Explaining Firms’ Export Behaviour: R&D,Spillovers and the Destination Market*

We examine the importance of a firm's own R&D activity and intra‐sectoral spillovers on the decision to export and the export intensity using firm level panel data for Spain for the period 1990–98. Own R&D activity is found to be an important determinant of export activity. There is little evidence to suggest that Spanish firms benefit from spillovers of the exporting activity of others. However, there is evidence that R&D spillovers exert positive effects on firms’ export ratios. We find a larger marginal impact of R&D spillovers on export intensity of firms exporting to other OECD countries than those exporting to non‐OECD nations.     

Life insurance in a contingent claim framework: Pricing and regulatory implications

In this paper we develop a contingent claim model to evaluate the equity and liabilities of a life insurance company. The limited liability of shareholders is explicitly modelled. We focus on a specific type of life insurance policy—namely, the profit-sharing policy. In this policy, the policyholder is entitled to a guaranteed interest rate and a percentage of the company's yearly financial revenues. The implicit equilibrium interest rate and profit-sharing ratio are derived and analyzed. We finally discuss regulatory measures frequently encountered in the life insurance business such as rate ceilings, capital ratios, and asset restrictions.     

On the efficiency of fixed price equilibrium

We study the efficiency properties of K-equilibrium, a species of fixed price equilibrium. In particular, we examine the interrelations among K-equilibria and two of its properties: order and voluntariness. We also consider several alternative concepts of optimality.     

AGRICULTURAL DEVELOPMENT AND FARM INCOME DISTRIBUTION IN LDCs

There were remarkable and sustained increases in agricultural and food production in the developing countries over the last three decades. But the fruits of this progress were not shared by all, and many remain in poverty. Some believe this due to the unequal distribution of benefits and accordingly claim that an agricultural strategy which focuses on reducing disparities of income, assets and access is the most important objective for agricultural development. This approach is justified by claims of wide and increasing disparities of income in the agricultural sectors of LDCs. This paper looks at the evidence for such claims and finds that they cannot be supported by hard evidence. Indeed, the few valid studies of agricultural income distribution show modest disparities. Accordingly, redistribution strategies, especially those aimed at uni-modal farm sectors, are rejected as unnecessary, undesirable and unachievable (without destroying the main spring of agricultural progress). On the contrary, it is urged that growth in productivity, output and incomes should be the dominant development objective to encourage, as many examples show, the enterprise, ability and energy of small farmers and their families. Such a strategy produces a degree of unequal distribution of benefits which reflects the distribution of personal qualities and endowments and acts as an incentive to their exercise. To keep disparities within bounds, agricultural policies relating to pricing, extension, credit, research and so on should aim at widening the number of small farmer beneficiaries of agricultural development.