Entrepreneurial competition and its impact on the aggregate economy

This paper models entrepreneurship as the entrepreneur’s information processing activity in order to predict changes in demand and reallocate resources. The results show that allocative efficiency—and therefore aggregate productivity—increases through intensified competition by entrepreneurs grasping at opportunities. This fierce competition leads to price reductions that result in the improvement of measured aggregate productivity. The price reduction also forces relatively less able entrepreneurs to become workers. As resources are then dealt with only by relatively talented entrepreneurs, this selection effect also increases aggregate productivity. The paper also discusses how the selection effect influences the distribution of firm size.      

Systemic risk of insurers around the globe

We study the exposure and contribution of 253 international life and non-life insurers to systemic risk between 2000 and 2012. For our full sample period, we find systemic risk in the international insurance sector to be small. In contrast, the contribution of insurers to the fragility of the financial system peaked during the recent financial crisis. In our panel regressions, we find the interconnectedness of large insurers with the insurance sector to be a significant driver of the insurers’ exposure to systemic risk. In contrast, the contribution of insurers to systemic risk appears to be primarily driven by the insurers’ leverage.     

Determinantes microeconómicos del acceso al financiamiento externo de la estructura de capital de empresas del sector industrial

The aim of this paper is to analyze using an econometric panel data model, for fixed and random effects, microeconomic determinants of access to external financing that affect the capital structure of companies in the industrial sector, which were listed on the Mexican Stock Exchange (BMV) in 2000-2010, in order to demonstrate that the international financial crisis of 2007, modifies the relationship between these determinants and capital structure, which explains the changes in the policy of foreign currency funding that followed these companies. The findings show that export firms, issuers of ADRs (American depositary receipts) and the big large are finance in foreign currency before the crisis, and after it, only export firms and issuers of ADRs, although in a higher proportion export firms, which shows that to have better way to solve their problems of asymmetric information with your creditors, to have good collaterals in accounts receivable in foreign currency, and give investors a positive sign of a good economic situation, attained to continue financing in foreign currency despite the crisis.     

Which types of product attributes lead to aviation voluntary carbon offsetting among air passengers?

Tourism contributes 8% to global carbon emissions. Yet, only 10% of air passengers purchase voluntary carbon offsets. We test the effectiveness of different communication messages to increase voluntary purchasing of carbon offsets by air passengers. Results of a discrete choice experiment indicate that air passengers prefer carbon offset schemes that fund local programs (as opposed to international programs), that are effective in mitigating emissions, and are accredited. The ability to choose the specific offsetting program to be funded is not important. The willingness-to-pay for carbon offsets when booking for a group is lower than when booking an individual flight for oneself. Three market segments with distinct preferences exists. Segments also differ in key personal characteristics, including age, employment status, frequent flyer membership, and flight behaviour, making them actionable target segments for aviation carbon offsetting.     

Contributions of Econometrics to Public Policy Analysis in the Information Age

In this paper we model U.S. economic growth over the next 25 years. Despite the anticipated aging of the population, moderate population growth will provide growing supplies of labor well into the 21st century. Improvements in labor quality due to education and experience will also continue for some time, but will eventually disappear. Productivity growth for the U.S. economy will be below long-term historical averages, but labor-using technical change will be a stimulus for growth of labor demand. Year-to-year changes in economic activity will be primarily the consequence of capital accumulation. However, the driving forces of economic growth over the long term will be demography and technology. This is a revised version of the keynote speech that I delivered on 16 January 2009 at the 6th International Conference of Socionetwork Strategies, at Kansai University, Japan.