Measuring Commodities' Commodity Content

Within the standard linear framework, a methodology, formally similar to the labour theory of value, is proposed to compute the direct and indirect commodity contents of any produced good. The proposal is then compared with the more familiar social accounting matrix (SAM) accounting procedure, using an appropriate partitioning of the SAM accounts. Some numerical results are then obtained and compared using a recently compiled SAM for Catalonia. The empirical results show the practical feasibility of the proposed methodology.     

SHORT‐RUN AND LONG‐RUN DETERMINANTS OF THE REAL EXCHANGE RATE IN MEXICO

This paper explores the real exchange rate behavior in Mexico from 1960 until 2005. Since the empirical analysis reveals that the real exchange rate is not mean reverting, we propose that economic fundamental variables affect its evolution in the long run. Therefore, based on equilibrium exchange rate paradigms, we propose a simple model of real exchange rate determination, which includes the relative GDP per capita, the real interest rates, and the net foreign assets over a long period of time. Our analysis also considers the dynamic adjustment in response to shocks through impulse response functions derived from the multivariate vector autoregressive (VAR) model.     

The Importance of the Indicator of Satisfaction Chosen

Competitiveness in most developed countries is increasingly measured in terms of the quality of goods and services and to a lesser extent in terms of prices. It is crucial to know the opinion of the consumer with regards to the goods and services. The paper uses data from satisfaction surveys on local events celebrated during 2006 in the Maresme region (Barcelona). The effects of each explanatory variable on the satisfaction of individuals are analyzed using an ordered logit model for the Likert variable and a logit model for the binary variable. It is observed that, although generic valuations are very similar, the effects of some explanatory variables can be very different, since each indicator presents specific features.

Panel data stochastic convergence analysis of the Mexican regions

The stochastic convergence amongst Mexican Federal entities is analyzed in panel data framework. The joint consideration of cross-section dependence and multiple structural breaks is required to ensure that the statistical inference is based on statistics with good statistical properties. Once these features are accounted for, evidence in favour of stochastic convergence is found. Since stochastic convergence is a necessary, but not sufficient, condition for convergence as predicted by economic growth models, the paper also investigates whether β-convergence process has taken place. We found that the Mexican states have followed either heterogeneous convergence patterns or divergence process throughout the analyzed period.     

Setting the Context: The Role Information Technology in a Business Ethics Course Based on Face-to-Face Dialogue

Based on the experience of a course taught by the authors, this paper seeks to show that an adequate use of IT in the teaching of a Business Ethics (BE) course depends on clarifying the assumptions about ethics and the place of the course within a programme. For this purpose it explains how IT can be used to strengthen a view of BE based on dialogue and mutual learning and it encourages the combination between virtual and face-to-face teaching. Finally, the paper examines the relationship between the use of IT, individual learning processes and communities of practice.     

How fiscal policy affects housing market dynamics: Evidence from Spain

This paper studies how the announcements of fiscal law changes affect the real estate market, focusing on the case of Spain. An announcement of a future fiscal law change gives the opportunity to buyers to advance or delay purchases to maximize fiscal benefits. In particular, we study announcements and their posterior effects about the mortgage tax laws in 1998, 2010, 2011, and 2013 plus the VAT law in 2012. The paper is based on contextually rich data from 2004 through 2015 for Spain, provided by a real estate agent with a strong presence across the Spanish territory. We use two dependent variables to best capture the changes: time on market of a dwelling and the price discount of the dwelling. Simultaneity bias is avoided by considering that the degree of overpricing and atypicality affects time on market but not the selling price. The identification strategy is improved by considering the type of properties most affected by the changes versus the rest of properties, using a difference-in-difference estimation. We consider two tax policy announcements: income tax credit on dwelling purchases and VAT rate change on the purchases of new dwellings. In the case of the income tax credit, this fiscal policy affects only primary accommodations. In the case of the VAT tax rate, only new houses are affected. We show that credible fiscal policy announcements distort the housing market by temporarily decreasing dwellings’ time on market and their price discounts, to immediately and long-lastingly increase them just after the tax policy expires. There is a negative causal effect of tax policy announcements on the housing market.     

Equalizing solutions for bankruptcy problems revisited

Decisions in Economics and Finance - When solving bankruptcy problems through equalizing solutions, agents with small claims prefer to distribute the estate according to the Constrained Equal...     

Rational stability of choice functions

Two independent approaches have been used to analyze choices. A prominent notion is rationalizability: individuals choose maximizing binary relations. An alternative is to analyze choices in terms of standards of behavior with the notion of von Neumann–Morgenstern (vNM)-stability. We introduce a new concept ($r-$stability) that in turn extends the notion of stability and rationality. Our main result establishes that every rationalizable choice function is $r-$stable and every vNM-stable choice has an $r-$stable selection. An appealing property of $r-$stability is that well-known solution concepts (top cycle, uncovered set, …) are $r-$stable, while they are neither rationalizable nor vNM-stable.     

Resource allocations with guaranteed awards in claims problems

Review of Economic Design - The notion of lower bound on awards has been introduced in the literature to analyze the establishment of guarantees that ensure a minimum award to each agent involved...     

Empirical analysis of the relationship between labour cost stickiness and labour reforms in Spain

This study performs an empirical analysis on the relationship between labour cost stickiness and the decrease in employment protection in the Spanish labour reforms in 2010 and 2012. Following these reforms, the sticky behaviour of labour costs substantially decreased with respect to the pre-reform period. All constituents of total labour costs followed a similar pattern: wages, social security contributions and number of employees. Results are robust to different models, estimation methods, periods of time, and industries, as well as with respect to endogeneity concerns.