WINNERS AND LOSERS FROM DOLLAR DEPRECIATION

We examine the relationship between the US current account deficit, the international value of the dollar, and the dollar reserves of foreign central banks. The declining dollar could benefit US savers at the expense of foreign investors in the USA.     

Fertilizers to support agricultural development in sub-Saharan Africa: what is needed and why

Substantial growth in inorganic fertilizer use is a prerequisite for sustained agricultural growth in sub-Saharan Africa. Increased fertilizer use can lead to modest but immediate and important increases in yields, while the profitability of other technologies will be stifled without adequate plant nutrients. Average fertilizer application rates in sub-Saharan Africa need to increase from 10 kg/ha to 50 kg/ha within 10 years to prevent mining of soil nutrients. That implies an 18% annual growth rate. This is substantially higher than trends in the region, but within a reasonable range of historically observed levels from other parts of the world. While over-use of fertilizers can create environmental problems, this is not a widespread problem in sub-Saharan Africa, and should not become one as a result of applying 50 kg/ha of inorganic fertilizers. Rather, near-term environmental concerns in agriculture in sub-Saharan Africa will stem from the lack of intensification. Farmer demand for fertilizers and the physical capacity to make fertilizers available are the two key issues that determine whether a 50-kg/ha goal will be attained. However, demand-side incentives cannot be separated from fertilizer supply possibilities. Several studies document that the simple physical availability of fertilizers to farmers, in the appropriate quantity, packages and at the appropriate time of year, remains a main constraint on increased fertilizer use in sub-Saharan Africa.     

Capacity management: get the level of detail right

The objective of this article is to outline the three main stages of manufacturing planning where capacity analysis is employed and to highlight the differences in approach and level of detail required for capacity analysis at each stage. Capacity management is not a single discipline or function. Rather, the term takes on meaning within the context of the planning job it is supporting. There are significant differences between the objectives and output of each planning stage and consequently, there is a need to adjust the approach and level of detail employed in capacity analysis and scheduling depending on the stage. In effect, the typical manufacturing company doesn't have one planning or capacity management challenge; it has several. Thus, when seeking solutions to planning or capacity problems, a company must first decide which problem it wants to attack and then select the peopl/tool combination best suited to handle the level of detail involved.     

CO2 and Energy Efficiency of Different Heating Technologies in the Dutch Glasshouse Industry

This paper uses Data Envelopment Analysis tocompute input-based technical efficiencymeasures and CO₂ and energy technicalefficiency of specialised vegetable firms inthe Netherlands over the period 1991–1995. Input-based scale efficiency is also calculatedfor each firm. These efficiency measures aregenerated for firms with different heatingtechnologies. The empirical results indicatethat firms use energy quite efficiently and areless efficient in terms of CO₂ emissions. Differences in CO₂ (energy) efficiencyacross different technologies are (not)statistically significant. In particular,firms using traditional heating technologiesare less efficient in terms of CO₂. Scaleadjustments can provide an importantcontribution to further efficiencyimprovements.     

International transatlantic trade liberalization: zooming in on regional impacts

The current study analyses the impact on a Portuguese small island regional economy of the Transatlantic Trade and Investment Partnership (T-TIP) between the EU and the USA. A dynamic Computational General Equilibrium (CGE) model detailing six household categories, 45 sectors, and four trading partners is used. Previous studies used aggregate variables and, largely, were based on the structure of the national economy. For a small, integrated economy, foreign trade statistics comprise an underestimation, given that most of the trade occurs through national logistics centres. Taking into account the national integration effects, gross domestic value was estimated to be higher than in other studies. Using equivalent variation, the estimated welfare impact is positive for all six household categories. Value-added suffers mixed impacts depending on the sector. It is negative for fisheries, ambiguous for agriculture and positive for tourism and transportation. The contribution of the current study is to highlight the importance of looking beneath the trade block and national conclusions particularly when regional economic policy is relevant as is the case in Europe. Better knowledge of welfare, regional and sector impacts allows for improved development and mitigation policies.     

Bank risk in uncertain times: Do credit rationing and revenue diversification matter?

We show that bank risk rises, particularly for larger banks and those with greater interest-sensitive liabilities, during times of economic policy uncertainty through two economic channels: “credit rationing” and “revenue diversification.” The credit rationing channel shows that economic policy uncertainty increases aggregate loan spreads, exacerbating both adverse selection and moral hazard problems leading to higher bank risk. The revenue diversification channel suggests that as economic policy uncertainty reduces bank profits from traditional interest-based products, banks diversify into other non-traditional activities, thereby increasing their instability. Overall, our findings highlight the impact of economic policy uncertainty on exacerbating bank risk.     

Malmquist Indexes Using a Geometric Distance Function (GDF). Application to a Sample of Portuguese Bank Branches

Traditional approaches to calculate total factor productivity (TFP) change through Malmquist indexes rely on distance functions. In this paper we show that the use of distance functions as a means to calculate TFP change may introduce some bias in the analysis, and therefore we propose a procedure that calculates TFP change through observed values only. Our total TFP change is then decomposed into efficiency change, technological change, and a residual effect. This decomposition makes use of a non-oriented measure in order to avoid problems associated with the traditional use of radial oriented measures, especially when variable returns to scale technologies are to be compared. The proposed approach is applied in this paper to a sample of Portuguese bank branches.     

The Microeconomic Impacts of Employee Representatives: Evidence from Membership Thresholds

Employee representatives in firms are a potentially key but not yet studied source of the impact of unions and works councils. Their actions can shape multiple drivers of firm performance, including collective bargaining, strikes, and training. This article examines the impact of union representative mandates by exploiting legal membership thresholds present in many countries. In the case of Portugal, which we examine here, while firms employing up to forty‐nine union members are required to have one union representative; this increases to two (three) union reps for firms with fifty to ninety‐nine (100–199) union members. Drawing on matched employer–employee data on the unionized sector and regression discontinuity methods, we find that a one percentage point increase in the legal union representative/members ratio leads to an increase in firm performance of at least 7 percent. This result generally holds across multiple dimensions of firm performance and appears to be driven by increased training. However, we find no effects of union representatives on firm‐level wages, given the predominance of sectoral collective bargaining.     

Medical travellers’ perspectives in selecting in-patient services at selected private hospitals in Sri Lanka

The Sri Lankan government has clear plans to develop medical tourism as an industry. Availability of high-quality medical professionals and accredited hospitals has encouraged medical travellers to come to Sri Lanka and to expand the medical tourism industry in the country. The purpose of this cross-sectional study was to describe medical travellers’ perspectives in seeking in-patient services at selected four private hospitals in Sri Lanka. Foreign national in-patients (n?=?252) were interviewed using an interviewer-administered questionnaire. The response rate was 93.25%. The majority (68.1%) were Maldivians followed by Indians (20.4%) and 51.1% sought surgical care. Availability of high-quality medical professionals (94.2%) and accredited hospitals (81.3%), easy visa (90.2%) were top reasons to select Sri Lanka. Medical travellers faced difficulties in communication (37.4%), transport (31.9%), accommodation (57%) and finding quality food (41.7%). The study recommends improvement of infrastructure and support services for medical travellers and that private hospitals obtain international accreditation to improve medical tourism potentials.     

British Bus Deregulation: Competition and Demand Coordination

Our framework formally explains some of the recent curious events surrounding deregulation of the British local bus industry. The winner-takes-all nature of this market induces competitive providers to engage in predatory or preemptive behavior in scheduling and pricing. Unlike previous works, we explicitly model consumers' responses to firms' schedule announcements. We show that the market is unstable if demand is uncoordinated, but stable otherwise. Our results highlight the important role played by demand-coordinating mechanisms in local bus markets and our results suggest that pure-strategy Nash equilibria exist in models à-la-Hotelling (1929) whenever demand is effectively coordinated.