DS-optimal designs in one way ANOVA

Characterization and construction of optimal designs using the familiar optimality criteria, for example A-, D- and E-optimality are well studied in the literature. However the study of the Distance Optimality (DS-) criterion introduced by Sinha (1970) has very recently drawn attention of researchers. In the present article, we consider the singularly estimable full rank problem of estimating the full set of elementary treatment contrasts using the DS optimality criterion in the set up of a one way ANOVA model. Using a limit argument it turns out that a CRD in which difference between any two allocation numbers is at the most unity is uniquely DS-optimal. Acknowledgement. We are thankful to Prof. B. K. Sinha for suggesting the problem to us and many helpful discussions with him. We are also thankful to the referees for drawing our attention to the reference of Bischoff (1995) and many helpful comments.     

Country size and ‘insulation’ from external disturbances

Summary This paper considers the relationship between economic size and vulnerability to external disturbances. In order to analyze this issue effectively a model comprising three different-sized economies is constructed. The issue of economic size and insulation is approached from this alternative perspectives depending upon the relative size of (a) the `recipient' country and (b) the transmitting country. The results of the analysis indicate that, contrary to popular belief, a small country under floating exchange rates is less severely affected by external economic events than a large economy regardless of the type of external disturbance and the degree of domestic wage indexation.This paper has been improved by the helpful comments of a referee. We alone are solely responsible for all remaining errors.     

Critical success factors determining performance of cross‐border acquisition: Evidence from the African telecom market

This study investigates the factors affecting Bharti Airtel's cross‐border postacquisition performance in an African market. This study describes the relationships among various factors such as technical capability, affiliated firm's absorptive capacity, and organizational learning capabilities, which determine the successful operations of the Zain acquisition deal in South Africa. This paper adopts a qualitative approach to identify factors that influence the postacquisition performance. Seven factors are identified based on the literature. Consequently, it has become a necessity to encapsulate these factors in suitable proportions. In this study, we have developed a total interpretive structural modeling (TISM) to analyze the postacquisition performance of Bharti Airtel in South Africa. Our research has highlighted six dynamic factors (organizational learning capability, knowledge management, technology capability, technology relatedness, acquirer's absorptive capacity, and national culture difference) that affect the firm's postacquisition performance. The interpretive structural model (ISM) and total interpretive structural model for postacquisition performance are built‐up. The developed TISM will support academics and practitioners to develop their understanding of acquisition performance of parent companies in the context of telecom business in the South African market.     

A look at ‘overshooting’ in a two-tier float exchange rate system

This note examines the celebrated ‘overshooting’ hypothesis in the context of a two-tier float exchange rate regime. It is shown that monetary expansion leads to depreciation of both spot exchange rates and there is a presumption in favor of financial exchange rate ‘overshooting’.     

The real exchange rate and intervention under the managed float: Dilemmas of a central banker

Conclusion This paper has attempted to rationalize some recent widespread trends in the balance of payments of several countries. It has been argued that the exchange-market intervention techniques followed by certain countries especially in the presence of high capital mobility, may have contributed to the observed instability. Such a notion is not new. The innovation of the note is to demonstrate that even a gradulaist and anticipated popular intervention policy can be potentially destabilizing.The usual disclaimer applies with respect to all remaining errors.     

A framework for the analysis of legal and fraudulent trade transactions in “Parallel” exchange markets

Zusammenfassung Ein Rahmen für die Analyse legaler und illegaler Handelstransaktionen auf parallelen Devisenm?rkten. - In diesem Aufsatz wird ein stochastisches Gleichgewichtsmodell für eine offene Volkswirtschaft mit dualem Devisenmarkt konstruiert and analysiert. In diesem Rahmen sind die Devisenm?rkte nicht vollst?ndig gegeneinander abgeschottet, und ein Teil der Warenhandelstransaktionen wird auf den Finanzm?rkten abgewickelt - sowohl wegen einer rechtlich gestatteten Durchl?ssigkeit als auch deshalb, weil es illegale Transaktionen gibt, die auch in der Realit?t vorkommen. Der Modellrahmen wird benutzt, um Fragen zu behandeln, die sich über die kurz- und langfristigen Wirkungen verschiedener struktureller St?rungen hinaus auf die dynamische Anpassung in einer solchen Volkswirtschaft beziehen.

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Résumé Un cadre pour l’analyse des transactions légales et frauduleuses de commerce en marchés de change parallèles. - Dans cet article les auteurs construisent un modèle d’équilibre stochastique d’une économie ouverte à un régime dual de marché de change. Dans ce cadre ses marchés de change ne sont pas complètement segmentés et une part des transactions commerciales du commerce extérieur est réglée en marché financier à cause du ?coulage? légalement sanctionné aussi bien qu’à cause des transactions frauduleuses en conformité avec la réalité économique. Les auteurs appliquent le cadre pour répondre aux questions qui s’occupent de l’ajustement dynamique dans une telle économie et des effets de court et de long terme de quelques perturbances structurelles.

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Resumen Un marco para el análisis de transacciónes comerciales legales y fraudulentas en el mercado paralelo de cambios. - En este trabajo se construye y analiza un modelo estocástico de equilibrio para una economía abierta que funciona con un mercado de cambios dual. En el presente marco el mercado de cambios no está completamente segmentado. Una parte de las transacciónes comerciales se rigen según el mercado financiero, tanto en forma legal como fraudulenta, de acuerdo con la realidad económica existente. Se utiliza este marco para estudiar cuestiones relacionadas con el ajuste dinámico en este tipo de economía como también las consecuencias a corto y largo plazo que puedan tener distintos disturbios estructurales.

     

Did the commodity price spike increase rural poverty? Evidence from a long‐run panel in Bangladesh

We assess the effects of the dramatic rise in agricultural commodity prices during 2007–2008 on income dynamics and poverty among rural households in Bangladesh. A unique panel data set allows us to put the effects of recent events in the context of long‐run trends in income and poverty. We use data from a nationally representative longitudinal survey of rural households in Bangladesh collected in four waves in 1988, 2000, 2004, and 2008. Nargis and Hossain (Nargis, N., Hossain, M., 2006. Income dynamics and pathways out of rural poverty in Bangladesh, 1988–2004. Agric. Econ. 35, 425–435) analysed income dynamics and poverty incidence for the first three waves, finding a declining trend in both the incidence and severity of poverty, aided in particular by human capital development and off‐farm employment opportunities. We update and extend the analysis to include data collected in 2008, at the height of a spike in agricultural prices. We find that the price of a balanced food basket increased by more than 50% during 2000–2008, while household income rose only 15%. As a result the incidence and severity of rural poverty in Bangladesh sunk to pre‐2000 levels during 2004–2008. Thus, the price spikes in 2007–2008 helped push an additional 13 million people into poverty in rural Bangladesh. Moreover, we find that the determinants of poverty have not been time‐invariant. In particular, agricultural production, which had previously been associated with a higher incidence of poverty, served as a hedge against higher food prices during 2004–2008.     

RISK AND RETURN ON NEWLY LISTED STOCKS: THE POST-LISTING EXPERIENCE

Researchers consistently find that newly listed stocks underperform in the post-listing period. It has been suggested that this anomalous finding may, in part, be explained away if the risk during this period is lower than at other times. Evidence is presented here that the riskiness of newly listed stocks undergoes a seasoning process. Instead of lower risk, riskiness is found to be greater immediately after listing than in later periods. This suggests that the post-listing anomaly is actually worse than has been previously recognized.