Celso Furtado: Culture and Creativity Matter

This article deals with the relationship between development, creativity, and culture. It is based on the works of Celso Furtado — a Brazilian economist, a member of ECLAC’s first generation of scholars (along with Raul Prebisch), and a notable intellectual of sub-development and development in Brazil and Latin America. For Furtado, economic development is an endogenous social process that leads to human ingenuity and creativity. However, Furtado argued that creativity does not occur haphazardly. It is conditioned by cultural structures that can take two forms: material (means) or immaterial (ends). The former steers creativity toward serving material accumulation and consumption, while the latter guides it toward individuals’ existential way of life. Furtado’s central claim is that, in the “industrial civilization,” such values as rationality and efficiency bring human creativity into the production process.     

Financial distress,financial constraint and investment decision: Evidence from Brazil

This paper analyses the presence of financial constraint in the investment decisions of 367 Brazilian firms from 1997 to 2004, using a Bayesian econometric model with group-varying parameters. The motivation for this paper is the use of clustering techniques to group firms in a totally endogenous form. In order to classify the firms we used a hybrid clustering method, that is, hierarchical and non-hierarchical clustering techniques jointly. To estimate the parameters a Bayesian approach was considered. Prior distributions were assumed for the parameters, classifying the model in random or fixed effects. Ordinate predictive density criterion was used to select the model providing a better prediction. We tested thirty models and the better prediction considers the presence of 2 groups in the sample, assuming the fixed effect model with a Student t distribution with 20 degrees of freedom for the error. The results indicate robustness in the identification of financial constraint when the firms are classified by the clustering techniques.     

Relevance and advantages of using the item response theory

The item response theory (IRT) also known as latent trait theory, is used for the development, evaluation and administration of standardized measurements; it is widely used in the areas of psychology and education. This theory was developed and expanded for over 50 years and has contributed to the development of measurement scales of latent traits. This paper presents the basic and fundamental concepts of this IRT and a practical example of the construction of scales is proposed to illustrate the feasibility, advantages and validity of IRT through a known measurement, the height. The results obtained with the practical application of IRT confirm its effectiveness in the evaluation of latent traits.     

Derivative pricing using multivariate affine generalized hyperbolic distributions

In this paper we use multivariate affine generalized hyperbolic (MAGH) distributions, introduced by Schmidt et al. (2006), to show how to price multidimensional derivatives when the underlying asset follows a MAGH distribution. We also illustrate the approach using market data from the BOVESPA (São Paulo Stock Exchange) and the exchange rate of the Brazilian Real vs. US Dollar to price some multidimensional derivatives.     

Online Engagement and the Role of Digital Influencers in Product Endorsement on Instagram

Abstract

The article aims to analyze the forms of engagement generated from the endorsement of products by digital influencers on Instagram, considering the characteristics of their online posts. A qualitative approach was used to investigate digital influencers’ posts based on semiotic image analysis and the critical incidents technique. The results reinforced that digital platforms enable distinct forms of engagement by establishing new configurations that affect relationship marketing and promotion strategies. In particular, on Instagram, the development of engagement can involve four participants who play different social roles, expanding the process of value co-creation.     

Who is going to save the Brazilian Amazon forest? Reflections on deforestation,wildlife eviction,and stewardship behavior

The Brazilian Amazon deforestation is the context for this article, approached as a crime against humanity and wildlife. Recently, Amazon forest fires have also worried most of the economically developed nations, generating criticism and demanding that the Brazilian Government be more active in preventing fires and deforestation. It is necessary to guarantee the wellbeing and health of millions of animal species that live in this habitat, avoiding their extinctions and encouraging the preservation of the forest and its inhabitants. Agribusiness, together with illegal timber trade, are blamed for most of the deforestation. In this paper, we present and discuss Brazilian Amazon deforestation data, addressing the role of agribusiness as dependent on good environmental governance. We argue how stewardship behavior needs to become a path to stop deforestation and wildlife eviction and we reflect on what marketers in Brazil and the world can do to better protect the Amazon rainforest. We conclude that the Government, companies, and society must be coresponsible for the protection of the Amazon rainforest through conservation transparency, dialogue, environmental awareness, and sustainability in production and consumption practices.     

Multivariate affine generalized hyperbolic distributions: An empirical investigation

The aim of this paper is to estimate multivariate affine generalized distributions (MAGH) using market data. We use the Ibovespa, CAC, DAX, FTSE, NIKKEI and S&P500 indexes. We estimate the univariate distributions, bi-variate distributions and six-dimensional distribution. Then we assess their goodness of fit using Kolmogorov distances. As an application we study the efficient frontier.     

FACTORS AFFECTING THE LABOR SUPPLY DECISIONS OF REGISTERED NURSES

We estimate the labor force participation and the full‐time and part‐time work decisions of female registered nurses (RNs) and find higher wages are not a significant factor to (a) increase the likelihood of working nor (b) to encourage full‐time work. Another key factor is age which, given the aging of the RN population, foreshadows dwindling labor supply. This, while demand for RNs is predicted to continue to rise, will exacerbate labor shortages in the market for RNs. The results also offer insight to explain the reduction in labor supply wage elasticities for female workers in general in the United States. (JEL I11, J22, J44)