Multimarket Contact and Profitability in Banking: Evidence from Italy

In this paper we test the theory according to which multimarket contact is a crucial factor hampering competition among firms, because it lowers the incentive to behave aggressively in one market if there is fear that rivals retaliate in other common markets. We consider the Italian banking industry in the period 2002–2005, employing both market-level and firm-level data. The empirical evidence supports theory predictions, since profitability is positively related to the average number of contacts among banks, and appear to be higher for those credit institutions experiencing more links. This result has also policy implications, given the increasing consolidation (and hence the growing number of interactions in local markets) that has characterized this sector in the last years.

On the performance of the tick test

In financial research, the sign of a trade (or identity of trade aggressor) is not always available in the transaction dataset and it can be estimated using a simple set of rules called the tick test. In this paper we investigate the accuracy of the tick test from an analytical perspective by providing a closed formula for the performance of the prediction algorithm. By analyzing the derived equation, we provide formal arguments for the use of the tick test by proving that it is bounded to perform better than chance (50/50) and that the set of rules from the tick test provides an unbiased estimator of the trade signs. On the empirical side of the research, we compare the values from the analytical formula against the empirical performance of the tick test for fifteen heavily traded stocks in the Brazilian equity market. The results show that the formula is quite realistic in assessing the accuracy of the prediction algorithm in a real data situation.     

Big push or big grab? Railways,government activism,and export growth in Latin America, 1865–1913

Railways were one of the main engines of the Latin American trade boom before 1914. Railway construction often required financial support from local governments, which depended on their fiscal capacity. However, since the main government revenues were trade‐related, this generated a two‐way feedback between government revenues and railways, with a potential for multiple equilibria. The empirical tests in this article support the hypothesis of such a positive two‐way relationship. The main implication of our analysis is that the build‐up of state capacity was a necessary condition for railway expansion and also, to a large extent, for export expansion in Latin America during the first globalization.     

Integrating the creation, production and diffusion of technology in the design of large-scale and targetted european it programmes

A major recent development in European IT policy is the emergence of largescale, application-driven programmes largetted towards strategic techonological capabilities. This paper looks at one of these programmes (the Open Microprocessor Systems Invitative |OMI|), focusing particularly on the meaning and implement of the strategic concept of 'application-driven'. The analysis makes use of the 'sociotechnical constituency' approach. which contrasts two extreme models of integrating creation, production and diffusion in technological process, namely, a linear-sequential model and a circular-bidirectional model. It argues that the strategy of the OMI is following the second approach.     

Information technology: Anatomy of a successful european collaboration

Europe is betting on a two-pronged stategy to revers the dwindling fortunes of its information technology (IT) industry in the world market. This is the completion of of the single European market by 1993, together with the promotion of R&D collaboration between European IT companies and research institutions. This paper examines why Europe is collaborationg in IT and looks in detail at the way this is happening in practice. It asks: How is it that institutions from different countries come together and generate new technologies which are genuinely European? A successful European collaborative computer project provides the focus foa the discussion. The main exphasis is on showing why the collaboration took place, what major conflicats affected the development of the project, how they were solved and how the solution of the conflicts was reflected in the actual shape of the technology produced.     

Embodied Technological Change,Learning‐by‐doing and the Productivity Slowdown*

The productivity slowdown in the US economy since the first oil shock has recently been associated with a larger decline rate of the relative price of equipment investment and a smaller rate of disembodied technical change. We set up a growth model in which learning‐by‐doing is the engine of both embodied and disembodied technological progress. A shift in the relative efficiency of learning‐by‐doing from the consumption to the investment sector is shown to imply a technological reassignment consistent with the above‐mentioned evidence. This result derives from the interaction between the obsolescence costs inherent in embodiment and the learning‐by‐doing engine.     

A Fresh Approach to Context Influence,Development and Performance in Environmental Management

Respect for the environment has rapidly gained importance in the context of firms, regardless of their pollution levels. Most of the existing research has related to the most polluting sectors and has been limited to the effect that the adoption of cleaner practices has on performance, primarily in terms of operations, financial performance and competitiveness. This paper expands the research towards a more complete picture of environmental management by examining context, development and performance to understand how other factors can influence the development of cleaner practices. In addition, we focus our research on the service sector. In our analysis, we differentiated between the affiliation and size of the studied companies to better understand their specificities. Based on a sample of 374 restaurants, the results show the importance of the influence of institutions and the limited influence of competitors in encouraging firms to adopt a strategic, clean approach, especially for the smallest firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Is Irrigation Rehabilitation Good for Poor Farmers? An Impact Evaluation of a Non‐Experimental Irrigation Project in Peru

This paper analyses the effect of a set of irrigation rehabilitation projects conducted over the last 10 years in Peru. The projects were conducted without the aim or the tools for a full‐fledged impact evaluation. Nevertheless, this paper attempts an evaluation through the use of alternative data sources such as household surveys and geographic information, a strategy of identification of beneficiaries and control households based on spatial proximity to the projects’ sites, and an econometric approach consisting of a double‐differencing technique. The empirical analysis is guided and interpreted with the help of a theoretical model that considers the effects of an irrigation project on the distribution of production, employment and income for different types of landowners. The paper concludes that the irrigation projects implemented in Peru had a positive impact on intended beneficiary households, but not in the way it could have been simplistically expected. The project did benefit the poor but not by increasing production in their own small plots but by providing them with better employment opportunities in larger farms.     

The nature of 'failure' in a technological initiative: the case of the europrocessor

This paper looks at the recat histoty of a short-lived inter-organizational European initiative in the field on microprocessors.The initiative is treated as an emerging socio-technical constituency and the concepts of alignment and “diamond of alignment” are used to explain the reasons behind its failure. It shows that the merging Europrocessor constituency advanced the alignment process in certazn directions but failed to do so in the critical dimension of “'competitive technologies”. The negotiating parties locked themselves into an antagonistic competitive situation and, subsequently, failed to extricate thenuelves in time to save the emerging constituency.A brief overview of microprocessor technology, the main factors detemzining market adoption and the position of the European industty is included.