The measurement of technical efficiency: a neural network approach

The main purpose of this paper is to provide an introduction to artificial neural networks (ANNs) and to review their applications in efficiency analysis. Finally, a comparison of efficiency techniques in a non-linear production function is carried out. The results suggest that ANNs are a promising alternative to traditional approaches, econometric models and non-parametric methods such as data envelopment analysis, to fit production functions and measure efficiency under non-linear contexts.     

Strategic Alignment,Performance, and Value

ABSTRACT

The paper discusses the reaching of superior value based on strategic alignment and the adoption of performance measurement systematics, which are based on multiple and integrated perspectives, using primary data obtained through the survey of companies of high complexity and impact in the Brazilian economy. The operationalization was developed from the adoption of multivariate analysis, which revealed the existence of correlations between the variables studied, reinforcing assumptions about reaching superior value based on the improvement of the mechanisms that support the strategic management dimensions with the backdrop of performance management practices based on the principles of Kaplan and Norton (2001 Kaplan , R. S. , and Norton , D. P. (2001). Organização Orientada para a Estratégia . Rio de Janeiro : Campus. [Google Scholar]) for organizations focused on strategy and the Balanced Scorecard approach. The findings confirm the importance of the association among strategic alignment vectors to reach a superior value and the existence of different clusters of organizations dedicated to reach and support value, mainly through combining the organization's relational capabilities (Soft Skills). The study deepens the discussion on strategic alignment of organizations through the introduction and testing of the Institutional Steering, Performance Maturity, and Balanced Performance constructs.     

Deconstructing the Tower of Babel: a design method to improve empathy and teamwork competences of informatics students

The competence-based education recently launched in Spanish universities presents a set of abilities and skills that are difficult to teach to students in higher and more technologically-oriented grades. In this paper, a teaching intervention that is based on design methodologies is proposed, to upgrade the competitive capacities of computer engineering students. In particular, this intervention targets those aspects relating to working in multidisciplinary teams and to defining requirements based on the user’s empathy and knowledge. The main idea inspiring this technique is that the underlying challenge is a communication problem. As Brooks (1995) states in his book The Mythical Man-Month: Essays on Software Engineering, even a project having all of the prerequisites for success (a clear mission, manpower, materials, time and adequate technology) could fail as a Tower of Babel. The proposed technique through mixed methods has been evaluated with students enrolled in different courses, confirming the repeatability and validity of this method from quantitative measurement, from observation of the results, and from ascertaining the value perceived by students and their attitudes.     

Envy, leisure, and restrictions on working hours

Abstract.  We present a simple model of capital accumulation where agents care about their consumption relative to the consumption of other members of society, 'envy,' In this context we quantify the extent of the distortions and welfare costs associated with envy. Under conservative estimates of envy we find that the implied welfare losses are substantial. We explore the implications of alternative policy arrangements designed to minimize the effects of the consumption externality. Our results suggest that if the optimal tax policy is not politically feasible, restrictions on working hours provide an alternative tool to induce a market outcome that resembles the efficient allocation achieved under a benevolent central planner. JEL classification: D62, H21     

Informational spillovers and the coordination of speculative investments

Abstract. The influence of informational spillovers on the entrepreneur's incentive to undertake reversible investment opportunities is considered. It is shown how investment activity can be driven by the influence that the prospect of social learning has on the option value of investment. In this context, episodes of high investment activity result from a speculative motive, and the expected short‐run profitability of new investment opportunities may inadequately reflect the entrepreneurs’ incentive to invest.     

Democracy, Governance, and Economic Growth: Theory and Evidence

The paper examines how democracy affects long-run growth by influencing the quality of governance. Empirical evidence is first presented showing that measures of the quality of governance are substantially higher in more democratic countries. A general-equilibrium, endogenous growth model is then built to show how a governance-improving democracy raises growth. In this model, stronger democratic institutions influence governance by constraining the actions of corrupt officials. Reducing corruption, in turn, stimulates technological change and spurs economic growth. Empirical evidence is presented showing that democracy is in fact a significant determinant of total factor productivity (TFP) growth between 1960 and 1990 in a cross-section of countries. But this contribution occurs only insofar as stronger democratic institutions are associated with greater quality of governance.     

The expectations hypothesis of the term structure when interest rates are close to zero

In an economy where cash can be stored costlessly in nominal terms, the nominal interest rate is bounded below by zero. This paper derives the implications of this non-negativity constraint for the term structure and shows that it induces a nonlinear and convex relation between short- and long-term interest rates. The long-term rate responds asymmetrically to changes in the short-term rate, and by less than that is predicted by the benchmark linear model. In particular, a decrease in the short-term rate produces a smaller response in the long-term rate than an increase of the same magnitude. The empirical predictions of the model are examined using data from Japan.     

A Spatial Equilibrium Analysis of U.S.–Canadian Disputes on the World Softwood Lumber Market

This paper utilizes a world spatial equilibrium model to examine the effects of U.S.–Canadian softwood lumber disputes on U.S., Canadian, and other exporters' and importers' lumber markets. Results show that the U.S. import tariff on Canadian softwood lumber impacts prices, supply, demand and trade flows not only in the United States and Canada but also in the other countries. Though the goal of U.S. trade restriction is to limit imports from Canada and protect its producers, the United States cannot fully accomplish this goal as non-Canadian exporters fill the void left by the reduced imports from Canada. Canadian producers lose from the U.S. policy, but their loss is mitigated as Canada redirects its exports to other importers. Importing countries such as Japan and the European Union benefit from the U.S. trade restrictions as Canada seeks to sell its softwood lumber to these countries.     

How Do Migrants from Latin America and the Caribbean Fare in the US Labour Market?

This paper discusses the causes of mass migration from Latin America and the Caribbean (LAC) to the United States in recent decades and how these migrants have fared in US labour markets. The evidence shows that LAC migrants have higher unemployment rates and substantially lower wages than other immigrants and natives. Furthermore, the relative wages of LAC migrants have been declining sharply over the last 25 years. The most significant factor explaining the latter is the lower (and declining) educational attainment of LAC migrants relative to other immigrants and natives, compounded by the rising rates of return to education in the US.     

Popularity functions, partisan effects, and support in Parliament

This paper analyzes the popularity of the main political entities in Portugal. Estimation results of popularity functions validate the responsibility hypothesis, with unemployment, and to a lesser extent inflation, affecting popularity levels. There is also evidence of personality effects, of popularity erosion over consecutive terms and of honeymoon effects. Finally, we found that voters' evaluations of incumbents' performance regarding unemployment is affected by their support in Parliament – when an incumbent faces more opposition in Parliament, voters are less likely to hold him responsible for unemployment increases.