Exchange Rate Depreciation,Wage Resistance and Inflation in Argentina (1882–2009)

This paper describes some of the main alternatives to the dominant neoclassical theories of inflation, according to which inflation is always a monetary phenomenon. The model develops a cost‐push approach, in which rising costs are mainly related to external constraints. Not only is inflation seen as resulting from balance of payments crises, but fiscal crises also are the result of the initial balance of payments crises within this framework. Fiscal deficits, and all other excess demand pressures, are absent, so that high levels of inflation are compatible with an economy that is below full employment, and stabilization is independent of fiscal adjustments. The model is then tested using a Vector Autoregression model and finds strong evidence for alternative theories of inflation over the monetarist theory. The empirical section tests both the long period (1882–2009) and the modern period (1990–2007) analyzing the impact of wages, the nominal exchange rate, the output gap and the monetary base on inflation. The results show that the exchange rate (external constraints) has been the primary cause of inflation. Wages are a causal factor in both models, and the monetary base and output gap show low causality in the long period, and ambiguous results for the modern period.     

Diversification Bias and the Law of One Price: An Experiment on Index Mutual Funds

Individual investors select high-fee index mutual funds despite the fact that the future payouts are nearly identical. The authors offer an explanation for this violation of the law of one price based on investor desire to diversify. While diversification in some settings may be beneficial, in the case of assets with identical payouts, fee minimization is the only rational strategy. The evidence confirms that investors diversify by selecting multiple higher fee funds rather than minimizing fees when investing in index mutual funds.     

Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets

The paper investigates determinants of pricing in international telephone service markets. The analysis—focused on 24 worldwide national markets—shows the impact of several telecommunications-specific and macroeconomic variables on collection rate differentials and traffic imbalance between countries. An econometric model is aimed at performing quantitative analysis and providing support to future telecommunications policies.     

Asymmetry in mobile access charges: is it an effective regulatory measure?

This paper analyses the regulation of the market of voice call termination on mobile networks, by considering the remedy of asymmetric access charges and the hypothesis of discriminatory retail pricing. In the two way interconnection, the operators revenue depends on two factors: the retail price and the access charge. If the retail prices are different between calls that terminate on the same network (on-net) and calls that terminate on the rival network (off-net), the competition is more complex, involving positive networks externalities for the incumbent operator. In order to reduce the competitive disadvantage for new entrants and smaller operators many European regulation authorities have introduced the remedy of asymmetric access charges. This paper is aimed at analysing the effectiveness of this regulatory measure, assuming that operators are differentiated in terms of brand loyalty and cost structure.     

The Influence of Reputation and Sector on Perceptions of Brand Alliances of Nonprofit Organizations

Brand alliances long have been used in the private sector and are being more frequently engaged by nonprofit organizations. It is assumed that the alliance benefits both organizations, particularly the focal nonprofit organization that strategically forms the partnership. But care must be taken in selecting partners. A quasi‐experimental design examines the relationship between partner reputation and sector (private or nonprofit) on subject willingness to contribute to a focal nonprofit organization. Partner public reputation was systematically varied using created organizations and a positive reputation enhanced willingness to contribute. Partnering with private sector organizations was only slightly less desirable than nonprofit organizations.     

中国失衡时代是否已终结

过去十年,全球性不均衡问题逐渐成为各国宏观经济政策的中心议题。本文重点分析了当前中国的外部失衡问题,研究了2008年后促使中国经常账户盈余下降的影响因素,预测了中国外部顺差的走向。本文认为,未来几年中国的经常账户盈余将保持适度。外部失衡不能反映当今中国国际收支的主要特征。随着中国国内经济越来越依赖投资的拉动,内部失衡问题将愈发明显。     

On the investment value of sell-side analyst recommendation revisions in the UK

Review of Quantitative Finance and Accounting - This study conducts a comprehensive investigation into the investment value of sell-side analyst recommendation revisions in the UK, using a unique...     

The effect of a Durbin–Watson pretest on confidence intervals in regression

Consider a linear regression model and suppose that our aim is to find a confidence interval for a specified linear combination of the regression parameters. In practice, it is common to perform a Durbin–Watson pretest of the null hypothesis of zero first‐order autocorrelation of the random errors against the alternative hypothesis of positive first‐order autocorrelation. If this null hypothesis is accepted then the confidence interval centered on the ordinary least squares estimator is used; otherwise the confidence interval centered on the feasible generalized least squares estimator is used. For any given design matrix and parameter of interest, we compare the confidence interval resulting from this two‐stage procedure and the confidence interval that is always centered on the feasible generalized least squares estimator, as follows. First, we compare the coverage probability functions of these confidence intervals. Second, we compute the scaled expected length of the confidence interval resulting from the two‐stage procedure, where the scaling is with respect to the expected length of the confidence interval centered on the feasible generalized least squares estimator, with the same minimum coverage probability. These comparisons are used to choose the better confidence interval, prior to any examination of the observed response vector.     

The Impact of Competition on Investment: Evidence From California Hospitals*

I examine the relationship between bargaining leverage and capital investment using data on California’s hospital markets. I find evidence that investment increases with bargaining leverage; a hospital whose bargaining position improves by one standard deviation will increase its investment rate by 16 percentage points. A positive causal relationship between bargaining leverage and investment fits the institutional details of the health care sector, where many firms have non-profit tax status, making it difficult to return monopoly rents to shareholders. Consistent with this explanation, I find that non-profit hospitals with bargaining leverage invest more than for-profit ones, all else equal. I do not find strong evidence that financing constraints matter disproportionately for hospitals operating in more competitive markets, supporting the hypothesis that the incremental investment may not be socially efficient.