Product Patent Reform and its Impact on Korea's Pharmaceutical Industry

Our analysis focuses on the effect of U.S. government pressure on Korea to adopt product patents for chemical and pharmaceutical products. American pressure began in November 1985 and ended with the Korean Legislature's passage of a new patent law in December 1986. We conduct an event study of the effect of the new patent law on the value of Korean pharmaceutical firms listed on the Korea Stock Exchange. Regression analysis shows that the new law induced excess returns of-74 percent over the 14-month analysis period. The results suggest that adoption of stronger patent laws reduced Korea's wealth. [G14, O34]     

The Demand for Money in Canada: A Cointegration Analysis

In this Paper, using the techniques in cointegration theory, we find strong support for the existence of a long-run equilibrium relationship among money demand variables in Canada. Additionally, when the conventional partial adjustment model (PAM) is compared to the two-stage error correction model (ECM), the latter approach is found to perform better, with M2+ showing better results than M2. Our results are also found to be in line with other studies from the U.K. and the U.S.A. These findings provide rationale for further in-depth studies on broader monetary aggregates to formulate sound monetary policy in Canada. [E41]     

Foreign Management,International Capital,and Income Redistribution

This paper examines the impact of foreign management as a separate input in a competitive economy open to both international trade and international movement of productive capital. Three inputs (capital, labor, management) are used to produce two final goods in a model characterized by competition, homogeneous products, and full employment. This model provides a simple starting point for the study of multinational firm activity, building on the fundamental competitive factor proportions model of production and trade. A clear distinction arises between international movements of capital and management, and international movements of the two inputs are linked. [F 11, F 23]     

Price leadership in a duopoly with capacity constraints and product differentiation

This paper analyzes Stackelberg price leadership in a duopoly in which firms are capacity constrained and products are imperfect substitutes. Assuming symmetric substitutes, linear demand, and efficient rationing, we characterize the equilibria with an exogenously specified leader. Using the equilibrium profits derived from these games, we argue that over certain ranges of asymmetric capacities an endogenous price leader will emerge. When endogenous leadership does arise, it is the large capacity firm which is the leader. We thus provide a game theoretic model of dominant firm price leadership.Dave Furth's research has been undertaken as a part of the project Competition and Cooperation. Dan Kovenock has benefited from financial support from Erasmus University Rotterdam, the Krannert School of Management, and the Jay N. Ross Young Faculty Research Fellowship. We are grateful to Tom Faith for valuable research assistance. We have benefited from the comments of the editor, two anonymous referees, and participants at the European meetings of the Econometric Society in September 1989 and the North American Winter Meetings of the Econometric Society in December 1989.     

The financial and prudential performance of Chinese banks and Fintech lenders in the era of digitalization

Review of Quantitative Finance and Accounting - The years 2013 to 2019 marked an explosion in Fintech in China. We analyze the financial and prudential performance of 40...     

The new product development process for commercial financial services

The attention of senior executives in the financial services industry is increasingly being focused on how well the new product development process is working within their institutions. This focus on product development results from the combined pressures of increased competition, a rapidly changing marketplace, new technology, and new and pending legislative changes. All of these factors underscore the need to be able to design, develop, and launch, in a timely fashion, new products that are winners. A strong new product initiative is now considered an essential weapon in both offensive and defensive initiatives.To achieve their goals, executives are increasingly reexamining their organizations' approach to development and launch of new products to determine if the process can be redesigned for faster reaction time, better utilization of limited resources and improved success rates. This article examines the new product development process within the setting of corporate/commercial financial services. Its conclusions provide executives with some broad principles for their own new product processes to help them in their quest for competitive advantage through winning new products.     

The explosive combination of religious decentralization and autocracy

The relationship between religion and politics is explored from a theoretical standpoint. Religious clerics can be seduced by an autocrat and political stability is at stake. The autocrat's decisions consist of two measures both capable of antagonizing religious clerics: adopting secular reforms and unduly appropriating part of the national wealth, which generally are complements. Compared to centralized religions, decentralized religions, such as Islam, tend to discourage secular reforms and corruption but those effects are not guaranteed if the autocrat accepts political instability. The main hypotheses and the central results of the theory are illustrated with regime case studies that refer to contemporary times.     

Interlocking Lives: Employment Mobility and Family Fixity in Three Gentrifying Neighbourhoods of Montreal

This article explores the relationship between employment mobility, family fixity, and gentrification in the lives of 36 residents in and extended commuters to Montreal's southwest borough. Once described as the birthplace of industry in Canada, the neighbourhoods of Saint-Henri, Little Burgundy and Point Saint-Charles have undergone sweeping changes in recent decades. Inner-city areas are not necessarily where one expects to find mobile workers, but this is changing due to shifting gender roles, the rise of dual-income households and gentrification. Michael Savage's concept of ‘elective belonging’ proved particularly useful in understanding this connection. With its proximity to childcare, schools, stores and workplaces, the central city permits a more equitable division of labour within the household. Our place-based approach to mobile work enables us to capture a wide spectrum of experience, ranging from people with extended daily commutes to those whose work takes them away from home for days, weeks or months at a time. Our interviews reveal a connection between employment mobility and family gentrification, as upwardly mobile families find ways to localize other aspects of their lives. The simultaneity of mobility and immobility are often essential, especially in dual-income households. One parent's mobility often leads to the relative immobility of other family members.