Al-Habbyel Yusoph

This study investigates gray areas of contemporary political campaigning from a political economy perspective. Using qualitative field and digital methods, computational methods, and economic modeling, it analyzes the scope, scale, and cost of commissioning social media influencers in the 2022 Philippine Elections across Facebook, Twitter, YouTube, and TikTok. The researchers find that there is a high demand for influencers to campaign for candidates, characterized by premium and dynamic incentives under informal and obscure arrangements. We identified 1425 influencer accounts across the four social media platforms that engage in covert political campaigning and categorized them into seven types. The cost of these influencer-led campaigns is estimated to range from USD 27M following a pay-per-post compensation model, to USD 10.9M using a retainer model. This article serves as a model for both election research and election policy by providing a modular framework that addresses knowledge gaps in various country contexts.

We argue that the 40‐year‐old Feldstein–Horioka “puzzle” should have never been labeled as such. We discuss two problems with the literature. First, we show that the series of investment and saving rates typically used in empirical exercises to test the Feldstein–Horioka thesis are not appropriate. The correct series to properly test it are not collected. Second, we show that the Feldstein–Horioka regression is not a model in the econometric sense, that is, an equation with a proper error term (a random variable). The reason is that by adding the capital account to their regression, one gets the accounting identity that relates the capital account, domestic investment, and domestic saving. This implies that the estimate of the coefficient of the saving rate in the Feldstein–Horioka regression can be thought of as a biased estimate of the same coefficient in the accounting identity, where it has a value of 1. Because the omitted variable is known, we call it pseudo bias. Given that this (pseudo) bias is known to be negative and less than 1 in absolute terms, it should come as no surprise that the Feldstein–Horioka regression yields a coefficient between 0 and 1.