AAYE Working Paper Series

DocumentsDate added

Order by : Name | Date | Hits [ Ascendant ]

Using detailed micro data that measures the deviant behaviors of workers in the business outfit of a Nigerian university, the extent to which these behaviors were influenced by some specific instruments that informs the policy stance of the management of the business outfit, was examined in this paper. The logistic regression technique was applied in testing the empirical model that was informed by the Trevino (1986) ‘interactionist´ model. The policy instrument of moral development, job context and tenure of the worker should be applied with succinct concentration on the deviant behaviour in focus. In essence, one cap does not fit all: implying that adequate consideration should be given to the deviant behaviour being focused on and as such, the applicability of the policy instrument should be observed.

By using fresh macroeconomic data and several empirical approaches, this paper provides new evidence about the leading macroeconomic determinants and dynamics of financial deepening in the CEMAC sub-region. For this purpose, we have undertaken consecutively a theoretical model building, an explanatory analysis and an empirical estimation of a microfounded model. Practically, it consisted to use several complementary econometrical techniques - both static and dynamic panel data econometrics accounting for endogeneity, instrumental variables and principle components analysis- to better isolate and identify the determinants of financial deepening. Our main results, which are robust to multiple estimation approach and consistent with prediction of the Neo Keynesian economics, has led to the following global recommendations: firstly, the CEMAC sub-region authorities should implement expansionary policies of GDP growth rate, population density, savings rate and exchange rate. Secondly, they should review their policy of trade liberalization since it appears to be negatively related to financial deepening. Concerning the dynamics aspect, a convergent dynamics and the feasibility of common monetary policy targeting depth in CEMAC sub-region have been highlighted. This paper is original and actual since it highlighted the leading determinants of financial deepening and thus better financial policy recommendations in a context of a less developed financial system and wrong performance in terms of shared prosperity and inclusive economic growth.


This policy chapter summarises an evolving debate on the effect of foreign aid on corruption and institutions. It entails a series of publications that have been successively motivated by feedbacks from academic and policy making circles. The plethora of papers explores debates sustaining the direct, conditional and indirect effects of foreign aid on institutions. Moreover, another debate on the incidence of foreign aid distortions on corruption is also assessed in light of a recently celebrated literature on development assistance. Overall, the findings show that the effects of foreign aid on corruption and institutions are: directly positive; conditionally positive with a magnitude dependent on initial institutional capacity levels; contingent on fundamental characteristics of development due to heterogeneity and; indirectly positive or negative depending on the transmission mechanism. While the impact of foreign aid uncertainty on corruption is also positive, the sign on governance could change in light of governments´ commitment to increase its dependence on local tax revenues.


Worldwide life insurance regulations are converging towards stochastic valuation of liabilities. Some regulatory framework requires the actuary to estimate the market consistent value of the liabilities. Often, a risk neutral ESG is used to project and discount future liabilities cash flows. Life insurer´s liabilities cash flows are impacted by policyholders´ dynamics: lapses, dynamic lapses, and surrenders. Such dynamics are related to economic variables for which applying risk-neutrality is challenging, to say the least. An alternative approach is to use a real world ESG with deflators. The purpose of this paper is to contribute to the financial economics literature on state-price deflators. In this paper, we compare the calculations of the market value of a call option under the risk neutral valuation (the Q-measure) and the real world valuation with the deflators (The P-measure). We also look at the Market Value of Liabilities, and the Expected Present Value of Future Profits (PVFP) under the risk neutral valuation and the real world valuation with the deflators for a profit-sharing Single Premium Deferred Annuity (SPDA)s subject to a participation rate, a spread on the index earning, and a minimum guarantee rate. The models built for this paper point to the following conclusions Firstly, State-Price Deflators and risk neutral valuation result in equivalent valuation for publicly traded securities; and secondly, State-Price Deflators and risk neutral valuation result in equivalent valuation for non-traded cash flows such as deferred annuities allowing for participation rate in an equity index, a cap and a spread.


The relative positive economic growth experienced by most African countries in the recent decade has come with insufficient demand stimulation. The concern of poverty at the forefront of economic policy, the need for inclusive growth and sustainable development, inter alia, brings forward the inevitable question of the monetary policy responsibility. Accordingly, the monetarist theory that focuses on price stability inherently neglects the demand stimulation aspect of economic prosperity.
Since the mid-1980s, the monetarist school driven by its central aim of fighting inflation and maintaining credibility in markets and economic agents has been priority for monetary authorities (especially in Africa). To this effect, while good results in terms of inflation targeting has been achieved in many African countries; economic growth has sometimes been low. Hence, in light of the above, using a statistical and theoretical debate method, the Credible Monetary Policy (CMP) paradox is traceable to Africa. Accordingly, with the promising economic environment in Africa, we recommend the promotion of a monetary policy oriented toward improving economic growth under the constraint of price stability.
In light of the above view, there are some noteworthy signs such the recent decision by the two CFA zone central banks to either maintain interest rates at a low level or reduce it despite tightening measures of monetary policy taken by the European Central Bank (ECB) earlier in the year. In the same vein, the central bank of South Africa has maintained its policy of low interest rates with an objective of economic expansion.
Since, the 2008 financial crisis, the consolidation of the Federal Reserve´s declared final objective of lowering interest rates and making emergency loans is an eloquent example to reassure African central banks in the choice of the pro-growth monetary policy option.


<< Start < Prev 1 2 3 4 5 6 7 8 Next > End >>
Page 1 of 8


English (United Kingdom)French (Fr)