Using strategic performance measurement systems for strategy formulation: Does it work in dynamic environments?

This paper examines how strategic performance measurement systems (SPMS) influence organisational performance through the shaping of the strategic agendas and strategic decision arrays that result from the processes of (re)formulation of intended strategies. Using a combination of archival and survey data collected from 267 medium and large Spanish companies, we find evidence supporting a positive association between SPMS and organisational performance that is mediated by the comprehensiveness of the strategic decision arrays. We find this mediation is negatively moderated by the level of environmental dynamism, so that the comprehensiveness of strategic decision arrays that result from strategy (re)formulation processes mediates the association between SPMS and organisational performance when environmental dynamism is low, but not when environmental dynamism is high.     

Do Firms Increase Productivity in Order to Become Exporters?*

Recent studies find that exporters are more productive than non‐exporters and that entry into exporting does not increase firms’ productivity. Thus, firms self‐select into foreign markets. This paper examines productivity before entry into exporting. Using Chilean plant‐level data, we find that productivity and investment increase before plants begin to export. Moreover, productivity of entrants to exporting, but not that of non‐exporters and exporters, increases in response to increases in foreign income, before entry but not after that. The results suggest that the productivity advantage of future exporters may be the result of firms increasing their productivity in order to export.     

Can univariate models forecast turning points in seasonal economic time series?

Based on a particular class of recently developed unobserved component models with, time varying parameters, the objectives of this paper are two-fold. On the one hand, we propose an alternative measure of underlying growth based on our estimated trend derivative with no need for any further transformations. Additionally, using the information embedded on the trend derivative, we provide a simple method for improving quantitative point forecasts in the vicinity of turning points. Empirical applications are presented for a set of seasonal monthly economic indicators of the Spanish economy.     

Improving competition in the non-tradable goods and labour markets: the Portuguese case

This study assesses the macroeconomic impacts of increasing competition in the non-tradable goods and labour markets in Portugal. We lean on evidence that the maintenance of low competition in these markets may have contributed to the recent poor performance of the Portuguese economy. The analysis is performed using PESSOA, a dynamic general equilibrium model for a small-open economy integrated in a monetary union, featuring non-Ricardian characteristics, a multi-sectoral production structure and a number of nominal and real rigidities. We conclude that measures aimed at increasing competition in the Portuguese non-tradable goods and labour markets could induce important international competitiveness gains and be valuable instruments in promoting necessary adjustments within the monetary union framework. However, in the short run, real interest rates are likely to increase, driving consumption and output temporarily downwards.     

Structural economic dynamics: an alternative approach to North-South models

This paper isolates the mechanisms responsible for the difficultiesfacing poor regions in growing faster than rich ones. The analysisof uneven development is carried out in a framework where changesin demand composition are consistent with Engel's Law. The standpointof the analysis is the interaction between technical progress—whichproduces responses in per capita income—and changes ofper capita consumption. The paper focuses on one case in whichpreferences are homothetic and there is capital dependence,showing that the latter assumption is sufficient to explainthe inequalities between poor and rich regions. When dealingwith the case of non-homothetic tastes, adverse movements inthe terms of trade and the international demonstration effect,which are both due to the inelastic demand for goods producedby poor regions, are the mechanisms responsible for uneven development.     

Reciprocity and practical comparability

Reciprocity does not require exactness but only a certain equilibrium in the things reciprocated: it is often overabundant. In addition, reciprocity may be fulfilled by returning something of a different kind that may be heterogeneous and incommensurable with the thing received. The reason of this “uneven response” of reciprocity is that in these situations the exchange of means aims at manifesting some values that are ends for the persons involved. Hence, the consideration of reciprocity supposes a reinsertion of ends in economics. The paper firstly defines reciprocity. Next, it summarizes a variety of arguments for a reconsideration of ends in economics. After that, it explains the differences between the rationalities of means and ends. A key difference lies in the problem of incommensurability of ends. This problem will be then tackled and a possible way to overcome it will be proposed. It will be finally sustained that practical comparability allows for incommensurable fair reciprocation.     

Skill Upgrading and the Real Exchange Rate

This paper examines the effect of changes in the real exchange rate on skill upgrading in the case of Chile. Using plant‐level data from the manufacturing sector, we find that a real depreciation increases the share of skilled workers in the total wage bill in exporters but not in non‐exporters. This result suggests that depreciations or, more generally, increases in export profitability, may induce exporters to adopt more skill‐intensive technologies. This finding gives support to recent models of trade that highlight the possible effect of the real exchange rate on skill upgrading and wage inequality. This paper also finds that real depreciations increase plants’ export intensity, suggesting that skill upgrading for firms that are already exporters is the channel through which real exchange depreciations affect wage inequality.     

Merger simulation using average market share: An application to the Optimus-TMN mobile merger case

This paper develops a new merger simulation methodology based on the analysis of the performance change of a hypothetical firm with average market share. It applies the methodology to the Optimus-TMN mobile telecom merger case in Portugal, within the context of the December 2006 decision by the Portuguese Competition Authority to authorize the merger between their respective parent companies, Sonaecom and Portugal Telecom. The results suggest that the Optimus-TMN merger would have resulted in 3.8% higher prices and 14.9% lower marginal costs, and would have been welfare-enhancing. These findings attest to the importance of the “efficiency defense” hypothesis of mergers. They suggest that competition authorities are warranted in allowing further consolidation in the telecom sector, but that consolidation should be accompanied by strict retail price-cap regulation.