On the Equivalence of Ad Valorem Tariffs and Specific Tariffs under Duopoly*

Using a quantity conjectural variation model, this paper examines whether an ad valorem tariff and a specific tariff are equivalent under duopoly. We show that if the average per‐unit import tax is the same for the two tariffs, domestic output will be smaller while foreign output will be larger under an ad valorem tariff. We further show that for any value of a specific tariff, there is a Pareto‐superior ad valorem tariff for all values of conjectural variation except in the case of perfect competition where the two tariffs are equivalent.     

Dynamic technological specialization,aggregated convergence and growth

This paper focuses on the contribution of dynamic technological specialization to aggregated growth and convergence. Certain theoretical approaches (Structuralism) maintain the view that being specialized in ‘correct’ technologies helps to achieve: i) sustainable rhythms of long-run growth; ii) accelerated catching up and higher rhythms of convergence in delayed countries. Using an endogenous growth model for a 23 countries sample between 1980 and 2010, the work contrasts those hypotheses by using static and dynamic approaches for technological specialization in comparison to other technological variables. Empirical results do not confirm that any ‘good’ specialization matters to growth and convergence at an aggregated level, neither under static nor dynamic approaches. The key elements to aggregated convergence and growth are more linked to spillovers of technological diffusion and to country-specificities (technological capabilities and capacities, domestic technical efforts, national innovation systems, industrial innovation processes, etc.) as it is pointed out by catching-up theories.     

The role of transformational leadership,emotional intelligence,and group cohesiveness on leadership emergence

The concept of emotional intelligence and its connections with other important psychological constructs have been the focus of a wide range of current research (see Mestre & Fernández‐Berrocal, 2007, and Salovey, Woolery, & Mayer, 2001, for reviews). Yet the relationship between emotional intelligence and transformational leadership, a leadership style that is highly correlated with efficiency and satisfaction of the leaders' followers, has scarcely been analyzed. We hypothesize that individuals who score high in emotional intelligence emerge as leaders more easily than low‐emotional‐intelligence individuals due to the fact that they are more transformational in their leadership style. We further suggest that this is especially the case in highly cohesive groups. In this study, we test these ideas and find empirical support for our hypotheses.     

Conditionally heteroscedastic unobserved component models and their reduced form

The reduced form of the local level model with conditionally heteroscedastic GARCH(1,1) noises is analyzed. We show that the IMA-GARCH model is a good alternative but its conditional heteroscedasticity is weaker than this of the unobserved disturbances.     

STOCK RETURNS AND OPTION PRICES: AN EXPLORATORY STUDY

This study is an investigation of estimates of expected stock returns implicit in option data. The Lee-Rao-Auchmuty option valuation model provides a unique opportunity to examine whether return measurements derived by nonlinear estimation techniques show any correlation with future stock returns. During the short period covered in this study, the Lee-Rao-Auchmuty estimates give preliminary indications that they are better predictors of actual stock returns than are estimates obtained from historical data.     

Is disclosure the right way to comply with stakeholders? The Shell case

This paper is part of an ongoing research project and builds upon a previous one in which we explain the failure of the Agency Theory through the Shell case. In that, we analysed the behaviour of Shell managers, who reclassified oil reserves, playing with the share price because they owned share options. This previous paper established an important literature framework that is continued and organized to go deeper into our analysis in this paper. The goal here is to show that the way that is supposed to be the right tool to inform stakeholders – disclosure – is not enough, and even in the Shell case, no one would have noticed the problems with the oil reserves through the mere analysis of the company disclosure during the ‘strange period’ (1998–2003). The methodology used in this paper is lexical analysis, which seems to be an innovative and effective approach to the analysis of Corporate Social Disclosure, given the un‐codified nature of the latter. The conclusions obtained highlight the problem of lack of transparency in the contents of corporate social disclosure: some firms avoid communicating crucial contents, some others twist the results in order to camouflage advantages to shareholders or managers. If it is like this for disclosing firms, what is happening in the case of non‐disclosing firms?