Path dependence, MNCs and the internationalisation process: a relational approach

In the internationalisation literature the notion of path dependence has often been associated with gradualism in the evolution of a subsidiary in its host country. In this paper, we argue that path dependence cannot be exclusively associated with gradualism nor can the evolution of a particular subsidiary be explained solely by its embeddedness in its host environment. Instead, we propose that the internationalisation trajectory of units within a multinational corporation’s network comprises a trajectory in time and space involving multiple, overlapping networks. Gradualism and discontinuities in the evolution of the units of a multinational enterprise are the outcomes of relational mechanisms interacting across different temporal and geographical contexts.     

Regulatory incentives to water losses reduction: the case of England and Wales

In recent years, England and Wales have suffered droughts. This unusual situation defies the common belief that the British climate provides abundant water resources and has prompted the regulatory authorities to impose bans on superfluous uses of water. Furthermore, a large percentage of households in England consume unmetered water which is detrimental to water saving efforts. Given this context, we estimate the shadow price of water using a panel data from reports published by the Office of Water Services (Ofwat) for the period 1996 to 2010 (three regulatory periods). These shadow prices are derived from a parametric multi-output, multi-input, input distance function characterized by a translog technology. Following O'Donnell and Coelli (2005), we use a Bayesian econometric framework in order to impose regularity—monotonicity and curvature—conditions on a high-flexible technology. Consequently, our results can be interpreted at the firm level without requiring the need to base analysis on the averages. Our estimations offer guidance for regulation purposes and provide an assessment of how the water supply companies deal with water losses under each regulatory period. The relevance of the study is quite general as water scarcity is a problem that will become more important with population growth and the impact of climate change.     

R&D, TECHNOLOGICAL PROGRESS AND EFFICIENCY CHANGE IN INDUSTRIAL ACTIVITIES

The objective of this paper is to estimate total factor productivity growth (TFP) in an international and sectoral setting using two alternative approaches based on the estimation of parametric stochastic frontiers and non-parametric production frontiers (DEA). The TFP is decomposed into two components, technological progress and efficiency change, that can also be interpreted as the results of the innovation and catching-up process, respectively. Finally their relationship is tested with a set of potential explanatory variables that includes R&D expenditures, international competition, and structural characteristics. It appears that the distinction between technological and efficiency performances does matter and must be taken into account in the design of industrial policy.     

The Jacobi stochastic volatility model

We introduce a novel stochastic volatility model where the squared volatility of the asset return follows a Jacobi process. It contains the Heston model as a limit case. We show that the joint density of any finite sequence of log-returns admits a Gram–Charlier A expansion with closed-form coefficients. We derive closed-form series representations for option prices whose discounted payoffs are functions of the asset price trajectory at finitely many time points. This includes European call, put and digital options, forward start options, and can be applied to discretely monitored Asian options. In a numerical study, we show that option prices can be accurately and efficiently approximated by truncating their series representations.     

Disentangling the Effects of Household Financial Constraints and Risk Profile on Mortgage Rates

In this paper we disentangle the impact of household financial constraints on mortgage rate from a number of dimensions of credit risk. This analysis relies on a dataset that contains information on the economic and financial decisions of Spanish households in four different years: 2002, 2005, 2008, and 2011. Our results suggest that banks’ profitable customers are able to bargain for lower mortgage rates. However, contrary to other studies, the risk profile does not have a significant effect on mortgage rates. Credit institutions tend to charge higher rates during the crisis to all customers, irrespective of their risk profiles.     

Institutionalization and Depoliticization of the Right to the City: Changing Scenarios for Radical Social Movements

The right to the city, a concept previously associated with radical social movements, has been accepted by several governments and has inspired new public policies. However, some authors see this process of institutionalization as involving a loss of a significant part of the radical origins of the concept. This article approaches this process and the new opportunities and limitations it may entail for social movement organizations with a more radical perspective on the right to the city. We explore the paradigmatic case of Brazil and the action of a particular organization, the Movimento dos Sem Teto da Bahia (MSTB, or Homeless Movement of Bahia) in the city of Salvador. We draw on the discussion of the politics of the right to the city and on an original combination of social movement theories and critical discourse analysis in order to analyse political‐institutional and discursive changes in urban reform in Brazil and Salvador. We then analyse how the MSTB moves within this new context, navigating its tensions and contradictions while advancing a radical project of transformation of urban reality within a reformist context. We also reflect on the relevance of Lefebvrian ideas for understanding and inspiring contemporary struggles for the right to the city.     

Models with graphical representation for innovation management: a literature review

In the last decades, the management of innovation has achieved increasing importance in both academic and business environments. For the companies, an effective engagement in innovation efforts involves the adoption of management models to guide the definition of organizational processes to conduct innovation opportunities throughout the organization. In this context, graphical representations can strongly communicate the central propositions of each model, accelerating the diffusion and influence of such models in both academic and business environments. Based on an academic database search, and snowball procedure, models were selected considering the unique characteristics of their graphical representation. This article contributes to the knowledge in the field by proposing a typology of innovation management models, highlighting model's biases, gaps, strengths and weaknesses, and by identifying important tensions among models that spillover to the innovation management field in both research and practice. This article discusses conflicts regarding the limits of the innovation process (events that start and end the process and complementary approaches), the limits of focusing on processes, the differentiation of research and development and new product development activities. In the end, the article addresses emerging approaches related to radical innovation, design thinking and startups, and stresses contributions for research and practice.