Europe: Common Money – Political Union?

Monetary Union marks the crowning step in the process of economic integration in Europe. This scenario of one currency, one market and 11 member countries raises the issue of whether further political integration is needed to complement the union already achieved in the monetary and economic fields. While there are pressures for change to the current status quo from several directions, further political integration will depend on the success of Monetary Union which crucially requires that countries tackle their reform challenges.     

Survival is for the fittest: Export survival patterns in Georgia

This paper analyzes the determinants of export flow survival in Georgia. The paper uses a unique Georgian firm-level dataset, in which firm characteristics and output dynamics are matched with their customs export transactions, for the period 2006–2012. We adopt a discrete survival model to explore the role of firm-level characteristics, diversification strategies and network effects on the survival rates of export flows. Low survival rates at the product level limit the ability of Georgian firms to consolidate new products in international markets. The analysis finds that it is production efficiency, rather than size, that boosts export survival chances, that firms’ diversification strategies matter for the prospects of survival, and that there is strong evidence of network effects in export survival. We also find that ratified foreign trade agreements contribute to increase the survival of export flows by reducing policy-induced trading costs and increasing information about destination markets.     

Bemerkungen zu dem Aufsatz von Tiedtke

Ohne Zusammenfassung     

A general equilibrium analysis of financial regulation

This paper utilizes a general equilibrium approach to investigate the factor returns and output effects on a regulated and unregulated sector from imposition of a rate of return on investment regulatory constraint. The results differ from those of the ‘traditional’ partial equilibrium model of the regulated firm as originally developed by Averch and Johnson (AJ). The differences are explained by the fact that the general equilibrium approach assumes the existence of efficient capital markets whereas the AJ approach does not. Introduction of the competitive capital market framework in the study of financial regulation through the general equilibrium methodology is this paper's major contribution.     

Marginalien zur „außenwirtschaftlichen Absicherung“ im Jahresgutachten 1966/67 des Sachverständigenrates der Bundesrepublik Deutschland

Ohne Zusammenfassung     

Futures and realized cash or settle prices for gold,silver, and copper

This article examines the relation between 15-, 30-, 45-, and 60-day gold, silver, and copper futures, and their realized cash or delivery settle prices, for deliveries on the first, middle, and last business day (FD, MD, and LD, respectively) of the delivery month. Samples of futures prices for gold, silver, and copper, and the realized cash or delivery settle prices, based on fixed maturities for a cross-section of contracts are used, because time-series over fixed maturities are unfeasible owing to the restrictive maturity periods in these contracts. This study contrasts with similar studies for forwards, which are not hampered by this problem (e.g., Baillie and Bollerslev in 1989), studies that use contemporaneous time-series of futures and cash prices to obtain optimal hedge ratios (e.g., Ghosh and Clayton in 1996), and studies that examine for parity between different futures prices (e.g., Franses and Kofman in 1991). Near-term gold, closest to delivery silver and all copper futures (the latter only with settle prices at delivery) are good predictors of the future cash price, except for silver and copper deliveries on the last day of delivery months. These results are consistent with previous studies on short-term cash (Ma in 1985) and futures (Ma and Soenen in 1988) parity between gold and silver, and with Gross's (1988) results for copper. The longer-term gold (45- and 60-day) and silver (30-, 45-, and 60-day) futures reject an unbiased expectations hypothesis. This result is consistent with Leistikow (1990) because cash prices respond less than futures prices in these instances.     

The Direct and Indirect Effects of Self‐Efficacy on Salespeople's Emotional Exhaustion and Work‐Family Conflict: A Study Using the Job Demands‐Resources Model

This study integrates Social Cognitive Theory with the Job Demands‐Resources Model to examine self‐efficacy in relation to emotional exhaustion and work‐family conflict (WFC) in a sample of 192 employees. The results obtained through structural equation analysis show: a negative association between self‐efficacy and both work overload and emotional exhaustion; a positive relationship between work overload and both emotional exhaustion and WFC; that work overload mediates the relation between self‐efficacy and both emotional exhaustion and WFC; that role ambiguity moderates the relation of self‐efficacy with work overload; and that tenure in the sales territory moderates the relation of work overload with WFC. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Beyond property: Rural politics and land‐use change in the Colombian sugarcane landscape

Analysing the sugarcane landscape in the flat valley of the Cauca River (Colombia) reveals that agricultural industrialization in the region required the concentration of land use by regional industrialists and the corresponding exclusion of landowners and poor peasants from territorial decision‐making processes. The analytical lens used in this article, based on the use and control over land and land‐based natural commons, allows for the characterization of three periods in a non‐linear process of articulation and dispute between poor peasant and capitalist agents in the expansion of the sugarcane monoculture during the 20th century. The different constellations of social agents, governmental nexus, and capital enclosures have enacted through mechanisms that, beyond concentrating land property, have managed to deprive rural ethnic communities from their cultural and environmental heritage, traditional economies, and possible futures.     

Fiscal flows in Europe: The redistributive effects of the EU budget

Fiscal Flows in Europe: The Redistributive Effects of the EU Budget. — In this paper we analyze the redistributive effects of the EU budget among European countries, exploring the relationship between income and fiscal flows, both in per capita terms. Using a new data set on EU budgets from 1986 to 1998, we find that the EU budget has a redistributive effect, though only on its expenditure side. The most redistributive expenditure category is the Regional Fund, followed by the Social Fund and by the guarantee section of the EAGGF. All of them have become increasingly redistributive in time. Total budgetary revenues show only proportionality with income. As regards the net financial balance, three groups of countries are identified, given the treatment they get from the EU budget that cannot be explained by their per capita income levels.     

Europe’s hard fix: the Euro area

One of the most important economic policy issues is the selection of exchange rate regime. The possible choices range from the hard peg to a freely floating nominal exchange rate. Since the early 1990s a move towards the two corners of the exchange rate regime spectrum has been observed, especially in Europe with the creation of EMU. The move towards the corners is discussed from the perspective of Mundell’s “impossible trinity” which states that among the three desirable objectives (1) stabilisation of the exchange rate, (2) free international capital mobility, and (3) an effective monetary policy oriented towards domestic goals, only two can be mutually consistent. Issues related to economic integration and EMU are reviewed, focusing on the famous question: Does one size fit all? Since monetary union raises some interesting issues of political nature, not present in other exchange rate arrangements, the paper ends with a discussion about some political aspects of monetary union.