Online and official price indexes: Measuring Argentina's inflation

Prices collected from online retailers can be used to construct daily price indexes that complement official statistics. This paper studies their ability to match official inflation estimates in five Latin American countries, with a focus on Argentina, where official statistics have been heavily criticized in recent years. The data were collected between October 2007 and March 2011 from the largest supermarket in each country. In Brazil, Chile, Colombia, and Venezuela, online price indexes approximate both the level and main dynamics of official inflation. By contrast, Argentina's online inflation rate is nearly three times higher than the official estimate.     

Monetary Union Viability: A Criterion Proposal

We propose a model that represents the dynamic behaviour of a monetary union comprising two countries whose natural interest rates are initially unequal. This initial disparity and the subsequent application of a common monetary policy generate different national inflation rates and lead to losses of competitiveness, foreign deficits, and the indebtedness of one country with respect to the other. We propose as a viability criterion for the modelled monetary union a combination of non‐explosive foreign debt and the ability of the central bank to neutralize the contracting effects of taking on additional debt to avoid falling into a liquidity trap.     

Do Individual Preferences Affect the Environmental Decision‐Making Process in Teams? The Role of Participation

Literature on organizations and the natural environment has focused on the importance of individual managers and leaders. However, this literature has scarcely ever focused on individuals in the team context, even when teams have been considered to be key for a firms’ environmental progress. Although teams’ environmental decisions can be enriched by the different contributions of team members, it is necessary that team members actually participate and contribute their preferences during the decision‐making process. We used an adaptation of the legislative dilemma task with 84 students to contribute to environmental management literature by analyzing members’ participation during the team decision‐making process. The results of this paper show how those members with environmentally proactive preferences have a higher participation during the decision‐making process, and as a consequence they have a greater influence on the team decision. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Valuation in US Commercial Real Estate

We consider a log‐linearized version of a discounted rents model to price commercial real estate as an alternative to traditional hedonic models. First, we verify a key implication of the model, namely, that cap rates forecast commercial real estate returns. We do this using two different methodologies: time series regressions of 21 US metropolitan areas and mixed data sampling (MIDAS) regressions with aggregate REIT returns. Both approaches confirm that the cap rate is related to fluctuations in future returns. We also investigate the provenance of the predictability. Based on the model, we decompose fluctuations in the cap rate into three parts: (i) local state variables (demographic and local economic variables); (ii) growth in rents; and (iii) an orthogonal part. About 30% of the fluctuation in the cap rate is explained by the local state variables and the growth in rents. We use the cap rate decomposition into our predictive regression and find a positive relation between fluctuations in economic conditions and future returns. However, a larger and significant part of the cap rate predictability is due to the orthogonal part, which is unrelated to fundamentals. This implies that economic conditions, which are also used in hedonic pricing of real estate, cannot fully account for future movements in returns. We conclude that commercial real estate prices are better modelled as financial assets and that the discounted rent model might be more suitable than traditional hedonic models, at least at an aggregate level.     

Water pricing policies,public decision making and farmers' response: implications for water policy

The problems caused by water scarcity demand important changes in the criteria and objectives of water policies. The agricultural sector in Spain consumes up to 80% of all available hydric resources and the need to increase the efficiency of current uses of water in the agricultural sector is at the core of the country's national water policy. One alternative would be to resort to water pricing policies with the aim of providing incentives to save water consumption although it would inflict a certain degree of income losses to the farmers and raise the revenue collected by the water authorities. The objective of this research is to analyze the effect caused by the application of different water pricing policies on water demand, farmers' income and the revenue collected by the government agency. To undertake this analysis a dynamic mathematical programming model has been built that simulates farmers' behavior and their response to different water pricing scenarios. Empirical application of the model has been carried out in several irrigation districts in Spain covering varied farm regions and river basins. Results show that the effects of alternative pricing policies for irrigation water are strongly dependent on regional, structural and institutional conditions and that changing policies produce distinct consequences within the same region and water district. Thus, equivalent water charges would create widespread effects on water savings, farm income and collected government revenue across regions and districts.     

Deep Trade Agreements and Global Value Chains

Review of Industrial Organization - A prominent argument as to why countries sign “deep” preferential trade agreements (PTAs) is to foster global value chains (GVCs) operations. By...     

Performance appraisal: dimensions and determinants

Abstract

Using a sample of Spanish establishments in the manufacturing sector, this article analyses the determinants of the dimensions of performance appraisal. The dimensions examined are performance measures, who evaluates performance and frequency. The results show that the degree of autonomy of the workforce affects positively the use of subjective criteria. It is also more likely that performance appraisal is carried out by the supervisor in the presence of teams and internal promotions. Regarding the explanation of the frequency, teams affect negatively this dimension of performance appraisal.     

“Openness” of public governments in smart cities: removing the barriers for innovation and entrepreneurship

International Entrepreneurship and Management Journal - Open innovation practices have been found to positively affect innovation and entrepreneurship due to the complementarities and uniqueness of...     

Pursuing justice or protecting local firms? Shenzhen courts move beyond judicial local protectionism

Emerging economies represent a vivid market for firms worldwide who are massively investing in R&D. This tendency is generating an increase in the number of intellectual property (IP) registrations and is expanding the markets for IP. However, emerging economies tend to show unfair judicial systems, being unable to ensure IP rights protection, and to allow companies to benefit from their inventions. China is one of the most important emerging economies, and both domestic and foreign companies are investing a considerable amount of money in R&D and IP activities, especially in innovative cities such as Shenzhen. In this study, we aim to investigate whether the Chinese judicial system, using the city of Shenzhen as our empirical context, is fair in protecting IP rights. We use data about IP litigations from 2014 to 2016, targeting the three most relevant outcomes: settlement, judgment, and the amount of damage awards recognized by the court. The study shows no evidence that Shenzhen courts rule in favor of local firms, and the findings show consistency regarding settlement, the winning probability in judgment, and amount of damage awards. Accordingly, we derive managerial implications demonstrating that Shenzhen is a very international arena and firms act following the classic strategic theories of innovation appropriation.