Public policy and technical change in Latin American agriculture

The article analyses and interprets the modernization and technical change of Latin American agriculture over the past two decades. The innovation process is analysed through eight case studies of various products in a variety of countries and method of production. Through these empirical studies, the authors provide a general interpretation of technical change and the public policy process in Latin American agriculture.     

New evidence on the monetary approach of exchange rate determination in Mexico 1994–2007: A cointegrated SVAR model

We provide empirical evidence supporting the validity of both short and long run versions of the Monetary Approach of Exchange Rate determination for the Mexican peso–U.S. dollar exchange rate from 1994 to 2007 using a cointegrated SVAR model. We estimate not only the long-run relationship, between the variables of the monetary model for the exchange rate, but also the very short run effects which have been often ignored in previous empirical work. We show that there are robust short and long-run relationships between the Mexican monetary aggregates and the exchange rate, which ultimately responds to what Bilson's variant of MAER predicts.     

The Slum Multiple: A Cyborg Micro‐history of an Informal Settlement in Lisbon

This article proposes a cyborg reading of the process of informal settlement by internal and postcolonial immigrants in Lisbon's periphery from the 1970s to the present. Cyborg does not stand for a neo‐organicist or cybernetic understanding of the informal city but rather for the conjunction of the multiple enactments of city life under conditions of urban informality—in this case the fourfold combination of history/migration; architecture/low‐fi technologies; inhabitation/body/memory; and governmentality/urban capital. The 40‐year event of settlement and inhabitation is presented through an ethnographic micro‐history of one neighbourhood in particular, with a strong focus on slum dwellers' life stories, on the details of the artefact‐machines they have built, their informal dwellings, and on their social and mental experience of place. Responding to recent calls for multidisciplinary ethnographies of informality, the article brings the specificity of Lisbon's informal settlements—their growth based in postcolonial rather than rural migrations—into current debates on informal urbanisms and geographies of sociotechnical urban assemblages.     

Hierarchical determinants of capital structure

We analyze the influence of time-, firm-, industry- and country-level determinants of capital structure. First, we apply hierarchical linear modeling in order to assess the relative importance of those levels. We find that time and firm levels explain 78% of firm leverage. Second, we include random intercepts and random coefficients in order to analyze the direct and indirect influences of firm/industry/country characteristics on firm leverage. We document several important indirect influences of variables at industry and country-levels on firm determinants of leverage, as well as several structural differences in the financial behavior between firms of developed and emerging countries.     

STRUCTURAL INTERDEPENDENCE AMONG COLOMBIAN DEPARTMENTS

This paper analyzes structural interdependence among Colombian departments. The results show that Bogotá has a large influence on the other regional economies through the power of its purchases. Additionally, a center–periphery pattern emerges in the spatial concentration of the effects of the hypothetical extraction of any territory. From a policy point of view, the main findings reaffirm the role played by Bogotá in the recent polarization process observed in the regional economies in Colombia. Any policy action oriented to reduce these regional disparities should take into account that, given the structural interdependence among Colombian departments, the effects of new investment in the lagged regions would flow through Bogotá and the major regional economies.     

Determinants of debt: Empirical evidence on firms in the district of Santarém in Portugal

In recent decades, the theme of the capital structure and its determinants has caused some controversy and aroused great interest in the financial domain. Several theories and studies have emerged applying to this domain. This study aims to test the explanatory power of the determinants of debt which have the greatest support in the financial literature, size, growth, business risk, profitability, tangibility and non-debt tax shields and its validity in accordance with the theories of capital structure, on firms in Santarém's district. The sample contains financial data of 6184 firms for the period 2008–2012. The results indicate that firms in Santarém's district in Portugal have a high level of debt, using mainly short-term debt. The growth and profitability have proved to be determinants of debt, confirming the Pecking Order Theory.     

Long-term recurrence patterns in the late 2000 economic crisis: Evidences from entropy analysis of the Dow Jones index

The depth (4.5% US GDP decline and 9.5% stable unemployment) and duration (more than two years) of the present global economic recession have suggested to many researchers and practitioners to think that it is singular relative to previous recession that occurred in the aftermath of the World War II. It has been argued that the singularity of the late 2000 crises arises from non-precedent components, such as globalization and a dominant financial system equipped with exotic instruments (e.g., derivatives) designed from highly specialized mathematical theories. This paper uses the historic (1928–2010) Dow Jones index analyzed with informational entropy methods to show the presence of recurrent cycles with dominant periods of 4.5 and 22 years. For time series, entropy is a measure of the diversity of patterns for given time scales. In this form, the higher the entropy, the more complex the underlying system dynamics. It is shown that the present economic downturn coincides with the occurrence of a 22-year cycle in the entropy dynamics of the Dow Jones index. It suggests that the crisis is not singular, but its origin can be also explained from recurrent long-term patterns. Implications of the empirical results for the evolution of the late 2000 crisis and the potential aftermath courses of the global economy are discussed.     

Does socially responsible investment equity indexes in emerging markets pay off? Evidence from Brazil

This paper explores the financial performance of a mainstream socially responsible investment equity index in emerging markets: the Brazilian Corporate Sustainability Index. The results indicate that investors in emerging markets could accommodate their ethical values while at the same time not scarifying their overall portfolio performance in bullish market periods. However, the financial crisis led ethical investors to take a riskier and less profitable portfolio. These results seem to be due to socially responsible investment in Brazil that, as with other emerging markets, is highly influenced by social and institutional factors.