South African Exporters and the Global Crisis: Intensive Margin Shock, Extensive Margin Hangover

2015 ◽  
Vol 84 (2) ◽  
pp. 183-198 ◽  
Author(s):  
Marianne Matthee ◽  
Thomas Farole ◽  
Tasha Naughtin ◽  
Neil Rankin
Keyword(s):  
South African ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Global Crisis

The Diffusion of Product Innovations

2018 ◽  
Author(s):  
Paul Stoneman ◽  
Eleonora Bartoloni ◽  
Maurizio Baussola
Keyword(s):  
Extensive Margin ◽  
Intensive Margin ◽  
Industry Sector ◽  
Product Innovations ◽  
Market Product ◽  
Principal Finding ◽  
Considerable Period

This chapter explores the patterns of adoption and use of original and new-to-market product innovations. Three levels of diffusion are identified: (i) the spreading of first use across countries (the extensive margin); (ii) the spreading of first use across users within countries (the intensive margin); and (iii) increasing intensity of use by adopters (firms or households). The principal finding is that diffusion often takes a considerable period of time, both across and within countries. Movement on the intensive margin continues for many years after diffusion on the extensive margin is completed. Intra-firm or household diffusion is also time-intensive, differs by industry sector, country, and technology, and continues even after inter-firm or household diffusion is complete. In addition, the diffusion of the production of product innovations may eventually mean that countries that were early producers are eventually replaced by countries that were late producers.

Political parties in Canada: What determines entry, exit and the duration of their lives?

2018 ◽  
Vol 26 (5) ◽  
pp. 543-554 ◽  
Author(s):  
J Stephen Ferris ◽  
Marcel-Cristian Voia
Keyword(s):  
Political Parties ◽  
Political Party ◽  
Public Funding ◽  
Hazard Model ◽  
Parametric Models ◽  
Extensive Margin ◽  
Finite Mixtures ◽  
Entry And Exit ◽  
Intensive Margin ◽  
Economic Circumstance

Two margins of political party life in Canada since Confederation (1867) are analyzed—the extensive margin involving entry and exit (together with party turnover or churning) and the intensive margin determining survival length. The results confirm many hypotheses advanced to explain entry and exit—the importance of social and religious cleavage, election institutions, and economic circumstance. More novel are the findings that public election funding and periods with larger immigration flows have reinforced established parties at the expense of entrants and smaller sized parties. The intensive margin uses a discrete hazard model with discrete finite mixtures to confirm the Duverger-type presence of two distinct long-lived political parties surrounded by a fringe of smaller parties. Both parametric and semi-parametric models concur in finding that public funding and higher immigration flows are as successful in extending the life of established parties as in discouraging entry and exit.

scholarly journals Pan[dem]ic! Rational Risk Avoidance During a Health Pandemic

2021 ◽  
Author(s):  
Edward N Okeke
Keyword(s):  
Physical Examination ◽  
Health Workers ◽  
Primary Data ◽  
Risk Compensation ◽  
Extensive Margin ◽  
Negative Effects ◽  
Risk Avoidance ◽  
Intensive Margin ◽  
Present Evidence ◽  
Reduce Risk

During a health pandemic health workers have to balance two competing objectives: their own welfare vs. that of their patients. Intuitively, attending to sick patients during a pandemic poses risks to health workers because some of these patients could be infected. One way to reduce risk is by reducing contact with patients. These changes could be on the extensive margin, e.g., seeing fewer patients; or, more insidiously, on the intensive margin, by reducing the duration/intensity of contact. This paper studies risk avoidance behavior during the Covid-19 pandemic and examines implications for patient welfare. Using primary data on thousands of patient-provider interactions between January 2019 and October 2020 in Nigeria, I present evidence of risk compensation by health workers along the intensive margin. For example, the probability that a patient receives a physical examination has dropped by about a third. I find suggestive evidence of negative effects on health outcomes.

Physical Harm Reduction in Domestic Violence: Does Marijuana Make Assaults Safer?

2020 ◽  
pp. 088626052096187
Author(s):  
Jacob Kaplan ◽  
Li Sian Goh
Keyword(s):  
Domestic Violence ◽  
Harm Reduction ◽  
Alcohol Intoxication ◽  
Extensive Margin ◽  
Difference In Differences ◽  
Intensive Margin ◽  
Marijuana Legalization ◽  
Dependent Variables ◽  
Marijuana Decriminalization ◽  
Serious Injuries

Studies on the effect of marijuana on domestic violence often suffer from endogeneity issues. To examine the effect of marijuana decriminalization and medical marijuana legalization on serious domestic assaults, we conducted a difference-in-differences analysis on a panel dataset on NIBRS-reported assaults in 24 states over the 12 years between 2005 and 2016. Assaults disaggregated according to situation and extent of injury were employed as dependent variables. We found that while the total number of assaults did not change, decriminalization reduced domestic assaults involving serious injuries by 18%. From a harm reduction perspective, these results suggest that while the extensive margin of violence did not change, the intensive margin measured by the seriousness of assaults were substantially affected by decriminalization. This result may be partially explained by reductions in offender alcohol intoxication and weapon-involved assault.

scholarly journals Margins of Multinational Labor Substitution

2010 ◽  
Vol 100 (5) ◽  
pp. 1999-2030 ◽  
Author(s):  
Marc-Andreas Muendler ◽  
Sascha O Becker
Keyword(s):  
Eastern Europe ◽  
Western Europe ◽  
Central And Eastern Europe ◽  
Multinational Enterprise ◽  
Integrated Approach ◽  
Nonparametric Identification ◽  
Extensive Margin ◽  
Intensive Margin

Employment at a multinational enterprise (MNE) responds to wages at the extensive margin, when an MNE enters a foreign location, and at the intensive margin, when an MNE operates existing affiliates. We present an MNE model and conditions for parametric and nonparametric identification. Prior studies rarely found wages to affect MNE employment. Our integrated approach documents salient labor substitution for German manufacturing MNEs and removes bias. In Central and Eastern Europe, most employment responds at the extensive margin, while in Western Europe the extensive margin accounts for around two-thirds of employment shifts. At distant locations, MNEs respond to wages only at the extensive margin. (JEL F23, J23, J31, R32)

scholarly journals What Determines Exports of Luxury Products? The Case of Cognac

2017 ◽  
Vol 12 (1) ◽  
pp. 37-58 ◽  
Author(s):  
Antoine Bouët ◽  
Charlotte Emlinger ◽  
Viola Lamani
Keyword(s):  
Gross Domestic Product ◽  
Descriptive Statistics ◽  
Domestic Product ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Endogeneity Bias ◽  
Luxury Products ◽  
The Impact ◽  
Extensive Margin Of Trade ◽  
Jel Classifications

AbstractThis paper analyzes the determinants of Cognac brandy exports using a unique database on Cognac shipments to more than 140 destinations between 1996 and 2013. We use this database to construct descriptive statistics concerning the evolution of Cognac exports during this period. We also construct a database of protectionist policies that affect worldwide Cognac exports. We analyze the determinants of Cognac exports and base our empirical strategy on Heckman's (1979) procedure. We estimate successively the impact of geographical, demand and policy factors on the extensive margin of trade and the intensive margin of trade. We also control for the possibility of an endogeneity bias on the probability of trade. We show that i) as with other luxury products, the elasticity of Cognac exports to distance is negative, significant, and relatively small, while the elasticity to gross domestic product (GDP) is positive, significant, and relatively large; and ii) average customs duties do not have a significant impact on the intensive margin but significantly and positively affect the probability of trade. We discuss this last result and correct the endogeneity bias using tax revenues of importing countries in percentage of GDP as an instrument. (JEL Classifications: F10, F14)

scholarly journals Firms, Informality, and Development: Theory and Evidence from Brazil

2018 ◽  
Vol 108 (8) ◽  
pp. 2015-2047 ◽  
Author(s):  
Gabriel Ulyssea
Keyword(s):  
Equilibrium Model ◽  
Heterogeneous Firms ◽  
Development Theory ◽  
Counterfactual Analysis ◽  
Extensive Margin ◽  
Natural Setting ◽  
Policy Changes ◽  
Intensive Margin

This paper develops and estimates an equilibrium model where heterogeneous firms can exploit two margins of informality: (i) not register their business, the extensive margin; and (ii) hire workers “off the books,” the intensive margin. The model encompasses the main competing frameworks for understanding informality and provides a natural setting to infer their empirical relevance. The counterfactual analysis shows that once the intensive margin is accounted for, firm and labor informality need not move in the same direction as a result of policy changes. Lower informality can be, but is not necessarily associated with higher output, TFP, or welfare. (JEL D22, E26, H26, J46, O14, O17)

scholarly journals IMPACT EXPORT DIVERSIFICATION ON EXCHANGE RATE REGIME CHOICE

2017 ◽  
Vol 2 (2) ◽  
pp. 25
Author(s):  
Eka Putri Mayangsari
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Positive Impact ◽  
Exchange Rate Regime ◽  
Extensive Margin ◽  
Export Diversification ◽  
Intensive Margin ◽  
The Exchange Rate ◽  
Emerging And Developing Countries ◽  
The Impact

ABSTRACT The choice of exchange rate regime is the most relevant decision in the economic world that has to be faced by the economic authority until now. Exchange rate regime that is applied by one country become a controversial debate after the Asia’s crisis in the year 1997-1998, especially for developing countries and emerging economies in Asia. The purpose of this research is to see the impact of export diversification, intensive margin and extensive margin to the choice of the exchange rate regime in nine emerging and developing countries in Asia 1991-2014.This research uses the panel logistic regression model to analyze the two model that are used in the research; they are: model 1 (the impact of export diversification to the exchange rate regime),and model 2 (the impact of extensive margin and intensive margin to the exchange rate regime. To avoid and to lessen the chances of endogeneity problem therefore, all of the independent variables and the control variable must be lagged in one period.The results of the regression shows that export diversification have a significant positive impact on the exchange rate regime. When export diversification is decomposed into intensive margin and extensive margins, the result shows that the extensive margins also have a significant positive impact towards the exchange rate regime, while the intensive margin does not show any significant impact towards the exchange rate regime choice. Keywords: exchange rate regime, export diversification, intensive margin, extensive margin, emerging and developing countries in Asia. 

scholarly journals Identifying the determinants of South Africa’s extensive and intensive trade margins: A gravity model approach

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Marianne Matthee ◽  
Maria Santana-Gallego
Keyword(s):  
Gravity Model ◽  
Negative Impact ◽  
Positive Impact ◽  
Export Growth ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Product Mix ◽  
Factors Affecting ◽  
Wide Range ◽  
Export Product

Background: The significance of the paper is twofold. Firstly, it adds to the small but growing body of literature focusing on the decomposition of South Africa’s export growth. Secondly, it identifies the determinants of the intensive and extensive margins of South Africa’s exports – a topic that (as far as the authors are concerned) has not been explored before.Aim: This paper aims to investigate a wide range of market access determinants that affect South Africa’s export growth along the intensive and extensive margins.Setting: Export diversification has been identified as one of the critical pillars of South Africa’s much-hoped-for economic revival. Although recent years have seen the country’s export product mix evolving, there is still insufficient diversification into new markets with high value-added products. This is putting a damper on export performance as a whole and, in turn, hindering South Africa’s economic growth.Methods: A Heckman selection gravity model is applied using highly disaggregated data. The first stage of the process revealed the factors affecting the probability of South Africa exporting to a particular destination (extensive margin). The second stage, which modelled trade flows, revealed the variables that affect export volumes (intensive margin).Results: The results showed that South Africa’s export product mix is relatively varied, but the number of export markets is limited. In terms of the extensive margin (or the probability of exporting), economic variables such as the importing country’s GDP and population have a positive impact on firms’ decision to export. Other factors affecting the extensive margin are distance to the market (negative impact), cultural or language fit (positive impact), presence of a South African embassy abroad (positive impact), existing free trade agreement with Southern African Development Community (positive impact) and trade regulations and costs (negative impact). In terms of the intensive margin (or the factors influencing the volume of exports), there are strong parallels with the extensive margin, with the exception being that the time involved in exporting has more of an impact than documentary requirements.Conclusion: Among the factors contributing to South Africa’s exports having largely developed in the intensive margin are a general lack of market-related information, infrastructural weaknesses (both of a physical and technological nature) and a difficult regulatory environment – all of which add to the cost and time involved in exporting. Policymakers have long spoken about the need for the country to diversify its export basket, but now talk about needs to give way to action. The government and its economic partners need to arrive at a common vision of an export sector that will be able to expand into new products and markets, be an active participant in global value chains and deliver sustainable jobs.

scholarly journals The Effects of Political Institutions on the Extensive and Intensive Margins of Trade

2019 ◽  
Vol 73 (4) ◽  
pp. 755-792 ◽  
Author(s):  
In Song Kim ◽  
John Londregan ◽  
Marc Ratkovic
Keyword(s):  
Political Institutions ◽  
Extensive Margin ◽  
Intensive Margin ◽  
Interpersonal Contact ◽  
Extensive And Intensive Margins ◽  
Political Networks ◽  
Block Trade ◽  
Lasso Estimator ◽  
Trade Partners ◽  
Extensive Margin Of Trade

AbstractWe present a model of political networks that integrates both the choice of trade partners (the extensive margin) and trade volumes (the intensive margin). Our model predicts that regimes secure in their survival, including democracies as well as some consolidated authoritarian regimes, will trade more on the extensive margin than vulnerable autocracies, which will block trade in products that would expand interpersonal contact among their citizens. We apply a two-stage Bayesian LASSO estimator to detailed measures of institutional features and highly disaggregated product-level trade data encompassing 131 countries over a half century. Consistent with our model, we find that (a) political institutions matter for the extensive margin of trade but not for the intensive margin and (b) the effects of political institutions on the extensive margin of trade vary across products, falling most heavily on those goods that involve extensive interpersonal contact.

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