An elementary model of export tax war

In this paper, the author uses a generalized version of Kennan and Riezman (Int Econ Rev 29(1):81–85, 1988) trade war model with Stone–Geary preferences, where countries can choose between a Nash tariff or an export tax. Three scenarios emerge from this setting, namely: the standard tariff war, the export tax war and a mixed scenario—“the tariff-export tax war”—where one country applies a Nash tariff, while the other imposes an export tax. In this setting, countries derive their market power not only from their relative endowment size, but also from their subsistence consumptions. As a consequence, a large country does not necessarily win a trade war if it has a substantially higher consumption requirement than the small country. This finding explains why large economies sign trade agreements with small counterparts that prohibit the use of tariffs and export taxes.     

Is there a case for carbon-based border tax adjustment? An applied general equilibrium analysis

Concern that unilateral Greenhouse Gas (GHG) emission reductions could foster carbon leakage and undermine the international competitiveness of domestic industry has led to growing calls for carbon-based Border-Tax Adjustments (BTAs). This article uses a global general equilibrium model to assess the economic effects of BTAs and comes to three main conclusions. First, BTAs can reduce carbon leakage if the coalition of countries taking action to reduce GHG emissions is small, because in this case leakage (while typically small) mainly occurs through international trade competitiveness losses rather than through declines in world fossil fuel prices. Second, even though the economic effects of BTAs vary somewhat depending on how they are implemented, their welfare impact is typically small, and slightly negative at the world level. Third, and perhaps more strikingly, BTAs do not necessarily curb the output losses incurred by the domestic Energy Intensive-Industries (EIIs) they are intended to protect in the first place. This is in part because EIIs in industrialized countries make important use of carbon-intensive intermediate inputs produced by EIIs in other geographical areas. Another, deeper explanation is that EIIs are ultimately more adversely affected by the existence of a carbon price itself than by any international competitiveness losses. These findings are shown to be robust to key model parameters, country coverage, targets and design features of BTAs.     

Private investment in small public entities

Private placements provided by institutional or individual accredited investors are becoming an important financing tool for small public firms worldwide. However, private placement issuers offer poor average returns. We explain this puzzle using 2,987 traditional private placements by Canadian small public firms over a decade. We observe significant long-run post-issue underperformance using a classic factor pricing model. This underperformance is partially erased when the returns are adjusted to consider the issuers’ high level of investment, and to include the discount granted to private investors. We split the sample by the glamour/value dimension and by the firms’ investment activity. Only glamour firms with high investment activity underperform in the long run. Private investors obtain positive returns on placements in value and high investment firms. However, they overestimate investment projects of glamour firms.     

Services advertising: showcase the customer!

The research presented in this article focuses on the effectiveness of advertising strategies used in services communication. For this purpose, a quantitative study of 50 magazine advertisements for services in tourism and banking/insurance was conducted with a sample of 249 respondents. This research shows that, for both sectors, certain advertising strategies are more effective than others, and that the most effective advertising strategy is one that showcases the service customer. This strategy is more effective than those highlighting competitive advantage, contact staff, a physical representation of the service or the company’s brand image.     

General consumption constraints and regular economies

In the spirit of Smale’s work, we consider pure exchange economies with general consumption sets. In this paper, the consumption set of each household is described in terms of a function called possibility function. The main innovation comes from the dependency of each possibility function with respect to the individual endowments. We prove that, generically in the space of endowments and possibility functions, economies are regular. A regular economy has a finite number of equilibria, which locally depend on endowments and possibility functions in a continuous manner.     

The Decentralisation of Airbus Production and Services

Airbus has been multisourcing production since the first rollouts in the late 1970s, spawning clusters of suppliers around its locations in Bristol, Hamburg, Madrid and Toulouse. Moreover, both the A380 project and globalisation of the aircraft market pointed up the need and value of outsourcing. This paper analyses the outlook for supplier clusters in Toulouse and elsewhere based on Airbus thinking and practices before identifying the ingredients of successful outsourcing.     

Linking Border Disputes and War: An Institutional-Statist Theory

Boundary disputes are among the most explosive international flashpoints. They frequently correlate with militarised interstate disputes and are more likely to lead to high intensity conflict than other kinds of frictions. Although analysts have been turning increasing attention to the topic of boundary tensions, significant knowledge gaps remain. We still do not know exactly what factors cause some border controversies to emerge or spur others to intensify to the point of war. One reason is that the existing literature has paid insufficient attention to the socially-constructed nature of boundaries. Another reason is that researchers have not adequately accounted for the causal import of domestic politics. Herein, I offer a novel, two variable explanation, which I term institutional-statist theory, to explain when border disputes will result in war. My theory stresses the functional value of the contested boundary as well as the disputants' level of stateness. I test the usefulness of my theory through a case study of the Indo-Pakistani boundary conflict between 1947 and 1965. My theory illuminates why war occurred in 1947/1948 and 1965, and why peace was obtained between the wars. In contrast, competing approaches have difficulty explaining the wars, their timing, or the peace between 1948 and 1965.     

Stock exchange markets for new ventures

In Canada, a venture stock market lists microcap firms at a pre-revenue stage, and competes with both formal and informal venture capital (VC). This market provides a higher rate of return and seven times as many new listings to the main exchange as traditional VC. After they graduate to the main market, new listings on the main exchange succeed even if they are not venture-backed. Our results contradict the premise that because it lacks skills, tools and value-added capabilities, a public venture market is unable to compete with a private one.     

The survival and success of Canadian penny stock IPOs

We analyze the survival and success of a large sample of Canadian penny stock initial public offerings (IPOs), launched mostly by small and unprofitable firms from 1986 to 2003. The failure rate of these IPOs is lower than in the US for larger IPOs, probably because of lax delisting rules and the market’s capacity to refinance non-profitable firms. The survival of new issuers is significantly associated with their characteristics at the IPO and with the level of initial listing requirement they meet. The involvement of reputable intermediaries in the IPO process mitigates this effect. Success, estimated by the graduation to a senior exchange, is not linked to the financial conditions at the IPO. Overall, Canada seems to have developed a particular strategy to finance the growth of small firms even if the propensity to fail of firms listed at a pre-revenue stage is very high.     

Existence of marginal pricing equilibria in economies with externalities and non-convexities

We consider a general equilibrium model with externalities and non-convexities in production. The consumption sets, the preferences of the consumers and the production possibilities are represented by set-valued mappings to take into account possibility of external effects. There is no convexity assumption on the correspondences of production. We propose a definition of the marginal pricing rule, which generalizes the one used in the model without externality and, which satisfies a continuity assumption with respect to the external effect.We prove the existence of general equilibria under assumptions which allow us to encompass together the works on economies with externalities and convex conditional production sets, and those on marginal pricing equilibria in economies without externalities. We provide examples to illustrate the definition of the marginal pricing rule and to show the difference with the standard case.