Longitudinal analysis of entrepreneurship and competitiveness dynamics in Latin America

This study analyzes the relationship between entrepreneurial dynamics in Latin-American countries and the level of competitiveness these countries show. Based on the research conducted by Wennekers et al. [Small Business Economics, 24(3):293–309, 2005] that demonstrates a U-shaped relationship between the country’s rate of entrepreneurship and its level of competitiveness and economic development, we hypothesize that Latin-American countries have a descending behaviour under the U-shaped curve approach. The results from three regression models support this hypothesis and suggest that competitiveness and economic growth deter entrepreneurial dynamics on Latin-American countries. We discuss that Latin-American countries need to improve some structural factors to achieve a high level of entrepreneurial dynamics.

Key Sectors,Industrial Clustering and Multivariate Outliers

In this paper a reflection is made on the problems that can arise in key sector analysis and industrial clustering, due to the usual presence of outliers when using multidimensional data related to the sectors in an input–output table. Multidimensional outliers are considered as being not only linked to the low number of clusters usually observed in this kind of study, but probably causing invalid results in most of the works involving multivariate statistical techniques, such as cluster and factor analysis. Actually, by comparing the key sectors of the Spanish economy obtained in Díaz et al. (2006) Díaz, B., Moniche, L. and Morillas, A. 2006. A fuzzy clustering approach to the key sectors of the Spanish economy. Economic Systems Research, 18: 299–318. [Taylor & Francis Online] [Google Scholar] to the ones we get taking into account the problem the outliers pose, one can realize they greatly distort the results. On the other hand, it is shown that identification of outliers can be considered as a good and new procedure to help select the most important sectors in an economy.     

An analysis of the construct “involvement” in consumer behaviour

The aim of this paper is to analyse the construct involvement. Specifically, the present work extends the sphere of study of the construct involvement at brand level, applying it to Denominations of Origin (D.O.s). Hence, after an overview of the concept, it suggests a cognitive approach to the measurement of involvement. It proposes as indicators the number of values associated with this designation, the centrality of these values and the intensity of the association. In this delimitation of the concept, a model is presented that is set within the framework of an analysis of the decision-making process adopted by consumers when purchasing wine. This postulates that temporary involvement with a D.O. has explanatory power, as does the direct effect of the regular outcomes of a permanent involvement with such a designation on the process in question. In addition, a correlation is proposed between the state of temporary involvement with a D.O. and the continuing consequences of a permanent involvement with this designation.     

An additive property of weak records from geometric distributions

Let $\{W_m\}{_{m\ge 1}}$ be the sequence of weak records from a discrete parent random variable, $X$ , supported on the non-negative integers. We obtain a new characterization of geometric distributions based on an additive property of weak records: $X$ follows a geometric distribution if and only if for certain integers, $n,\, s\ge 1, W_{n+s}\stackrel{d}{=}W_n+W^{\prime }_s$ , with $W^{\prime }_s$ independent of $W_n$ and $W^{\prime }_s\stackrel{d}{=} W_s$ .     

Taxes and labor supply: Portugal, Europe, and the United States

I relate hours worked with taxes on consumption and labor for Portugal, France, Spain, United Kingdom and United States. From 1986 to 2001, hours per worker in Portugal decreased from 35.1 to 32.6. With the parameters for Portugal, the model predicts hours worked in 2001 with an error of only 12 min from the actual hours. Across countries, most predictions differ from the data by 1 h or less. The model is not sensible to special assumptions on the parameters. I calculate the long run effects of taxes on consumption, hours, capital and welfare for Portugal. I extend the model to discuss implications for Social Security. I discuss the steady state and the transition from a pay-as-you-go to a fully funded system.

Evaluating the economy embedded in the Brazilian ethanol–gasoline flex-fuel car: a Real Options approach

The introduction of the flex-fuel cars in the Brazilian market in 2003 changed considerably the consumer decision-making process. Prior to this date, it was necessary to choose the automobile type only by gasoline or by ethanol fuel; today it is possible to choose a car type with both fuel options. This flexibility generates economic advantages for his owner, but what are the financial benefits of a flex-fuel car in comparison with a car using only gasoline? Geographically, where is the owner of the benefits from this flexibility located? This article presents an empirical application of the Real Options Theory in the analysis of the flex-fuel car option for five geographic Brazilian regions: Northern, Northeastern, Central-Western, Southeastern and Southern. The regional price differences as well as the consumer preferences of these regions were met. For this purpose, historical fuel prices were considered stochastic and following a Mean Reverting Stochastic process. The prediction and option values were generated by a Monte Carlo simulation. The results indicated that the option embedded on the Brazilian flex-fuel car adds considerable value to the owner in all regions and car models considered, with the Southeastern Region receiving most benefits by the flex option.     

Teaching the history of economic thought

The main purpose of this survey is to present the results of a questionnaire recently sent to historians of economic thought. This questionnaire — presented in the appendix - was devised so as to provide data on the approaches and experiences of teaching the history of economic thought in a wide range of universities throughout the world.

A summary of the most significant results is presented in section 2 of this survey. Section 1 provides a general introduction to the methodological context of the discussion of problems concerning the teaching of the discipline.     

Gender Inequality in the Spanish Public Pension System

This contribution studies revenue sharing in the public pension system in Spain from a gender perspective, revealing that differences are evident in the percentage of men and women entitled to different types of pensions and in the average fiscal amount per pension for men and women. Using 2010 data, the study analyzes how labor market conditions are reflected in pension type and amount for women pensioners, yielding two important conclusions: the income of women pensioners decreases, relative to men, with age; and the degree of inequality of pensions among women is lower than that among men. These gender differences owe to the contributory character of the system, which reproduces the labor market inequalities of both genders – inequalities that ultimately derive from the social division of roles in which women remain responsible for unpaid care work. This conclusion is consistent with similar studies on other European countries and world regions.