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.     

QUALITY DISPERSION AND THE FEASIBILITY OF DIVIDENDS AS SIGNALS

A dividend signaling equilibrium may not be feasible if some firms must pay an unrealistically high dividend to signal their quality. Therefore, feasibility requires a relatively narrow quality dispersion among signaling firms. However, the literature does not offer a characterization of the maximum quality dispersion that is consistent with a feasible signaling schedule. In this paper explicit quality dispersion constraints leading to feasible dividend signaling equilibria are determined.     

TAX SCHEDULE CHANGES AND DISCOUNT BOND PRICES

Research on the impact of marginal tax changes on bondholder wealth focuses on changes along a given tax schedule. In this paper the valuation consequences of changing the tax schedule are analyzed. Although previous researchers show that the price of all discount bonds falls if the marginal ordinary income tax rate increases along a tax schedule, it is found that this result holds only under specific conditions when the tax schedule changes. Various comparative statics are discussed.     

Environmental benefits of air–rail intermodality: The example of Madrid Barajas

The environmental impact of transport is a growing issue in transport infrastructure planning. The construction of a high-speed rail station at the Madrid Barajas Airport in Spain is an example of the integration of different transportation modes, with expected environmental benefits. We construct a model to assess modal choice and environmental benefits. The results show that with high-speed rail the number of people choosing air travel and the private car is reduced leading to important environmental benefits: a reduction of close to 5 kg of CO₂ per passenger, or 10% of all emissions on the corridor. Our results also show that increasing the cost of using the private car is picked up by air transport rather than high-speed rail, leading to an increase in total emissions.     

Planning for sustainable development: Strategic alignment in Peruvian regions and cities

This paper explores the application of the Strategic Alignment Model (SAM) to the formulation of strategies for sustainable development in regions and cities. SAM was created during the 90s in order to bridge the gap in terms of objectives, competences and culture between business and IT professionals. The present study applies SAM to align economic development and environmental sustainability and identifies concepts such as industrial ecosystems, sustainable lifestyles, eco-business, and environmental services as integrative strategies. Previous to this research, alignment has been studied in terms of public participation process, policy innovation and adoption of best practices. This paper proposes a new framework to represent alignment in a way that multiple strategies and pathways can be recognized, favoring dialogue and coordination. Likewise, a strategic analysis of Peruvian Environmental Action Plan 2010-2021 is presented.     

The relationship between house prices and house purchase loans: The Spanish case

This paper looks at recent developments in house purchase loans and house prices in Spain and the linkages between them. It aims at identifying deviations of these variables from their equilibrium levels, and for this purpose, we estimate a vector error-correction model. The results show that both variables are interdependent in the long-run and that both variables were above their equilibrium level by the end of the sample period (2009:Q1). The paper also offers insight into how overvaluation (overindebtedness) in house prices can lead to a false sense of no overindebtedness (house prices overvaluation).     

Can the Consumption–Wealth Ratio Predict Housing Returns? Evidence from OECD Countries

We use a representative consumer model to analyze the relation between the transitory deviations of consumption from its common trend with aggregate wealth and labor income, cay, and the housing risk premium. The evidence based on data for 15 OECD countries shows that, if financial and housing assets are seen as complements, investors will temporarily allow consumption to rise when they expect a rise in future housing returns. By contrast, if housing assets are treated as substitutes for financial assets, consumption will be reduced.     

Influence of the entrepreneur's capacity in business performance

The article presents a theoretical model of the entrepreneur's capacities and their influence on business performance. Starting from the traditional theory of dynamic capacities, those related to entrepreneurship and/or that influence the entrepreneur's capacities are identified, determining factors such as training, experience and confidence. In addition, other factors such as the environmental and institutional environment have been taken into account as they affect the entrepreneurship. For this purpose, a study was carried out with the Smart PLS software in a sample of companies in the tourism sector in the Mar Menor Region (Spain). An essential factor in the development of entrepreneurship in the region is the sustainability of the coastal lagoon. Some considerations are obtained from the study of the factors that determine the model of capacities, in which the confidence of the entrepreneur and the environmental sustainability, exert a positive and significant influence in the business performance. Furthermore, among the mentioned capacities of the entrepreneurial influence, experience and trust are the ones that most influence the success of the tourism business.     

Labor market flexibility and poverty dynamics

The past two decades have witnessed a rapid growth in flexible work arrangements that, in some instances, could expose workers to a higher poverty risk via limited job stability, few advancement opportunities, and low wages. Nowhere in the world has this increase in flexible work arrangements being more evident than in Spain, where about a third of the wage and salary workforce holds fixed-term contracts. Using Spanish panel data and maximum-likelihood binary models that account for state dependence and unobserved heterogeneity, we examine the poverty implications of past and present temporary employment. Our findings suggest that fixed-term contracts are linked to a greater poverty exposure among women and older men relative to open-ended contracts. Furthermore, this greater poverty exposure can last several years due to feedback effects operating via job instability or via the transition to work statuses characterized by higher poverty hazards. Finally, the adverse impact of temporary employment is linked to the short duration of some contracts, thus signaling the importance of work attachment.