Estimating the pro-competitive gains from trade liberalization: an application to Mexican manufacturing

An original two-stage method is proposed to estimate the pro-competitive gains from trade liberalization. In a first step, I estimate the sensitivity of the price-cost margins of domestic firms to changes in the effective rate of protection, on the basis of a structure-performance relationship. This parameter is later exploited in a second step, where the cost of protection is calculated on the basis of a simple partial equilibrium model where domestic and foreign goods are imperfect substitutes. Applied to the Mexican case, this estimation reveals that protection removal depresses margins significantly and suggests that important additional gains can be expected from pro-competitive forces.     

Exact inference and optimal invariant estimation for the stability parameter of symmetric α-stable distributions

Hill estimation (Hill, 1975), the most widespread method for estimating tail thickness of heavy-tailed financial data, suffers from two drawbacks. One is that the optimal number of tail observations to use in the estimation is a function of the unknown tail index being estimated, which diminishes the empirical relevance of the Hill estimation. The other is that the hypothesis test of the underlying data lying in the domain of attraction of an α-stable law (α < 2) or of a normal law (α ≥ 2) for finite samples, is performed on the basis of the asymptotic distribution, which can be different from those for finite samples. In this paper, using the Monte Carlo technique, we propose an exact test method for the stability parameter of α-stable distributions which is based on the Hill estimator, yet is able to provide exact confidence intervals for finite samples. Our exact test method automatically includes an estimation procedure which does not need the assumption of a known number of observations on the distributional tail. Empirical applications demonstrate the advantages of our new method in comparison with the Hill estimation.     

An identification‐robust test for time‐varying parameters in the dynamics of energy prices

We test for the presence of time‐varying parameters (TVP) in the long‐run dynamics of energy prices for oil, natural gas and coal, within a standard class of mean‐reverting models. We also propose residual‐based diagnostic tests and examine out‐of‐sample forecasts. In‐sample LR tests support the TVP model for coal and gas but not for oil, though companion diagnostics suggest that the model is too restrictive to conclusively fit the data. Out‐of‐sample analysis suggests a random‐walk specification for oil price, and TVP models for both real‐time forecasting in the case of gas and long‐run forecasting in the case of coal. Copyright © 2010 John Wiley & Sons, Ltd.     

Public education under capital mobility

The paper considers a two-country model of overlapping generations economies with intergenerational transfers motivated by altruism and investment in human capital. We examine in a non-stationary competitive equilibrium the optimal provision of education with and without capital market integration. First, we explore how regimes of education provision—public, private or mixed—arise and how they affect the dynamics of autarkic economies. Second, we study the effects of capital market integration, in equilibrium, on the optimal provision of education. Third, we show that capital market integration enhances government intervention in the provision of public education (to improve the welfare of its constituents) and consider various solutions to such a competition.     

North South Trade and Supervision of the Social Quality of Goods from the South

This text presents a duopolistic North/South model where the Southern firm can choose to produce ethically or not and to lie or not about the real social quality of its production. The goods from the South are assumed to be ethically unsound (i.e. dubious social content) while those from the North ethically sound. We then study the consequences of monitoring ethics in the North on the nature (fair or unfair) and the volume of North–South trade. On the one hand, an increase in the probability of inspection of goods from the South leads to an increase in imports to the North from the South. This result goes against the idea that this kind of social monitoring is akin to a protectionist measure. On the other hand, if monitoring is large enough that leads the Southern firm to produce ethically and the trade to be fair.     

NIMBY and mechanism design under different constitutional constraints

This paper analyzes, in a simple two-region model, the undertaking of noxious facilities when the central government has limited prerogatives. The central government decides whether to construct a noxious facility in one of the regions, and how to finance it. We study this problem under both full and asymmetric information on the damage caused by the noxious facility in the host region. We particularly emphasize the role of the central government prerogatives on the optimal allocations. We finally discuss our results with respect to the previous literature on NIMBY and argue that taking into account these limited prerogatives is indeed important.     

From Reality to World. A Critical Perspective on AI Fairness

Journal of Business Ethics - Fairness of Artificial Intelligence (AI) decisions has become a big challenge for governments, companies, and societies. We offer a theoretical contribution to consider...     

Coupling High Self-Perceived Creativity and Successful Newcomer Adjustment in Organizations: The Role of Supervisor Trust and Support for Authentic Self-Expression

This study addresses how supervisors can facilitate the socialization of newcomers with high self-perceived creativity into their new jobs. We combine self-verification theory and current literature on socialization in a dual-stage moderated mediation model where a) newcomer self-perceived creativity interacts with supervisor trust in the newcomer to trigger supervisor perception of newcomer creativity; and b) supervisor perception of newcomer creativity, in turn, interacts with supervisor support for newcomer authentic self-expression to impact newcomer adjustment outcomes (i.e., task performance, job satisfaction, and stress symptoms). A two-wave, multisource study of 146 newcomer–supervisor dyads provides support for our predictions, suggesting that high levels of supervisor trust and support for authentic self-expression serve as moderating conditions allowing supervisor perception of newcomer creativity to positively mediate the relationship between newcomer self-perceived creativity and newcomer adjustment.     

Why Local Social Forums Emerge Where They do: Beyond Diffusion,Geographical Appropriation

Social forums are, quintessentially, a transnationally mobile institutional enterprise. Since the first World Social Forum in Porto Alegre, Brazil, in 2001, thousands of local initiatives have emerged all over the world. Yet we know very little about the diffusion processes involved. This article examines nine local social forums (LSFs) in two societies (France and Québec) in order to understand how social forums (SFs) spread throughout or within each territory. Aside from the usual factors, such as the presence or absence of an initiator, favorable political opportunity structure and access to resources, I consider the geography of appropriation, with an emphasis on the dimensions of place (where the forums are organized), and scales of action built by activists. First, I show that, as proposed in the social movement literature, SFs spread from the global South to the global North as a direct result of activists willing to reproduce within their localities that which they have seen and experienced on a larger scale. Political opportunity structures and access to resources appear relevant to understanding the longevity of LSFs and their capacity to be more or less encompassing experiences. But beyond these ‘usual suspects’, the geographical appropriation of social forums is an important consideration that helps us understand the specific diffusion of LSFs in each national territory. In Québec, the region is perceived as a ‘given’ by activists and becomes the relevant scale of collective action, while in France, scale building is at stake and LSFs are used as a tool to escape the centralization of the main national organization in the field of global protest.