policy implications

tage of the la er is that they can explain the continuous yield curve that is typical for modern financial markets, but which is at odds with the old preferred-habitat assump- tion of totally disconnected bond markets (Li and Wei, 2013). Furthermore, modern term structure models include a unique stochastic discount factor that prices duration risk consistently across the yield curve: since risk-averse investors require excess returns for bearing duration risk, those models can explain why longer-term rates regularly exceed the average future short rate. However, a shortcoming of arbitrage-free term structure models, the CCAPM, and most workhorse DSGE models is that any change in the sup- ply of bonds that is unrelated to economic fundamentals has no effect on bond yields. 24 This is precisely the crucial innovation of the limited participation model of Vayanos and Vila (2009): although equilibrium spot yields can still be expressed as affine functions of common risk factors, changes in asset quantities do have an effect on bond yields. Policy Implications The limited participation assumption embedded in the preferred- habitat theory of the term structure entails a risk premium that is a function of the risk bearing capacity of the marginal bond market investor. Consequently, shocks to availa- ble asset quantities affect the term structure and constitute a determinant of bond yields in addition to current and future short rates. This generates a rich set of implications for the transmission of monetary policy. Most importantly, it provides the opportunity for central bank purchases to affect long-term yields through a direct impact on risk premia. Whether and how these channels contributed to the effectiveness of recent unconventi- onal monetary policy measures will be the subject of the following chapters.

The paper examines the demand for narcotic drugs, based on Becker (1968), as purported rational behavior of human beings. The results from sampling surveys in eight provinces in Thailand in 2014, representing nationwide drug users/addicts, show that the demand for narcotics (amphetamines, ice drug, and marijuana) are price inelastic (between -0.533 and -0.701), as well as normal goods. The key econometric coefficients in models A and B are 0.192 and 0.0467, respectively, and an increase in income will lead to an increase in the demand for narcotics. In addition, factors affecting the demand for narcotics are the age and age squared of the user, friendship, family member relationship, social relationship, reasons for drug use, risk behavior, and expected punishment. Public policy implications are also proposed and analysed.

This simple example already holds some exemplary policy relevance. W e refer to Axelrod’s (1984/2006) older EGT-based approach to the evolution-of-cooperation in repeated PDs, a simple formal reflection of his 1980s complex multi-strategy simulations, which have triggered a surge in the use of PD-SGs and simulations ever since (e.g., Lindgren 1997; Kendall et al. 2007). 31 Note that only an evolutionary interpretation will render the particular policy implications of a static analytical approach (as given below) relevant as a starting point for more specific CE policy implications and more consistent with structural emergence and idiosyncratic process within complexity theory than with mainstream interpretations. We will try to show that even such a relatively simple approach provides relevant first insights that then extend into policy implications from more complex network- and agent-based approaches (see section 5).

The potential of digital money to replace currency in the payment for retail goods and its ability to flow freely across international borders has alarmed central bankers, the media, and scholars. There are rumors that central banks will lose control over the monetary aggregates, and, even worse, that digital money will alter foreign exchange rates, disturb money supplies, and encourage an overall financial crisis (Tanaka 1996). Opinions on this issue could not be more diverse. Ely (1996), for example, suggests that, fundamentally, digital money is no different from all other forms of money that exist today; consequently, the monetary policy implications of digital money are nil.

There are several policy implications. First, a simultaneous-equation model is more appropriate than a single-equation method because the supply of bank loans can be clearly identified. Second, expansionary monetary policy through a lower policy rate or open market purchases of government bonds is expected to increase bank loan supply. Although the coefficients of bank deposits and the policy rate have the expected sign and are both significant at the 1% level, the impact of a change in the policy rate is more directly measurable than the effect of a change in bank deposits because banks may have other avenues to raise funds and deposits in case of monetary tightening. Third, the recent upward trend of the KRW/USD exchange rate suggests that it would have a negative impact on bank loan supply.

With a view to providing information on the above mentioned emerging issues, this study examines the current profile of the urban poor and the urban low income, especially in Hanoi and Ho Chi Minh cities in Vietnam, and some key structural relationships linking their poverty/income status with their characteristics and policy variables and on this basis proposes policy implications for urban poverty. Although there are a large number of studies on poverty in Vietnam, research evidence on urban poverty is quite scarce. Perhaps the most detailed study of urban poverty is Oxfarm and ActionAid Vietnam (2008), which provides qualitative assessment of poverty. However, this study is based on a participatory approach without representative surveys. It is not possible extrapolate this study’s findings beyond sites where the surveys were carried out.

The Health of the Aging Malaysian Policy Implications Med J Malaysia Vcl 42 Nc 3 September 1987 THE HEALTH OF THE AGING MALAYSIAN POLICY IMPLICATIONS PAUL C Y CHEN SUMMARY In Malaysia, the elderly are[.]

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Perpetrator costs of juvenile crime included the expen- ditures for juvenile offenders who committed violent crimes against other juveniles and adults. The costs as- sociated with adult [r]

even an equalisation of incomes may leave substan- tial inequities in the “important” entities. The other is the di Y culty of identifying the principles that ought to guide income distribution independently of what it is that people can buy with their incomes and the moral significance of their purchases. For example, if it is said that health care ought to be allocated in proportion to need, then the income redistribution must account for the di V erent needs of, say, those with ischaemic heart disease, those needing continuous nursing, those chronically disabled, and the costs of services required. These needs and the cost of meeting them must then become part of the criteria for appropriate income redistribution. If income distribution policy is developed independently of the specific concerns that inequity raises, what is its ethical justification? On the other hand, if there are specific distributive concerns, why not focus policy specifically on them?

In contrast to Angeletos and Pavan (2007), we argue that even when the central planner corrects the coordination incentives of agents to the socially optimal level with a tax policy, the equilibrium attention allocation and the use of information may still be not socially optimal. The key to understanding this argument is to recall that multiple equilibria may arise. Consider the case where the socially optimal degree of coordina- tion α ∗ is higher than the private value of coordination α and it is so high that there exist multiple solutions in the central planner’s social welfare optimization problem. It is obvious that the central planner picks the solution that gives rise to the highest social welfare. In a decentralized economy, with a policy similar to that proposed in Angeletos and Pavan (2007), the central planner can incentivize agents to value the co- ordination as much as it does, but it is still undetermined on which equilibrium agents coordinate. The planner needs another set of tools that help direct agents to coordinate on the social welfare maximizing equilibrium.

The interaction between uncertainty and financial shocks is toxic not only for the financial sector but also for the real economy by leading to a profound welfare reduction in the society. The most notable and acute example for this situation is the Great Recession. After the global crisis, sustaining financial stability and preventing financial fragility came to prominence besides inflation and output gap stabiliza- tion. However, there is considerable uncertainty about the correct specification of the financial markets. Furthermore, uncertainty may have profound effects on the conduct of monetary policy, leading policymakers to purposefully deviate from cer- tainty equivalence. Some sources of uncertainty suggest that monetary policy should be more aggressive, while others can justify a cautious approach. Quantifying how best to respond to economic developments under uncertainty requires knowledge of the type and degree of uncertainty.

should, however, be reminded that Greece industrialized in the early post-war years and experienced stagnation and significant structural problems for two decades until the mid-1990s. The Greek economy, after a long period of fiscal and monetary imbalances, has improved steadily over the last 8 years, as the government has tightened policy with the goal of achieving fiscal discipline and price stability. The Stability and Growth Pact[1] commits Greece to move towards a budgetary position close to balance or surplus to prevent budget deficits from exceeding the 3 percent ceiling, while the implementation of the euro-area monetary policy by the European Central Bank (ECB) results on price stability[2]. In 2003 the Greek economy continued to perform quite strongly. The GDP growth rate for 2003 is estimated to be 4 percent, well above the European average. The main driving forces of the economic activity was private consumption as well as private and public investment. Investment spending remained linked to the financial flows from the EU Structural Funds, the accelerating preparations for the Olympics, along with strong private investment.

From 2.8, the determinants of the rate of acceleration of the inflation rate are the common slope of the family of .short-run Phillips curves, the rate at which the unemployment rate cha[r]

This, in fact, is just another way of stating that a credible threat of punishment does deter crime-at least some forms of crime."1 6 For the theory of general prevention experience abou[r]

Because things like corruption are difficult to measure and define does not mean they can or should be ignored in a political setting. The implication of corruption at the highest levels of the Victoria Police had notable political impact as shown above. It can be seen clearly how this complex set of events incorporated various abuses of office, most of which related to the misuse of information in a highly politicised environment. At a different level and in a different setting, corruption surrounded the life and death of Carl Williams. His actual death, according to the Victorian Ombudsman, amounted to the failure of a system to adequately protect him (Brouwer 2011) – not so much corruption as incompetence. However, Williams’ murder further reinforced public perceptions that Victoria is corrupt and the solutions, as Johnston (2012) alluded to anti-corruption efforts, are political processes. Only the Yarra brothels case reflects classical elements of what academics and anti-corruption practitioners would call corruption, and this resulted in a criminal conviction (McKenzie and Beck 2011b). Even in this, politics had played a part of the process, with the policy decision to

In the United States, several states have made policy decisions regarding whether and how to use familial searching of the Combined DNA Index System (CODIS) database in criminal investigations. Familial searching pushes DNA typing beyond merely identifying individuals to detecting genetic relatedness, an application previously reserved for missing persons identifications and custody battles. The intentional search of CODIS for partial matches to an item of evidence offers law enforcement agencies a powerful tool for developing investigative leads, apprehending criminals, revitalizing cold cases and exonerating wrongfully convicted individuals. As familial searching involves a range of logistical, social, ethical and legal considerations, states are now grappling with policy options for implementing familial searching to balance crime fighting with its potential impact on society. When developing policies for familial searching, legislators should take into account the impact of familial searching on select populations and the need to minimize personal intrusion on relatives of individuals in the DNA database. This review describes the approaches used to narrow a suspect pool from a partial match search of CODIS and summarizes the economic, ethical, logistical and political challenges of implementing familial searching. We examine particular US state policies and the policy options adopted to address these issues. The aim of this review is to provide objective background information on the controversial approach of familial searching to inform policy decisions in this area. Herein we highlight key policy options and recommendations regarding effective utilization of familial searching that minimize harm to and afford maximum protection of US citizens.

A further point of consideration for policy makers to bear in mind relates to commitment. If people are sufficiently aware that they suffer from a self-control problem then at the planning stage they will have some idea that they will engage in procrastination/prepropriation at the point of carrying out decisions, and might be able to take actions to help them stay in control. For example, a field study of savings behaviour by Ashraf et al. (2006) reported in an aptly-titled paper “Tying Odysseus to the mast” found that savings rates of those individuals offered special accounts that allowed for some commitment to monthly saving were significantly higher than for individuals left to their own devices. In relation to gym attendance discussed earlier, another explanation is that people buy a monthly membership to sink the financial cost of going to the gym that encourages them to go more than they otherwise would. If people are presented with an opportunity at the planning stage to either tie their hands in respect of their future decision, or to alter their future incentives making it more favourable to complete the task they plan to undertake when the time arrives, individuals who are sufficiently aware of their self-control problems can overcome them. Providing such commitment opportunities is a simple way to help people make better decisions that are in their long-term interests.

ICT has a great role as decision support system to the farmers. Through ICT, farmers can be updated with the recent information about agriculture, weather, new varieties of crops and new ways to increase production and quality control. The dissemination of adequate, efficient and tailored technologies related to agro-climatic zone, size of farm and soil type etc. to the farmers is deficient in Indian agriculture and it is the real challenge in front of policy makers in India 3 .

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