Evolution of price-cost margins during the troika intervention

Portuguese Economic Journal - Market competition is a key driver for an efficient allocation of resources and thus to sustained economic growth and higher aggregate welfare. Portugal implemented...     

Collective entrepreneurship at Qualcomm: combining collective and entrepreneurial practices to turn employee ideas into action

Successful new products are essential to every company for survival in the marketplace. Especially discontinuous innovations are attractive because they can contribute to revenue growth by creating new businesses or addressing new market segments. Employees and their entrepreneurial spirit are often not fully utilized in a company's innovation activity. This paper presents a coherent methodology to promote corporate entrepreneurship and transform the creative thinking of many employees into valuable products. The application of this methodology at Qualcomm has resulted in more than 1,100 participants submitting almost 730 new business ideas, resulting in over $60 million in funding for several incubation and joint‐venture projects over the past four years, some of which have already produced innovations that the company values at over $300 million. Further, the paper discusses the limitations of this approach, its transferability to other companies as well as implications for future research.     

Identifying cycling-inducing neighborhoods: A latent class approach

Understanding how spatial attributes of cities and neighborhoods induce cycling is relevant for urban planning and policy making. In this work, ordered logit and latent class models are specified and estimated to analyze how the built environment affects bicycle-commuting frequency. Data come from a survey to 1,487 people in the city of Santiago, Chile, including sociodemographic information, travel behavior patterns and place of residence and work. Using geographic information systems tools, the built environment was characterized with variables calculated for a 500-m-radius buffer around the residential and work locations of each individual. Two models are estimated, first an ordered logit model confirms that built environment variables effect on cycling is similar to what has been reported in the literature, with some new findings such as an increase in cycling when public transport accessibility is low and the role of built environment attributes at the destination. Second, a latent class ordered logit is used to identify two classes of neighborhood in term of their cycling patterns, as a function of their density, presence of cycling infrastructure and distance to the main activity center of the city. This result allows to map the class membership probabilities, potentially helping to identify neighborhoods that encourage cycling and providing relevant information for policy making and infrastructure decisions.     

Land inequality and economic growth: a dynamic panel data approach

The growing body of literature devoted to studying the impact of inequality on economic growth has centered its attention on the income distribution effect, even though the theoretical relationships are more related to assets distribution. While some recent studies have tried to overcome this limitation by introducing asset indicators, they meet new constraints when dealing only with time-invariant measurements for this explanatory variable. This article provides a theoretical discussion and some novel empirical tests to better understand the relationships between assets distribution and economic growth. We assembled a new panel database that includes observations for more than 30 countries over the last three decades. The data include a time-varying variable for changes in the Land Gini index over this period that enables us to overcome the limitations of previous studies. A system general method of moments (GMM) estimator is used to generate truly unbiased and consistent estimates for the parameters of interest. We explore some of the likely channels through which asset distribution and economic growth may be linked, paying particular attention to the role of secure property rights and the relations between land ownership and education. We find robust and significant negative signs for land inequality in the growth regressions, indicating that changes in asset distribution are an important factor for economic development.     

Productivity and international competitiveness of agriculture in the European Union and the United States

This study looks at international competitiveness of agriculture in the European Union and the United States. The most intuitive concept is that of price competitiveness. We calculate relative prices for 11 member states of the European Union and the United States for the period 1973–2002. We assume that markets are perfectly competitive and in long‐run equilibrium, so that the observed price always equals average total cost, as measured by the cost dual to the production function. This assumption is used in our calculation of relative competitiveness and productivity gaps between the European Union and the United States and in our decomposition of relative price movements between changes in relative input prices and changes in relative productivity levels.     

The contribution of holiday trips to life satisfaction: the case of people with disabilities

This study analyses the contribution of holiday trips to the life satisfaction (LS) of people with disabilities as compared to people without disabilities. Particular attention is paid to the effects of the intensity of taking part in holiday trips on LS. We are interested in testing two different hypotheses: (a) holiday trips increase individuals' LS and (b) the effects of holiday trips on LS are different for people without and with disabilities, being greater for this latter group. Using longitudinal data from the German Socio-Economic Panel, we estimate LS equations (running generalised least square random-effects models) for people without and with disabilities which include a set of variables measuring participation or not in holiday trips and its intensity. Although people with disabilities are less likely to participate in holiday trips than people without disabilities, the results indicate that people with disabilities obtain higher levels of LS than people without disabilities from their participation in holiday trips, especially when this participation is more intense. Policy-makers and the tourism industry must promote and facilitate full access and participation of people with disabilities in holiday trips by eliminating all barriers, understanding their differential needs and providing an inclusive leisure environment.     

Entry and Exit in International Markets: Evidence from Chilean Data*

Several studies examine the patterns and determinants of entry and exit in manufacturing industries. Not much work exists on entry and exit in international markets. This paper uses Chilean data to analyze the industry‐level determinants of entry and exit in export markets. First, we show as stylized facts that entry and exit rates differ across industries, vary over time, and are positively correlated. Then, we study the main determinants of these patterns. Our econometric analysis shows that within‐industry heterogeneity, measured by differences in productivity or other firm characteristics, has a significant effect on plant turnover in international markets. Our findings reveal that trade costs, factor intensities, and fluctuations in the real exchange rate play a minor role explaining entry and exit. This last result is consistent with hysteresis in international markets.     

INFLATION,OUTPUT, AND WELFARE*

We study the effects of anticipated inflation on aggregate output and welfare within a search‐theoretic framework. We consider two pricing mechanisms: ex post bargaining and a notion of competitive pricing. Under bargaining, the equilibrium is generically inefficient and an increase in inflation reduces buyers' search intensities, output, and welfare. If prices are posted and buyers can direct their search, search intensities are increasing with inflation for low inflation rates and decreasing for high inflation rates. The Friedman rule achieves the efficient allocation, and inflation always reduces welfare, although it can have a positive effect on output for low inflation rates.     

PROLIFERATION OF ACADEMIC JOURNALS: EFFECTS ON RESEARCH QUANTITY AND QUALITY

There have been significant structural changes in research markets in recent years reflected in the increase in the number of academic journals. This paper uses a differential game model of authors and journal editors to examine the effects of an increase in competition among academic journals. Does an increase in the number of academic journals lead to an increase in scholarly articles published? Will an increase in publishing outlets adversely affect research quality? The results show greater competition does not affect research output and in fact enhances research quality. The number of journals and the relative discount rates of authors and editors are crucial determinants of the effects of competition.