The Effect of the Exchange Rates on Investment in Mexican Manufacturing Industry

This paper, considering revenue and cost exposure channels, investigates the effects of exchange rate on fixed capital investment in Mexican manufacturing sector over 1994–2003. We find that i) currency depreciation has a positive (negative) effect on fixed investment through the export (import) channel; ii) exchange rate volatility impacts mostly export oriented sectors; iii) the sensitivity of investment to exchange rate movements is stronger in non-durable goods sectors and industries with low mark-up ratios.     

Decoupling market incumbency from organizational prehistory: Locating the real sources of competitive advantage in R&D for radical innovation

The creative destruction literature has argued that differences in R&D performance of incumbent vs. entrant firms can be explained through organizational change theories about established vs. de novo firms. A disconnect exists between these theories and the available empirical evidence because often the best performing firms are established firms as well. I propose to resolve this disconnect by distinguishing between market incumbency (presence in a market prior to a discontinuity) and organizational prehistory (organizational experience prior to a transition, whether between technologies or between markets). Doing so allows me to contrast incumbent vs. entrant and de alio vs. de novo studies, and to suggest more robust future research designs. I illustrate my proposition using qualitative data from the anticancer and AIDS‐treatment drug markets. Copyright © 2012 John Wiley & Sons, Ltd.     

A qualitative and longitudinal analysis of market orientation

This work analyzes the dynamic effect of market orientation (MO) on organizational performance, both in the long term and in the short term. The performance was measured by the sales growth and profitability. The methodology used is innovative as it quantifies the MO with a qualitative technique: content analysis. Data from the Spanish banking sector between 2005 and 2007 are the basis of a longitudinal study. The results indicate that the banks that develop an MO approach maintain this approach over time. On the other hand, MO does not seem to have a direct effect on profitability, but does affect the long-term sales growth.     

How much does water consumption drop when each household takes charge of its own consumption? The case of the city of Seville

Making individuals take charge of their own domestic water consumption is one of the measures used to reduce the growing demand for this resource and to achieve sustainable consumption compatible with the goal of equity. The use of individual meters instead of communal meters and fixing tariffs by inhabitant rather than by household are two measures aimed at achieving these objectives. This article assesses the measures put in place in the Seville metropolitan area during the last 20 years with an unobserved component model set up in a state-space framework estimated using maximum likelihood. Water consumption elasticity to individual meters has changed from –0.307 to –1.317 with the introduction of per inhabitant tariffs, which demonstrates that there are water-saving synergies when the two measures are implemented together. The reductions in water consumption achieved with these measures are also longer lasting than the changes in consumption habits during the frequent droughts in Seville.     

Optimal Bonus Scales Under Path-Dependent Bonus Rules

Bonus malus systems have been studied by several authors under the framework of Markov chains. Optimal scales have been deduced by Norberg (1976), Borgan, Hoem & Norberg (1981) and Gilde & Sundt (1989). In these articles the authors assumed that the bonus system forms a first order Markov chain. In the present paper we deduce the optimal scales, using the same criteria as in the cited papers, for bonus systems that are not first order Markovian processes, but that can be regarded as Markovian by increasing the number of states of the system.     

Sponsorship relationships as strategic alliances: A life cycle model approach

In recent years, academics and practitioners have recognized that sponsorship relationships operate as strategic alliances. Additionally, they have emphasized the lack of analytical approaches which allow an understanding of the developmental process of such alliances. In an attempt to fill this gap, we examine how key sponsorship characteristics change over different stages of the life cycle (formation, operation, and outcome) to determine the success or failure of the relationship. Specifically, we propose a life cycle model that articulates general paths in sponsorship relationship developmental stages and the behavior pattern of sponsorship characteristics. Throughout this framework, we illustrate our reasoning with examples drawn from the UBS/Team Alinghi sponsorship relationship.     

A Note on Bonus Scales

We revisit the optimal bonus scales introduced by Norberg (Norberg, R., 1976, Scandinavian Actuarial Journal (2): 92‐107), Borgan, Hoem, and Norberg (Borgan, O., J. Hoem, and R. Norberg, 1981, Scandinavian Actuarial Journal (2): 165‐178), and Gilde and Sundt (Gilde, V., and B. Sundt, 1989, Scandinavian Actuarial Journal (1): 13‐22) and underline some potential problems of the linear scales. As a possible solution we propose the use of geometric scales.     

How will EMU affect cohesion?

The new policy environment of EMU affects economic, political and social cohesion in different ways: the policy mix and menu will be reconfigured; it will provide for more macroeconomic stability in cohesion countries; economic competition will intensify and change patterns of specialisation; and comparison of living standards will become easier, which puts pressure on policymakers to reduce inequalities. This article assesses the significance of these effects and their likely consequences in the short, medium and long run. Then the salient cohesion issues as regards eastern enlargement are discussed. Finally, policy conclusions are drawn, mindful of the considerable uncertainties that warrant further research. joint editor of the Journal of Common Market Studies. He has just moved to the European Institute of the London School of Economics and Political Science, UK. He is also Visiting Associate Professor at the University of Aveiro     

Gated Communities in Santiago: Wall or Frontier?

It is a widely held notion, disseminated in particular by the LA school of urban studies, that gated communities are enclaves, which not only maintain segregation but also help increase it. In Chile a more benevolent interpretation has arisen. Sabatini, C´ceres and Cerda argue that gated communities help out the poor communities that surround them. If the spatial scale of segregation is reduced — from city to local or neighborhood level — social disintegration should slow, according to their analysis. This article seeks to empirically complement and expand on Sabatini, Caceres and Cerda's position, which seems to be a better interpretation of Chilean reality than the grim picture presented by the LA school. The article is an ethnographic work based on in‐depth interviews in gated communities and a surrounding shantytown in the Huechuraba district, a lower socio‐economic class area in north‐west Santiago. The research concludes that, despite the existence of a wall that promotes community integration among so‐called equals, in conditions of spatial proximity sociability between inside and outside groups is not diminished. Thus, in Huechuraba there is no impenetrable wall separating poor and rich; equally, the walls do not seem to promote community integration within. Spatial proximity has encouraged relations mainly in the realm of functional exchange, making the creation of gated communities in poor neighborhoods a socially desirable experience, at least in the case of Santiago. En études urbaines, l'idée que les communautés privées sécurisées, gated communities, soient des enclaves qui entretiennent, et accentuent, la ségrégation est courante, notamment pour l'école de Los Angeles. Le Chili suscite une interprétation plus humaine. Selon Sabatini, Cáceres et Cerda, les communautés privées sécurisées sont un soutien pour les communautés pauvres avoisinantes. Si l'échelle spatiale de la ségrégation est réduite — de la ville au niveau local ou de quartier — la désintégration sociale devrait, d'après eux, ralentir. L'article vise à compléter et développer de façon empirique leur théorie, celle‐ci semblant traduire la réalité chilienne plus fidèlement que le sombre tableau de l'école de Los Angeles. Il s'agit ici d'un travail ethnographique qui s'appuie sur des entretiens poussés dans des communautés privées sécurisées et un bidonville du secteur de Huechuraba, zone socio‐économiquement pauvre du nord‐est de Santiago. Les recherches concluent que, malgré l'existence d'un mur qui favorise l'intégration communautaire entre soi‐disant égaux, la sociabilité entre les groupes intérieur et extérieur ne diminue pas en cas de proximité spatiale. Ainsi, à Huechuraba, il n'existe aucun mur impénétrable entre riches et pauvres; de même, les murs ne créent pas, semble‐t‐il, d'intégration communautaire dans leur enceinte. La proximité spatiale a encouragé les relations surtout dans le domaine des échanges fonctionnels, faisant de la création de communautés privées sécurisées dans les quartiers pauvres une expérience souhaitable au plan social, du moins dans le cas de Santiago.