An Empirical Analysis of Entrant and Incumbent Bidding in Road Construction Auctions

This paper explores differences in the bidding patterns of entrants and incumbents in road construction auctions. We find that entrants bid more aggressively and win auctions with significantly lower bids than incumbents. The differences in their bidding patterns are consistent with a model of auctions in which the distribution of an entrant's costs exhibits greater dispersion than that of an incumbent's and relations of stochastic dominance in the distributions do not persist for the entire range of estimated costs. We also find that more efficient firms bid, on average, more aggressively and firms with greater backlogs bid less aggressively.     

Uncertainty reduction mechanisms in cross-sector alliances in Latin America

The present study explores three uncertainty reduction mechanisms that arise in the context of business alliance formation to assess whether these same mechanisms also operate in the development of alliances between non-profits and businesses. Secondary data from field-based case studies of Latin American cross-sector alliances are the focus of this analysis. The findings show that the same mechanisms operate to reduce uncertainty in cross-sector alliance formation and that alliance experience appears to determine the presence of some mechanisms.     

Finding Closest Targets in Non-Oriented DEA Models: The Case of Convex and Non-Convex Technologies

This paper draws attention for the fact that traditional Data Envelopment Analysis (DEA) models do not provide the closest possible targets (or peers) to inefficient units, and presents a procedure to obtain such targets.It focuses on non-oriented efficiency measures (which assume that production units are able to control, and thus change, inputs and outputs simultaneously) both measured in relation to a Free Disposal Hull (FDH) technology and in relation to a convex technology. The approaches developed for finding close targets are applied to a sample of Portuguese bank branches.     

The Added Value of Understanding Informal Social Networks in an Adaptive Capacity Assessment: Explorations of an Urban Water Management System in Indonesia

Social networks play an important role in environmental governance regimes, and they are a key to the adaptive capacity of systems that deal with complex, contextual and multi-faceted issues. Urban water systems are typical examples of complex systems facing many pressures, such as increased population, water quality deterioration, and climate change. This paper explores social networks of the key stakeholders engaged in urban water management, in Makassar City, Indonesia, in the context of exploring ways to improve management of an increasingly complex urban water system. Three social networks were explored; those constituted by formal and informal interactions and networks perceived by stakeholders to be “ideal”. Formal networks were identified through an examination of the legislative instruments and government agencies’ documents relating to water provision in Makassar, while the informal and “ideal” networks were investigated in collaboration with the stakeholders. The research found that the informal social network was more extensive than were the formally required networks, and the investigation of informal networks created a potentially more robust and adaptive water management system than would have occurred through inclusion of formal institutional arrangements. We suggest that in examination of the adaptive capacity of an urban water system, one also considers the informal arrangements and linkages, as this additional information about the system is necessary to enhance our understanding of potential adaptation of water management and improved urban water systems.     

Influence of photoperiod on carbon dioxide and methane emissions from two pilot-scale stabilization ponds

Greenhouse gas (GHG) emissions (CO(2), CH(4)) from pilot-scale algal and duckweed-based ponds (ABP and DBP) were measured using the static chamber methodology. Daylight and nocturnal variations of GHG and wastewater characteristics (e.g. chemical oxygen demand (COD), pH) were determined via sampling campaigns during midday (12:30-15:30) and midnight (00:30-03:30) periods. The results showed that under daylight conditions in ABP median emissions were -232 mg CO(2) m(-2) d(-1) and 9.9 mg CH(4) m(-2) d(-1), and in DBP median emissions were -1,654.5 mg CO(2) m(-2) d(-1) and 71.4 mg CH(4) m(-2) d(-1), respectively. During nocturnal conditions ABP median emissions were 3,949.9 mg CO(2) m(-2) d(-1), 12.7 mg CH(4) m(-2) d(-1), and DBP median emissions were 5,116 mg CO(2) m(-2) d(-1), 195.2 mg CH(4) m(-2) d(-1), respectively. Once data measured during daylight were averaged together with nocturnal data the median emissions for ABP were 1,566.8 mg CO(2) m(-2) d(-1) and 72.1 mg CH(4) m(-2) d(-1), whilst for DBP they were 3,016.9 mg CO(2) m(-2) d(-) and 178.9 mg CH(4) m(-2) d(-1), respectively. These figures suggest that there were significant differences between CO(2) emissions measured during daylight and nocturnal periods (p < 0.05). This shows a sink-like behaviour for both ABP and DBP in the presence of solar light, which indicates the influence of photosynthesis in CO(2) emissions. On the other hand, the fluxes of CH(4) indicated that DBP and ABP behave as net sources of CH(4) during day and night, although higher emissions were observed from DBP. Overall, according to the compound average (daylight and nocturnal emissions) both ABP and DBP systems might be considered as net sources of GHG.     

Capital services estimates in Portuguese industries, 1977–2003

This paper presents capital services estimates for 26 Portuguese industries for the 1977–2003 period. The estimation procedure follows an integrated approach under which the flows of capital services are approximated as a proportion of the capital stock converted into standard efficiency units. Our findings suggest a close proximity between the evolution of capital flows and the observed fluctuations of Portuguese macroeconomic growth. TFP growth estimates based on growth accounting reveal, furthermore, a very disappointing performance of the Portuguese economy during the period under study, with an average annual rate of TFP growth of 0.8% being observed. Performance varies across industries, but the bulk of activities show very modest rates of TFP growth.     

Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model

Anderson and vanWincoop developed what has become the standard framework for framing and interpreting empirical work using the gravity model. Their framework relies heavily on an assumption of symmetry among countries. For issues related to North‐South trade, this assumption is problematic. In this paper, we develop an asymmetric extension of the Anderson–vanWincoop framework appropriate to the analysis of North‐South trade, where Northern countries produce differentiated goods and Southern countries homogenous ones. In addition, we use an appropriately extended version of Baier and Bergtrand and Taylor linear expansion – thus permitting its estimation using (good old) OLS. The result is an empirical model that (i) is better suited to the analysis of North‐South trade, (ii) is easy to estimate and compute comparative statics, not requiring a customised NLS routine and, given the way the South is included, (iii) provides a simple explanation of zero trade flows between some country pairs, a fact still not fully explained in the literature. As an illustration of its use, we examine the empirical link between foreign aid and trade.     

The Log of Gravity at 15

Portuguese Economic Journal - We review the contribution of “The Log of Gravity” (Santos Silva and Tenreyro, Rev Econ Stat 88:641–658, 2006), summarize the main results in the...