QRA of chemical reaction systems: The state of the practice

This paper discusses a quantitative risk assessment (QRA) of an exothermic chemical process. Fault tree/event tree techniques were used to estimate the frequency of runaway reactions that could result in over-pressure and vessel rupture. The paper focuses on the current methodology used in performing this type of study, emphasizing analytical techniques that help avoid potential time-consuming pitfalls. The challenging problem of predicting how rare sequences of events (e.g., involving failure of several engineered control and safety systems) will develop is systematically modeled using fault trees/event trees, which makes the QRA process a unique and powerful analytical tool. The results of this study provided the guidance for selecting the most appropriate action(s) to implement from a set of various design options for improving the safety of this system. Use of QRA has enabled plant management to have confidence that they are selecting the most cost-effective safety improvement option.     

Information search in complex industrial buying: Empirical evidence from Brazil

This study develops and tests a model of information search in complex buying. We incorporate three categories of influences of organizational, personal and situational factors that affect information searching efforts. A sample of 96 of the largest Brazilian firms reported their use of the various influences in the decision to purchase integrated business management systems. Findings show that formalization of the organization is a key driver of information search efforts. Situational characteristics of importance, novelty and bargaining power increased the level of information search. Also, conformity of the purchasing agent and organizational centralization reduce information search efforts among the sampled Brazilian firms.     

The Influence of Technology Differences on Corporate Environmental Patents: A Resource‐Based Versus an Institutional View of Green Innovations

This paper proposes that both the resource‐based view and institutional theory predict a positive relationship between the number of patented environmental innovations and non‐environmental innovations held by a firm, because they both are subject to the influence of similar factors. However, while the resource‐based view predicts that technological differences between the patented environmental innovations owned by a firm and those in the industry as a whole will positively affect the firm's environmental innovations, the institutional perspective predicts a negative relationship. Our results derive from a sample of 5537 environmental patents from 59 large companies in the electrical components and equipment industry worldwide, and show a positive relationship between patented environmental and non‐environmental innovations in a firm, but a negative influence on the number of the firm's patented environmental innovations resulting from differences between the firm's environmental technologies and those generally prevalent in the industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Optimal expenditures on police protection

The object of this paper is to propose an approach for operationalizing Rubin's (Minimizing Harm: a New Crime Policy for modern America, Westview Press, Boulder, CO, 1999) idea that minimizing harm is a solution to the crime policy conundrum. Harm is defined to be the total cost of damages due to crime plus the cost of police protection. Its minimization determines optimal expenditures for protection. This is an appropriate basis for specifying the optimal size of a police force, and provides a term of reference for actual policy decisions. Data for the states of the US are used to make the presentation more concrete and to clarify some of the problems that must be solved in actual applications of the method suggested. This does not eliminate the applicability of the approach to any other country or to the geo-political subdivisions within a country. The results obtained are of interest to policy makers dealing specifically with expenditures for police at local, regional or national levels or, more generally, with similar uses of public or private financial resources.     

Horizontal inequality and ethnic diversity in Brazil: patterns,trends, and their impacts on institutions

In this paper, we analyse the patterns and trends of horizontal inequality and ethnic diversity in Brazil in the past 30 years and their effect on the quality of the country’s institutions. Using data from the last four demographic censuses (1980, 1991, 2000, and 2010), we estimate numerous measures to analyse inequalities between different ‘ethnic’ groups. Our results show that, in Brazil between 1980 and 2010, the trend toward greater equality shown in other analyses of vertical inequality, is also found in terms of horizontal inequalities along racial, gender, and regional lines. Nevertheless, horizontal inequalities in terms of race and gender, in particular, remain pronounced. Ethnic diversity regarding race and religion has increased since 1980. Through our regression analysis, we note that both horizontal inequality and ethnic diversity negatively affect the institutional quality of Brazilian municipalities.     

A down-and-out exchange option model with jumps to evaluate firms' default probabilities in Brazil

We develop a tractable structural model to estimate a firm's default probability by modeling its asset and debt behavior. The model incorporates jump factors. For a set of Brazilian large corporations, we compare the structural model results to the default probabilities predicted by a survival analysis applied to the Central Bank debt information database. Our model outperforms other structural models. In a last step, we use a firm's sector failure probabilities to calibrate the model. This process is executed by adjusting the model jump volatility and it helps to explain the differences between debt and equity market failure probabilities.     

Public deficits and economic growth

Considering an integrated area, this paper deals with the balance between the positive effects in the degree of economic cohesion resulting from R&D subsidies, temporarily granted from an imitator and less developed country, and the external negative effects arising from the eventual creation of excessive public deficits.We propose and numerically solve a model of a monetary union between two countries, one being innovator and the other imitator. Results suggest the pertinence of allowing for a temporary differentiation of fiscal discipline rules in favour of the less developed country. R&D subsidies granted by this country seem to lead to an easier catching-up without producing important negative external effects, also as not hurting severely the conditions for long-run sustainability of public accounts.     

Size,Age and Activity Sector on the Growth of the Small and Medium Firm Size

Although corporate growth is one of the most researched subjects in different areas of economic science, it is not currently based on a general theory or generally accepted conceptual definition. In spite of this, growth has usually been considered an essential objective for a firm, contributing to its survival and competitiveness. This work aims to provide a more in-depth study of the factors that condition the growth of small and medium-sized firms, by offering some empirical evidence that will contribute to its modelling, especially in relation to the influence of size, age and activity sector. In this context, we shall attempt to contrast the validity of Gibrat's approach and the Learning Theory.