Accommodation,supply shocks,and sluggish real wages

This paper analyzes the policy dilemmas posed by supply shocks in a rational expectations model featuring sluggish real wages. A discrete time version of the model is used to calculate the variances for prices, wages, and output for alternative policy rules and speeds of adjustment for real wages. The conventional tradeoffs between output and price variability in the model do not always exist.     

The puzzling peso

In the past decade, some observers have noted an unusual aspect of the Mexican peso’s behavior: During periods when the U.S. dollar has risen (fallen) against other major currencies such as the euro, the peso has risen (fallen) against the dollar. Very few other currencies display this behavior. In this paper, we attempt to explain the unusual pattern of the peso’s correlation with the dollar by developing some general empirical models of exchange rate correlations. Based on a study of 29 currencies, we find that most of the cross-country variation in exchange rate correlations with the dollar and the euro can be explained by just a few variables. First, a country’s currency is more likely to rise against the dollar as the dollar rises against the euro, the closer it is to the United States and the farther it is from the euro area. In this result, distance likely proxies for the role of economic integration in affecting exchange rate correlations. Second, a country’s currency is more likely to exhibit this unusual pattern when its sovereign credit rating is more risky. This may reflect that currencies of riskier countries are less substitutable in investor portfolios than those of better-rated countries. All told, these factors well explain the peso’s unusual behavior, as Mexico both is very close to the United States and has a lower credit rating than most industrial economies.     

Which firms engage small, foreign, or state banks? And who goes Islamic? Evidence from Turkey

We study a representative dataset from Turkey that identifies firm–bank connections. Banks in Turkey differ not only in size and nationality, but also in ownership and orientation (non-Islamic versus Islamic)—resulting in at least six distinct bank types. We estimate a multinomial logit of the choice by the firm of bank type. We document a strong correspondence between bank type and firm characteristics that is not always the same as has been documented so far for US datasets. For example, small firms engage large rather than small banks. Young, large, multiple-bank, and industry-diversified firms, that are located in or close to Istanbul, team up with foreign banks. Islamic banks mainly deal with young, multiple-bank, industry-focused and transparent firms.     

The success of divestitures in merger enforcement: Evidence from the J&J-Pfizer transaction

Despite being a widely used tool in merger enforcement, there have been few studies of whether antitrust divestitures are successful. We help fill this void by conducting a study of the divestitures relating to Johnson & Johnson's $16.6 billion acquisition of Pfizer's consumer health division in 2006. Six brands were divested in this matter to alleviate antitrust concern. For three of the brands, their pre- and post-divestiture performances are similar, while the remainder underwent changes that do not appear to be divestiture related. Overall, the results are consistent with the view that the divestitures maintained the pre-transaction level of competition.     

Internet‐enabled Tourism Entrepreneurs. International Entrepreneurial Values Elicited through Repertory Test and Laddering Analysis

Although the tourism industry has been dramatically altered due to the Internet, there has been limited research published about international entrepreneurial values and Internet use in tourism firms. The findings of this study point to a relationship between the values of Internet‐enabled international entrepreneurs in small‐sized to medium‐sized enterprises and the inclination of the firm to develop and initiate international activity. The findings of this study suggest that Internet‐enabled tourism entrepreneurs share similar construct values. Two effective but underutilized qualitative methods were used in this study. The first method, repertory test, is an efficient technique for exploring constructs in decision making; the second method, laddering analysis, facilitates understanding of the perceived consequences and personal values guiding behaviour. Copyright © 2012 John Wiley & Sons, Ltd.     

The Economic Importance of Methyl Bromide: Does the California Strawberry Industry Qualify for a Critical Use Exemption from the Methyl Bromide Ban?

Methyl bromide has been applied to California strawberries for forty years. However, it will be banned in the United States and other developed countries in 2005. Critical use exemptions provide a mechanism that allows its continued use after this date for industries that do not have technically and economically feasible alternatives, and are consequently subject to significant market disruption. Integrating scientific and economic results from a multidisciplinary research project, we evaluate whether California strawberries are eligible for a critical use exemption.     

让援助更为明智

为全世界儿童提供初等学校教育将是一项漫长而且耗费甚大的工程。幸好，自1990年以来，主要的捐助者极大地增加了他们对于总体教育，特别是初等教育的官方发展援助（ODA）。2003年对所有教育目标的捐赠承诺额达到了67亿美元，是6年前承诺额真实数量的两倍以上。对于初等教育的承诺额增加得甚至更快，在1990—2003年间增长了四倍，达到19亿美元。对于初等教育的援助比总体ODA增长的更快，其在承诺额中的份额从1990年的0．4％增长到2003年的1．9％（见图1和图2）。