Excessive Financing Costs in a Representative Agent Framework

2016 ◽  
Vol 8 (2) ◽  
pp. 215-237 ◽  
Author(s):  
Maya Eden
Keyword(s):  
Financial Intermediation ◽  
Quantitative Interpretation ◽  
Representative Agent ◽  
Pecuniary Externality ◽  
Percentage Points ◽  
Financing Costs ◽  
Input Prices

This paper highlights a pecuniary externality that results in excessive financing costs. Firms borrow to finance purchases of an inelastically supplied input, bidding up its price. Since higher input prices necessitate more debt obligations, this leads to an increase in intermediation costs. A quantitative interpretation of the model suggests that it is optimal to tax financial intermediation by increasing the borrowing rate by 3 percentage points. (JEL E13, E44, G21, G32, H21, H25)

Oil, Rates and Inflation

2005 ◽  
pp. 4-20
Author(s):  
E. Yasin
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Raw Materials ◽  
Gdp Growth ◽  
Business Activity ◽  
Demand For Money ◽  
Percentage Points

Currency inflow in Russia from raw materials exports allows taking into account high business activity to assimilate growing money supply transforming it into economic growth. Fall in business activity as a result of pressure on business led to saturation of demand for money. This considerably increases the danger of inflation growth and requires sterilization of excess money supply including the usage of the Stabilization Fund. According to the author's estimates, corresponding losses in GDP growth will equal 1-2 percentage points per year.

Commissioning brownstock washing controls for an evaporator limited mill

TAPPI Journal ◽  
2016 ◽  
Vol 15 (7) ◽  
pp. 459-464
Author(s):  
RICARDO SANTOS ◽  
PETER HART
Keyword(s):  
Control System ◽  
Negative Impact ◽  
Black Liquor ◽  
Pulp Mill ◽  
Control Program ◽  
Separation Point ◽  
Water Control ◽  
Oxygen Delignification ◽  
Percentage Points

An automated shower water control system has been implemented to reduce the volume and variability of weak black liquor being sent from the pulp mill to the evaporators. The washing controls attempt to balance the need for consistent and low soda carryover to the bleach plant with consistently high weak black liquor solids being sent to the evaporators. The washer controls were implemented on two bleachable grade hardwood lines (one with oxygen delignification, one without oxygen delignification) and one pine line. Implementation of the control program resulted in an increase in black liquor solids of 0.6 percentage points for the hardwood lines. Significant foam reduction was realized on the pine line since the pine black liquor solids were able to be consistently maintained just below the soap separation point. Low black liquor solids excursions to the evaporators were eliminated. Bleach plant carryover was stabilized and no negative impact on chemical consumption was noticed when controlling weak black liquor solids to recovery.

The Effect of Taxation and Corruption on Firm Growth: An Empirical Investigation for Vietnam

2016 ◽  
pp. 5-29
Author(s):  
Bich Le Thi Ngoc
Keyword(s):  
International Development ◽  
Firm Growth ◽  
Empirical Investigation ◽  
Manufacturing Firms ◽  
Economic Management ◽  
Tax Rate ◽  
Percentage Point Increase ◽  
Percentage Points ◽  
Point Increase ◽  
The Impact

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.

Financial Intermediation and Growth: Theory and Some Cross-Country Evidence

1997 ◽  
Vol 36 (4II) ◽  
pp. 855-862
Author(s):  
Tayyeb Shabir
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Intermediation ◽  
Empirical Estimates ◽  
Financial Liberalisation ◽  
Cross Country ◽  
Level Of Significance ◽  
The Relationship ◽  
Positive Effect ◽  
Theoretical Developments

Well-functioning financial markets can have a positive effect on economic growth by facilitating savings and more efficient allocation of capital. This paper characterises some of the recent theoretical developments that analyse the relationship between financial intermediation and economic growth and presents empirical estimates based on a model of the linkage between financially intermediated investment and growth for two separate groups of countries, developing and advanced. Empirical estimates for both groups suggest that financial intermediation through the efficiency of investment leads to a higher rate of growth per capita. The relevant coefficient estimates show a higher level of significance for the developing countries. This financial liberalisation in the form of deregulation and establishment and development of stock markets can be expected to lead to enhanced economic growth.

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