May 2016

Public Investment and Output Performance: Evidence from Nigeria        
Omo Aregbeyen
Taofik Ibrahim Mohammed


Abstract: This study examined the direct/indirect long-run relationships and dynamic interactions between public investment (PI) and output performance in Nigeria using annual data spanning 1970-2010. A macro-econometric model derived from Keynes’ income-expenditure framework was employed. The model was disaggregated into demand and supply sides to trace the direct and indirect effects of PI on aggregate output. The direct supply side effect was assessed using the magnitude of PI multiplier coefficient, while the indirect effect of PI on the demand side was evaluated with marginal propensity to consume, accelerator coefficient and import multiplier. The results showed relatively less strong direct effect of PI on aggregate output, while the indirect effects were stronger with the import multiplier being the most pronounced. This is attributed to declining capital expenditure, poor implementation and low quality of PI projects due to widespread corruption. By and large, we concluded that PI exerted considerable influence on aggregate output.

Key words: Public Investment; Output performance; income-expenditure framework; Macro-econometric simulation, Nigeria
JEL Classification: H5, H50, H54


Quantifying Audit Expectation Gap: A New approach to Measuring Expectation Gap
Mahdi Salehi

Abstract: The main objective of the study is at first identifying the expectation gap about audit responsibility and the second quantifying the expectation gap in Iran.    In order to collecting data, a questionnaire designed and developed between auditors and investors. Collected data analyzed by employing non-parametric statistics test.   The results show that there is expectation gap between auditors and investors in Iran. The current study employed a new approach in the world in order to quantifying the expectation gap. It gives the more strength to other researchers in order to measuring audit expectation gap in the world.

Key words: Audit expectation gap; Audit responsibility;  quantifying audit expectation gap
JEL Classification: M, M00


Personal Over-indebtedness in Croatia and Measures for its Reduction
Predrag Bejaković

Abstract: The robust growth in household debt in pre-crisis period coincided with real growth in household disposable income, large economic expansion and a considerable fall in banks’ interest rates. However, household debt indicators deteriorated markedly as total household debt grew faster than income. This raised concerns about potential implications of an additional increase in the debt burden on financial stability. An analysis of household debt based exclusively on data aggregated at the sector level is not a best financial vulnerability indicator as it fails to provide insight into the distribution of debt and credit risk by individual household groups. The text explains the problems with personal over-indebtedness in Croatia and measures for their reduction.

Key words: Personal finance; Over-indebtedness; Financial literacy; Croatia
JEL Classification: G33, H31, I32


Non-Renewable Energy and Macroeconomic Efficiency of Seven Major Oil Producing Economies in Africa
Olabanji Benjamin Awodumi
Adebowale Musefiu Adeleke

Abstract: This study adopted two-stage DEA to estimate the technical efficiency scores and assess the impact of the two most important components of fossil fuel associated with oil production on macroeconomic efficiency of Seven oil producing African countries during 2005-2012. Our results showed that increasing the consumption of natural gas would improve technical efficiency. Furthermore, increasing the share of fossil fuel in total energy consumption has negative effect on the efficiency of the economies of the top African oil producers. Also, we found that increasing the consumption of primary energy improves efficiency in these economies. We therefore, recommend that governments and other stakeholders in the energy industry should adopt inclusive strategies that will promote the use of natural gas in the short term. However, in the long-run, efforts should be geared towards increasing the use of primary energy, thereby reducing the percentage share of fossil fuel in total energy consumption.

Key words:  Non-Renewable Energy; Data Envelopment Analysis; Technical Effi ciency; Africa
JEL Classification: Q, Q4, Q43