Analysing Materials and Energy Flows in an Industrial District using an Enterprise Input–Output Model

Recent approaches to sustainable development leave much room for policies at a local level. In fact, it is becoming evident that targets such as increasing resource productivity, preserving natural cycles, or extending the present level of welfare, are best pursued within the confines of a local area. In particular, environmental changes are best brought about by considering local systems of firms as cornerstones of cooperative strategies and using data on materials and energy use in physical terms. In this paper, an enterprise input–output model is developed for an industrial district, i.e. a local group of firms specialized in the production of a single final output. The model allows for a detailed quantitative analysis of materials and energy flows and the consequent generation of waste and pollution. As a planning tool, the model may be used to evaluate alternative scenarios, such as the possibility of re- using waste taking account of sustainability requirements. An empirical case study applies the model to an industrial district in Southern Italy producing leather sofas.     

Multi-scale tests for serial correlation

This paper introduces a new family of portmanteau tests for serial correlation. Using the wavelet transform, we decompose the variance of the underlying process into the variance of its low frequency and of its high frequency components and we design a variance ratio test of no serial correlation in the presence of dependence. Such decomposition can be carried out iteratively, each wavelet filter leading to a rich family of tests whose joint limiting null distribution is a multivariate normal. We illustrate the size and power properties of the proposed tests through Monte Carlo simulations.     

Trading Partners and Trading Volumes: Implementing the Helpman–Melitz–Rubinstein Model Empirically

Helpman, Melitz and Rubinstein [Quarterly Journal of Economics (2008) Vol. 123, pp. 441–487] (HMR) present a rich theoretical model to study the determinants of bilateral trade flows across countries. The model is then empirically implemented through a two‐stage estimation procedure. We argue that this estimation procedure is only valid under the strong distributional assumptions maintained in the article. Statistical tests using the HMR sample, however, clearly reject such assumptions. Moreover, we perform numerical experiments which show that the HMR two‐stage estimator is very sensitive to departures from the assumption of homoskedasticity. These findings cast doubts on any inference drawn from the empirical implementation of the HMR model.     

The Log of Gravity at 15

Portuguese Economic Journal - We review the contribution of “The Log of Gravity” (Santos Silva and Tenreyro, Rev Econ Stat 88:641–658, 2006), summarize the main results in the...     

Relevance and advantages of using the item response theory

The item response theory (IRT) also known as latent trait theory, is used for the development, evaluation and administration of standardized measurements; it is widely used in the areas of psychology and education. This theory was developed and expanded for over 50 years and has contributed to the development of measurement scales of latent traits. This paper presents the basic and fundamental concepts of this IRT and a practical example of the construction of scales is proposed to illustrate the feasibility, advantages and validity of IRT through a known measurement, the height. The results obtained with the practical application of IRT confirm its effectiveness in the evaluation of latent traits.     

Do Inflation‐Linked Bonds Still Diversify?

The diversifying power of inflation-linked (IL) bonds relative to traditional asset classes has changed significantly. In this paper, we study the dynamics of conditional volatilities and correlations for three asset classes, IL bonds, nominal bonds and equities, in the USA and Europe. Using a DCC-MVGARCH for the period 1997–2007, we highlight the change that took place in 2003. Although IL bonds once had definite diversification power, they are now highly correlated with nominal bonds and have reached similar volatility levels. As a result, the two asset classes are practically substitutable. This seems to be due to more stable inflation expectations and to a more liquid IL bond market. Although diversification was a valuable reason for introducing IL bonds in a global portfolio before 2003, this is no longer the case. Dynamic portfolio optimisation using our estimates of conditional correlations and volatilities clearly demonstrates that the optimal weight of IL bonds in a portfolio decreased sharply in 2003 in favour of nominal bonds and equities.     

Estimating the extensive margin of trade

Understanding and quantifying the determinants of the number of sectors or firms exporting in a given country is of relevance for the assessment of trade policies. Estimation of models for the number of exporting sectors, however, poses a challenge because the dependent variable has both a lower and an upper bound, implying that the partial effects of the explanatory variables on the conditional mean of the dependent variable cannot be constant. We argue that ignoring these bounds can lead to erroneous conclusions and propose a flexible specification that accounts for the doubly-bounded nature of the dependent variable. We empirically investigate the problem and the proposed solution, finding significant differences between estimates obtained with the proposed estimator and those obtained with standard approaches.     

Payoff uncertainty,bargaining power,and the strategic sequencing of bilateral negotiations

This article investigates the sequencing choice of a buyer who negotiates with the sellers of two complementary objects with uncertain payoffs. The possibility of inefficient trade may generate strict sequencing preference. The buyer begins with the weaker seller if the sellers have diverse bargaining powers and with the stronger one if both sellers are strong bargainers. This sequencing is likely to increase the social surplus. Moreover, the buyer may find it optimal to raise her own acquisition cost by committing to a minimum purchase price or outsourcing. The first‐ and second‐mover advantages for the sellers are also identified.     

Motivation triggers for customer participation in value co-creation

Service Business - Innovative new ideas are no longer bound by internal R&D efforts of the organisation. Many successful innovation ideas stem from external sources, especially engaged...     

The influence of remuneration on the behavior of hospital employees in Brazil

The study aimed to analyze the employee's perception of the remuneration systems in two major hospitals in Brazil, one managed by the government and the other by private investors. The sample considered 109 respondents, out of which 54 were from the private hospital and 55 from the public hospital. After data collection on the sample population, perception of remuneration was associated with occupation, gender, age and experience, as suggested by the Upper Echelons Theory. The results show that remuneration is viewed as an instrument of control and behavior or a learning-inducing mechanism; however, the perceptions of employees working in the health area and administrative area were different. These findings show that the influence of fixed pay is different not only for the employees of both areas, but also in relation to the public and private hospital management. It was found that gender is not a determinant factor of behavior and that there were no differences between younger and older employees as well as between more experienced and less experienced employees with respect to the effect of remuneration on behavior. There were no differences in relation to the type of hospital either. In general, the results emphasize the importance of remuneration as an instrument of control and management, either in the context of public or private organizations.