Migration and Regional Trade Agreements: A (New) Gravity Estimation

This paper investigates the role of regional trade agreements (RTAs) on bilateral international migration. Building on a gravity model for migration, our econometric strategy controls for the multilateral resistance to migration and solves the zero migration flows problem by using a censored quantile regression approach. Further, the endogeneity problem of RTAs in migration settlement is addressed by using instrumental variable censored quantile regression. Our results suggest that the presence of a RTA stimulates the migration stocks among member countries. The pro‐migration effect of RTAs is magnified if the agreement includes also provisions easing bureaucratic procedures for visa and asylum among member countries. Finally, we find an asymmetric effect of RTAs across the quantiles of the distribution of migration settlements.     

State space models for the exchange rate pass-through: determinants and null/full pass-through hypotheses

In this article, we formulate linear Gaussian state space models for the estimation of the exchange rate pass-through of the Brazilian Real against the US Dollar, using monthly data from August 1999 to August 2008. The state space/Kalman filtering framework allows the investigation of some empirical aspects previously suggested in the literature, such as time-varying coefficients and null/full pass-through hypotheses. We also test whether some theoretical ‘determinants’ of the pass-through are statistically significant in the period considered. The principal findings are as follows: (1) the data offer strong support to a time-varying pass-through; and (2) the variance of the exchange rate pass-through, the monetary policy and the trade flow have shown to be relevant determinants of the exchange rate pass-through.     

Nonlinearities in the Brazilian Yield Curve

ABSTRACT

The article indicates the yield curve can be modeled using a continuous estimator as smooth transition regression, instead of traditional switch models, because bonds are traded continuously in the financial market. The results indicate that nonlinearity in the yield curve explains the pitfalls of monetary policy. The positive correlation between inflation and spread is consistent with a rise on uncertainty due to inflation risk or seems to indicate Brazilian Central Bank’s monetary policy credibility in the sample period. Therefore, if dependence on international capital exists, the Brazilian economic policy makers must monitor the movements in yield and analyze its feedback frequently in order to guide their plans and decisions.     

Management of perceptions of information technology service quality

The present study evaluates the perception gaps of service quality between information technology (IT) service providers and their clients. IT services require high investments, which make analyzing its effectiveness increasingly important. To do this analysis, this study uses the instrument SERVPERF of the SERVQUAL model. The research took place in a large Brazilian retail bank, which identified gaps in perceptions between IT service providers and its clients. The findings suggest opportunities for improvement in the quality of IT services from a strategic alignment perspective, particularly in the following dimensions: tangibles, reliability, responsiveness, assurance, and empathy. The study also indicates some enhancements for the SERVQUAL model.     

On the Transmission Mechanism of Monetary Constraints to the Real Side of the Economy

Contrary to the predictions of the theory underlying international finance, inflows of capital triggered by financial liberalisation have neither equalised real interest rates nor increased income growth in many emerging economies. We explain this puzzle by developing a model that combines the balance‐of‐payments constraint approach to economic growth with a less stringent version of the real interest rate parity hypothesis. The model’s foundations are based on robust empirical findings or well‐established macroeconomic models. We show that a perverse combination of income elasticities of demand for imports and exports generates slow income growth and high real interest rates. As domestic income grows and imports rise faster than exports, the real exchange rate is expected to depreciate in order to clear the balance of payments (or the foreign exchange rate market). An incipient capital outflow arises and interest rates increase. Faster adjustment in capital rather than in the goods market therefore generates a higher real interest rate differential between the domestic small open‐economy and the rest of the world. The long run analysis shows that a constant degree of risk aversion implies a positive equilibrium real interest rate differential that affects economic growth. A permanent increase in default risk driven by persistent current account imbalances thus impacts on long run growth. The model’s results are illustrated with evidence from the three major Latin America economies: Argentina, Brazil and Mexico.     

A Probability of Revisitation Model: The Case of Winter Visits to the Grand Canyon

This paper finds that on average first-time visitors to the Grand Canyon are willing to travel significantly greater distances than repeat visitors. These findings are based upon a binary logit model of repeat visitations estimated from a recent sample of Grand Canyon visitors. This model expresses the probability of repeat visitation as a function of distance travelled and visitor demographic profiles. Included among the demographic characteristics are income, available leisure time, and the number of previous visits. An important managerial implication of this study - not only for the Grand Canyon but also for other tourist destinations - is the value of ‘probability of revisitation’ approach in identifying subtle market fragments. This opens the door to sophisticated marketing strategies that, in this case, cater to the separate needs and desires of repeat and first-time visitors to enhance revenue possibilities.     

A stochastic model of waste management with on and off site storage

When the regulatory threshold which specifies the maximum amount of waste that can be stored on site is exceeded, a waste generating firm must move waste to an off site location. Given that off site storage is costlier than on site storage, how much waste ought a firm—operating in a probabilistic environment—to produce in the time period of interest? This salient question has received insufficient theoretical attention in the extant literature. Therefore, we analyze a stochastic model with on and off site storage that is relevant to the management of a broad class of wastes. We first derive a representative waste generating firm's long run expected cost function. Next, we conduct comparative statics exercises to demonstrate the impact of key parameter changes on the firm's long run expected cost. Finally, we show that the optimal waste production level we seek is the solution to a specific cost minimization problem.     

The design language: Phase and levels

Design language as a theme for discussion may be examined from at least three aspects: its structure: its terminology and its phases and levels of development. An agreed and precise terminology in the field of Design, is desirable for communication, understanding and teaching. It can also unfold the subtle structure of that language.However, many studies of the phases and levels of design language have been undertaken, but often from the artistic, humanistic and scientific points of view, rather then the designistic perspective.In this article we outline the basis of a designistic analysis and classification of children's and adults' design language.Luiz Vidal Negreiros Gomes, Lecturer of the Federal University of Pernambuco, Brazil at the the Department of Methods and Technics in Education and at the Department of Design, and L.S. Medeiros, a freelance researcher.Correspondence to: Avenida Copacabana, 474/303 A, Piedade, Jaboatäo, Pernambuco, Brazil CEP 54410-250     

What doesn't kill you makes you stronger: The evolution of competition and entry‐order advantages in economically turbulent contexts

We examine the evolution of competition and entry‐order advantages in markets under macroeconomic distress. Through formal modeling of early‐mover advantages along industry life cycles subjected to economic shocks and based on simulation findings, we propose that such shocks exogenously induce temporary industry discontinuities that shift the relative value of distinct asset endowments, thereby switching the bases for competitive advantages vis‐à‐vis those found in stable contexts. A vital trade‐off then emerges between a firm's financial flexibility and its pace of investments in isolating mechanisms, such that the former operates as a contingency factor for the latter. As such, flexibility superiority boosts early‐entrants' advantages, while it alternatively gives laggards a much desired strength to out trump first‐mover rivals. Our study informs entry‐order advantage theory and management practice in economically turbulent contexts. Copyright © 2013 John Wiley & Sons, Ltd.