Some Methodological Issues on Estimating Foreign Exchange Exposure of US Multinational Firms: Evidence from the Asian Crisis

Abstract

This article asks whether sample specification of firm, period, and exchange rate matters in estimating foreign exchange exposure of US multinational firms. By sampling US firms that had Asian sales and assets from 1996 to 1998, we find that the firms’ returns are more likely to be significantly exposed to the Asian-oriented exchange rate changes for the Asian crisis, when the exchange rate changes were unexpectedly sizable. Also, by examining firms’ exposure in the share of Asian sales and assets, we find that the firms are more exposed as their operations are more involved in the Asian region.     

Local Government Imperialism

Local government has attracted increasing criticism in recent years. It has been investigated by committees of enquiry. Central government has tried, but failed, to control its expenditures. Its trade unions can disrupt everyday life by strikes. What is wrong? This Open Letter diagnoses the crucial cause as the failure to subject local services to the measurement and discipline of price.     

Poverty dynamics: empirical evidence for Canada

Abstract. Poverty (low income) dynamics are explored using tax filer data covering the period 1992 to 1996. The distributions of short‐ and long‐term episodes are identified and reveal substantial differences by sex and family type. Entry and exit models explore the relationships between poverty transitions and sex, family status and other personal and situational attributes. Duration effects on exiting and re‐entering poverty are found to be important, and models including past poverty experiences point to strong ‘occurrence dependence’ for poverty entry and incidence. Fixed‐effect panel data models confirm the above and reveal asymmetries in the impacts of household transitions on poverty. JEL Classification: I3 La dynamique de la pauvreté : résultats empiriques pour le Canada. Les auteurs examinent la dynamique de la pauvreté(bas revenus)à l’aide des données disponibles pour les citoyens qui ont soumis leurs rapports d’impôt entre 1992 et 1996. On identifie les distributions d’épisodes (courts et longs) de pauvreté, et celles‐ci révèlent des différences significatives selon le sexe et les attributs familiaux. Les modèles d’entrée et sortie identifient les relations entre le statut de pauvreté, le sexe, le statut familial, et d’autres attributs personnels et situationnels. Il appert que les effets de durée sur les périodes de sortie et de ré‐entrée dans un statut de pauvreté sont importants; les modèles qui prennent en compte les épisodes de pauvreté antérieurs montrent qu’il y a une forte corrélation (occurrence dependence) tant pour le passage au statut de pauvreté que pour l’incidence de tels épisodes. Les résultats des études transversales confirment ces résultats et révèlent des asymétries dans les impacts des transitions dans les ménages sur la pauvreté.     

North American college and university uses of micro computers in teaching accounting - 1983 survey

This paper reports the results of a survey of North American college and university accounting departments' uses of micro computer hardware and software.     

A Comparison of the Reinvestment Risk of the Price Level Adjusted Mortgage and the Standard Fixed Payment Mortgage

The purpose of this paper is to increase the understanding of the risk of the indexed mortgage, commonly referred to as the price level adjusted mortgage (PLAM). This is accomplished by comparing, analytically, the reinvestment risk of the PLAM and the standard fixed-payment mortgage (FPM) under conditions of stochastic inflation and real interest rates. The conclusion is that the PLAM has less reinvestment risk. From the viewpoint of an investor concerned with periodically reinvesting payment streams, the PLAM is the superior mortgage.