Browsing by Author "Lagac, Joyce Marie P."

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    Does banking competition affect financial stability in the Philippines?
    (2021-07) Lagac, Joyce Marie P.; Daway-Ducanes, Sarah Lynne S.
    The theoretical and empirical literature on the relationship between competition-financial stability remain inconclusive. The competition-fragility hypothesis argues that greater competition reduces bank profit margins that encourages excessive risk-taking among banks, endangering financial stability (margin effect). Taking a diametrically opposite view, the competition-stability hypothesis asserts that more competition drives down interest rates charged by banks on “safer” loans, reducing the probability of default and thereby promoting financial stability (risk-shifting effect). A third hypothesis forwards for an inverse U-shaped relationship between competition and financial stability: past a critical level of competition, the margin effect starts dominating the risk-shifting. This study investigates the impact of banking competition on the financial stability of banks in the Philippines from 2006-2015. Using two-step system Generalized Method of Moments, the empirical results verify an inverse U-shaped relationship between competition and financial stability, using the Boone indicator for loans as a measure of market competition. Moreover, for at least half of the banks in the sample, less competition results in greater financial stability, providing support to the competition-fragility hypothesis. The study also finds evidence that the Basel III policy has improved the relationship between banking competition and financial stability in the deposit market.
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    Is there a marriage premium for professional athletes? a case study of the Philippine basketball association
    (2009-01) Antonio, Tracee Joy N.; Lagac, Joyce Marie P.
    Using data on professional basketball players from the Philippine Basketball Association, this research provides evidence regarding the marital pay premiums earned by basketball players. Cross-sectional estimates suggest that married players receive a 22% higher salary as compared to never married players. Our findings provide support to the marriage premium literature where married men receive significantly higher wages than never married men. irrespective of the variables included in the model. Using the fixed- effects approach, our findings suggest that it might be the case that more productive and high-earning basketball players are being selected into marriage. However, it doesn't account for the entire observed premium found among married basketball players. In addition, we found little evidence to suggest that the marriage premium is a consequence of specialization. Finally. we used Oaxaca's decomposition model to test the discrimination hypothesis. Based on our estimation, we found substantial evidence that almost 52% of the differential is attributed to discrimination. Computing for the actual discrimination coefficient, we obtained a 0.44 discrimination between married and single players.