms of its magnitude. One of the major problems underlying this debate is how economic well-being is defined. We implement several measures of well-being of monetary and multidimensional nature by using data from the European Community Household Panel. Another issue in this literature concerns selection bias of divorcing couples. We tackle this issue by using a propensity score matching technique combined with a difference-in-differences estimator. Results confirm the importance of the definition of well-being. We find a strong gender bias when using monetary measures but a considerably lower bias, and for some countries non-existent, when using non-monetary indices.