Economics and Business Letters

Editorial Note

Francisco J. Delgado; Eduardo Gonzalez — Sat, 20 Jan 2024 00:00:00 +0000

Editorial Note 2024

The moderating role of external private investment on government-sponsored commercialisation R&D

Zhunwoo Kim, Ohsung Kwon — Sat, 20 Jan 2024 00:00:00 +0000

The influence of external private investment (EPI) in public R&D is well-known, however, research has yet to understand the significance of it on the success of R&D. We expand upon existing literature by focusing on the effect of EPI in conducting public R&D, and more specifically, suggesting the moderating role of EPI on the commercialisation success with 472 samples from Korean manufacturing firms. Our findings address that EPI positively moderates the relationship between the amount of government fund, the difference of technology readiness level before and after R&D, and the commercialisation success. As a result, this research contributes to a managerial perspective; concluding that public R&D with EPI is both more successful and rewarding.

Money demand in Mexico: a nonlinear ARDL approach

Nazif Durmaz, Tairu Jie — Sat, 20 Jan 2024 00:00:00 +0000

This paper examines the relationship between Mexican money demand and three economic factors: real income, inflation rate and exchange rate, and the relationship between exchange rate and money demand is the most concerned. Using the quarterly data of Mexico from 2000 to 2022, we explore whether the exchange rate will symmetrically affect the demand for money in the short and long term. The results show that in the long run, the impact of real income and inflation rate on money demand is the same as the conjecture, both are positive. However, the present paper does not find an asymmetric effect of the exchange rate, possibly due to the lack of research data or the short time span.

The ChatGPT effect on AI-themed cryptocurrencies

Lennart Ante, Ender Demir — Sat, 20 Jan 2024 00:00:00 +0000

ChatGPT is an artificial intelligence (AI) chatbot that provides users with detailed responses and accurate answers to any questions. It has garnered significant attention after its launch in November 2022. We analyze the returns of AI-themed crypto assets around the launch and widespread attention towards ChatGPT. We reveal significant abnormal returns for AI tokens after the launch of ChatGPT, up to 41% over the course of two weeks. Moreover, 90% of tokens exhibit positive abnormal returns. This suggests that the attention towards ChatGPT and AI in general has transitioned to cryptocurrency markets, resulting in positive price effects for AI-related cryptocurrencies.

Eurozone inflation: fresh projections from global factors

Nicholas Apergis — Sat, 20 Jan 2024 00:00:00 +0000

This study identifies the contributions of global factors in determining eurozone inflation. The analysis makes use of an augmented Phillips curve model of inflation, as well as panel data estimates. The findings document the importance of such factors in forecasting inflation, thus, confirming the substantial role of external factors in eurozone inflation. The findings survived certain model specifications. Therefore, monetary, and fiscal policymakers should explicitly consider both domestic and global conditions to anchor inflation expectations in forming specific strategies for taming inflation expectations.

Tax policy cyclicality and financial development

Christos Chrysanthakopoulos, Athanasios Tagkalakis — Sat, 20 Jan 2024 00:00:00 +0000

This paper adds to the existing literature by examining the macroeconomic, political and institutional determinants of tax policy cyclicality conditional on financial development. We find that an increase in trade and financial openness leads to pro-cyclical VAT and counter-cyclical CIT rate response in high financially developed economies, while an increase in financial openness is associated with counter-cyclical VAT and PIT responses when the levels of financial development are low. A high public debt ratio leads to a counter-cyclical VAT rate response in economies with low financial development. Political power and fiscal institutions are factors that affect the tax policy cyclicality only in less financially developed economies.