A computational general equilibrium model with vintage capital

This paper presents a vintage capital model assuming putty–clay investment and perfect foresight. The model is written in discrete time and is simulated by using a second order relaxation algorithm. By computing the eigenvalues of the dynamic system, we have checked the conditions of existence and uniqueness of a solution (Blanchard and Kahn's conditions) and identified the echo effect that characterizes vintage capital models and the related dynamics of creation and destruction. By calibrating the model on French data, it has been proved useful to explain the medium-term movements in the distribution of income in France during the last three decades.     

Recent developments in EC USSR commercial and economic relations

Conclusion Trade with the Soviet Union represents only a small part of total Community trade (3.5 % of EC imports and 2.7 % of EC exports in 1990). EC imports from the Soviet Union increased moderately between 1989 and 1990 as well as between the first six months of 1990 and the corresponding period of 1991, whilst EC exports decreased sharply as a result of hard currency shortage in the Soviet Union.The CMEA and Soviet disintegration processes will lead to a substantial reorientation of trade flows. This development has already begun with large increases of trade between the EC and the Central and Eastern European countries.International assistance to the USSR mainly consists of export credits. Community assistance involves a large proportion of grants and technical assistance. The cost of assistance measures envisaged so far remains limited for Western countries.The economic effects of assistance would be enhanced if effective coordination was implemented among the providers. Adequate mechanisms such as triangular operations or the untying of assistance would be required in order to avoid crowding out traditional suppliers from Soviet markets.     

Banks’ non-traditional activities under regulatory changes: impact on risk,performance and capital adequacy

Using the big six Canadian chartered banks quarterly financial statements and daily stock market data from 1982 to 2018, we examine the impact of non-interest income on Canadian banks’ risk, performance and capital under the different major regulatory changes made to the Bank Act of Canada. Our results show that Canadian banks’ expansion into non-traditional activities had slightly decreased their risks and significantly improved their performance benefitting from income diversification. Moreover, while adhering to capital adequacy regulation, reshuffling banks’ portfolio towards non-traditional activities did not reduce Canadian banks’ capital ratio. In spite of the re-regulation towards universal banking against ring-fencing, this feature buttresses the effectiveness of capital adequacy regulation in Canada in linking banks capital allocation with their risk taking.     

Twenty years of economic transition in Russia: Results and lessons learned

The present article studies the events and processes that took place during the socioeconomic transformation in Russia. The positive and negative consequences of the reforms are considered, and their macroeconomic results are assessed. The article reveals the causes of the weak points in the present-day Russian economy and focuses on mistakes and wrong solutions that should be avoided in the future.     

Realities and Double Standards in Relations with Japan

JAPANS ECONOMIC POLICY, by G. C. Allen TRADE PROBLEMS BETWEEN JAPAN AND WESTERN EUROPE, by Masamichi Hanabusa JAPAN'S ECONOMIC AID, by Alan Rix JAPAN'S OPTIONS FOR THE 1980s. by Radha Sinha ENERGY POLICY IN PERSPECTIVE: TODAY'S PROBLEMS, Y ESTERDAY'S SOLUTIONS BRITAIN IN EUROPE, edited by William Wallace HARMONISATION IN THE EEC, edited by Carol Cosgrove Twitchett MULTINATIONALS FROM DEVELOPING COUNTRIES, edited by Krishna Kumar and Maxwell G. McLeod EUROPE UNDER STRESS, by Yao-su Hu BUILDING A SUSTAINABLE SOCIETY, by Lester R. Brown DEVELOPING COUNTRIES IN THE INTERNATIONAL ECONOMY, by Sanjaya Lall BEYOND INDUSTRIALIZATION: ASCENDANCY OF THE GLOBAL SERVICE ECONOMY, by Ronald Kent Shelp INTERNATIONAL PRODUCTION AND THE MULTINATIONAL ENTERPRISE, by John H. Dunning INSIDE THE MULTINATIONALS, by Alan M. Rugman FOOD AND AGRICULTURAL POLICY FOR THE 1980s, edited by D. Gale Johnson THE JAPANESE CHALLENGE TO US INDUSTRY, by Jack Baranson FLEXIBLE EXCHANGE RATES AND INTERNATIONAL BUSINESS, by John M. Blin, Stuart I. Greenbaum and Donald P Jacobs THE POLITICAL ECONOMY OF IN- DUSTRIAL POLICY, by Wyn Grant US FOREIGN POLICY AND THE THIRD WORLD: AGENDA 1982, by Roger D. Hansen et al.     

Measuring portfolio strategic performance using key performance indicators

It is difficult to find indicators for measuring the achievement of objectives during the progress of project portfolios. This article presents an approach for developing key strategic perfor‐mance indicators considering this limitation. The indicators proposed help measure the achievement of a portfolio's strategic objectives taking into account the realization of key benefits. This approach helps identify strategic interdependences between projects that the portfolio is composed of, facilitating the understanding of how the performance of a single project affects the overall performance of a portfolio. The key perfor‐mance indicators can also be used for monitoring the materialization of risks and opportunities influencing the strategic performance of a portfolio.     

Business cycles synchronization in East Asian economy: Evidences from time-varying coherence study

This paper analyzes the feasibility of a monetary union in East Asia focusing on business cycles synchronization. Considering the critical role of trade integration in the East Asian integration process, we study whether East Asian countries are characterized by business cycle synchronization. The related empirical literature dedicated to business cycles synchronization in East Asia does not lead to firm conclusion. In this paper, we suggest a different empirical approach allowing, contrary to the previous studies, to detect endogenously structural changes in the comovement process between outputs. We apply a new measure based on the time-varying coherence function. Such a measure not only detects comovement dynamics but it distinguishes also this dynamics between short- and long-term. We compute also cohesion statistics to test if countries tend to be more synchronized or not. The main finding of this paper is that the increase in bilateral trade inside the East Asian region significantly improves long-run business cycle synchronization. The short-run influence of bilateral trade shows mixed results. Indeed, short-run cycles remain significantly influenced both by shocks hitting each country and by economic policy responses. As a consequence, more bilateral trade and convergence in economic policy constitute two complementary processes to promote business cycle synchronization.     

Nonlinear models of analysis of variance

It seems quite natural for economists to decompose a series with several indexes (time, industry, etc.) into several series with one index apiece, each of which will be analyzed separately. This operation has generally been made in a linear way in the traditional analysis of variance, possibly after some transformation of the initial series. We propose to do this in a multiplicative way which does not allow us to use the basic theorems of econometrics, and which is near factor analysis. We present several kinds of estimators, study their statistical properties and finally compare our method to more classical ones, using a series of the distribution of dividends paid by French corporations, available over 11 years for 26 industries.