Analysing Perceived Downside Risk: the Component Value‐at‐Risk Framework

Multinational companies face increasing risks arising from external risk factors, e.g. exchange rates, interest rates and commodity prices, which they have learned to hedge using derivatives. However, despite increasing disclosure requirements, a firm's net risk profile may not be transparent to shareholders. We develop the ‘Component Value‐at‐Risk (VaR)’ framework for companies to identify the multi‐dimensional downside risk profile as perceived by shareholders. This framework allows for decomposing downside risk into components that are attributable to each of the underlying risk factors. The firm can compare this perceived VaR, including its composition and dynamics, to an internal VaR based on net exposures as it is known to the company. Any differences may lead to surprises at times of earnings announcements and thus constitute a litigation threat to the firm. It may reduce this information asymmetry through targeted communication efforts.     

Future sustainable Latin American growth: A need for savings

This article, starting from the Lewis emphasis upon increasing productivity, analyzes the external and internal sources of disequilibrium in Latin America over the last two decades. It indicates the impressive progress, and continuing requirements, that have been made in both dimensions over the last fifteen years. The real requirement for continued growth at high rates, emphasized by Lewis more than 45 years ago, is, however, increased rates of internal saving. Until the Latin American countries are able successfully to increase their domestic savings, hopes for sustained expansion will be continuingly frustrated.     

International health law and consumer autonomy

Today, international health law and international consumer law are developing in the same direction and with much interaction. But the developments are not uniform. As international health law takes consumer protection into account, it tends to increase the gap between a Western international law and a Third World international law, and to emphasize the negative harmonization approach towards international health protection.Another problem concerns the unification of the rules of international health law and those of international consumer law. This problem is particularly difficult to solve, as the rules of international consumer law themselves are still far from being unified.

---

Internationales Gesundheitsrecht und Verbraucherautonomie

Zusammenfassung Internationales Gesundheitsrecht und internationales Verbraucherrecht entwickeln sich heute in gleicher Richtung, obwohl sie anderen Quellen entspringen. Die wechselseitige Durchdringung nimmt zu, auch wenn die Enwicklung nicht einheitlich vor sich geht. Je mehr das internationale Gesundheitsrecht den Verbraucherschutz in sich aufnimmt, destomehr trennt es sich in ein Recht für entwickelte Staaten und ein solches für Dritte Welt-Länder. Ein vorwiegend negativ-abwehrender Zugang herrscht vor.Ein anderes Problem beinhaltet die Harmonisierung der Regeln des internationalen Gesundheits- und des internationalen Verbraucherrechts. Dies ist schon deshalb schwer erreichbar, weil das Verbraucherrecht selbst nicht einheitlich vorgeht. Die Probleme verschärfen sich, wenn man — ohne eine internationale Verbraucherinstitution wie die WHO — eine gemeinsame positive Gesundheitspolitik für Verbraucher erreichen will.

---

---

Michel Bélanger teaches health law at the U.F.R. de Droit Public et Science Politique, Université de Bordeaux I, Avenue Léon Duguit, F 33604 Pessac, France.     

In search of the meaning of entrepreneurship

This paper is an attempt to build a bridge between the popular and the academic usage of the terms entrepreneur and entrepreneurship, and to identify the raw materials needed to construct an interpretive framework capable of illuminating the nature of entrepreneurship and its role in economic theory. We review briefly the contributions made to this topic by Cantillon, Schumpeter, Schultz and Kirzner. We advance a synthetic definition of the entrepreneur as someone who specializes in taking responsibility for and making judgemental decisions that affect the location, the form, and the use of goods, resources, or institutions. We then conclude with some observations on the basic choice confronting economics regarding the place of entrepreneurship in economic analysis.     

Force and Influence in Content Analysis: The Production of New Social Knowledge

We examine the two traditions of content analysis: the first in which one substitutes words of a text with categories, and the second in which one looks for clusters of words that may refer to a theme. In the first tradition, preexisting dictionary categories give meaning to the words; in the second, meaning comes after the fact. Preexisting dictionary categories (the substitution model) are calibrated instruments applied within experimental designs that leave no space for doubt; meanwhile, the ability of the correlational model to conjure up complex themes from fragments of a text yields no unique solution. These differences have bearings on the production of new social knowledge. We expound on the epistemological foundations of the two traditions of interpretation and draw from them decision rules upon which one may rely for choosing among appropriate content-analytic tactics. Two reasons make this essay timely and critical: (1) the increasing variety of new content-analyticsoftware for particular purposes and (2) the almost exclusive focusing on software and technology at the expense of adjusting the choice of the software to the nature of the text. Two studies, one in historiometry, the other in autobiography, illustrate the liabilities and benefits of the two models of content analysis.     

University Students’ Attitudes Towards Entrepreneurship: A Two Countries Comparison

There is general agreement that attitudes towards the entrepreneur, entrepreneurial activity, and its social function are determinant factors for university students to decide an entrepreneurial career.This empirical study aims at assessing and comparing the attitudes of university students towards entrepreneurship and enterprise formation in Catalonia and Puerto Rico, using a sample of 837 and 435 students, respectively.Results reveal a positive entrepreneur’s image. Both samples have a favorable perception of desirability of new venture creation, although the perception of feasibility is by far not so positive and only a small percentage has the firm intention to create a new company.     

Measuring Hospital Performance in the Presence of Quasi-Fixed Inputs: An Analysis of Québec Hospitals

This research proposes an approach to measure hospital performance based on a generalization of Banker and Morey (1986) and Førsund (1996). This approach considers quasi-fixed inputs explicitly, calculates their implicit cost, and quantifies returns to scale. The performance measure is decomposed into allocative and technical inefficiencies. Based on a very complete data set of Québec hospitals, we find that significant inefficiencies of up to 17% ($700 CAN million) could have been saved through improved performance. Postestimation analyses that include qualitative measures of care suggest that differences in performance are attributable to differences in management or unobservable quality of care rather than patient case mix.     

Pitfalls of Normal-Gamma Stochastic Frontier Models

Although conceptually pleasing, normal-gamma frontier models lead to difficult estimation problems. It is shown here that unless the sample size reaches several thousands of observations the shape parameter of the gamma density is hard to estimate, and that this carries over to estimates of the stochastic frontier, the individual inefficiencies, and the allocation of the overall variance to the stochastic frontier and to the inefficiencies.     

Micro-level product-market dynamics: Shared knowledge and its relationship to market development

This work draws on consumer and psychology research to explain sociocognitive aspects of product-market dynamics at a higher level of specificity than prior research. The authors extend the field’s understanding of market-shaping shared knowledge through a theory-informed discussion of how shared product knowledge comes to exist and how it changes as product markets develop. They define shared knowledge as the aspects of product representations that are common across the minds of market actors, making it possible for them to understand one another. The authors also discuss ways to track shared knowledge content that is expressed in market narratives. As the characteristics of shared knowledge are explained and linked to stages of product-market development, the authors develop a set of researchable propositions to guide future research. The theoretical arguments and propositions in this article complement extant marketing strategy research by integrating individual-level consumer theory with market evolution models. José Antonio Rosa (jose.rosa@case.edu; Ph.D., University of Michigan) is an assistant professor of marketing at Case Western Reserve University. His research interests include product markets as sociocognitive phenomena, embodied knowledge in consumer and managerial sensemaking, consumer illiteracy and coping, commitment and motivation among members of network marketing organizations, and buying group satisfaction. His research has been published in marketing and management publications, including theJournal of Marketing and theAcademy of Management Journal. Before entering academia, he worked in the automotive and information systems industries. Jelena Spanjol (jspanjol@tamu.edu; Ph.D., University of Illinois) is an assistant professor of marketing at Texas A&M University. Her research interests include product market dynamics, product portfolio management, innovation, sensemaking, and organizational and managerial cognition in marketing strategy. Her research has been published in marketing and management publications, including theJournal of Marketing and several book chapters. Before academia, she worked in the scientific software industry.