A systemic approach to modelling and estimating demand for money(ies)

This article uses a consumer theory-based systemic approach to model the demand for monetary liquid asset holdings in Chile. We implement the suggestions and caveats of aggregation theory for the estimation of a demand system for liquid assets (monies) in static, dynamic and time-varying parameters setups. Our results are robust and theoretically consistent with consumer theory restrictions, as a system derived from a utility maximizing framework and a quasi concave utility function. In our estimations, we find stability of interest rate elasticities, in contrast to previous related literature. We also document evidence that long (short) maturity rates are associated to less (more) liquid assets.     

Branded places and marketplace exclusion

ABSTRACT

This article analyses the development of a branded place in a Brazilian city. Drawing on Lefebvre’s spatial triad, I show how the intertwined practices of hegemonic market actors in alliance concur to produce a city space that caters to the aspirations and ways of life of local elites while actively excluding lower-class groups from it. I distinguish three main elements of branded places –architecture and urbanism, brand narrative, and spatial governance– and demonstrate how they produce physical, symbolic, and social boundaries between middle- and lower-classes in the city. These findings contribute to understanding the ways market-mediated spatial dynamics perform exclusion of most vulnerable groups in post-industrial cities and extend place brand literature by accounting for the less documented practices of invested stakeholders in the production of branded places.     

Comparing children's explicit and implicit understanding of advertising and placement on TV

ABSTRACT

Although product placement is a frequently used promotional tool in local and international productions, particularly in combination with advertising, its study has been almost neglected in Latin America. This paper examines the explicit (verbal) and implicit (cued) understanding of advertising and placement in a sample of 9-, 12- and 15-year-old children from Chile. The results showed a more sophisticated comprehension of advertising in comparison with product placement. They also revealed that age is positively correlated with a more sophisticated understanding of both placement and advertising. Finally, significant differences were observed when comparing the use of verbal and cued methods. The results are discussed in terms of prior literature and their practical implications.     

Should I say it in English? Exploring language effects on print advertising among Latin American bilinguals

ABSTRACT

Despite the extensive research conducted on language standardization in advertising across several countries, little attention has been given to the use of English versus Spanish and code-switching when advertising to Latin American bilingual consumers. We propose that stereotypes about English speakers and code-switching have potential to help determine which language is most effective in print advertising. The results of experiments conducted in Chile, Ecuador, and Mexico show that the effects of language-related stereotypes on the persuasiveness of English ads vary across different countries. In the case of Chile, English may be persuasively superior, depending on the favourableness of the stereotype of individuals that code-switch. Differently, print ads in English are functionally equivalent, in terms of ad attitudes, to Spanish and code-switching ads in Mexico, and superior in Ecuador, regardless of the favourability of the language-related stereotypes. Suggestions for advertising practice and future research are offered.     

Performance Heterogeneity in Latin America: An Investigation into the Transient Effects of Country of Origin

The heterogeneity of firm performance has been studied from the perspective of factors, including the firm effect, the industry effect, and the country effect. This study emphasizes the importance of country transient effects in light of the volatility present in Latin American countries. Variance decomposition was carried out for the economic and operational performance of five countries in the period from 1998 to 2007. The results show that country effects matter for Latin America, its transient effects increase in periods of higher turbulence, and have a greater effect on a firms' economic performance than on its operational performance.     

Specialization dynamics and natural resources abundance

This paper uses a large sample of countries for the last four decades to document how specialization dynamics differ depending on the abundance of natural resources. We show interesting stylized facts on two main issues. First, we do not find evidence that comparative advantage in resource-intensive products is necessarily more persistent than comparative advantage in manufactured goods. Second, we analyze the interaction between specialization in manufacturing and natural resources abundance. Though it is less likely that resource-rich countries have comparative advantage in manufactured goods, the abundance of natural resources does not inhibit significant changes in specialization for these countries.     

Human resource management and early internationalization: is there a leap-frogging in international staffing?

The present study focuses on the international staffing of early internationalizers by linking the Ethnocentric, Polycentric, Regiocentric, and Geocentric (EPRG) concept with the Process Theories of Internationalization. On a dataset of 116 (N) German medium-sized companies, we test whether the determinants which allow firms to internationalize shortly after their inception, namely prior international experience, technological intensity, and networks, influence the firms' international staffing. We further elaborate whether this influence differs between early and late internationalizers. The empirical results show that prior international experience is not associated with the firms' international staffing at all, and thus, does not allow conclusions. Technological intensity increases the probability of the choice of an ethnocentric staffing policy, especially for early internationalizers. In contrast, networks enable firms, especially early internationalizers, to pursue regiocentric or geocentric staffing policies.     

Consistent strategy-proof assignment by hierarchical exchange

We characterize the family of efficient, consistent, and strategy-proof rules in house allocation problems. These rules follow an endowment inheritance and trade procedure as in Pápai’s hierarchical exchange rules (Pápai in Econometrica 68, 1403–1433, 2000) and closely resemble Ergin’s priority rules (Ergin in Econometrica 70, 2489–2497, 2002). We prove that if there are at least four objects, these are the only rules that are efficient in two-agent problems, $2$ -consistent, and strategy-proof. A corollary is that these three basic properties together imply the full requirements of efficiency, consistency, group strategy-proofness, and reallocation-proofness.     

Impact of economic uncertainty in a small open economy: the case of Chile

We construct the first news-based economic uncertainty index for Chile, which allowed us to rebuild 23 years of the history of economic uncertainty in the country and quantify its impact on the economy. We find that an increase in economic uncertainty conveys a fall in GDP, investment, and employment, even after accounting for the small open economy nature of Chile. In contrast to previous studies for big and developed economies, we do not find evidence of an overshooting effect when uncertainty dissipates; therefore, increases in economic uncertainty have negative effects on the economy, even in the long-run. Our estimates suggest that these impacts range from 10% to 20% for aggregate investment, 2.5% to 5% for GDP, and 1.3% to 4.2% for employment. Extensions suggest that economic uncertainty affects both mining and non-mining investment, with the former showing a more pronounced decline. We also find that the bulk of effect of economic uncertainty on aggregate investment is via private investment, with some short-run impacts on public investment. Moreover, compared to the GDP response, aggregate consumption responds in almost the same way to an economic uncertainty shock.     

Risk management and value creation: new evidence for Brazilian non-financial companies

The practice of financial risk management with derivatives has received attention both from the academia and the market. In Brazil, there is a growing use of these instruments by companies, in line with the growth of such market in the global economy. This article aims to investigate the relationship between the financial risk management and the value creation to the shareholder for non-financial Brazilian companies. The sample was made up of 1794 firm-year observations from 2006 to 2014. Results obtained via panel data, including the GMM, point out that companies which used derivatives did not add value during the period analysed. An explanation for this result is that most of the companies use derivatives in order to manage the cash flow and not to add value.