Journal of Advances in Economics and Finance

8

Authors: Marcus T. Allen

Accuracy in the value assessment process in ad valorem property tax systems is of paramount importance to equitable treatment of taxpayers, yet several previous studies suggest that assessors’ opinions of value may be systematically biased. This study uses a large sample of properties that were assessed within one year after an arm’s length transaction with observed prices to test whether task complexity affects the accuracy of assessors’ opinions of value. The results provide evidence that property characteristics and location factors impact the magnitude of assessment error.

13

Authors: Mohammed Ershad Hussain, Mahfuzul Haque

This study seeks to assess the impact of relationship between Money Supply and Per Capita GDP Growth Rate in Bangladesh over the period 1972-2014 with a VECM model. The model is specified with three variables, namely, the percentage of Broad Money to GDP (BMGDP), the Real Interest Rate (RIR) and the Annual Per Capital GDP Growth Rate (GRGDP). Findings suggest that steady BMGDP is associated with GRGDP and money supply has important impact on the rowth rate of output in the long run. The government should maintain consistency and follow “the Taylor rule” to allow money supply to increase at a steady rate keeping pace with the economic growth. Respect to such a rule will help the central bank to avoid the inefficiencies that result from execution of discretionary policy. It also helps to resist the political pressure very much prevalent in Bangladesh and often behind such discretionary policies.

20

Authors: Jan Gunnarsson, Nikola Cikusa, Anca D. Hansen

We examine how corporate governance changes over the industrial life cycle when places commit firms to certain governance structures. Focus is on industries where a significant part of the economic value is created by technological knowledge changing the conditions for corporate financing. The article extends this view to include knowledge needed to accumulate governance capabilities. The board is a crucial governance institution emphasized in the study. We find that changes in this institution depend on shareholders’ concern regarding innovation management. We also find that boards are changed over time to improve the conversational exchange, which is attained by extending the boards with directors holding degrees in engineering. The main finding is that the most successful firms recruit board members from the geographic setting in which they were founded at all stages of the industrial life cycle. The Danish wind turbine industry serves as empirical evidence.

7

Authors: Yu Hsing

Applying the aggregate demand-aggregate supply model and based on a sample during 2000.Q4-2016.Q1, this paper finds that aggregate output in South Korea is negatively affected by real depreciation of the Korean won, the real interest rate and the expected inflation rate are positively associated with government debt as a percent of GDP, lagged U.S. real GDP and growth of labor productivity. A major policy implication is that real depreciation of the Korean won would help exports but cause import costs and domestic inflation to rise and capital outflows.

16

Authors: Hussain Abusaaq, Paul M. Beaumont, Yaniv Jerassy-Etzion

We present a fast and accurate algorithm to compute the maximally smooth instantaneous forward rate curve and the associated spot rate curve for the term structure of interest rates for coupon bearing bonds. The method produces zero pricing errors, constrains initial and terminal conditions of the spot and forward curves and produces the maximally smooth forward rate curve among the class of polynomial spline functions. The algorithm is simple enough to be quickly explained to traders and clients and flexible enough to be easily modified for different types of fixed income security markets. We illustrate the algorithm using on-the-run U.S. Treasury bonds for periods where the yield curve has a normal shape and also when it is inverted.

20

Authors: Hrabrin Bachev

Research on governance of agrarian sustainability is at the beginning stage due to “newness” of the problem, emerging new challenges, fundamental modernization during recent years, “lack” of long-term experiences and relevant data, application of narrow (certain form/management level), one-dimensional, unisectioral, normative, without transaction costs etc. approaches. This paper suggests a modern and practical framework for analyzing and assessing the system of governance of agrarian sustainability. Interdisciplinary New Institutional Economics framework is incorporated and agrarian sustainability is properly defined, principle mechanisms and modes of governance (institutions, market, private, public, hybrid) of agrarian sustainability are classified, and a holistic approach for identifying components and factors, assessing efficiency, and improving governance system is presented. Framework is to be further discussed and improved while its application requires new type of micro and macro-economic data for agrarian agents’ preferences and behavior, activities and efficiency of farming organizations, effects and impacts on social, community and natural environment, etc.