Measuring Market Conduct in the Brazilian Cement Industry: A Dynamic Econometric Investigation

Indirect assessments of market conduct have become widespread in the New Empirical Industrial Organization—NEIO literature. Recently, Steen and Salvanes (1999, Int J Ind Organ 17:147–177) provided a flexible dynamic econometric formulation of the approach advanced by Bresnahan (1982, Econ Lett 19:87–92) and Lau (1982, Econ Lett 10:93–99). The present paper considers a similar approach applied to regional cement markets in Brazil under more favorable data availability, and attempts to address part of the concerns that usually emerge with respect to the NEIO literature. In particular, issues pertaining to structural stability and the control for the number of competing firms are addressed. The evidence clearly indicates non-negligible and distinct market power in different regions and also distinct conduct patterns in the short and long run.      

Are there political cycles hidden inside government expenditures?

This article examines the presence of political cycles inside the Portuguese governments’ aggregate expenditures by using annual data for 10 expenditure components. The results indicate that the choice of the expenditure components to be increased during election periods by Portuguese governments generally relates to more visible items such as general public services, social protection and health care.     

Level of Coherence Among Ethics Program Components and Its Impact on Ethical Intent

Journal of Business Ethics - Three ethics program components, a code of ethics, ethics training initiatives and ethics-oriented performance appraisal content, were examined for their relationship...     

Purchasing Power Parity: Error Correction Models and Structural Breaks

This paper examines purchasing power parity (PPP) behavior using error correction models (ECM) and allowing for structural breaks. We distinguish four different objectives: first, this paper examines which variable or variables (the exchange rate and/or international relative prices) exhibit a significant error correction mechanism. Second, this paper presents empirical evidence about the adjustment velocity to the long-run equilibrium. Third, it examines the evidence regarding cointegration and the adjustment coefficients parameter instability, and finally, it analyzes whether traded and non-traded sectors exhibit different behavior. The most important results are: (1) the predominant adjustment is in the exchange rate with a larger velocity adjustment than in relative prices; (2) the evidence suggests that when there are strong depreciations or appreciations in the exchange rate, the international relative prices adjust (i.e., there is evidence of pass-through); (3) the dynamic adjustment to equilibrium is, in general, stable.     

Economic Consequences of IFRS Adoption: The Role of Changes in Disclosure Quality*

This study adopts a two‐step approach to highlight the disclosure quality channel that drives economic consequences of IFRS adoption. This approach helps address the identification challenge noted by prior research and offers direct evidence on the role of disclosure quality. In the first step, we document the impact of the IFRS mandate on changes in disclosure quality proxied by the granularity of line item disclosure in financial statements. We find that IFRS‐adopting firms provide more disaggregated information upon IFRS adoption, such as more granular disclosure of intangible assets and long‐term investments on the balance sheet and greater disaggregation of depreciation, amortization, and nonoperating income items on the income statement. In the second step, we link the observed disclosure changes to the benefits and costs of IFRS adoption. We show that greater disaggregated information due to IFRS adoption enhances market liquidity and decreases information asymmetry, but does not affect audit fees differentially. Our evidence has implications for standard setters as they evaluate cost‐benefit trade‐offs when considering disclosure changes in the future.     

Impacts of vehicle restrictions on urban transport flows: The case of Santiago,Chile

Regression models are employed to quantify the effects of vehicle restrictions on private and public transport passenger flows in Santiago, Chile using trip flow data for cars, buses and the city's Metro rail system. Estimates are derived for the effects of two restrictions: a permanent measure applied from April through August 2008 to vehicles without catalytic converters and additional measures that banned the use of vehicles with catalytic converters between 7:30 am and 9 pm on days declared as environmental “pre-emergencies” due to high air pollution levels. The estimates show that the permanent restriction had no impact on the use of private cars while the additional restriction curtailed their use by 5.5%. Also, on pre-emergency days the flow of passengers to the Metro increased by about 3% while the bus network showed no statistically significant increase. The pre-emergency restrictions thus had an effect on the ridership of the Metro but not on the bus network as alternatives to the use of private cars.     

Wealth in Latin America: Evidence from Chile,Colombia, Mexico and Uruguay

Drawing on recently-available microdata from financial surveys, this paper presents harmonized indicators for household wealth, its components, and its determinants in four Latin American countries (Chile, Colombia, Mexico and Uruguay), using Spain as a comparison benchmark. The paper analyzes the relationship between wealth indicators and sociodemographic characteristics of household heads (age, education, gender, marital status). For Uruguay, we are also able to analyze wealth patterns and intergenerational mobility (inheritance, family businesses and parental education).     

Acceptance of Genetically Modified Foods with Health Benefits: A Study in Germany

A study was carried out in Germany in order to assess consumers' acceptance of genetically modified (GM) foods with health benefits (bread, yohurt and eggs). Acceptability of GM foods increases when its source does not involve animal products such as eggs. Three factors have been identified as direct antecedents of the acceptance of GM foods: respondents' attitude towards biotechnology, health consciousness, and time pressure, being the first one the most salient one. Price consciousness has an indirect positive impact (mediated by health consciousness) upon acceptance of GM products. Males were more likely to accept GM foods with health benefits.