Fiscal and Monetary Institutions in Central, Eastern and South-Eastern European Countries

This paper studies the role of fiscal and monetary institutions in macroeconomic stability and budgetary control in central, eastern and south-eastern European countries (CESEE) in comparison with other OECD countries. CESEE countries tend to grow faster and have more volatile output than non-CESEE OECD countries, which has implications for macroeconomic management: better fiscal and monetary institutions are needed to avoid pro-cyclical policies. The paper develops a Budgetary Discipline Index to assess whether good fiscal institutions underpin good fiscal outcomes. Even though most CESEE countries have low scores, the debt/GDP ratios declined before the crisis. This was largely the consequence of a very favourable relationship between the economic growth rate and the interest rate, but such a favourable relationship is not expected in the future. Econometric estimations confirm that better monetary institutions reduce macroeconomic volatility and that countries with better budgetary procedures have better fiscal outcomes. All these factors call for improved monetary institutions, stronger fiscal rules and better budgetary procedures in CESEE countries.

Monetary cost -efficient query distribution in ISDN -connected heterogeneous databases

Current technology permits connecting local networks via high-bandwidth telephone lines. Central coordinator nodes may use Intelligent Networks to manage data flow over dialed data lines, e.g. ISDN, and to establish connections between LANs. This dissertation focuses on cost minimization and on establishing operational policies for query distribution over heterogeneous, geographically distributed databases. Based on our study of query distribution strategies, public network tariff policies, and database interface standards we propose methods for communication cost estimation, strategies for the reduction of bandwidth allocation, and guidelines for central to node communication protocols. Our conclusion is that dialed data lines offer a cost effective alternative for the implementation of distributed database query systems, and that existing commercial software may be adapted to support query processing in heterogeneous distributed database systems. ^

Aid, growth, policies and fragility

The impact of aid on per capita income growth has been a particularly controversial topic among researchers and policy-makers alike. Most studies agree that growth would be lower in the absence of aid. This is evident from comprehensive literature surveys of aid and growth studies, including Hansen and Tarp (2000), Morrissey (2001), McGillivray et al. (2006), Mekasha and Tarp (2011) and Clemens et al. (2012). There is no such agreement in this literature regarding what might be described as the contingencies on which the impact of aid on growth is partially dependent. Debate over this topic is intensive and a failure to reach agreement over it is arguably the principal failing of the aid–growth literature owing to the potential guidance such agreement could provide for the selection of interventions aimed at improving aid effectiveness. Debate on aid–growth contingencies commenced after publication of the pioneering econometric investigation of Burnside and Dollar (1997, 2000). Burnside and Dollar multiplicatively interacted aid with a measure of policy, and found that aid only had a positive impact on growth in developing countries with good fiscal, monetary, and trade policies. Subsequent studies have sought to test the robustness of the Burnside and Dollar result, test for the relevance of different contingencies, or both. No study has been able to replicate the Burnside and Dollar result, and as such there is widespread concern in the research community over its robustness.

Performance determinants For Swedish Financial Monetary Institutions: Panel Data evidence between 2010-2014.

Due to the rapid changes that governs the Swedish financial sector such as financial deregulations and technological innovations, it is imperative to examine the extent to which the Swedish Financial institutions had performed amid these changes. For this to be accomplish, the work investigates what are the determinants of performance for Swedish Financial Monetary Institutions? Assumptions were derived from theoretical and empirical literatures to investigate the authenticity of this research question using seven explanatory variables. Two models were specified using Returns on Asset (ROA) and Return on Equity (ROE) as the main performance indicators and for the sake of reliability and validity, three different estimators such as Ordinary Least Square (OLS), Generalized Least Square (GLS) and Feasible Generalized Least Square (FGLS) were employed. The Akaike Information Criterion (AIC) was also used to verify which specification explains performance better while performing robustness check of parameter estimates was done by correcting for standard errors. Based on the findings, ROA specification proves to have the lowest Akaike Information Criterion (AIC) and Standard errors compared to ROE specification. Under ROA, two variables; the profit margins and the Interest coverage ratio proves to be statistically significant while under ROE just the interest coverage ratio (ICR) for all the estimators proves significant. The result also shows that the FGLS is the most efficient estimator, then follows the GLS and the last OLS. when corrected for SE robust, the gearing ratio which measures the capital structure becomes significant under ROA and its estimate become positive under ROE robust. Conclusions were drawn that, within the period of study three variables (ICR, profit margins and gearing) shows significant and four variables were insignificant. The overall findings show that the institutions strive to their best to maximize returns but these returns were just normal to cover their costs of operation. Much should be done as per the ASC theory to avoid liquidity and credit risks problems. Again, estimated values of ICR and profit margins shows that a considerable amount of efforts with sound financial policies are required to increase performance by one percentage point. Areas of further research could be how the individual stochastic factors such as the Dupont model, repo rates, inflation, GDP etc. can influence performance.