A dynamic balance sheet management model for a Canadian chartered bank

This paper presents a linear programming (LP) model based on Markowitz portfolio theory for solving the balance sheet management problem for the domestic assets and liabilities of a Canadian chartered bank. Given the bank's initial position, its economic forecasts, and the constraints under which it operates, the model will determine the current and expected future balance sheet adjustments which will meet the bank's expected profits goal with the minimum possible risk. By parametrically varying the expected profits goal, the model will generate the set of risk-return efficient decisions. Bankers need examine only the set of efficient decisions to choose their optimal solution.     

A note on capital budgeting in the purchase of information

A capital budgeting problem of purchasing perfect information is defined. The relationship between this problem and the Expected Value measure is shown and an illustrative example provided.     

The 1979 US gasoline shortage and its impact on the tourism industry

Owners or managers of 373 businesses on Cape Cod, Massachusetts, were interviewed in summer 1981 to determine whether they were affected by the 1979 gasoline shortage. The results indicate that half the respondents were affected, the majority of whom were adversely affected. More tourism businesses reported being affected than non-tourism businesses. The effects manifested themselves in staff layoffs and unfilled vacancies. Nevertheless, tourism businesses on the Cape did not alter any of their marketing strategies, excluding the lowering of prices.     

The political economy of Zimbabwean Urban informality since 2000 – A contemporary governance dilemma

ABSTRACT

The article explores the urban informality dilemma in Harare through the lens of a political economy theory. It examines the typologies of urban informality, the influence of political economy on urban informalities, and informs decision-making to address the urban informality dilemma. A qualitative approach was used where secondary data were collected through document analysis and primary data from interviews with 20 purposively selected key informants. Surveys and in-depth interviews were conducted with 585 individuals engaged in informal activities. It emerged that urban informality in Harare takes on different forms and aside from the economic crisis, politics played a role in the emergence and proliferation of urban informality. The article provides insight into, and raises awareness with regard to key areas of concern on how power influences decision-making relating to urban informality. Therefore, the article provides a basis for policy formulation and institutional reforms for effective measures to curb urban informality.     

Recent estimates of exchange rate pass-through to import prices in the euro area

This paper provides an update on the exchange rate pass-through (ERPT) estimates for 12 euro area (EA) countries. First, based on quarterly data over the 1990–2012 period, the study does not find a significant heterogeneity in the degree of pass-through across the monetary union members, in contrast to previous empirical studies. As the authors use a longer time span for the post-EA era than existing studies, this is not surprising, since the process of monetary union has entailed some convergence towards more stable macroeconomic conditions across EA member states. Second, when assessing the stability of pass-through elasticities, the authors find very weak evidence of a decline around the inception of the euro in 1999. However, their results reveal that a downtrend in ERPT estimates became apparent starting from the beginning of the 1990s. This observed decline was synchronous to the shift towards reduced inflation regimes in their sample of countries. Finally, the authors notice that the distinction between “peripheral” and “core” EA economies in terms of pass-through has significantly decreased over the last two decades.     

Social media adoption: A process-based approach

This research conceptualizes and measures social media adoption (SMA) of companies with a process-based approach and explains its antecedents of micro- and macro-environment, size, and ownership, as well as its consequence of intention to increase resources dedicated to social media. Based on data from 310 Turkish small and medium enterprises, the study first develops a conceptual framework on the pillars of internal and external stakeholder focus as well as relationship and information oriented implementation. Based on these two dimensions, it discusses the novel concepts of social customer relations, social stakeholder communication, social intelligence, and social responsiveness related to SMA. The study further indicates that ownership type and micro environment play a role in SMA and that path dependence exists in the interplay of current adoption and future intentions.