Military conquest and sovereign debt: Chile,Peru and the London bond market, 1876–1890

As a result of the War of the Pacific (1879–1883), Chile conquered Peruvian and Bolivian territories rich in nitrates and guano. We conduct econometric tests for structural breaks in the time series of the government bonds for Chile and Peru between 1876 and 1890 in order to examine the effects of the changes in resource endowments on the investors’ perceptions of the risk premia of Chilean and Peruvian securities. Our results reveal that investors were extremely pessimistic about the prospects of Chilean, and especially Peruvian debt prior to the war. Early Chilean victories that anticipated the transfer of the richly endowed provinces to Chile caused significant increases in the price of Chilean securities. But such was the low regard with which investors viewed the Peruvian government that the fall of Lima caused an increase in the price of Peruvian bonds on the hope that Chile would assume some of the responsibility for them. Endowments, reputations, and the countries’ financial conditions figure prominently as the driving forces behind the investors’ behavior.     

Networks in Socially Embedded Local Food Supply: The Case of Retailer Co-operatives

This paper investigates network development in food retailing, in order to evaluate the role of retailer consumer co-operatives. Opportunity is seen to lie in niche (for example, local) markets and a social/ethical orientation. The method is single case and exploratory. Investigation shows that a co-operative can survive and add value as an alternative organizational form, when genuine social responsibility is experienced by a network consisting of the co-operative, its members, customers, suppliers and the community as a whole.     

The Impact of Pharmacy-Specific Any-Willing-Provider Legislation on Prescription Drug Expenditures

Many states have implemented some form of Any-Willing-Provider (AWP) legislation, which requires a managed care organization (MCO) to accept any provider, who agrees to the managed care organization’s reimbursement rates, terms, and conditions, into its network. AWP laws may result in larger networks, more patient choice, and greater competition among providers. Opponents cite AWP legislation as prohibiting managed care organizations from selective contracting and obtaining discounts by offering providers a larger volume of patients. Such legislation is therefore argued to prevent MCOs from effectively reducing health care costs. A small literature exists on the effect of these laws on hospital expenditures, physician expenditures, and total health care expenditures. Most studies, however, fail to recognize that the vast majority of the existing laws target pharmacies exclusively, as opposed to more comprehensive laws that also apply to physicians and hospitals. If AWP legislation prevents cost reduction available through selective contracting, then states with such legislation may incur higher health care expenditures. I find that pharmacy-specific AWP legislation is associated with increased pharmaceutical expenditures. This result is robust to several alternative specifications.     

Match Point Management — Gleichzeitig Kosten- und Marktperformance verbessern

Der Matchpoint entscheidet über Sieg oder Niederlage. Match Point Management zeigt, wie man Krisen meistert, indem man gleichzeitig Gewinn und Kosten verbessert — ohne in die Falle eines zyklischen Auf und Ab zu tappen.     

Implanting competitive strategy: A contingency approach

Competitive business strategies are often formulated with little regard given to the articulation format. This paper examines the strategy formulation process from a systems perspective and argues that articulation of a competitive strategy, such that sustained competitive advantage is created, requires consistency along the entire business chain. Internal consistency within the business chain is built through inter‐linkages. The inter‐linkages are made through four inter‐connective elements: human resources, technological resources, information resources and financial resources. It is argued in this paper that the human factor is of major importance since it integrates the other inter‐connective elements and therefore represents a key factor in the process of articulation and implementation. In view of the critical role of the human element in articulation of business strategy for competitive advantage, the paper develops a human‐factor related contingency framework. The developed contingency framework examines Porter's (1980, 1985) generic strategies with respect to congruent requisites necessary for building competitive advantage.     

Hidden patterns in exchange rate regime choice

There have been a number of empirical attempts to account for variation in exchange rate regime choice, but these attempts point in several directions and are not made sense of easily. One reason for the differences among studies is that standard statistical techniques are unable to identify the nonlinear and contingent relationships among the factors that influence the choice of exchange rate regime. This article utilizes a statistical technique that reveals complex nonlinear interactions among variables. The analysis reveals that the influence of past inflation acts to condition the influence of labor market rigidity and that political stability plays a key role for both high and low inflation countries.