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Papers by Joseph Plasmans
Production investment behaviour, 1975
This paper studies R&D investment decisions of a firm facing the threat of new technology entry a... more This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry threat. The entry threat stimulates the incumbent to innovate in case entry prevention is possible, but discourages R&D if entry is inevitable. In the case of entry deterrence the incumbent successfully prevents entry by innovating. Greater technical uncertainty stimulates starting R&D and can result in implementation of more expensive research projects. The welfare analysis shows that the relation between welfare and entry cost and between welfare and uncertainty is nonmonotonic.
We gratefully acknowledge support from the Netherlands Organization for Scientific Research (NWO)... more We gratefully acknowledge support from the Netherlands Organization for Scientific Research (NWO) under their research program “Dynamism of Innovation” and the Research Foundation of Flanders (FWO) for a travel grant.
This paper analyses the determinants of the factors that might influence inward FDI in Cambodia b... more This paper analyses the determinants of the factors that might influence inward FDI in Cambodia by referring to its economic, geographic, and political characteristics. Using exclusive unbalanced panel data sets during 1995-2005, for both approved and realized FDI for, respectively, seventeen and fifteen home countries, the estimation results show that the determinants of approved FDI and realized FDI are somewhat similar. The FDI home country's GDP, its bilateral trade with the host country and the exchange rate have a positive impact on inward FDI flows into Cambodia. As expected, geographic distance negatively affects the level of FDI inflows in Cambodia.Foreign direct investment Country factor differentials Cambodia
Dynamic Modeling and Econometrics in Economics and Finance, 2006
In the aftermath of the Bretton-Woods agreement, the general perception was that a flexible excha... more In the aftermath of the Bretton-Woods agreement, the general perception was that a flexible exchange rate was a way of insulating domestic employment from foreign economic di turbances, including foreign monetary policy. Thus, there was no need for central banks to intervene in foreign exchange markets or to coordinate their monetary policies for stabilizing the economy. All thatwas needed were flexible exchange rates.
This paper studies the coalition formation in macroeconomic stabilization policies within the Eur... more This paper studies the coalition formation in macroeconomic stabilization policies within the European Economic and Monetary Union (EMU) and between the EMU and non-EMU countries. Especially we focus on the profitability of accession to the monetary union in the context of interna- tional policy cooperation. We extend the existing literature in two main respects. First we expand the two-country closed-economy
Economic Modelling, 2012
This paper analyzes some pros and cons of a monetary union for the ASEAN 1 countries, excluding M... more This paper analyzes some pros and cons of a monetary union for the ASEAN 1 countries, excluding Myanmar. We estimate a stylized open-economy dynamic general equilibrium model for the ASEAN countries. Using the framework of linear quadratic differential games, we contrast the potential gains or losses for these countries due to economic shocks, in case they maintain their status-quo, they coordinate their monetary and/or fiscal policies, or form a monetary union. Assuming for all players open-loop information, we conclude that there are substantial gains from cooperation of monetary authorities. We also find that whether a monetary union improves upon monetary cooperation depends on the type of shocks and the extent of fiscal policy cooperation. Results are based both on a theoretical study of the structure of the estimated model and a simulation study.
This paper studies implications of alternative monetary policy regimes as discretionary and commi... more This paper studies implications of alternative monetary policy regimes as discretionary and commitment policy rules for closed and small open economies. For each of these two economy types a model with possible frictions in nominal prices is constructed. Such a model is suited for the study of effects of monetary policy rules on inflation rates and output gaps and allows for forward-and backward-looking behavior when determining inflation and output dynamics. We consider each of the EU-accession CEECs as a small open economy and evaluate the empirical size of forward-and backward-looking expectations in these countries. Moreover, we verify whether output gaps and deviations of marginal costs from their equilibrium are good approximations of each other in estimates of hybrid versions of the New Keynesian Phillips curve. It seems that the Slovak Republic, Romania, Slovenia and Poland have shown a more credible monetary policy than the other CEECs considered.
This paper studies the institutional design of the coordination of macroeconomic stabilization po... more This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation literature. The specific policy recommendations in the European Economic and Monetary Union (EMU) context depend on the particular characteristics of the shocks and the economic structure. In the case of a common shock, fiscal coordination or full policy coordination is desirable. When anti-symmetric shocks are considered, fiscal coordination improves the performance but full policy coordination does not produce further gains in policymakers’ welfare.
Dynamic Modeling and Econometrics in Economics and Finance, 2006
This paper studies the institutional design of the coordination of macroeconomic stabilization po... more This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation literature. The specific policy recommendations in the EMU context depend on the particular characteristics of the shocks and the economic structure. In the case of a common shock, fiscal coordination or full policy coordination is desirable. When asymmetric shocks are considered, fiscal coordination improves the performance but full policy coordination doesn’t produce further gains in policymakers’ welfare. JEL Code: C70, E17, E58, E61, E63.
HCMCOUJS - ECONOMICS AND BUSINESS ADMINISTRATION
Using accounting data of listed firms on the Vietnamese stock market this study documents that li... more Using accounting data of listed firms on the Vietnamese stock market this study documents that listed Vietnamese firms still face finance constraints, even after the introduction and rapid growth of the equity markets and the privatization wave that started since 1992. Contrary to most of the existing literature, especially large state-dominated firms were documented to be significantly more financially constrained.The cash flow sensitivity differences between the statedominated and private firms are economically large but statistically not significant.These findings are still consistent for both stock exchanges of Vietnam (HOSE and HNX).
This paper presents a study of backward and forward patent citations in patents granted to Belgia... more This paper presents a study of backward and forward patent citations in patents granted to Belgian corporate applicants by the United States and the European Patent Offices using qualitative response variable analysis. The analysis uncovered different patterns of citations in patents, which belong to different industrial classes. The studied citations data provide evidence of inter-or intrafirm and inter-or intra-industry knowledge spillovers which are very industry specific. Therefore we advocate for differentiated regulation policies directed at stimulating R&D cooperation in different industries.
Ifo Studien, 2002
Appendix A. The Non-cooperative Case * I gratefully acknowledge Campbell Leith and an anonymous r... more Appendix A. The Non-cooperative Case * I gratefully acknowledge Campbell Leith and an anonymous referee for providing me with very helpful and comprehensive comments. My thanks also go to
Global Bus Econ Rev, 2003
This paper conducts a comprehensive study of patent citations in patents granted to the new econo... more This paper conducts a comprehensive study of patent citations in patents granted to the new economy firms in Belgium by the US and the EU Patent Offices using a general qualitative response variable analysis, allowing for asymmetries in size and other characteristics. The studied citation data provide evidence of very industry-specific inter-, intra-firm and inter-, intra-industry knowledge spillovers. No general
Production investment behaviour, 1975
This paper studies R&D investment decisions of a firm facing the threat of new technology entry a... more This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry threat. The entry threat stimulates the incumbent to innovate in case entry prevention is possible, but discourages R&D if entry is inevitable. In the case of entry deterrence the incumbent successfully prevents entry by innovating. Greater technical uncertainty stimulates starting R&D and can result in implementation of more expensive research projects. The welfare analysis shows that the relation between welfare and entry cost and between welfare and uncertainty is nonmonotonic.
We gratefully acknowledge support from the Netherlands Organization for Scientific Research (NWO)... more We gratefully acknowledge support from the Netherlands Organization for Scientific Research (NWO) under their research program “Dynamism of Innovation” and the Research Foundation of Flanders (FWO) for a travel grant.
This paper analyses the determinants of the factors that might influence inward FDI in Cambodia b... more This paper analyses the determinants of the factors that might influence inward FDI in Cambodia by referring to its economic, geographic, and political characteristics. Using exclusive unbalanced panel data sets during 1995-2005, for both approved and realized FDI for, respectively, seventeen and fifteen home countries, the estimation results show that the determinants of approved FDI and realized FDI are somewhat similar. The FDI home country's GDP, its bilateral trade with the host country and the exchange rate have a positive impact on inward FDI flows into Cambodia. As expected, geographic distance negatively affects the level of FDI inflows in Cambodia.Foreign direct investment Country factor differentials Cambodia
Dynamic Modeling and Econometrics in Economics and Finance, 2006
In the aftermath of the Bretton-Woods agreement, the general perception was that a flexible excha... more In the aftermath of the Bretton-Woods agreement, the general perception was that a flexible exchange rate was a way of insulating domestic employment from foreign economic di turbances, including foreign monetary policy. Thus, there was no need for central banks to intervene in foreign exchange markets or to coordinate their monetary policies for stabilizing the economy. All thatwas needed were flexible exchange rates.
This paper studies the coalition formation in macroeconomic stabilization policies within the Eur... more This paper studies the coalition formation in macroeconomic stabilization policies within the European Economic and Monetary Union (EMU) and between the EMU and non-EMU countries. Especially we focus on the profitability of accession to the monetary union in the context of interna- tional policy cooperation. We extend the existing literature in two main respects. First we expand the two-country closed-economy
Economic Modelling, 2012
This paper analyzes some pros and cons of a monetary union for the ASEAN 1 countries, excluding M... more This paper analyzes some pros and cons of a monetary union for the ASEAN 1 countries, excluding Myanmar. We estimate a stylized open-economy dynamic general equilibrium model for the ASEAN countries. Using the framework of linear quadratic differential games, we contrast the potential gains or losses for these countries due to economic shocks, in case they maintain their status-quo, they coordinate their monetary and/or fiscal policies, or form a monetary union. Assuming for all players open-loop information, we conclude that there are substantial gains from cooperation of monetary authorities. We also find that whether a monetary union improves upon monetary cooperation depends on the type of shocks and the extent of fiscal policy cooperation. Results are based both on a theoretical study of the structure of the estimated model and a simulation study.
This paper studies implications of alternative monetary policy regimes as discretionary and commi... more This paper studies implications of alternative monetary policy regimes as discretionary and commitment policy rules for closed and small open economies. For each of these two economy types a model with possible frictions in nominal prices is constructed. Such a model is suited for the study of effects of monetary policy rules on inflation rates and output gaps and allows for forward-and backward-looking behavior when determining inflation and output dynamics. We consider each of the EU-accession CEECs as a small open economy and evaluate the empirical size of forward-and backward-looking expectations in these countries. Moreover, we verify whether output gaps and deviations of marginal costs from their equilibrium are good approximations of each other in estimates of hybrid versions of the New Keynesian Phillips curve. It seems that the Slovak Republic, Romania, Slovenia and Poland have shown a more credible monetary policy than the other CEECs considered.
This paper studies the institutional design of the coordination of macroeconomic stabilization po... more This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation literature. The specific policy recommendations in the European Economic and Monetary Union (EMU) context depend on the particular characteristics of the shocks and the economic structure. In the case of a common shock, fiscal coordination or full policy coordination is desirable. When anti-symmetric shocks are considered, fiscal coordination improves the performance but full policy coordination does not produce further gains in policymakers’ welfare.
Dynamic Modeling and Econometrics in Economics and Finance, 2006
This paper studies the institutional design of the coordination of macroeconomic stabilization po... more This paper studies the institutional design of the coordination of macroeconomic stabilization policies within a monetary union in the framework of linear quadratic differential games. A central role in the analysis plays the partitioned game approach of the endogenous coalition formation literature. The specific policy recommendations in the EMU context depend on the particular characteristics of the shocks and the economic structure. In the case of a common shock, fiscal coordination or full policy coordination is desirable. When asymmetric shocks are considered, fiscal coordination improves the performance but full policy coordination doesn’t produce further gains in policymakers’ welfare. JEL Code: C70, E17, E58, E61, E63.
HCMCOUJS - ECONOMICS AND BUSINESS ADMINISTRATION
Using accounting data of listed firms on the Vietnamese stock market this study documents that li... more Using accounting data of listed firms on the Vietnamese stock market this study documents that listed Vietnamese firms still face finance constraints, even after the introduction and rapid growth of the equity markets and the privatization wave that started since 1992. Contrary to most of the existing literature, especially large state-dominated firms were documented to be significantly more financially constrained.The cash flow sensitivity differences between the statedominated and private firms are economically large but statistically not significant.These findings are still consistent for both stock exchanges of Vietnam (HOSE and HNX).
This paper presents a study of backward and forward patent citations in patents granted to Belgia... more This paper presents a study of backward and forward patent citations in patents granted to Belgian corporate applicants by the United States and the European Patent Offices using qualitative response variable analysis. The analysis uncovered different patterns of citations in patents, which belong to different industrial classes. The studied citations data provide evidence of inter-or intrafirm and inter-or intra-industry knowledge spillovers which are very industry specific. Therefore we advocate for differentiated regulation policies directed at stimulating R&D cooperation in different industries.
Ifo Studien, 2002
Appendix A. The Non-cooperative Case * I gratefully acknowledge Campbell Leith and an anonymous r... more Appendix A. The Non-cooperative Case * I gratefully acknowledge Campbell Leith and an anonymous referee for providing me with very helpful and comprehensive comments. My thanks also go to
Global Bus Econ Rev, 2003
This paper conducts a comprehensive study of patent citations in patents granted to the new econo... more This paper conducts a comprehensive study of patent citations in patents granted to the new economy firms in Belgium by the US and the EU Patent Offices using a general qualitative response variable analysis, allowing for asymmetries in size and other characteristics. The studied citation data provide evidence of very industry-specific inter-, intra-firm and inter-, intra-industry knowledge spillovers. No general