Does Central Bank Capital Matter for Monetary Policy?

This paper examines empirically whether central bank capital influences the conduct of monetary policy. To this end, we estimate interest rate rules for a sample of 41 countries and employ linear and non-linear regression methods to test if a measure of central bank financial strength can explain deviations of actual interest rates from those predicted by the estimated interest rate (Taylor-like) rules. Our results suggest that central bank capital is indeed a relevant factor behind interest rate policy decisions.     

The main determinants of banking crises in OECD countries

Banks’ stability can be affected by economic fluctuations, banks’ risk-taking behavior, connections among banks and countries’ financial system structure. At the same time, banking regulation and supervision were designed to protect banks from failure, but a large number of banking crises were not prevented recently. Using binary response models for panel data and focusing on OECD countries, this paper studies the main determinants of banking crises over a period of 21 years. Results suggest a bank’s high debt and a country’s low GDP growth rate as the major determinants of banking crises. There is also evidence of contagion across countries from the same geographical region and from G7 to other countries, and that bank-based financial systems are less prone to borderline banking crises. Regulatory and supervision practices are found not to have been relevant in bankruptcy prevention.     

Domestic mindsets and early international performance: The moderating effect of global industry conditions

We develop and test a sensemaking model of early internationalization that ties domestic mindsets to international industry conditions and early international performance. Our central contention is that the fit between international industry conditions and domestic mindsets will lead to superior early international performance. We test this contention with a sample of 178 large and established domestic firms from 20 industries. Our results highlight the role of domestic mindsets in the early phases of internationalization and prescribe the types of domestic mindsets needed to maximize early international performance in global, multi‐domestic, and transnational industry conditions. Our results also provide valuable insights to top managers of large and established firms on how to reduce the risk of failure and how to successfully prepare for and cope with international environments by matching their domestic mindsets with international industry environments. Copyright © 2010 John Wiley & Sons, Ltd.     

The effects of external and internal shocks on total factor productivity

This paper examines structural changes that occur in the total factor productivity (TFP) within countries. It is possible that some episodes of high economic growth or economic decline are associated with permanent productivity shocks; therefore, this research has two objectives. The first one is to estimate the structural changes present in TFP for a sample of 77 countries between 1950 (1960) and 2000. The second one is to identify possible explanations for breaks. Two sources were analyzed: (i) episodes in political and economic history; (ii) changes in international trade – a measure of absorption of technology. The results suggest that about one-third of the TFP time-series present at least one structural break. Downwards breaks are more common, indicating that after a break the TFP has much difficulty to recover. When we investigated factors related with structural change, developed countries presented a break near the first oil shock while the developing countries’ breaks are more spread along the decades. Thus, external strikes seem to be more relevant for developed countries. However, for each country and break date, it was possible to find an event close to the break date endogenously detected. Last, the relevance of international trade, measured by trade share percentage of GDP, seems to be limited to explain abrupt changes in TFP.     

Inequality for Wage Earners and Self‐Employed: Evidence from Panel Data*

In this paper we highlight the importance of analysing the evolution of income inequality separately for employees and self‐employed workers. Using Spanish panel data on income and consumption for the period 1987–96, we find noticeable differences across these groups in the evolution of income inequality, and in the relative importance of the transitory and permanent components of income variance. The evolution of inequality is mainly explained by movements in the transitory component for the self‐employed and by the permanent component for the employees. Our results suggest that different policies should be implemented for each group.     

Ecological footprint analysis of road transport related to tourism activity: The case for Lanzarote Island

This work tries to evaluate road transport usage in Lanzarote Island and its implications for sustainable tourism development. The methodology followed here is the ecological footprint indicator. Its evaluation is based on projections of trip matrix estimated for Lanzarote Island. This study allows us to determine, in an approximate way, the environmental impact (that is, the contribution to climate change) of car usage on the island. Besides, it permits to extract some important conclusions about the trade-off existing between the need of individual mobility and tourism development in Lanzarote Island.     

Human resources management in Spain: is it possible to speak of a typical model?

There is no shortage of literature studying the relationships between the various processes of human resources management, considered individually, and the strategy of the company. Nevertheless, studies that adopt a joint approach are scarce. In this study, working from the universalist, contingent and configurational perspectives, we seek to identify the possible existence of human resources management models and their links with the strategy of the company. Empirical analysis conducted with 130 industrial companies reveals three distinct models of human resources management but with behaviours independent of the strategies followed by the companies. At the same time we find, within each model, orientations of particular processes that are common among them and are thus characteristic of a universalist approach.