Djeto Assane

Institutional framework and economic development: international evidence

This paper examines the effect of ‘quality’ of the institutional framework on economic development. Our empirical results support the hypothesis that ‘good’ institutions improve efficiency and accelerate growth. The positive effect of institutional ‘quality’ is more pronounced with mutually reinforcing support of economic freedom. Our results also indicate that ‘good’ institutions help developing countries grow faster to achieve conditional convergence. We infer from the results that economic development requires not only physical and human capital formation, but also freedom to choose and institutional support.

Software copyright infringement among college students

In recent years, the issue of infringement in the software industry has gained international attention as the demand for software continues to grow. The growing presence of unauthorized reproduction of copyrighted products inhibits full potential growth and discourages creative activity. This study analyses the extent of software copyright infringement among college students and attitudes of these students with regard to risk of apprehension and conviction. This study finds a significantly higher likelihood of infringement for computer majors and male students, and a decrease in the likelihood of infringement for older students. This study also uncovers differences in attitudes toward risk of apprehension and conviction between majors in scientific fields and those in business and economics. Whereas the first group of majors appears to exhibit risky behaviour, the latter tends to be more risk averse.

Monetary co‐operation and economic growth in Africa: Comparative evidence from the CFA‐zone countries

This article compares economic growth performance of ten African countries, all members of the CFA monetary zone, with that of 23 non‐zone Sub‐Saharan African (SSA) countries. Our descriptive results suggest that, overall, African economies have experienced similar growth trends, which are higher in the 1970s than the 1980s. However, contrary to previous studies, disaggregated comparison of the CFA with the SSA indicate that no significant growth differences exist between these economies. Moreover, our empirical findings suggest that monetary expansion and capital formation have positive impacts on output growth, whereas inflation, and government spending show negative effects. In sum, although participating in a monetary union has not necessarily resulted in faster output growth, it has enabled the CFA countries to better control price fluctuations and monetary expansion.

New Evidence on the effect of human capital on economic growth

We improve results of the Mankiw, Romer and Weil (1992) augmented neoclassical growth model by considering broader measures of human capital. Compared with the MRW results, our approach increases the explanatory power of the model and the speed of conditional income convergence.

Searching for a model of multiple-site recreation demand that admits interior and boundary solutions.

For most recreation demand data sets, different individuals visit different subsets of the available sites. Interior solutions (i.e, individuals who visit all recreational sites) are not the norm. Boundary solutions (i.e., individuals who do not participate, or who visit some, but not all, of the sites) predominate. We critique eight demand models in terms of their ability to accommodate boundary solutions. Three models are recommended for consideration when there are multiple sites and the data set includes a significant number of boundary solutions: a repeated nested-logit model, a multinomial share model, and a Kuhn-Tucker model.

Determinants of gaming revenue: extent of changing attitudes in the gaming industry

Analysis of monthly gaming activities in Clark County, Nevada from 1988:1 to 1995:6 reveals that the Countys gaming revenue is positively associated with the amount of playable slot machines and visitors, and negatively to the nations travel price index. The analysis also reveals the negative effect of playable table games on gaming revenue, hence signalling changing attitudes toward gaming in general.

Copyright Piracy on the University Campus: Trends and Lessons from the Software and Music Industries

Abstract In a 1996–7 survey of students at three public universities and one private liberal arts college, Chiang and Assane (2002) found that 53 per cent of the sample admitted to software piracy. Though this is a staggering percentage, over the past five years the public focus on copyright piracy among young technology savvy users, particularly university students, has shifted from software to music piracy via file sharing and CD reproduction. This paper studies the characteristics of these industries along with recent technological advances affecting them. We analyze how economic incentives to reduce piracy on the university campus have been successful for the software indus‐ try, and how the lack of such incentives in the music industry has caused a larger piracy issue today. Based on these findings, we discuss possible solutions to reducing music piracy on the university campus.

An assessment of the growth and inequality causality relationship

Applying multivariate cointegration analysis to US data, we find growth unidirectionally and significantly Granger causes inequality.

Macroeconomic determinants of growth: new measurement and evidence on the effect of political freedom

Empirical results based on the re-examination of the data and models offered by Kormendi and Meguire (1985) and Gupta (1988) suggest that the impact of political freedom on economic growth is positive and significant. In particular, the replacement of their civil liberties variable by a new varible representing social capabilities improves the magnitude and significance of the estimated parameters and explanatory power of the regressions. The marginal contribution of social capabilities to explaining the percentage variations in the mean rate of income growth is the third highest among all determinants of growth, suggesting that the effect of freedom on growth is more pronounced than previously measured. It is argued that freedom will enable individuals to expand the range of socio-economic opportunities and to establish greater control over the human environment in order to improve material well-being.

The Federal Reserve's response to exchange rate shocks

This paper examines the extent to which the Federal Reserve has aimed to stabilize the dollar in the era of floating exchange rates. Wald tests and variance decomposition for a VAR model of the macroeconomy confirm that the Fed did respond to exchange rate shocks since 1973. Impulse responses of the federal funds rate to exchange rate shocks and exchange rate responses to policy shocks are found to be significant and mutually stabilizing. Dollar depreciation leads to a higher fed funds rate and a higher funds rate spurs dollar appreciation.