INDIFFERENCE PRICE WITH GENERAL SEMIMARTINGALES

Using duality methods, we prove several key properties of the indifference price π for contingent claims. The underlying market model is very general and the mathematical formulation is based on a duality naturally induced by the problem. In particular, the indifference price π turns out to be a convex risk measure on the Orlicz space induced by the utility function.     

Cheating to win: Dishonesty and the intensity of competition

We argue that the intensity of competition within a group or organization can have an important influence on whether or not people cheat. To make this point we first work through a simple model of strategic misreporting in the workplace. For low and high levels of competition we show that, in equilibrium, few are predicted to misreport. It is for medium levels of competition that misreporting is predicted to be highest. We test this prediction experimentally and find good support for it. This finding has implications for the design of incentive structures within groups and organizations.     

Cost of doing business index in Latin America

Quality & Quantity - The World Bank's Ease of Doing Business Index (EDBI) has been widely used in analyzes of attracting investments and formulating public policies. Despite its importance...     

Narrow Replication of Fisman and Miguel's (2007a) ‘Corruption,Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets’

This note provides a narrow replication of Fisman and Miguel's (Journal of Political Economy, 2007a; 115 (6): 1020–1048) original findings about estimating negative binomial count models to study corruption practices among United Nations diplomats. We present estimates based on zero‐inflated count models, given the possible presence of excessive zero counts in the dependent variable of the main specifications. Our results confirm Fisman and Miguel's original findings. However, they also suggest the importance of considering distinct generating processes for zero outcomes. We cannot reject hypotheses favoring the use of zero‐inflated negative binomial models over its simpler versions in this context. Copyright © 2016 John Wiley & Sons, Ltd.     

Impacts of the Doha Round on Brazilian,Chinese and Indian agribusiness

The central themes to be addressed during the Doha Round of the world trade negotiations are the reduction of the agricultural production and export subsidies and improved market access for agricultural and non-agricultural goods. The G-20 group wields enough power to press negotiations at the Doha Round toward lower agricultural trade barriers and production and export subsidies. The objective of this study is to determine the impacts of the Doha Round on the economies of Brazil, China, and India. The Global Trade Analysis Project's (GTAP) general equilibrium model and database (version 7) are used. The Doha Round scenarios simulated in this paper consider the WTO agricultural production and export subsidy reduction requirement, and the application of the Harbinson approach, and Swiss formula to reduce import tariffs. Brazil and China present the highest GDP growth rate varying from 0.4 % to 1.4%. India shows a negative GDP growth rate in all scenarios, except in that which replicates the Uruguay Round. The welfare gains are positive, but small, for Brazil, China and India. The GDP loss observed in the economies of the EU25 and the US may make it difficult to reach a trade agreement at the Doha Round.     

Multiple dimensions of power influencing knowledge integration in supply chains

This study investigates how multiple dimensions of power each facilitate knowledge integration within innovation projects in supply chains and their interrelationships. Adopting a process perspective of knowledge, we offer an alternative to much of the existing debate, which has focussed on the possession of resources. We collected data from four case-study Original Equipment Manufacturers and six associated suppliers and analysed these using Template Analysis and cross-case analysis. Our findings reveal how the power of the system, operationalized through relative performance measures, performance measurement mechanisms and the individuals in-charge of them, provides a facilitative context within which other dimensions of power operate. Here, the power of resources (expert and legitimate power), processes (associated with raising issues, cross-functional teams, early supplier involvement and reviews) and meaning (creating legitimacy through reviews) interact to support knowledge integration within innovation projects in supply chains. This, we argue, emphasises the plurality of power dimensions deployed and importance of their interrelationships in facilitating knowledge integration within hierarchical supply chain networks.     

Corruption in a neoclassical growth model with a non-convex production function

In this article, we analyze the bureaucrats’ corruption problem in a simple neoclassical growth model with a non-convex production function. In this model, we consider direct relations between product (income) taxation and corruption, and between corruption and public goods provision. As the main result, we show that the optimal consumption growth path in this economy is higher in a non-corrupt environment than in a corrupt environment and the higher the proportion of corrupt bureaucrats, the higher the cost of corruption to society.