Firms as source of variety in innovation: influence of size and sector

This article seeks to fulfill two main objectives. It firstly seeks to identify and quantify characteristics and behaviors of firms that are associated with what, in the evolutionary stream, is known as variety in innovation. A factor analysis is applied with a view to establishing, from a sizeable group of variables related to business innovation, the main factors or sources of variety in innovation in firms. The second goal is to estimate the influence of two variables that have been traditionally related to innovative firm activity on each of these sources: size and sector. The results of the analysis show seven important sources of variability in innovation for firms and that the influence of size and sector of activity on innovation occurs, at different levels of intensity, through these sources. The empirical analysis is based on the responses given for managers of a representative sample of enterprises in a personal interview.     

Self‐Financing Trading Strategies for Sliding, Rolling‐Horizon, and Consol Bonds

The time evolution of a sliding bond is studied in discrete‐ and continuous‐time setups. By definition, a sliding bond represents the price process of a discount bond with a fixed time to maturity. Examples of measure‐valued trading strategies (introduced by Bjork et al. 1997a, 1997b) which are based on the price process of a sliding bond are discussed. In particular, a self‐financing strategy that involves holding at any time one unit of a sliding bond is examined (the wealth process of this strategy is referred to as the rolling‐horizon bond). In contrast to the sliding bond, which does not represent a tradable security, the rolling‐horizon bond (or the rolling‐consol bond) may play the role of a fixed‐income security with infinite lifespan in portfolio management problems.     

Responses to monetary policy shocks in the east and the west of Europe: a comparison

This paper compares impulse responses to monetary policy shocks in the euro area countries before the EMU and in the New Member States (NMS) from central–eastern Europe. We mitigate the small‐sample problem, which is especially acute for the NMS, by using a Bayesian estimation that combines information across countries. The impulse responses in the NMS are broadly similar to those in the euro area countries. There is some evidence that in the NMS, which have had higher and more volatile inflation, the Phillips curve is steeper than in the euro area countries. This finding is consistent with economic theory. Copyright © 2009 John Wiley & Sons, Ltd.     

Beyond bureaucracy? Work organization in call centres

Call centres are a rapidly growing, IT-based channel for service and sales delivery, particularly in the financial services and telecom industries. Although little research has been undertaken on the human resource aspects of call centres, two contrasting images are emerging. The first emphasizes the bureaucratic, constraining nature of these work settings, while the second image points towards worker empowerment characteristic of knowledge-intensive settings. Which of these two images more faithfully portrays the nature of work organization in call centres is the subject of our paper. Drawing on qualitative research undertaken in six call centres and a survey of front-line workers, we show that elements of both models coexist and that a hybrid model predominates. The theoretical basis for this contention, and its institutionalization as mass customized bureaucracy, lies in management's on-going attempts to reconcile two conflicting principles: standardization of processes and customization of products. The paper also explores, as key consequences of mass customized bureaucracy, front-line workers' satisfaction with various facets of their job and their overall job satisfaction, in addition to discretionary work effort. Only in relation to job security and co-worker relations could front-line workers be considered satisfied. Overall, these employees were ambivalent in their responses. They were however more likely to give more discretionary work effort than indicated by their extent of satisfaction. We conclude that, although the existing pattern of work organization may be superior to more bureaucratic forms, it is by no means ideal from the standpoint of either front-line workers or management.     

Labour reform in a neo-liberal ‘protected’ democracy: Chile 1990–2001

This paper analyses the direction and degree of labour reform in Chile since the restoration of democracy in 1990 after seventeen years of military dictatorship. The regime of General Augusto Pinochet (1973–90) adopted a highly repressive political character and implemented neo-liberal economic policies, which, together with the institutional restructuring that accompanied them, transformed vast sectors of Chilean society. The 1979 Labour Plan significantly changed the character of industrial relations legislation and the roles and balance of power among social actors, transforming the way in which industrial relations had been conducted since the 1920s. We argue that, despite more than a decade since the restoration of democracy, and after several rounds of reform, the current legislation presents remarkable continuity with the one enacted under authoritarianism, contradicting claims that profound change has been achieved. In attempting to explain the direction and degree of the so-called Transition's Labour Reforms, we emphasize the importance of political-economy approaches. We explore the conservative nature of the Chilean transition to democracy, the continuity of the neo-liberal economic model and the increasing imbalance of power between capital and labour, in an effort to account for the persistence of the authoritarian legacy in today's Chilean industrial relations.     

Estimating the revenue costs of tax treaties in developing countries

(12764) Petr Janský Marek Šedivý Tax treaties between countries influence how much tax revenues governments receive from multinational enterprises. These treaties often reduce the withholding tax rates on outgoing dividend and interest payments. We provide illustrative estimates of costs for these two taxes for 14 developing countries in sub‐Saharan Africa and Asia in a first multi‐country comparison of this kind. These might be overestimates because we assume that foreign direct investments are not influenced by the tax treaties. We estimate that the highest potential tax revenue losses are within hundreds of millions US$ and around 0.1% of GDP, with Philippines incurring the highest losses both in US$ and relative to GDP. We also find that around 95% of the losses is due to dividends and that only four investor countries—Japan, Netherlands, Switzerland and Singapore—are together responsible for more than half of the losses. We discuss the limitations of these estimates and how future research could improve their quality as well as coverage.     

Fair bilateral pricing under funding costs and exogenous collateralization

Bielecki and Rutkowski introduced and studied a generic nonlinear market model, which includes several risky assets, multiple funding accounts, and margin accounts. In this paper, we examine the pricing and hedging of contract from the perspective of both the hedger and the counterparty with arbitrary initial endowments. We derive inequalities for unilateral prices and we study the range of fair bilateral prices. We also examine the positive homogeneity and monotonicity of unilateral prices with respect to the initial endowments. Our study hinges on results from Nie and Rutkowski for backward stochastic differential equations (BSDEs) driven by continuous martingales, but we also derive the pricing partial differential equations (PDEs) for path‐independent contingent claims of a European style in a Markovian framework.     

Hedging of a credit default swaption in the CIR default intensity model

An important issue arising in the context of credit default swap (CDS) rates is the construction of an appropriate model in which a family of options written on credit default swaps, referred to hereafter as credit default swaptions, can be valued and hedged. The goal of this work is to exemplify the usefulness of some abstract hedging results, which were obtained previously by the authors, for the valuation and hedging of the credit default swaption in a particular hazard process setup, namely, the CIR default intensity model.