Inflation targeting credibility and sovereign risk: evidence from Colombia

This article relates to the literature on sovereign risk in developing countries. In particular, we present empirical evidence to address the effect of inflation targeting credibility on sovereign risk based on the Colombian experience. The findings denote that credibility is an important improvement in the institutional framework to reduce the sovereign risk premium.     

Marketing capabilities and innovation. How do they affect the financial results of hotels?

From the point of view of firms’ managers, the knowledge of the factors which explain their firms’ financial results is considered of great usefulness to propose the most appropriate and profitable marketing strategies and actions. This research sets out from this central idea and proposes a model of relationships that considers the marketing results, the marketing capabilities, and the innovation capability as key factors for achieving good financial results. This model is verified via an empirical investigation carried out among 200 directors of hotel establishments in Andalusia, a region in the south of Spain which is one of the country's main tourist destinations. The results indicate that innovation capability is strongly conditioned by marketing capabilities and resources and that this innovation capability affects the financial results of the firms analyzed. Likewise, it is deduced that a market-oriented management philosophy contributes to the development of these marketing capabilities. The implications for management are considered very relevant as they must lead these firms to invest in the development of marketing resources and capabilities, and apply a market-oriented management philosophy if they wish to improve their financial results.     

The Effect of the Organizational Context on SME's Entrepreneurship: Some Spanish Evidence

The research reported in this article examines the influence of the organizational context of firm on their entrepreneurship. Specifically, this study examines how the organizational context variables of age, size, resources and competitive strategy affect entrepreneurship and in particular, innovation, proactiveness and risk-taking. Results from a sample of 233 firms showed, as hypothesized, the significant influence of resources and competitive strategy on entrepreneurship. However, size and age were not significant.     

Spatial Modeling in Technology Adoption Decisions: The Case of Shuttle Train Elevators

This article empirically models a strategic game of technology adoption of shuttle train grain elevators with information on location of the firm and its competitors. A spatial econometric model illustrates the role of spatial interdependence of rivals' decisions as well as agronomic and competitive variables on discrete adoption decisions. The analysis assesses equilibria conditions that characterize technology adoption, in this case of shuttle train adoption, and the results provide an explanation of shuttle train adoption decisions in the grain handling industry in which spatial competition is critical.     

Achieving efficiency with manipulative bargainers

Two agents bargain over the allocation of a bundle of divisible commodities. After strategically reporting utility functions to a neutral arbitrator, the outcome is decided by using a bargaining solution concept chosen from a family that includes the Nash and the Raiffa–Kalai–Smorodinsky solutions. When reports are restricted to be continuous, strictly increasing and concave, it has been shown that this kind of “distortion game” leads to inefficient outcomes. We study the distortion game originated when agents are also allowed to claim non-concave utility functions. Contrasting with the previous literature, any interior equilibrium outcome is efficient and any efficient allocation can be supported as an equilibrium outcome of the distortion game. In a similar fashion to the Nash demand game we consider some uncertainty about the opponent's features to virtually implement the Nash bargaining solution.     

Efficiency and stability of sampling equilibrium in public goods games

Most models of social preferences and bounded rationality that are effective in explaining efficiency‐increasing departures from equilibrium behavior cannot easily account for similar deviations when they are efficiency‐reducing. We show that the notion of sampling equilibrium, subject to a suitable stability refinement, can account for behavior in both efficiency‐enhancing and efficiency‐reducing conditions. In particular, in public goods games with dominant strategy equilibria, stable sampling equilibrium can involve the play of dominated strategies with positive probability both when such behavior increases aggregate payoffs (relative to the standard prediction) and when it reduces aggregate payoffs. The dominant strategy equilibrium prediction changes abruptly from zero contribution to full contribution as a parameter crosses a threshold, whereas the stable sampling equilibrium remains fully mixed throughout. This is consistent with the available experimental evidence.     

Dynamics of Beef Supply in the Presence of Cointegration: A New Test of the Backward-Bending Hypothesis

Following a general-to-specific strategy of model development, we develop error-correction equations for fed beef supply and feeder cattle demand. Starting with a theoretically acceptable set of variables, preliminary tests for unit roots and cointegrating vectors show stationary quantity variables and cointegrated prices. Simplification of the lag structure leads to equations with considerably richer dynamics than in previous studies. The final model passes several misspecification tests, is robust when estimated on subsamples of data, and makes more accurate out-of-sample forecasts than other models. In beef supply, the estimated error-correction model decomposes the backward-bending supply hypothesis into negative short-run and positive long-run supply elasticities at the monthly frequency.     

Sustainability and visitor management in tourist historic cities: the case of Santiago de Compostela,Spain

Tourism has a leading role in heritage cities and this implies a major challenge. The overall objective of this paper is to evaluate the performance of tourism planning and management with the view of achieving sustainable tourism in the historic center of Santiago de Compostela, Spain. The study addresses topics collected during a long research process of more than 10 years, such as strategic tourism plans, the implementation of quality management systems for tourism, the tourist supply and the regulation of flows. The results show a destination that has introduced alternatives to improve the tourism experience and diversify its offer beyond the Camino de Santiago. There is also growing concern in promoting the sustainability of the historic center. From our point of view, the strengthening of synergies between the different agents involved in the tourism sector of the city has been a key factor in dealing with this situation. However, in this sense, the main problem which is decongesting the tourist flows to the cathedral and its surroundings is still unresolved.     

Foreign Shocks on Chilean Financial Markets: Spillovers and Comovements Between Bond and Equity Markets

Abstract:

The domestic impact of external shocks will depend on the degree of coupling of domestic assets to foreign markets, but also on the spillovers among assets. The covariance between different types of assets could be affected by new information. Changes in the covariance, for example, could come from a stronger rebalancing between stocks and bonds. Therefore, we will analyze four different assets-government bonds, corporate bonds, money market instruments, and equities-and study the conditional correlation between them. We find that the corporate bond market tends to increase coupling in turbulent times, while the money market decreases coupling. We propose to test international spillovers taking into account a methodology for estimating the conditional mean, variance, and covariance on domestic bond and equity markets, while considering that shocks may have asymmetric effects depending on whether the news is good or bad.