Intranational, Intracontinental, and Intraplanetary PPP

A model of adjustment toward PPP for a panel of real exchange rates is introduced that allows varying speeds of convergence within nations, within continents and across continents. We allow for correlation across equations in our panel, and estimate the model using generalized least squares. The panel consists of the price levels of eight cities in four countries and two continents. We do not find evidence in favor of reversion to PPP for any group of cities.J. Japan. Int. Econ.,December 1997,11(4), pp. 480–501. Department of Economics, University of Washington, Seattle, Washington 98195-3330 and NBER; Department of Economics, University of Washington, Seattle, Washington 98195-3330; and Board of Governors of the Federal Reserve System, International Finance Division, Stop 22, Federal Reserve Board, Washington, DC 20551.     

The secular inflation term in open-economy Phillips curves

Robert Flood has compared three alternative specifications for the secular inflation term in an open-economy Phillips curve, attributed, respectively, to Buiter-Miller, and Frankel and Mussa. We point out (1) an arithmetic error, (2) the equivalence of the Frankel and Mussa versions, and (3) some arguments against the Buiter-Miller version.     

Geldmenge,Zinssatz, Bankenverhalten und Zentralbankpolitik

Zusammenfassung Entsprechend der Aufgabenstellung steht die Analyse der Zentralbankpolitik im Mittelpunkt dieser Arbeit. Als Aktionsparameter werden die Kreditgew?hrung der Zentralbank an den Staat, die Rediskontkontingente, der Reservesatz sowie die Verzinsung für in- und ausl?ndische Liquidit?tsreserven betrachtet und ihr Einflu\ auf Geldmenge, Sollzinssatz, Kreditvolumen und Liquidit?tsreserven untersucht. Ausgchend von den Bilanzen der Zentralbank und des Kreditbanken-systems wird zun?chst in einem vereinfachten Gleichgewichtsmodell gezeigt, da\ eine Zunahme der Kredite der Zentralbank an den Staat zu einer über den entsprechenden Betrag hinausgchenden Erh?hung der Geldmenge und des Kreditvolumens führt und — im Gegensatz zu den Wirkungen einer Expansion der Kreditnachfrage — eine Senkung des Zinsniveaus und eine Zunahme der Liquidit?tsreserven zur Folge hat. Dieser Vorgang wird anschlie\end im Rahmen einer dynamischen Analyse genauer beschrieben, wobei die Darstellung der Anpassungspfade u. a. erkennen l?\t, da\ die Liquidit?tsreserven — unabh?ngig davon, ob Kreditanbieter oder -nachfrager verz?gert reagieren — im Anpassungsproze\ eine Pufferfunktion übernehmen. Im erweiterten Modell werden alle Zentralbankparameter in die Betrachtung einbezogen. Au\erdem wird die M?glichkeit der Kreditbanken berücksichtigt, durch Ver?nderung der Termineinlagenverzinsung die Entscheidungen der Nichtbanken über die Zusammensetzung ihrer Einlagen zu beeinflussen. Die hieraus für die Zentralbankpolitik resultierenden Konsequenzen bestchen z. B. im Falle expansiver geldpolitischer Ma\nahmen darin, da\ die von den Banken induzierte Umschichtung von Termin- in Sichteinlagen die Auswirkungen auf Sollzinssatz und Kreditvolumen abschw?cht, w?hrend hinsichtlich der Ver?nderung der Geldmenge neben dem abschw?chenden auch ein verst?rkender Effekt wirksam wird. Summary Money in Circulation, Interest Rates, Commercial and Central Bank Policies. — This paper is mainly concerned with an analysis of central bank policy. Central bank credits to the State, rediscounting quotas, reserve rates, and interest paid on domestic and foreign liquidity reserves are taken to be action parameters, whose influence on money in circulation, debit interest, credit volume and liquidity reserves is examined. Starting from the balance sheets of central and commercial banks, it is first shown, in a simplified equilibrium model, how an increase in central bank credits to the State and an expanding demand for credits influence the amount of money in circulation, the credit volume and the amount of liquidity reserves. This process is then described in greater detail by means of a dynamic analysis which shows among other things that liquidity reserves act as a buffer in the process of adaptation. In an enlarged model, all central bank parameters are taken into consideration. In addition, account is taken of the commercial banks’ possibilities, by changing the interest rate for time deposits, to influence decisions of their clients as to the composition of their accounts. The consequences resulting herefrom for central bank policy, for instance in the case of expansive measures of monetary policy, are these: the regrouping of sight and time deposits induced by the banks weakens the effects on debit interest and credit volume, whereas there is both a weakening and a reinforcement of effects concerning changes in the amount of money in circulation.

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Résumé Argent en circulation, taux d’intérêt, politique des banques commerciales et de la banque centrale. — Ce travail tourne autour d’une analyse de la politique de la banque centrale. Sont considérés comme paramètres d’action les crédits de la banque centrale à l’Etat, les contingents de réescompter, le taux et les intérêts des réserves de liquidité nationale et internationale. Est examiné l’influence de ces paramètres sur le montant d’argent en circulation, sur les intérêts dús, sur le volume du crédit et sur les réserves de liquidité. En partant des bilans de la banque centrale et des banques commerciales, il est démontré d’abord, par un simple modèle d’équilibre, de quelle manière une augmentation des crédits de banque centrale à l’Etat, et une.demande croissante de crédits, influent sur le montant d’argent en circulation, sur le volume du crédit et sur le montant des réserves de liquidité. Puis, ce processus est décrit plus en détail au moyen d’une analyse dynamique, qui prouve, entre autres, que les réserves de liquidité agissent en tampon dans ce processus d’adaptation. Dans un modèle plus large, tous les paramètres de banque centrale sont pris en considération. En outre, compte est tenu des possibilités qu’ont les banques commerciales, en modifiant le taux d’intérêt pour dépóts à terme, d’exercer une influence sur les décisions de leurs clients quant à la composition de leurs dépóts. Les conséquences qui en résultent pour la politique de la banque centrale, par exemple dans le cas de mesures expansives de politique monétaire, sont les suivantes: le regroupement des dépóts à vue et à terme, amené par les banques, affaiblit les effets que subissent les intérêts dús et le volume du crédit, tandis qu’il y a et affaiblissement et renforcement des effets en ce qui concerne les changements dans le montant d’argent en circulation.

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Resumen Cantidad de dinero, tipo de interés, comportamiento de los banco s y politica del Banco Central. — El objetivo del présente articulo es analizar la politica del Banco Central. Los parámetros de acción que interesan aqui son el endeudamiento del sector público con el Banco Central, las Hneas de redescuento, la tasa de réservas mmimas, as(como los intereses que arrojan las réservas de liquidez en el interior y en el extranjero; se analiza la incidencia de estos parámetros en la cantidad de dinero, en el tipo de interés, en el volumen crediticio y en las réservas de liquidez. Partiendo de los balances del Banco Central y de la banca comercial, los autores describen mediante un modelo simple de equilibrio cómo repercuten el aumento de créditos concedidos por el Banco Central al Estado y el incremento de la demanda crediticia en la cantidad de dinero, el volumen crediticio y las disponibilidades liquidas. Este proceso de repercusión se analiza a continuación más detenidamente mediante un modelo dinámico, saliendo a relucir, entre otras cosas, que las réservas de liquidez juegan el papel de ?parachoques?. En un modelo ampliado los autores incluyen todos los parámetros de acción. Además considéra la posibilidad de que la banca comercial trate de influir sobre las decisiones del público respecto a la composici?n de sus depósitos, mediante la variación de los intereses para depósitos a plazo. Las consecuencias para la politica del Banco Central consisten en que por ejemplo en el caso de medidas expansivas el cambio de depósitos a plazo por depósitos a la vista, inducido por la banca comercial, tienda a atenuar los efectos sobre el tipo de interés y el volumen crediticio, mientras que los efectos sobre la variación de la cantidad de dinero quedan tanto reducidos como intensificados.

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Riassunto Quantità di denaro, tasso d’intéressé, comportamento délie banche e politica délia banca centrale. — Al centro di questo lavoro c’è l’analisi délia politica délia banca centrale. Corne parametro d’azione sono esaminati la concessione di credito délia banca centrale alló stato, i contigenti di risconto, il tasso di riserva cosi corne il pagamento d’interessi per le riserve di liquidità all’interno ed all’estero. Partendo dai bilanci délia banca centrale e del sistema délie banche di credito, viene mostrato dapprima in un modello di equilibrio semplificato come un aumento dei crediti délia banca centrale alló stato ed un’espansione délia domanda di credito agiscano sulla quantità di denaro, sui volumi di credito e sul fondo délie riserve di liquidità. Questo processo è quindi descritto con esattezza nel quadro di un’analisi dinamica, laddove tra l’altro risulta che le riserve di liquidità in un processo di adattamento assumono una funzione cuscinetto. Nel modello ingrandito sono inclusi tutti i parametri délia banca centrale. Inoltre è considerata la possibilità délie banche di credito di influenzare mediante la modificazione del pagamento d’intéressé dei depositi vincolati le decisioni délie non banche sulla formazione dei loro depositi. Le conseguenze che risultano da qui per la politica délia banca centrale consistono, per es. nel caso di provvedimenti politicomonetari espansivi, in questo: che ristrutturazione indotta dalle banche di depositi vincolati in depositi a vista indebolisce le ripercussioni sul tasso debitore e sui volumi di credito, mentre per quanto riguarda la modincazione délia quantità di denaro accanto all’effetto cedente diventa efficace anche un effetto rafiorzante.

     

Economics of information examples in location and land-use theory

In many contexts a decision taken by one economic agent reveals valuable market information to other agents. Two such examples are displayed. In the first case, the location of a retailer reduces locally the uncertainty in the spatial variation of demand, thereby attracting other retailers. In the second case, the change in the quality of rental housing in a homogeneous neighborhood reveals consumer demand which may invite other landlords to follow suit causing capid neighborhood change.     

Steuerflucht und Steueroasen

The current debate on tax planning has to distinguish between tax evasion and aggressive tax planning. While tax evasion is illegal and requires the enhanced exchange of information, measures against aggressive tax planning seem to be very complex and complicated. Tax havens’ benefits from tax haven activities are inversely related to the intensity of competition among tax havens. Once the set of tax havens narrows, each havens’ share of the business increases and its margins go up. This competition aspect makes initial successes easy but final success very difficult. Nevertheless, some authors argue that action against tax flight is inevitable. As tax flight is a multilateral phenomenon, coordinated initiatives by country groups appear particularly promising. Here the EU should be in the vanguard. Only automatic information exchange generates the transparency and leeway needed to eliminate income tax evasion and to permit countries to devise tax codes at their own discretion. Despite the European trend towards lower corporate taxes, an empirical analysis shows that German multinationals have increased their tax haven activities. Recent research suggests that this development might be explained by the increased usage of anti-tax avoidance measures by high-tax countries. The substitutive nature of different tax-avoidance schemes indicates that only a coordinated closing of loopholes for profit shifting would reduce the demand for tax-haven operations significantly.     

Antecedents and Outcomes of Diversity and Equality Management Systems: An Integrated Institutional Agency and Strategic Human Resource Management Approach

This study examines the development and impact of diversity and equality management systems (DEMS). A national sample of human resource managers from 155 Canadian firms responded to surveys about their firm's diversity and equality management (DEM) practices. Cluster analysis and latent class modeling identified three distinct approaches to DEM: classical disparity DEMS showing limited development of DEM‐related practices, institutional DEMS involving complex selection mechanisms and monitoring of employment statistics, and configurational DEMS linking diversity to business strategy. Hypothesis‐testing analyses indicated that both institutional and configurational DEMS were predicted by coverage by the Canadian employment equity program, federal contractor status, and the presence of a diversity expert on staff. Only configurational DEMS was predicted by inclusion of HRM in developing business strategy. Configurational DEMS positively predicted the employment of workers with disabilities and members of visible minority groups as well as ROA. These findings support the proposition based on strategic human resource management (SHRM) theory that DEM practices should be considered as bundles and that vertical linkage to strategy is important for DEM effectiveness. As such, SHRM theory explains how managers can structure strategic responses to institutional pressures that go beyond requirements to achieve strategic goals. © 2015 Wiley Periodicals, Inc.     

Pricing Sovereign Credit Risk of Poland: Evidence from the CDS Market

We analyze the market assessment of sovereign credit risk using a reduced-form model to price the credit default swap (CDS) spreads, thus enabling us to derive values for the probability of default (PD) and loss given default (LGD) from the quotes of sovereign CDS contracts. We compare different specifications of the models allowing for both fixed and time-varying LGD, and we use these values to analyze the sovereign credit risk of Polish debt throughout the period of a global financial crisis. Our results suggest the presence of a low LGD and a relatively high PD during a recent financial crisis.     

Performance Payments for Groups: The Case of Carnivore Conservation in Northern Sweden

This paper presents a first empirical assessment of carnivore conservation under a performance payment scheme. In Sweden, reindeer herder villages are paid based on the number of lynx (lynx lynx) and wolverine (gulo gulo) offspring certified on their pastures. The villages decide on the internal payment distribution. It is generally assumed that benefit distribution rules are exogenous. We investigate them as an endogenous decision. The data reveals that villages’ group size has a direct negative effect on conservation outcomes and an indirect positive effect which impacts conservation outcomes through the benefit distribution rule. This result revises the collective action hypothesis on purely negative effects of group size.     

正确押注创新

正市场依旧变化无常,想要实现发展目标难上加难。但是,最佳创新企业无论是在顺境还是逆境中,都在市场上遥遥领先。他们制定清晰的创新战略,在探索期就筛选创意,并将资源投入到最有发展前景的创意上。他们怎么做到的?     

Effective teaching,student engagement and student satisfaction during the Covid-19 pandemic: Evidence from business students' qualitative survey evaluations

We investigate the influence of unanticipated prolonged disruption on effective teaching, student engagement and student satisfaction during campus lockdown due to COVID-19. Qualitative comments provided by undergraduate business students in the university end-of-semester survey were analysed using a variety of methods, including sentiment analysis. Our findings indicate that effective teaching through the characteristics of the instructor, can lead to enhanced student engagement and higher levels of student satisfaction in an emergency remote teaching environment. Our findings highlight the critical role of the instructor in providing cognitive and affective support to students, along with clear communication, during times of substantial change.