Two-Sided Bounds for Ruin Probabilities when the Adjustment Coefficient does not Exist

In this paper, we derive two-sided bounds for the ruin probability in the compound Poisson risk model when the adjustment coefficient of the individual claim size distribution does not exist. These bounds also apply directly to the tails of compound geometric distributions. The upper bound is tighter than that of Dickson (1994). The corresponding lower bound, which holds under the same conditions, is tighter than that of De Vylder and Goovaerts (1984). Even when the adjustment coefficient exists, the upper bound is, in some cases, tighter than Lundberg's bound. These bounds are applicable for any positive distribution function with a finite mean. Examples are given and numerical comparisons with asymptotic formulae for the ruin probability are also considered.     

ECONOMIC DEVELOPMENT,STRUCTURAL CHANGE AND NATURAL RESOURCE BOOMS: A STRUCTURALIST PERSPECTIVE

In this paper we present a structuralist two‐sector model on economic development, structural change and natural resource booms. We describe a multiple equilibria scenario, in which manufacturing development is the main source of economic progress. Natural resource booms, by modifying the productive structure of the economy, may set destabilizing forces. De‐industrialization processes may take place, confining developing countries in poverty traps. Public intervention in the economic sphere, both through short‐run macro policies and through long‐run development strategies, may help to free the economy from poverty traps and to foster the development process.     

Environmental strategy and exports in medium,small and micro-enterprises

Growing corporate internationalization and the emergence of environmental concerns are two of the main trends in the business world. This paper analyzes whether strategies for environmental protection can help small and medium enterprises (SMEs) as they internationalize their activities through exports. Personal interviews were conducted with 123 general managers of exporting SMEs from the Spanish food industry. The results show a relationship between advanced environmental strategies and export intensity for the sampled firms. However, the size of firm plays a role in this relationship, as the relationship between advanced environmental strategies and exports is stronger with an increase in the size of the SMEs. Authors discuss implications of these results for practitioners and future research.     

The ECB's New Multi-Country Model for the euro area: NMCM — Simulated with rational expectations

The model presented here is an estimated medium-scale New Multi-Country Model (NMCM) which covers the five largest euro area countries and is used for forecasting and scenario analysis at the European Central Bank. The model has a tight theoretical structure which allows for non-unitary elasticity of substitution, non-constant augmenting technical progress and heterogeneous sectors with differentiated price and income elasticities of demand across sectors. Furthermore, it has the explicit inclusion of expectations on the basis of three optimising private sector decision making units: i.e. firms, trade unions and households, where output is in the short run demand-determined and monopolistically competing firms set prices and factor demands. Labour is indivisible and monopoly-unions set wages and households make consumption/saving decisions.We assume that agents optimise under limited information where each agent knows only the parameters related to his/her optimisation problem. Therefore we estimate with GMM, which implicitly assumes limited information boundedly rational expectations. In this paper we provide some simulation results under the assumption of model-consistent rational expectations, we show that there is some heterogeneity across countries and that the reactions of the economies to shocks depend strongly on whether the shocks are pre-announced, announced and credible or unannounced and uncredible.     

A structuralist North–South model on structural change,economic growth and catching-up

This paper presents a structuralist North–South model on structural change, industrialization and economic convergence. In a balance-of-payments-constrained macro-setting, we assume a cumulative process between industrialization and growth. Differently from the traditional post-Keynesian models, we endogenize the productive structure of developing countries. We enquire how industrialization affects uneven development and convergence processes. Multiple growth paths and a long-run path-dependent equilibrium emerge. Industrialization proves to be a necessary but not sufficient condition for catching-up. Good management by the domestic institutions of domestic industrialization is a complementary requirement.     

Liquidity, Trading Size, and the Co-existence of Dealership and Auction Markets

This paper analyses the co-existence of two markets for the same shares, a quote-driven market and an order-driven market, as observed for example for the trading of continental shares on the London SEAQ International. The focus is on the trade-off between the uncertain execution price faced by investors on an auction market and the implicit transaction cost represented by the spread in a dealer market. We obtain that those investors who desire to make large trades will prefer to trade with the dealer, while trades of smaller size will be carried out on the auction market. Moreover, we explicitly investigate the interrelations between the two markets showing that the pricing policy followed by a dealer depends on the conditions prevailing on the auction market.
(J.E.L: G10, D40)     

Does the quality of public-sponsored training programs matter? Evidence from bidding processes data

This paper analyzes the link between training quality and labor-market outcomes. Multiple proxies for training quality are identified from bidding processes in which public and private training institutions compete for limited public funding in Peru. Information about exact dates of program enrollment is analyzed to show whether the first-come-first-served assignment rule randomized eligible individuals across courses of varying quality. Generalized propensity score (GPS) is implemented to estimate dose–response functions in the context of multiple treatments. We find that beneficiaries attending high-quality training courses show higher earnings and better job-quality characteristics than either beneficiaries attending low-quality courses or nonparticipants. The returns are particularly robust for women, making the provision of high-quality training services cost-effective. Furthermore, the most important training attribute is expenditures per trainee. Class size and infrastructure are weakly related to the expected impacts, while teacher experience, curricular activities, and market knowledge seem to bear no relationship with the expected impacts. External validity was assessed by using five cohorts of individuals over an eight-year period.