Exchange rate pass-through in Canadian manufacturing: its direct and indirect components

Changes in the exchange rate have direct and indirect effects on the prices of domestically produced goods and imports in the domestic market. The direct effects originate with the impact of the exchange rate on the marginal cost of imports; the indirect effects, with its impact on the price of materials used by domestic producers and hence on their marginal costs. Direct and indirect exchange rate pass-through elasticities are estimated for 37 Canadian manufacturing industries and their determinants are examined in a cross-section analysis. It is found that the direct and indirect elasticities are approximately equal in size for domestic goods, while the direct effect is dominant for imports. For a small number of industries, the net result of the direct and indirect effects is that a depreciation of the domestic currency increases the competitiveness of imports, contrary to conventional analysis. Important determinants of the direct (indirect) elasticities are the import share and non-tariff barriers (the responsiveness of domestic costs to changes in the exchange rate, and concentration).     

ARE ALL ECONOMIC FACTS GREATLY EXAGGERATED? THEORY COMPETITION AND SELECTIVITY

Abstract ..There is growing concern and mounting evidence of selectivity in empirical economics. Most empirical economic literatures have a truncated distribution of results. The aim of this paper is to explore the link between publication selectivity and theory contests. This link is confirmed through the analysis of 87 distinct empirical economics literatures, involving more than three and a half thousand separate empirical studies, using objective measures of both selectivity and contests. Our meta–meta‐analysis shows that publication selection is widespread, but not universal. It distorts scientific inference with potentially adverse effects on policy making, but competition and debate between rival theories reduces this selectivity and thereby improves economic inference.     

THE CHARITY COMMISSION – POLITICISED AND POLITICISING

Charities have always had to show that they provide a ‘public benefit’, the meaning of which has been developed by case law. The Charity Commission, a body created by the last government, has provided guidance on the meaning of ‘public benefit’ which is at odds with the meaning developed in case law – and therefore in conflict with the statute under which the guidance was ostensibly provided. The Charity Commission has also allowed charities to engage in political campaigning, an activity which the House of Lords has held no charity can lawfully pursue without losing its charitable status. The Charity Commission and its guidance should be scrapped. Professionally qualified and independent Charity Commissioners should be appointed.     

Click Here for a Data Scientist: Big Data,Predictive Analytics,and Theory Development in the Era of a Maker Movement Supply Chain

Predictive analytics is impacting many diverse areas, ranging from baseball and epidemiology to forecasting and customer relationship management. Manufacturers, retailers, software companies, and consultants are creatively discovering new applications of big data using predictive analytics in supply chain management and logistics. In practice, predictive analytics is generally atheoretical; however, we develop a 2 × 2 model to explain the role of predictive analytics in the theory development process. This 2 × 2 model shows that in our discipline we have traditionally taken one path to theory development, but that predictive analytics can be a salient component of a comprehensive theory development process. The model points to a number of research questions that need to be addressed by our research community. These questions are not just highly relevant to the academic community but also in urgent need of answers to help practitioners execute the right strategies with greater precision and efficiency. We also discuss how one disruptive trend, the maker movement, changes the nature of who the producers are in the supply chain, making big data even more valuable. As we engage in higher levels of dialogue we will be able to make meaningful progress addressing these vital research topics.     

SWARM INTELLIGENCE: APPLICATION OF THE ANT COLONY OPTIMIZATION ALGORITHM TO LOGISTICS‐ORIENTED VEHICLE ROUTING PROBLEMS

This research evaluates a set of logistics‐oriented vehicle routing problems (VRP) taken from the logistics and supply chain literature under the widely used Clark‐Wright Savings algorithm and the newer metaheuristic method employing a type of swarm intelligence called Ant Colony Optimization (ACO). ACO simulates the decision‐making processes of colonies of ants as they forage for food and is related to other artificial intelligence techniques such as Tabu Search, Simulated Annealing and Genetic Algorithms. Experimentation shows that ACO is successful in finding solutions near the best‐known solutions for problems with up to 20 demand locations. In addition, testing for the affect of spatial patterns suggested by the logistics literature for facility locations appears to make a difference in the quality of the solutions for the two algorithms. Finally, ACO is shown to be superior to the savings algorithm found in software packages and as a result should be tested on even larger, more complex logistics‐oriented vehicle routing problems, representative of those encountered in larger industrial and retail settings.     

The Federal Trade Commission's Anti-trust Attack on Advertising

Over the last decade, American public policy has turned increasingly against advertising. The Federal Trade Commission, in several test cases, has set out to show that advertising strengthens and sustains the power of the monopolist. By and large, the attack has failed, and thereby enhanced the contrary view that advertising is a force for competitive efficiency.     

The Exploitation of Inside Information at the Wall Street Journal: A Test of Strong Form Efficiency

The study examines if tradings on stocks based on the inside information about the “Heard on the Street” column of the Wall Street Journal could generate abnormal returns. We found significant abnormal returns on days t =?1 and t= 0 (publication date) for the stocks related to insider trading. For a comparable control group of noninsider traded stocks, the abnormal returns were not significant on day t=?1 but were significant on day t= 0. The abnormal returns for the insider trade group on days t=?1 and t= 0 were greater than the returns for the control group. The results indicate that the inside information was the cause for the differences.