Relationship Among Reserve Ratio, Government Spending and Economic Growth

The relationship among reserve ration, government spending and economic growth was analyzed. A monetary endogenous growth model is well developed by taking into account the growth-enhancing effects of re- serve-augmenting seigniorage. If the government spends all the seigniorage revenue on the provision of a public input which has positive externality on the private sector’s production, some results to be utterly different from Bronx’s have been obtained: the economy has a unique saddle-balanced growth path, but it has nothing to do with reserve ratio. However, the higher reserve ratio, the faster speed of economic convergence.

Impact of the Political Risk on Food Reserve Ratio:Evidence Across Countries

Using an unbalanced panel data covering 75 countries from 1991 to 2019,the authors explore how the political risk impacts on food reserve ratio.The empirical findings show that an increasing political risk negatively affects food reserve ratio,and the same effects hold for both internal risk and external risk.Moreover,the authors find that the increasing external or internal risks both negatively affect food production and food exports,but external risk does not significantly impact food imports and it positively impacts food consumption,while internal risk negatively impacts food imports and food consumption.The results suggest that most governments have difficulty raising subsequent food reserve ratios in face of an increasing political risk,no matter if it is an internal risk or an external risk although the mechanisms behind the impacts are different.

Assessment of Aged Offshore Jacket Type Platforms Considering Environmental Loads and Degradation Parameters

Offshore steel structures are a common investment in oil and gas industries operating in shallow to medium depth seas.These structures have become increasingly popular since the mid-19th century,with a typical design life of 30-50 years.Despite their popularity,the structural integrity of existing offshore structures remains a controversial topic.Environmental loads and material degradation have been identified as significant factors that can compromise the structural integrity of offshore structures.To address this issue,this study aims to investigate the reserved strength capacity of a selected offshore structure located in the Malaysian Seas.The study will explore the effect of oceanographic data,variations in vertical load,and corrosion on the structure’s main members.To determine the impact of each variable on the reserved strength ratio(RSR)of the structure,several pushover analyses were conducted with different variables.Previous literature has shown little or no relationship between seawater wave height,gravity loads,and corrosion allowance on submerged steel members and the RSR of offshore structures.However,this study aims tofill this gap in knowledge by examining these variables’effects on the RSR of offshore structures.The study’sfindings indicate that even a slight increase in wave height can significantly impact the structure’s RSR due to the increase in lateral loading,potentially leading to severe damage to structural components and the foundation model.Additionally,gravity loads had an adverse effect on the RSR of the structure when more than double the vertical load was added.Corrosion allowance was also found to impact the RSR,particularly when assuming significant wall thickness corrosion in primary members.Overall,thefindings of this study have important implications for the design and maintenance of offshore structures.The results suggest that engineers and operators should pay close attention to the potential impacts of environmental loads,such as wave height and gravity loads,and material degradation,such as corrosion allowance,on the structural integrity of offshore structures.This information can be used to optimize the design and maintenance of offshore structures,leading to safer and more efficient operations.

Evaluation of Deposit Insurance Fund Adequacy Using Credit Risk Model--An Indian Experience

There are two methods widely used for evaluating the adequacy of Deposit Insurance Fund： （i） Target Reserve Ratio and （ii） Credit Risk Model. Target Reserve Ratio is one of the macro level indicators more often set by Regulatory act on the basis of minimum Deposit Insurance Fund margin safety, Target Reserve Ratio is calculated as the ratio of Deposit Insurance Fund to the value of insured deposits. However, TRR does not take into consideration the level of Deposit Insurance potential liability, the Loss at Given Default （LGD） and the historical trend of default rate prevailing among the insured banks. It does not also consider the present condition of the economy and current scenario of the banking sector. This paper discusses primarily about development of Credit Risk Model for evaluating the Deposit Insurance Fund Adequacy. For this purpose, Econometric Credit Risk Model was developed based on the historical data of bank failures and the associated losses of the last 25 years from 1990-91 to 2014-15. The model assesses various possible factors impacting the Deposit Insurance Fund： Default rate, Deposit growth, Exposures, impact of macro-economic factors like GDP, GDS, Inflation and Interest rate changes, etc. on the Deposit Insurance Fund through econometric modeling. The model evaluates the adequacy of Deposit Insurance Fund under both （i） Normal scenarios where there is no （economic） systemic risk assumed and （ii） Worst case scenario at 1% level of significance using Monte Carlo Simulation. Since the model empirically validates all the critical factors impacting the assets and liabilities associated with Loss at Given Default, the model output can also be used to determine a suitable Target Reserve Ratio and such models are being used in countries like USA, Canada, Hong Kong, and Singapore, etc. （IADI, 2009）. More importantly, the model outputs are quite useful in determining the adequacy of deposit insurance fund which is an effective risk control measure that organization like Deposit Insurance Credit Guarantee Corporation （DICGC） can adopt both under normal economic scenario as well as worst case scenario, ensuring a strong financial safety net for the banking sector in India. The model also assesses the default probability and the Loss at Given Default of different types of banks： commercial banks, rural banks, cooperative banks, foreign banks, etc. A risk based on premium can possibly be determined for each type of banks in India.

China＇s Monetary Policy Instruments （2001-2010）： Paradox, Analysis and Suggestions

Through a systematic analysis of China＇s monetary policy instruments adopted between 2001 and 2010, the author argues that raising required reserve ratios （or RRRs） cannot reduce the overall supply of funds, while raising the deposit and loan interest rate expands credit. Compared with the above two approaches, controlling incremental loan scale is more effective. During the 12th Five-Year Plan period （2011-2015）, China should improve its monetary policy system in five aspects： the balance sheet structure of The People＇s Bank of China （PBOC）, the intermediary objective and operation instruments, market orientation of the deposit and loan interest rate, ultimate objective of monetary policies and establishment of a systemframeworkforprudent macrofinancial management.

Does access to credit reduce SMEs’tax avoidance?Evidence from a regression discontinuity design

This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression discontinuity design,we causally show that,by increasing loan availability,TRRRCs significantly alleviate the financial constraints and cash dependence of SMEs and consequently reduce tax avoidance.This is especially the case among firms with lower market power and higher entertainment and travel costs.Our findings provide evidence for the real effect of TRRRCs on corporate tax avoidance and show the inclusive effect of TRRRCs on SMEs.In doing so,we indirectly reveal a rent-seeking channel underlying bank lending,thus offering clear policy implications for regulators.