Governance, debt service, information technology and access to electricity in Africa
with Simplice Asongu, 2024, International Journal of Finance and Economics, forthcoming. (available online here)
The study investigates the role of governance (i.e., ‘voice & accountability’, political stability/no violence, regulatory quality, government effectiveness, corruption-control and the rule of law) in the incidence of short-term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002-2021. The generalized method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption-control for access to electricity and from government effectiveness, regulatory quality, corruption-control and rule of law, for telecommunication infrastructure. Policy implications are discussed.
with Simplice Asongu, 2024, International Journal of Finance and Economics, forthcoming. (available online here)
The study investigates the role of governance (i.e., ‘voice & accountability’, political stability/no violence, regulatory quality, government effectiveness, corruption-control and the rule of law) in the incidence of short-term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002-2021. The generalized method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption-control for access to electricity and from government effectiveness, regulatory quality, corruption-control and rule of law, for telecommunication infrastructure. Policy implications are discussed.
The role of mobile money innovations in the effect of inequality on poverty and severity of poverty in Sub-Saharan Africa
with Simplice Asongu, 2023, Information Systems Frontiers, forthcoming. (available online here)
This study investigates the role of mobile money innovations in the incidence of income inequality on poverty and severity of poverty in 42 sub-Saharan African countries over the period 1980 to 2019. Mobile money innovations are understood as the mobile used to send money and the mobile used to pay bills online while income inequality is measured with the Gini index. Poverty is measured as the poverty headcount ratio while the severity of poverty is generated as the squared of the poverty gap index. The empirical evidence is based on interactive Quantile regressions. The following main findings are established. (i) Income inequality unconditionally reduces poverty and the severity of poverty though the significance is not throughout the conditional distributions of poverty and the severity of poverty. (ii) Mobile money innovations significantly moderate the positive incidence of income inequality on poverty and the severity of poverty in some quantiles. (iii) Positive net effects are apparent exclusively in the poverty regressions. (iv) Given the negative conditional effects, policy thresholds or minimum mobile money innovation levels needed to completely nullify the positive incidence of income inequality on poverty are provided: 27.666 (% age 15+) and 24.000 (% age 15+) of the mobile used to send money in the 50th and 75th quantiles, respectively and 16.272 (% age 15+) and 13.666 (% age 15+) of the mobile used to pay bills online in the 10th and 50th quantiles, respectively. Policy implications are discussed with respect of SDG1 on poverty reduction and SDG10 on inequality mitigation.
with Simplice Asongu, 2023, Information Systems Frontiers, forthcoming. (available online here)
This study investigates the role of mobile money innovations in the incidence of income inequality on poverty and severity of poverty in 42 sub-Saharan African countries over the period 1980 to 2019. Mobile money innovations are understood as the mobile used to send money and the mobile used to pay bills online while income inequality is measured with the Gini index. Poverty is measured as the poverty headcount ratio while the severity of poverty is generated as the squared of the poverty gap index. The empirical evidence is based on interactive Quantile regressions. The following main findings are established. (i) Income inequality unconditionally reduces poverty and the severity of poverty though the significance is not throughout the conditional distributions of poverty and the severity of poverty. (ii) Mobile money innovations significantly moderate the positive incidence of income inequality on poverty and the severity of poverty in some quantiles. (iii) Positive net effects are apparent exclusively in the poverty regressions. (iv) Given the negative conditional effects, policy thresholds or minimum mobile money innovation levels needed to completely nullify the positive incidence of income inequality on poverty are provided: 27.666 (% age 15+) and 24.000 (% age 15+) of the mobile used to send money in the 50th and 75th quantiles, respectively and 16.272 (% age 15+) and 13.666 (% age 15+) of the mobile used to pay bills online in the 10th and 50th quantiles, respectively. Policy implications are discussed with respect of SDG1 on poverty reduction and SDG10 on inequality mitigation.
The role of mobile money innovations in transforming unemployed women to self-employed women in sub-Saharan Africa
with Simplice Asongu, 2023, Technological Forecasting and Social Change, Vol 191, pp.122548. (available online here)
The study examines how mobile money innovations transform unemployed women to self-employed women. The empirical evidence is based on interactive quantile regressions focusing on data in 44 countries from sub-Saharan Africa for the period 2004 to 2018. The hypothesis that mobile money innovations transform female unemployment to female self-employment is tested. Eight mobile money innovation dynamics presented in four categories are employed.
Three main common findings are apparent from interactions between female unemployment, eight mobile money innovation dynamics and female self-employment: (i) the investigated hypothesis is valid exclusively at the top quantiles of female self-employment; (ii) the net effects are consistently negative and (iii) the corresponding conditional or interactive effects upon which the net effects are based are consistently positive. This is an indication that critical masses at which money innovation innovations have an overall positive net effect on female self-employment are apparent. The corresponding mobile money innovation policy thresholds at which the net effects on female self-employment change from negative to positive are provided. Policy implications are discussed.
with Simplice Asongu, 2023, Technological Forecasting and Social Change, Vol 191, pp.122548. (available online here)
The study examines how mobile money innovations transform unemployed women to self-employed women. The empirical evidence is based on interactive quantile regressions focusing on data in 44 countries from sub-Saharan Africa for the period 2004 to 2018. The hypothesis that mobile money innovations transform female unemployment to female self-employment is tested. Eight mobile money innovation dynamics presented in four categories are employed.
Three main common findings are apparent from interactions between female unemployment, eight mobile money innovation dynamics and female self-employment: (i) the investigated hypothesis is valid exclusively at the top quantiles of female self-employment; (ii) the net effects are consistently negative and (iii) the corresponding conditional or interactive effects upon which the net effects are based are consistently positive. This is an indication that critical masses at which money innovation innovations have an overall positive net effect on female self-employment are apparent. The corresponding mobile money innovation policy thresholds at which the net effects on female self-employment change from negative to positive are provided. Policy implications are discussed.
Geopolitical Risks and Tourism Stocks: New Evidence from Causality-in-Quantile Approach
with Ibrahim Raheem, 2023, Quarterly Review of Economics and Finance, Vol 88, pp 1-7 (available online here).
This study examines the relationship between Geopolitical Risks (GPR) and Travel and Leisure (T&L) stocks. The scope of this study is based on six emerging countries. Analyses are done using a non-parametric causality-in-quantile approach, whose advantages include: (i) robustness to misspecification errors; (ii) simultaneously examine causality in mean and variance. We find that GPR is weakly related to the T&L stock for both Indonesia and South Korea. However, significant relationships ensue for India, China, Malaysia, and Israel. It is also observed that GPR can better predict the volatility of T&L stock compared to stock returns. These results are robust to alternative measures of GPR.
with Ibrahim Raheem, 2023, Quarterly Review of Economics and Finance, Vol 88, pp 1-7 (available online here).
This study examines the relationship between Geopolitical Risks (GPR) and Travel and Leisure (T&L) stocks. The scope of this study is based on six emerging countries. Analyses are done using a non-parametric causality-in-quantile approach, whose advantages include: (i) robustness to misspecification errors; (ii) simultaneously examine causality in mean and variance. We find that GPR is weakly related to the T&L stock for both Indonesia and South Korea. However, significant relationships ensue for India, China, Malaysia, and Israel. It is also observed that GPR can better predict the volatility of T&L stock compared to stock returns. These results are robust to alternative measures of GPR.
Fighting terrorism in Africa: complementarity between inclusive development, military expenditure and political stability
with Simplice Asongu & Pritam Singh, 2021, Journal of Policy Modeling, 43 (2021) 897–922. (available online here).
This study examines complementarities between inclusive development, military expenditure and political stability in the fight against terrorism in 53 African countries for the period 1998-2012. Hence the policy variables employed in the study are inclusive development, military expenditure and political stability. The empirical evidence is based on Generalised Method of Moments (GMM) with forward orthogonal deviations. The paper reports three main findings. Firstly, military expenditure and inclusive development are substitutes and not complements. Secondly, it is more relevant to use political stability as a complement of inclusive development than to use inclusive development as a complement of political stability. Thirdly, it can be broadly established that military expenditure and political stability are complementary. In the light of the sequencing, complementarity and substitutability, when the three policy variables are viewed within the same framework, it is more feasible to first pursue political stability and then complement it with military expenditure and inclusive development.
with Simplice Asongu & Pritam Singh, 2021, Journal of Policy Modeling, 43 (2021) 897–922. (available online here).
This study examines complementarities between inclusive development, military expenditure and political stability in the fight against terrorism in 53 African countries for the period 1998-2012. Hence the policy variables employed in the study are inclusive development, military expenditure and political stability. The empirical evidence is based on Generalised Method of Moments (GMM) with forward orthogonal deviations. The paper reports three main findings. Firstly, military expenditure and inclusive development are substitutes and not complements. Secondly, it is more relevant to use political stability as a complement of inclusive development than to use inclusive development as a complement of political stability. Thirdly, it can be broadly established that military expenditure and political stability are complementary. In the light of the sequencing, complementarity and substitutability, when the three policy variables are viewed within the same framework, it is more feasible to first pursue political stability and then complement it with military expenditure and inclusive development.
Climate Change Catastrophes and Insuring Decisions: A Study in the Presence of Ambiguity
2020, Journal of Economic Behavior & Organization,
Vol 180, pp 992-1002. (available online here)
There has been very little research to test whether ambiguity affects individuals' decisions to insure themselves against the catastrophic effects of climate change. This paper attempts to study how individuals respond to the availability of an insurance that would safeguard their interests if a climate change catastrophe occurred. If such an insurance is available to them, do individuals insure themselves sufficiently? Further, the study investigates if information regarding the past occurrence of the catastrophic event leads to an increase in insurance subscriptions and/or the emergence of a lemons market. Finally, policy implications are investigated - Can an indirect intervention in the form of a "nudge" ensure a better outcome?
2020, Journal of Economic Behavior & Organization,
Vol 180, pp 992-1002. (available online here)
There has been very little research to test whether ambiguity affects individuals' decisions to insure themselves against the catastrophic effects of climate change. This paper attempts to study how individuals respond to the availability of an insurance that would safeguard their interests if a climate change catastrophe occurred. If such an insurance is available to them, do individuals insure themselves sufficiently? Further, the study investigates if information regarding the past occurrence of the catastrophic event leads to an increase in insurance subscriptions and/or the emergence of a lemons market. Finally, policy implications are investigated - Can an indirect intervention in the form of a "nudge" ensure a better outcome?
The Mobile Phone as an Argument for Good Governance in Sub-Saharan Africa
with Simplice Asongu, Jacinta Nwachukwu & Chris Pyke, 2019,
Information Technology & People, Vol. 32 No. 4, pp. 897-920.
Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics.
with Simplice Asongu, Jacinta Nwachukwu & Chris Pyke, 2019,
Information Technology & People, Vol. 32 No. 4, pp. 897-920.
Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics.
The role of inclusive development and military expenditure in modulating the effect of terrorism on governance
with Simplice Asongu & Jacinta Nwachukwu, 2019, Journal of Economic Studies, Vol. 46, No. 3, pp. 681-709. (available online here)
The study investigates the role of inclusive human development and military expenditure in modulating the effect of terrorism on governance. It is based on 53 African countries for the period 1998-2012 and interactive Generalised Method of Moments is employed. Six governance indicators from the World Bank and two terrorism variables are used, namely: domestic and transnational terrorism dynamics. The following main findings are established. There is a negative net effect on governance (regulation quality and corruption-control) when inclusive human development is used to reduce terrorism. There is a positive net impact on governance (“voice and accountability” and rule of law) when military expenditure is used to reduce domestic terrorism. We have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.
with Simplice Asongu & Jacinta Nwachukwu, 2019, Journal of Economic Studies, Vol. 46, No. 3, pp. 681-709. (available online here)
The study investigates the role of inclusive human development and military expenditure in modulating the effect of terrorism on governance. It is based on 53 African countries for the period 1998-2012 and interactive Generalised Method of Moments is employed. Six governance indicators from the World Bank and two terrorism variables are used, namely: domestic and transnational terrorism dynamics. The following main findings are established. There is a negative net effect on governance (regulation quality and corruption-control) when inclusive human development is used to reduce terrorism. There is a positive net impact on governance (“voice and accountability” and rule of law) when military expenditure is used to reduce domestic terrorism. We have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.
Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy
with Simplice Asongu, 2019, International Journal of Public Administration, Vol 42, Issue 6, pp 457-467.
Motivated by a recent World Bank report on achieving of Millennium Development Goals which shows that poverty has been declining in all regions of the world with the exception of sub-Saharan Africa (SSA), this study puts some empirical structure to theoretical and qualitative studies on the reconciliation of the Beijing Model with the Washington Consensus. It tests the hypothesis that compared to middle income countries, low income countries would achieve more inclusive development by focusing on economic governance as opposed to political governance. The empirical evidence is based on interactive and non-interactive fixed effects regressions and 49 countries in SSA for the period 2000-2012. The findings confirm the investigated hypothesis. As the main policy implication, in order to address inclusive development challenges in the post-2015 development agenda in SSA, it would benefit low income countries in the sub-region to prioritise economic governance. Other theoretical and practical contributions are also discussed.
with Simplice Asongu, 2019, International Journal of Public Administration, Vol 42, Issue 6, pp 457-467.
Motivated by a recent World Bank report on achieving of Millennium Development Goals which shows that poverty has been declining in all regions of the world with the exception of sub-Saharan Africa (SSA), this study puts some empirical structure to theoretical and qualitative studies on the reconciliation of the Beijing Model with the Washington Consensus. It tests the hypothesis that compared to middle income countries, low income countries would achieve more inclusive development by focusing on economic governance as opposed to political governance. The empirical evidence is based on interactive and non-interactive fixed effects regressions and 49 countries in SSA for the period 2000-2012. The findings confirm the investigated hypothesis. As the main policy implication, in order to address inclusive development challenges in the post-2015 development agenda in SSA, it would benefit low income countries in the sub-region to prioritise economic governance. Other theoretical and practical contributions are also discussed.
Reducing Information Asymmetry with ICT: A critical review of loan price and quantity effects in Africa
with Simplice Asongu, Jacinta Nwachukwu & Chris Pyke, 2019,
International Journal of Managerial Finance, Vol 15, Issue 2, pp 130-163. (available online here)
This study investigates loan price and quantity effects of information sharing offices with ICT, in a panel of 162 banks consisting of 42 African countries for the period 2001-2011.The empirical evidence is based on Generalised Method of Moments and Instrumental Quantile Regressions. Our findings broadly show that ICT with public credit registries decrease the price of loans and increase the quantity of loans. While the net effects from the interaction of ICT with private credit bureaus do not lead to enhanced financial access, corresponding marginal effects show that ICT can complement private credit bureaus to increase loan quantity and decrease loan prices when certain thresholds of ICT are attained. We compute and discuss the ICT thresholds that are required to make this possible.
with Simplice Asongu, Jacinta Nwachukwu & Chris Pyke, 2019,
International Journal of Managerial Finance, Vol 15, Issue 2, pp 130-163. (available online here)
This study investigates loan price and quantity effects of information sharing offices with ICT, in a panel of 162 banks consisting of 42 African countries for the period 2001-2011.The empirical evidence is based on Generalised Method of Moments and Instrumental Quantile Regressions. Our findings broadly show that ICT with public credit registries decrease the price of loans and increase the quantity of loans. While the net effects from the interaction of ICT with private credit bureaus do not lead to enhanced financial access, corresponding marginal effects show that ICT can complement private credit bureaus to increase loan quantity and decrease loan prices when certain thresholds of ICT are attained. We compute and discuss the ICT thresholds that are required to make this possible.
Essential Information Sharing Thresholds for Reducing Market Power in Financial Access: A study of the African Banking Industry
with Simplice Asongu & Vanessa S. Tchamyou, 2019, Journal of Banking Regulation, Vol 20, Issue 1, pp 34-50.
This study investigates the role of information sharing offices (public credit registries and private credit bureaus) in reducing market power for financial access in the African banking industry. The empirical evidence is based on a panel of 162 banks from 42 countries for the period 2001-2011. Three simultaneity-robust empirical strategies are employed, namely: (i) Two Stage Least Squares with Fixed Effects in order to account for simultaneity and the observed heterogeneity; (ii) Generalised Method of Moments (GMM) to control for simultaneity and time-invariant omitted variables and (iii) Instrumental Variable Quantile regressions to account for simultaneity and initial levels of financial access.
with Simplice Asongu & Vanessa S. Tchamyou, 2019, Journal of Banking Regulation, Vol 20, Issue 1, pp 34-50.
This study investigates the role of information sharing offices (public credit registries and private credit bureaus) in reducing market power for financial access in the African banking industry. The empirical evidence is based on a panel of 162 banks from 42 countries for the period 2001-2011. Three simultaneity-robust empirical strategies are employed, namely: (i) Two Stage Least Squares with Fixed Effects in order to account for simultaneity and the observed heterogeneity; (ii) Generalised Method of Moments (GMM) to control for simultaneity and time-invariant omitted variables and (iii) Instrumental Variable Quantile regressions to account for simultaneity and initial levels of financial access.
Fighting Software Piracy: Some Global Conditional Policy Instruments
with Simplice Asongu and Pritam Singh, 2018, Journal of Business Ethics, Vol 152, Issue 1, pp 175-189 (available online here)
This study examines the efficiency of tools for fighting software piracy in the conditional distributions of software piracy. Our paper examines software piracy in 99 countries for the period 1994-2010, using contemporary and non-contemporary quantile regressions. The intuition for modelling distributions contingent on existing levels of software piracy is that the effectiveness of tools against piracy may consistently decrease or increase simultaneously with increasing levels of software piracy. Hence, blanket policies against software piracy are unlikely to succeed unless they are contingent on initial levels of software piracy and tailored differently across countries with low, medium and high levels of software piracy.
with Simplice Asongu and Pritam Singh, 2018, Journal of Business Ethics, Vol 152, Issue 1, pp 175-189 (available online here)
This study examines the efficiency of tools for fighting software piracy in the conditional distributions of software piracy. Our paper examines software piracy in 99 countries for the period 1994-2010, using contemporary and non-contemporary quantile regressions. The intuition for modelling distributions contingent on existing levels of software piracy is that the effectiveness of tools against piracy may consistently decrease or increase simultaneously with increasing levels of software piracy. Hence, blanket policies against software piracy are unlikely to succeed unless they are contingent on initial levels of software piracy and tailored differently across countries with low, medium and high levels of software piracy.
Enhancing ICT for Environmental Sustainability in Sub-Saharan Africa
with Simplice Asongu & Nicholas Biekpe, 2018, Technological Forecasting and Social Change, Vol 127, pp 209-216.
This study examines how increasing ICT penetration in sub-Saharan Africa (SSA) can contribute towards environmental sustainability by decreasing CO2 emissions. The empirical evidence is based the Generalised Method of Moments and forty-four countries for the period 2000-2012. ICT is measured with internet penetration and mobile phone penetration while CO2 emissions per capita and CO2 emissions from liquid fuel consumption are used as proxies for environmental degradation. The following findings are established: First, from the non-interactive regressions, ICT (i.e. mobile phones and the internet) does not significantly affect CO2 emissions. Second, with interactive regressions, increasing ICT has a positive net effect on CO2 emissions per capita while increasing mobile phone penetration alone has a net negative effect on CO2 emissions from liquid fuel consumption. Policy thresholds at which ICT can change the net effects from positive to negative are computed and discussed. These policy thresholds are the minimum levels of ICT required, for the effect of ICT on CO2 emissions to be negative. Other practical implications for policy and theory are discussed.
with Simplice Asongu & Nicholas Biekpe, 2018, Technological Forecasting and Social Change, Vol 127, pp 209-216.
This study examines how increasing ICT penetration in sub-Saharan Africa (SSA) can contribute towards environmental sustainability by decreasing CO2 emissions. The empirical evidence is based the Generalised Method of Moments and forty-four countries for the period 2000-2012. ICT is measured with internet penetration and mobile phone penetration while CO2 emissions per capita and CO2 emissions from liquid fuel consumption are used as proxies for environmental degradation. The following findings are established: First, from the non-interactive regressions, ICT (i.e. mobile phones and the internet) does not significantly affect CO2 emissions. Second, with interactive regressions, increasing ICT has a positive net effect on CO2 emissions per capita while increasing mobile phone penetration alone has a net negative effect on CO2 emissions from liquid fuel consumption. Policy thresholds at which ICT can change the net effects from positive to negative are computed and discussed. These policy thresholds are the minimum levels of ICT required, for the effect of ICT on CO2 emissions to be negative. Other practical implications for policy and theory are discussed.
Strategic Ambiguity and Decision-making: An Experimental Study
with David Kelsey, 2018, Theory and Decision, Vol 84, Issue 3, pp 387-404.
We conducted a set of experiments to compare the effect of ambiguity in single person decisions and games. Our results suggest that ambiguity has a bigger impact in games than in ball and urn problems. We and that ambiguity has the opposite effect in games of strategic substitutes and complements. This confirms a theoretical prediction made by Eichberger and Kelsey (2002). In addition, we note that subjects' ambiguity attitudes appear to be context dependent: ambiguity-loving in single person decisions and ambiguity-averse in games. This is consistent with the findings of Kelsey and le Roux (2015).
with David Kelsey, 2018, Theory and Decision, Vol 84, Issue 3, pp 387-404.
We conducted a set of experiments to compare the effect of ambiguity in single person decisions and games. Our results suggest that ambiguity has a bigger impact in games than in ball and urn problems. We and that ambiguity has the opposite effect in games of strategic substitutes and complements. This confirms a theoretical prediction made by Eichberger and Kelsey (2002). In addition, we note that subjects' ambiguity attitudes appear to be context dependent: ambiguity-loving in single person decisions and ambiguity-averse in games. This is consistent with the findings of Kelsey and le Roux (2015).
Enhancing ICT for Inclusive Human Development in Sub-Saharan Africa
with Simplice Asongu, 2017, Technological Forecasting and Social Change,
Vol 118, pp 44-54. (available online here)
This study assesses if increasing information and communication technology (ICT) enhances inclusive human development in a sample of 49 countries in Sub-Saharan Africa for the period 2000-2012. The empirical evidence present in this study, is based on instrumental variable Tobit regressions, in order to account for simultaneity and the limited range in the dependent variable. In the interest of increasing room for policy implications and controlling for the unobserved heterogeneity, the analysis is decomposed into the fundamental characteristics that human development based on: income levels, legal origins, religious dominations, political stability, landlockedness and resource-wealth.
with Simplice Asongu, 2017, Technological Forecasting and Social Change,
Vol 118, pp 44-54. (available online here)
This study assesses if increasing information and communication technology (ICT) enhances inclusive human development in a sample of 49 countries in Sub-Saharan Africa for the period 2000-2012. The empirical evidence present in this study, is based on instrumental variable Tobit regressions, in order to account for simultaneity and the limited range in the dependent variable. In the interest of increasing room for policy implications and controlling for the unobserved heterogeneity, the analysis is decomposed into the fundamental characteristics that human development based on: income levels, legal origins, religious dominations, political stability, landlockedness and resource-wealth.
Dragon Slaying with Ambiguity: Theory and Experiments
with David Kelsey, 2017, Journal of Public Economic Theory, Vol 19, Issue 1, pp 178-197. (available online here)
This paper studies the impact of ambiguity in the best shot and weakest link models of public good provision. The models are first analysed theoretically. Then we conduct experiments to study how ambiguity affects behaviour in these games. We test whether subjects' perception of ambiguity differs between a local opponent and a foreign one. We find that an ambiguity safe strategy, is often chosen by subjects. This is compatible with the hypothesis that ambiguity aversion influences behaviour in games. Subjects tend to choose contributions above (resp. below) the Nash equilibrium in the Best Shot (resp. Weakest Link) model.
with David Kelsey, 2017, Journal of Public Economic Theory, Vol 19, Issue 1, pp 178-197. (available online here)
This paper studies the impact of ambiguity in the best shot and weakest link models of public good provision. The models are first analysed theoretically. Then we conduct experiments to study how ambiguity affects behaviour in these games. We test whether subjects' perception of ambiguity differs between a local opponent and a foreign one. We find that an ambiguity safe strategy, is often chosen by subjects. This is compatible with the hypothesis that ambiguity aversion influences behaviour in games. Subjects tend to choose contributions above (resp. below) the Nash equilibrium in the Best Shot (resp. Weakest Link) model.
Environmental Degradation, ICT and Inclusive Development in Sub-Saharan Africa
with Simplice Asongu & Nicholas Biekpe, 2017, Energy Policy, Vol 111, pp 353-361.
This study examines how information and communication technology (ICT) complements carbon dioxide (CO2) emissions to influence inclusive human development in forty-four Sub-Saharan African countries for the period 2000-2012. ICT is measured with internet penetration and mobile phone penetration. The empirical evidence is based on Generalised Method of Moments. The findings broadly show that ICT can be employed to dampen the potentially negative effect of environmental pollution on human development. We establish that: (i) ICT complements CO2 emissions from liquid fuel consumption to increase inclusive development; (ii) ICT interacts with CO2 intensity to negatively affect inclusive human development and (iii) the net effect on inclusive human development is positive from the complementarity between mobile phones and CO2 emissions per capita. Conversely, we also establish evidence of net negative effects. Fortunately, the corresponding ICT thresholds at which these net negative effects can be completely dampened are within policy range, notably: 50 (per 100 people) mobile phone penetration for CO2 emissions from liquid fuel consumption and CO2 intensity.
with Simplice Asongu & Nicholas Biekpe, 2017, Energy Policy, Vol 111, pp 353-361.
This study examines how information and communication technology (ICT) complements carbon dioxide (CO2) emissions to influence inclusive human development in forty-four Sub-Saharan African countries for the period 2000-2012. ICT is measured with internet penetration and mobile phone penetration. The empirical evidence is based on Generalised Method of Moments. The findings broadly show that ICT can be employed to dampen the potentially negative effect of environmental pollution on human development. We establish that: (i) ICT complements CO2 emissions from liquid fuel consumption to increase inclusive development; (ii) ICT interacts with CO2 intensity to negatively affect inclusive human development and (iii) the net effect on inclusive human development is positive from the complementarity between mobile phones and CO2 emissions per capita. Conversely, we also establish evidence of net negative effects. Fortunately, the corresponding ICT thresholds at which these net negative effects can be completely dampened are within policy range, notably: 50 (per 100 people) mobile phone penetration for CO2 emissions from liquid fuel consumption and CO2 intensity.
An Experimental Study on the Effect of Ambiguity in a Coordination Game
with David Kelsey, 2015, Theory and Decision, Vol 79, Issue 4, pp 667-688. (available online here)
We report an experimental test of the influence of ambiguity on behaviour in a coordination game. We study the behaviour of subjects in the presence of ambiguity and attempt to determine whether they prefer to choose an ambiguity safe option. We find that this strategy, which is not played in either Nash equilibrium or iterated dominance equilibrium, is indeed chosen quite frequently. This provides evidence that ambiguity aversion influences behaviour in games. While the behaviour of the Row Player is consistent with randomising between her strategies, the Column Player shows a marked preference for avoiding ambiguity and choosing his ambiguity-safe strategy.
with David Kelsey, 2015, Theory and Decision, Vol 79, Issue 4, pp 667-688. (available online here)
We report an experimental test of the influence of ambiguity on behaviour in a coordination game. We study the behaviour of subjects in the presence of ambiguity and attempt to determine whether they prefer to choose an ambiguity safe option. We find that this strategy, which is not played in either Nash equilibrium or iterated dominance equilibrium, is indeed chosen quite frequently. This provides evidence that ambiguity aversion influences behaviour in games. While the behaviour of the Row Player is consistent with randomising between her strategies, the Column Player shows a marked preference for avoiding ambiguity and choosing his ambiguity-safe strategy.
Deviations from Equilibrium in an Experiment on Signaling Games: First Results
with Dieter Balkenborg, 2010, The Selten School of Behavioural Economics, Springer 1st Edition, 2010, XV, pp 73-87.
In this paper we provide a summary of results concerning two series of experiments we ran based on a modified signalling game. The game for the initial experiment was selected by Reinhard Selten. It has the interesting property that the strategically stable outcome (Kohlberg and Mertens 1986) does not coincide with the outcome of the Harsanyi-Selten solution (1988). However, it is a complex game insofar as standard refinement concepts like the intuitive criterion, or the never-a-weak-best-response criterion, do not help to refine among the equilibria. The second motive for the design was to analyse, how the change in the reward at a particular terminal node would affect behaviour.
with Dieter Balkenborg, 2010, The Selten School of Behavioural Economics, Springer 1st Edition, 2010, XV, pp 73-87.
In this paper we provide a summary of results concerning two series of experiments we ran based on a modified signalling game. The game for the initial experiment was selected by Reinhard Selten. It has the interesting property that the strategically stable outcome (Kohlberg and Mertens 1986) does not coincide with the outcome of the Harsanyi-Selten solution (1988). However, it is a complex game insofar as standard refinement concepts like the intuitive criterion, or the never-a-weak-best-response criterion, do not help to refine among the equilibria. The second motive for the design was to analyse, how the change in the reward at a particular terminal node would affect behaviour.