Asymptotic comparison at optimal levels of reduced‐bias extreme value index estimators

In this article we are interested in the asymptotic comparison, at optimal levels, of a set of semi‐parametric reduced‐bias extreme value (EV) index estimators, valid for a wide class of heavy‐tailed models, underlying the available data. Again, as in the classical case, there is not any estimator that can always dominate the alternatives, but interesting clear‐cut patterns are found. Consequently, and in practice, a suitable choice of a set of EV index estimators will jointly enable us to better estimate the EV index γ, the primary parameter of extreme events.     

The Euro Changeover and Numerical Intuition for Prices in the Old and New Currencies

This study examines how numerical intuition for prices in euros and in the Portuguese currency escudos developed in Portugal after the euro changeover. Estimates of prices of 40 different products were collected in the two currencies and at four different times from November 2001 to April 2004. The results regarding price estimates in euros were more in accordance with a relearning hypothesis considering that price estimates become progressively more accurate by a process that is related to purchase frequency. It was also suggested that this is a very slow process and that prices in the former currency are not simply forgotten. On the contrary, the escudos remained a general benchmark for an extended period. The results regarding estimated price intuition and use of intuition in estimating prices are also consistent with a slow adaptation process. Implications for future euro changeovers are discussed.     

Marketing aspects of environmental practices of multinational enterprises in host countries: A Brazilian case study

This article investigates both the marketing and the production activities of a multinational enterprise (MNE) operating in the Brazilian chemical industry. The case chosen illustrates how the MNE has managed to adapt or to upgrade some of its main policies, programs, production activities, and products in conformity with both its long-term strategic positioning and the host country's environmental regulatory policy. The company established two effective environmental programs that deserve mention. One of the programs has been set up to generate receipts through the provision of environmental services for a price. The other one pursued systematic procedures to better serve clients through customized applications of waste reduction practices. The latter reveals how proactive companies may profit from effectively envisaging the whole product cycle along their value chain. © 1995 John Wiley & Sons, Inc.     

Growth,Distribution, and External Constraints: A Post-Kaleckian Model Applied to Brazil

ABSTRACT

The purpose of this research is to analyze whether the Brazilian economy behaved under a wage-led or profit-led regime between 1960 and 2011, considering a Post-Kaleckian model in a context of external constraints. The time span is limited by data availability (i.e., 2011). To answer the question of whether the Brazilian economy works under a wage-led or profit-led regime, we propose a simple Post-Kaleckian model. The model suggests that a profit-led regime is more probable for Brazil. Moreover, a wage-led regime occurs when a balance of payments constrained growth model is taken into consideration. Likewise, the real exchange rate has a positive impact on economic growth through the export channel. This result is a novelty in the recent literature about the relationship between real exchange rate and economic growth within a Post-Kaleckian model. The Brazilian economy was chosen as it is one of the biggest economies in Latin America.     

Production-based measures of risk for asset pricing

A stochastic discount factor for asset returns is recovered from equilibrium marginal rates of transformation inferred from producers’ first-order conditions. The marginal rate of transformation implies a novel macro-factor asset pricing model that does a reasonable job explaining the cross-sectional variation in average stock returns with plausible parameter values. Using a flexible representation of firms’ production technology, producers’ ability to transform output across states of nature is estimated to be high, in contrast with what is typically assumed in standard aggregate representations of firms’ production technology.     

Fiscal multipliers in the Eurozone: an SVAR analysis

We compute the value of fiscal multipliers (for government primary expenditure, Income and wealth taxes and for Production and import taxes) in the Eurozone countries since the creation of the currency union (2000Q1-2016Q4), in order to understand how the values can vary according to the public debt level, the pace of economic growth, and the output gap. Imposing quarterly fiscal shocks, the results showed that government expenditure had a positive effect on output, with an annual accumulated multiplier of 0.44, whereas tax multipliers presented negative signs: the Income and wealth and the Production and import taxes stood at ?0.11 and ?0.55, respectively. Furthermore, the spending multiplier showed a higher value for countries with lower levels of public debt, during recessions, and in countries with negative output gaps. On the other hand, tax shocks seemed to be recessive in highly indebted countries and those facing positive output gaps.     

Productivity,real exchange rate,and aggregate demand: An empirical exercise applied to Brazil from 1960 to 2011

This research analyzes, from a post Kaleckian perspective, the interactions among the aggregate demand, the real exchange rate, productivity, and real wages in the Brazilian economy from 1960 to 2011. It adopts the longstanding perspective that demand is the driver of capital accumulation and economic growth. The research comprises the following steps: (a) a critical assessment of the growth regime literature, with a particular emphasis on issues related to productivity and the real exchange rate; (b) understanding the relationship between the real exchange rate and the productivity and growth regimes; (c) proposing a theoretical model that relates the real exchange rate, productivity, and the growth regime; and (d) an empirical test of the interaction between the real exchange rate, productivity, and the growth regime. Theoretically the study develops a model showing the interactions between the aggregate demand, the real exchange rate, productivity, and real wages. Furthermore, this research attempts to address the lack of theoretical and empirical studies about the relationship between the aggregate demand, the real exchange rate, productivity and real wages.     

Procurement as innovation policy and its distinguishing effects on innovative efforts of the Brazilian oil and gas suppliers

This paper aims to assess the effect of public procurement for innovation (PPI) in the Brazilian oil and gas sector on the innovative behavior of suppliers. It emphasizes the role PPI may play in developing countries due to its ability to target a wide range of firm sizes and to contribute to a more even diffusion of technical progress. Using microdata from RAIS and coarsened exact matching, results show that treated firms present on average a higher intensity of innovative efforts than the control sample. In small firms, PPI has a positive effect on the probability of carrying out innovative activities. Once small firms have decided to carry out these activities, treated and control samples have similar innovative effort intensities. The treatment’s effect on large firms’ probability of performing innovative activities is positive but lower than small firms. Nonetheless, there is a significant and positive effect on the intensity of these efforts. The paper suggests that, due to its effects over a wide range of firm sizes, PPI may be a worthwhile policy to implement for the reduction of structural heterogeneity present in developing countries.     

Cost-effectiveness of metformin plus vildagliptin compared with metformin plus sulphonylurea for the treatment of patients with type 2 diabetes mellitus: a Portuguese healthcare system perspective

Objective:

To evaluate the cost-effectiveness of vildagliptin plus metformin vs generic sulphonylurea plus metformin in patients with type 2 diabetes mellitus, not controlled with metformin, from a Portuguese healthcare system perspective.

Methods:

A cost-effectiveness model was constructed using risk equations from the UK Prospective Diabetes Study Outcomes Model with a 10,000-patient cohort and a lifetime horizon. The model predicted microvascular and macrovascular complications and mortality in yearly cycles. Patients entered the model as metformin monotherapy failures and switched to alternative treatments (metformin plus basal-bolus insulin and subsequently metformin plus intensive insulin) when glycated hemoglobin A1c >7.5% was reached. Baseline patient characteristics and clinical variables were derived from a Portuguese epidemiological study. Cost estimates were based on direct medical costs only. One-way and probabilistic sensitivity analyses were conducted to test the robustness of the model.

Results:

There were fewer non-fatal diabetes-related adverse events (AEs) in patients treated with metformin plus vildagliptin compared with patients treated with metformin plus sulphonylurea (6752 vs 6815). Addition of vildagliptin compared with sulphonylurea led to increased drug acquisition costs but reduced costs of AEs, managing morbidities, and monitoring patients. Treatment with metformin plus vildagliptin yielded a mean per-patient gain of 0.1279 quality-adjusted life years (QALYs) and a mean per-patient increase in total cost of €1161, giving an incremental cost-effectiveness ratio (ICER) of €9072 per QALY. Univariate analyses showed that ICER values were robust and ranged from €4195 to €16,052 per QALY when different parameters were varied.

Limitations:

The model excluded several diabetes-related morbidities, such as peripheral neuropathy and ulceration, and did not model second events. Patients were presumed to enter the model with no diabetes-related complications.

Conclusion:

Treatment with metformin plus vildagliptin compared with metformin plus sulphonylurea is expected to result in a lower incidence of diabetes-related AEs and to be a cost-effective treatment strategy.