One Market,One Money: Evidence from Canada–United States Economic Integration

In this paper, we focus on the evolution of the optimum currency area (OCA) properties between Canada and the United States. To this end, we specifically investigate the relationship between the intra‐industry trade dynamics of Canadian provinces with the United States and the increasing level of integration between the two countries from 1980 to 1998. Our findings lead us to support the view that integration (real and monetary) improves the conditions under which a monetary union can yield net gains in the long run for the integrating countries. We also find that exchange rate developments exert asymmetric effects on the Canadian provinces.     

THE NATIONAL ACCOUNTING SYSTEM AND THE PREPARATION OF THE FIFTH FRENCH PLAN

This paper describes the process of development of the Fifth French Plan, and the role of the national income accounts in this process. Part I discusses methodological considerations relating to medium-term projections. Part II outlines the methods actually used in projecting growth outlines in the Fifth Plan, and discusses the considerations that proved critical. Part III discusses the applications of the projections to the planning apparatus.     

Zum Problem der numerischen Bestimmung der Niveau-Eigenschaft eines psychologischen Tests

Zusammenfassung Ausgehend von einer in dieser Zeitschrift (Bd. 3, S. 117–127) von Lienert und Ebel publizierten Arbeit, werden die allgemeinen Bedingungen für idealtypische Speed- und Power-Tests diskutiert. Es wird nachgewiesen, da? Indices zur numerischen Kennzeichnung von Speedbzw. Power-Eigenschaften eines psychologischen Tests — bestimmt auf Grund einmaliger Testdurchführung —, wie sie von Lienert und Ebel und vor ihnen von Gulliksen (1) entwickelt wurden, nur unter speziellen Bedingungen anwendbar sind.     

Termination Fees in Mergers and Acquisitions: Protecting Investors or Managers?

Abstract:  Institutional investors closely monitor termination fees in mergers and acquisitions (M&A). We argue that their magnitude reflects either agency problems or efficiency considerations. Focusing on M&A involving Canadian targets between 1997 and 2004, we assess the determinants and market impact of termination fees. Our findings show that the Thomson's SDC Platinum™ Worldwide Mergers & Acquisitions Database underestimates their extent. Results suggest that termination fees are essentially an efficient mechanism as they are relatively higher in M&A with high merger costs, a cash component and expected operating synergies. Stock market returns surrounding the deal announcement do not differ across levels of relative termination fees.     

Nonparametric Tests for Positive Quadrant Dependence

We consider distributional free inference to test for positivequadrant dependence, that is, for the probability that two variablesare simultaneously small (or large) being at least as greatas it would be were they dependent. Tests for its generalizationto higher dimensions, namely positive orthant dependence, arealso analyzed. We propose two types of testing procedures. Thefirst procedure is based on the specification of the dependenceconcepts in terms of distribution functions, while the secondprocedure exploits the copula representation. For each specification,a distance test and an intersection-union test for inequalityconstraints are developed for time-dependent data. An empiricalillustration is given for U.S. insurance claim data, where wediscuss practical implications for the design of reinsurancetreaties. Another application concerns detection of positivequadrant dependence between the HFR and CSFB/Tremont marketneutral hedge fund indices and the S&P 500 index.     

A tight sufficient condition for Radner-Stiglitz nonconcavity in the value of information

This paper deals with the existence of a nonconcavity in the value of information, as was first explained by Radner and Stiglitz [A nonconcavity in the value of information, in: M. Boyer, R.E. Kihlstrom (Eds.), Bayesian Models in Economic Theory, Elsevier Science Publishers, Amsterdam, 1984, pp. 33-52 (Chapter 3)]. After defining infinitesimal information distance variationIIDV, we find that IIDV=0 is sufficient for a zero marginal value of information at the null. This is a condition only on the information structure and in particular is independent of the decision maker's preferences. This condition is tight: when IIDV>0, there exists a payoff function for which the marginal value of information at the null is positive under general assumptions.     

The effects of training design,individual characteristics and work environment on transfer of training

This study aims to gain insight into some of the factors that determine the transfer of training to the work context. The present research examined the relationship between three types of predictors on transfer of training, including training design, individual characteristics and work environment. Data was collected at two points in time from 182 employees in a large grocery organization. The results indicated that transfer design, performance self‐efficacy, training retention and performance feedback were significantly related to transfer of training. Contrary to expectation, supervisory support was not significantly related to transfer of training. These results suggest that in order to enhance transfer of training, organizations should design training that gives trainees the ability to transfer learning, reinforces the trainee's beliefs in their ability to transfer, ensures the training content is retained over time and provides appropriate feedback regarding employee job performance following training activities.     

The effects of human resources management practices on the organizational performances of Canadian financial co-operatives

Reading through academic literature with a critical eye shows that the relation between human resources management (HRM) and the performance of the firm is a relatively unknown phenomenon. This relation is sometimes described as a "black box". Far from claiming to have closed the debate, this article sets forth an original approach that represents an undisputable input which allows a better understanding of this phenomenon.
Even if there are many theories that try to explain this relation, only the universalistic approach of human resources will be of interest. While using both a qualitative and a quantitative approach, our research shows that some HRM practices do seem to give a competitive advantage to Canadian financial co-operative enterprises.     

Reported and secret interventions in the foreign exchange markets

Using a new approach relying on news wire reports, we estimate the proportion of secret interventions (i.e., unreported official interventions) in the foreign exchange markets that have been conducted by the three major central banks since 1985. We therefore revisit the estimation of conditional probabilities of secret operations and compute them by both central bank and operation type. The proportion of secret interventions is found to be lower for concerted operations and to display a great deal of variability over time as well as across the three major central banks. Our analysis reveals that the Bank of Japan has recently adopted an intervention policy more based on secret operations.