The Underinvestment and Overinvestment Hypotheses: an Analysis Using Panel Data

We study the relationship between firm value and investment to test the underinvestment and overinvestment hypotheses. The results obtained, using panel data methodology as the estimation method, indicate that the abovementioned relation is quadratic, which implies that there exists an optimal level of investment. As a consequence, firms that invest less than the optimal level suffer from an underinvestment problem, while those investing more than the optimum suffer from overinvestment. The quadratic relation is maintained when firms are classified depending on their investment opportunities, the optimum being in accordance with the quality of investment opportunities.     

Microeconomic adjustments in Chile during 1977–1981: The importance of being a grupo

This paper uses the financial statements of industrial firms to provide an integrated firm level view of the changes in the Chilean economy during 1977–1981. Both real side and financial shocks had major effects on the performance of some types of firms. Exportable goods producers did relatively poorly in ‘real’ activities, for reasons probably tied to Chile's real prolonged exchange rate appreciation. Import-competing firms that began the period with high protection did even worse, apparently reflecting the larger change in their output prices as protection was dismantled. The reforms thus shifted demand away from industries least in line with the country's comparative advantage, but they also hurt exportables — the very sector authorities intended to promote.On the financial side, the highly positive real cost of peso borrowing reduced industrial profits considerably. A handful of powerful conglomerates (grupos) generated large (but presumably unrealized) capital gains by investing in the securities of related enterprises. Such activities allowed them to offset relatively poor returns on real operations; and their ownership of the country's major banks allowed them to consolidate control of a large volume of assets with debt finance. These two results explain why the grupos were suddenly in considerable financial difficulty when the Chilean boom ended in 1982.     

Trade Policies and the Highly Indebted Countries

In the early 1980s, faced with a mounting debt crisis, mosthighly indebted developing countries increased trade barriersto save foreign exchange—but in the last three to fouryears, they have reversed course. Almost all of these countrieshave undergone real devaluations, and many have undertaken significantliberalizations, so much so that some (Bolivia, Costa Rica,Jamaica, Mexico, Morocco, and Uruguay) are less protectionistthan before the debt crisis. But industrial countries have imposed new nontariff barriersagainst imports from highly indebted countries. Canada, Australia,the European Community, and the United States have greatly increasedthe use of countervailing duties and antidumping actions. Thismakes it more difficult for highly indebted countries to payoff their debts, and ultimately rebounds on creditor governmentsand banks.     

Impact of fisheries on rural development

Fish are the most efficient converters of food for human consumption of any animal. They do not require agricultural land or compete for human food. In fact, their aquatic environment can be utilized for other purposes, eg drinking water, irrigation or hydraulic power. Fish cultivation requires between $\text{1}\text{3}$ and $\text{1}\text{30}$th of the energy needed by agriculture. Of the world's meat production, the largest share is made up of fish. However, 30% of total fish production is used for animal feed. In fact fish culture only requires two basic elements: water and light.     

Supermarkets, wholesalers, and tomato growers in Guatemala

The article shows the asset‐related determinants and the impacts of the participation of small farmers in supermarkets versus traditional market channels in Guatemala. Compared to farmers selling only to the traditional market channels, farmers selling to supermarket channels are larger (but are in the upper tier of the “small farmer” category), have more capital, and are much more specialized in commercial horticulture in general and in tomatoes in particular. While they have higher yields, they also have higher input use, including use of chemicals. In fact, they severely overuse pesticides and fungicides. Moreover, these greater input expenditures mean that their profit rates are roughly similar to those of farmers in the traditional market channel. Supermarket‐channel farmers prefer the more demanding wholesale‐supermarket channel because it offers lower risks and lower transaction costs to market, a variety of quality grades of tomatoes, all year long. In turn, the supermarkets, who do not buy direct but rather source from a few specialized‐dedicated wholesalers, rely on this year‐round supply, lower transaction costs, and consistency of quality.     

中国旅游研究的多维视野--对国内与国外相关文献的评述

本文通过对大量英文和中文文献的检索和分析，以几个重要的主题作为阐述的基本框架。比较全面地分析了中国本土学者、外国学者以及旅居国外的中国学者对中国旅游问题的研究成果和基本观点，并对旅游研究过程中所呈现的基本趋势进行了讨论。通过这个分析，使国内同行得以一窥中国旅游问题在世界旅游论坛上被关注的程度，以及了解中国旅游研究与国外旅游研究的差别。本文提供的大量英文文献，也是相关研究领域的重要学术线索。     

Pandemic effects in the Solow growth model

We show how diseases can affect economic growth in a Solow growth model, with population growth and no technical progress, but modified to include a saving rate that depends on the individual health status. We successively insert this model into the SIS (susceptible–infected–susceptible) and SIR (susceptible–infected–recovered) models of disease spreading. In these two models, the spread of the infection proceeds according to the so-called basic reproductive number. This number determines in which of the two possible equilibria, the disease-free or the pandemic equilibrium, the economy ends. We show that output per capita is always lower in the pandemic steady state, which implies a contraction in the economy's production possibilities frontier.