An evolutionary model of industry dynamics and firms’ institutional behavior with job search, bargaining and matching

By combining features from distinct theoretical approaches, namely the evolutionary and the job search, matching and bargaining literatures, we propose a model that captures the main dynamics of a world where heterogeneous firms and workers interact and co-evolve. Within a micro-meso framework, the model focuses on the influence of firms’ labour choices (“institutional settings”) on industry dynamics, taking into account the existence of employment adjustment costs. The consideration of endogenous matching and bargaining processes in the labour market results in significant frictions, such as the simultaneous coexistence of unfilled job vacancies and unemployment. In a setting where technological progress is not biased a stylized fact of industrialized world economies in the last few decades emerges, the increasing wage inequality. Additionally, turbulence in the industry increases after a negative demand shock. As expected, the negative demand shock causes a decrease in the number of vacancies and, consequently, unemployment rates increase considerably. Interestingly, and mimicking the recent experiences of countries such as US, Spain, Greece and Portugal, the rise in unemployment is matched by a rise in contractual wages. This outcome is explained by the lower ability of the firms to fill their posted vacancies, which results from friction in the interactions among agents.     

Cooperative R&D and Commitment to A Policy of Know-how Trading

In this paper, we develop a theoretical framework to investigate the impact of adopting a strategy of know-how trading on the degree of research and development (R&D) cooperation. We show that the consequences of cooperation in know-how sharing under the conditions of the model are similar to a policy of cooperation in R&D investments in areas with large spillovers. An industry-wide policy of cooperation among competitors with respect to R&D investment and sharing would simply result in maximal joint profits. This cooperative R&D outcome could be generalized to any degree of spillover other than 100%. In this paper, the commitment to a policy of know-how trading by the participants in an industry is explained by the firm’s attempt to induce the equilibrium of a single industry-wide cooperative research joint venture. In a repeated game framework, we show that pre-commitments by non-cooperative firms to disclose their own know-how to the industry can be effective in inducing cooperative R&D investments by the participants.     

Effect of guideline implementation on costs of hand hygiene

Hands of health care personnel frequently serve as vectors for the transmission of organisms between patients and are also a major reservoir for pathogens with antimicrobial resistance. Hand hygiene is one effective strategy to reduce health care associated infections. The purposes of this study were to (a) compare the costs of hand hygiene in hospitals with high and low hand hygiene compliance as well as high and low frequency of alcohol hand rub use; and (b) examine associations between hospital characteristics and hand hygiene compliance as well as frequency of alcohol hand rub use. Nursing and health care policy leaders should look for ways to promote sustained adherence to hand hygiene recommendations.     

A convenient test of functional form for pooled econometric models

This paper demonstrates a parametric test of specification that can be used in validating econometric models employing pooled time series and cross-section data with fixed effects. This Lagrange multiplier test allows for the simultaneous testing of proper model functional form and the presence of nonspherical disturbances, using a combination of the Box-Cox transformation, the double-length regression of Davidson and MacKinnon, and the Bonferroni inducedt-test. Testing procedures are demonstrated using a model of long distance telephone demand in the United States. The illustrative model used is representative of models filed as direct testimony by telephone companies in administrative law proceedings, which usually require rigorous model validation and defenses of model results in a formal hearing room setting. The tests presented in this paper are useful to a wide variety of researchers who use pooled econometric models with fixed effects in their work.     

The physical quality of life index: A useful social indicator?

The Overseas Development Council (ODC) provides a measurement called the Physical Quality of Life (PQLI). The PQLI combines infant mortality, life expectancy, and literacy into a single index for each of 150 countries.We assess the usefulness of the PQLI as a social indicator. In order to make this determination, we test the intensity of the association among the PQLI input variables. We also provide the appropriate Spearman's rank correlation between PQLI and Gross National Product per capita (GNP/C). Overall, our statistical tests confirm that the PQLI is not a major new indicator of inter-country human welfare.     

A cost comparison of hand hygiene regimens

The cost and quality of two hand hygiene regimens were compared. A waterless alcohol-based rub was significantly less costly than traditional handwashing because of reduced time required, and was associated with significantly better quality.     

Is Petrobras Options Market Efficient? A Study Using the Delta-Gamma Neutral Strategy

This study aims to verify if the Petrobras options market is efficient in its weak form. For this purpose, this work tries to make profits on a systematic basis through delta-gamma neutral strategies using the firm’s stocks and options. In order to simulate the strategy as it would be used in the real world, we built order books every five minutes considering all buy and sell orders sent for both the underlying asset and its options. We apply the strategy when we observe distortions between implied volatilities extracted from the options. The results show evidence that the Petrobras options market is not efficient, since in 371 day-trade transactions (with an average investment of R$81,000 and an average holding time of one hour and thirteen minutes), 85% of the options strategies were profitable and the average return was 0.49%, which corresponds to more than 1600% of the highest interbank interest rate for the period.