Are duty drawbacks on exports worth the hassle?

Abstract.  Many countries use duty drawbacks on exports, yet there is no consensus whether countries should embrace or abandon them. The answer depends on countries' development priorities and economic conditions. An increase in the drawback has a positive impact on export competitiveness, but the welfare effect is ambiguous. A welfare increase is more likely if the economy is small with high input tariffs, low initial drawback, low administrative costs and tariff leakages. In China duty drawback removal after meeting its WTO commitments improves welfare, but hurts economic efficiency, export competitiveness, and real incomes. Further liberalization can mitigate these negative effects.     

Procompetitive Effects of Foreign Competition on Domestic Markups

A short-run model for estimating the procompetitive effects of foreign competition on markups in an oligopolistic, domestic industry is developed and estimated using data on the Australian automobile industry. Estimates reveal that these effects are rather large and cannot be ignored when predicting the effects of a shock affecting foreign costs. These estimates can also facilitate inferences about the nature of interfirm rivalry.     

The UK equity market around the ex-split date

Using UK stock market data this study unveils positive abnormal returns on and around the ex-split date. These excess returns are partially predictable using the publicly available information prior to the ex-split date. There is also a persistent increase in the post-split volatility of these stocks with the results being robust to the choice of the volatility proxy. Post-split volatility is found to be positively related to trading activity. Contrary to the US findings, volatility dynamics following the stock split are better captured by changes in the daily trading volume rather than by the number of trades.     

Obesity and employment as predictors of diabetes in Mexican Americans: findings from a longitudinal study

This article examines changes in weight loss and employment on the incidence and management of diabetes over an eight-year period. Using data from three panel waves of the Border Epidemiologic Study on Aging, collected between 1995 and 2003, estimation results from a set of logit regression models reveal that obese individuals, who lose weight over an eight-year period, are less likely to be diagnosed with diabetes than those who remain obese in waves two and three. Moreover, employment, an important covariate in all three waves, is associated with the lower likelihood of being diagnosed with diabetes. In all, results confirm findings from cross-sectional data that point to overweight and obesity as important predictors of diabetes and further support public policy efforts that aim at controlling the rising incidence of diabetes through tailored interventions.     

Systematic review and analysis of efficacy of recombinant factor IX products for prophylactic treatment of hemophilia B in comparison with rIX-FP

Abstract

Aims: Prophylaxis with standard-acting recombinant factor IX (rFIX) in hemophilia B patients requires frequent injections. Extended half-life (EHL) products allow for prolonged dosing intervals, and so reduce this treatment burden. Three technologies are employed to extend the half-life of FIX; glycopegylation, Fc-fusion, and albumin fusion. rIX-FP is a novel albumin fusion protein, which allows for a prolonged dosing interval of up to 14?days. A systematic review and indirect statistical comparison was performed to evaluate the efficacy of both EHL and standard-acting rFIX products compared with rIX-FP in Phase III trials for prophylaxis in adult hemophilia B patients.

Materials and methods: A systematic search was conducted in both EMBASE and PubMed to identify Phase III trials of prophylactic rFIX treatment in previously treated hemophilia B patients aged ≥12?years (FIX ≤2%). Annualized bleeding rate (ABR), spontaneous ABR (AsBR), and joint ABR (AjBR) data were extracted from each study. A z-test was performed using the mean of each parameter, and the mean difference in outcome between studies was calculated.

Results: Seven articles investigating six rFIX products were identified. Median ABR, AsBR, and AjBR ranged from 0–3.0, 0–1.0, and 0–1.1 (means = 0.8–4.26, 0.13–2.6, and 0.34–2.85), respectively. rIX-FP achieved the lowest median and mean values in all three parameters. Z-tests showed that mean ABR was significantly lower for rIX-FP 7-day prophylaxis compared with the majority of standard-acting and other EHL rFIX products.

Limitations: The low number of appropriate trials available for comparison limits the quantity of data available for comparison, and restricts the use of methods of adjustment for variance in study design or patient characteristics. However, these limitations are shared with similar analyses published in this field.

Conclusion: This indirect comparison of Phase III trials indicates that rIX-FP efficacy compares favorably vs other rFIX products for prophylaxis in hemophilia B.     

The effect of episodes of large capital inflows on domestic credit

This paper analyses the effect of capital inflow surges on the evolution of domestic credit. Using a panel of developed and emerging economies from 1970 to 2007, it is shown that in the two years following the beginning of a capital inflow surge the credit-to-GDP ratio increases by about 2 percentage points. The effect is reversed in the medium-term with the credit-to-GDP ratio decreased by almost 4 percentage points seven years after the initial surge. The paper also finds that the effect is different depending on the type of flows characterising the episode (debt vs. portfolio equity vs. FDI), with large capital inflows that are debt-driven having the largest effect. The results of the paper also suggest that the short-term effect of capital inflow surges on domestic credit depends on countries’ macroeconomic policy stances. In particular, it is found that this effect is lower in countries with higher real exchange rate flexibility and fiscal policy counter-cyclicality.     

Team vision in product development: How knowledge strategy matters

In today’s more complex multinational and technologically sophisticated environment, the group has re-emerged in importance as the project team. Work teams are important to organizations in general, but are especially critical in product development because they span many functional areas including engineering, marketing, manufacturing, finance, etc., and new product teams must frequently be composed of individuals from different backgrounds and perspectives. In these circumstances, this paper addresses the contingency role that knowledge strategy plays in explaining the relationship between team vision and product development performance. After studying the team vision on 78 new product developments from a wide variety of firms, we found that effective team vision varies depending on the knowledge strategy—defined in terms of punctuated equilibrium in the explorative cycle, low ambidexterity and high ambidexterity. Our results demonstrate that while trade-off is positively associated with success in all strategies, clarity is only associated with low ambidexterity strategies and strategy-fit is only associated with high ambidexterity strategies.     

The supercore for normal-form games

This paper analyzes the supercore of a system derived from a normal-form game. For the case of a finite game with pure strategies, we define a sequence of games and show that the supercore coincides with the set of Nash equilibria of the last game in that sequence. This result is illustrated with the characterization of the supercore for the n-person prisoner's dilemma. With regard to the mixed extension of a normal-form game, we show that the set of Nash equilibrium profiles coincides with the supercore for games with a finite number of Nash equilibria.     

Acceso y uso de los mercados financieros para el pago de los gastos de la educación básica

The aftermath of the 2008 financial crisis and the macroeconomic adjustment that followed provided higher unemployment and eroded the Mexican households’ purchasing power. Though, families had to continue financing education expenditures, sometimes borrowing in the formal or informal financial market. The hypothesis of this paper posits that access and use of formal and informal financial products can reduce the financial problems associated with basic school private expenditures. The probit model is estimated through a sample of four hundred households drawn from the municipality of San Pedro Cholula (state of Puebla). The results indicate that a worsening of working conditions and sudden unemployment are associated with an increased likelihood of difficulties in making ends meet. Moreover, accessing the formal financial market lessens the likelihood of such problems, but for the informal counterpart results depend on the characteristics of each financial intermediary.