Money and exchange rates in the Grossman-Weiss-Rotemberg model

We analyze the impact of monetary policy on inflation, interest rates and exchange rates in a model with segmented asset markets developed by Grossman and Weiss (1983) and Rotemberg (1984, 1985). We find parameters for which real and nominal exchange rates in this model are (1) much more volatile than interest rates, inflation rates, and money growth rates, (2) highly correlated with each other, and (3) highly persistent. While this model fails to match the data in other important respects, it illustrates a potentially useful approach to modelling exchange rate behavior.     

Effects of hiring former employees of multinationals in the absorptive capacity of local firms

The attraction of foreign direct investment seeks, among other things, to increase the productivity of local companies through knowledge spillovers. However, the empirical evidence in this regard is contradictory. One influential factor is the absorptive capacity of the local companies. This article analyzes the effect of the presence of former employees of multinational corporations as employees of local companies, on the absorptive capacity of said companies. The study was done in Costa Rica, a country known for its successful strategy in the subject matter. The data come from a survey applied to 1167 companies by the Observatorio Costarricense de las Pymes in 2011. It was found that the hiring of former employees of multinational corporations by local companies has a positive effect on the index of absorptive capacity of companies in all productive sectors. Specifically, this hiring of former employees increases the index of absorptive capacity by nine percentage points, with differences by sector and the size of the company.     

The Role of Green Collaborative Strategies in Improving Environmental Sustainability in Supply Chains: Insights from a Case Study

This article aims to quantify to what extent collaborative strategies are more effective than internal or organization‐level actions to green supply chains. In this regard, the impact of decisions made at different stages of a supply chain in a product's carbon footprint is quantified. Organizational and product carbon footprints are calculated using the Compound Method Based on Financial Accounts (MC3). The results underline that concentrating reduction efforts in some stages of the supply chain is more effective than implementing individual actions by the participants. Collaboration among the participants is needed to decide what practices are implemented, at what stage they are needed and how they are to be implemented. This article adds to the literature on supply chains and sustainability. Previous research suggests that collaborative strategies have great potential for reducing the carbon footprint of products, while indicating the need for empirical research to support this statement. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Firm‐specific human capital investments as a signal of general value: Revisiting assumptions about human capital and how it is managed

Research summary : Prior scholarship has assumed that firm‐specific and general human capital can be analyzed separately. This article argues that, in some settings, this is not the case because prior firm‐specific human capital investments can be a market signal of an individual's willingness and ability to make such investments in the future. As such, the willingness and ability to make firm‐specific investments is a type of general human capital that links firm‐specific and general human capital in important ways. The article develops theory about these investments, market signals, and value appropriation. Then, the article examines implications for human resource management and several important questions in the field of strategic management, including theories of the firm and microfoundations of competitive advantage. Managerial summary : While managers don't often use the terms firm‐specific and general skills, they certainly recognize that investments employees make in their skill sets are more or less relevant to a specific firm. For instance, investing in specific relationships within a firm or learning a firm's proprietary software would be considered firm‐specific investments. While such skills may seem relevant only to the particular firm in which they were invested, these investments may also send valuable signals to competing firms that such employees are willing and able to make similar investments elsewhere. Hence, managers should be interested in determining if a potential hire has made prior firm‐specific investments to help them know whether that person might be likely to make such investments in his or her future place of employment. Copyright © 2016 John Wiley & Sons, Ltd.     

The Internationalization of Spanish- and Portuguese-Speaking Banks

This article investigates which variables affect the location choice of banks from Spanish- and Portuguese-speaking countries in their process of internationalization. The article compares the differences in these variables for public and private banks. The sample consists of 141 banks operating in 58 countries. Results show that internationalization is undertaken by the largest banks, which preferably choose countries with similar language, close to the home country, and with the most opportunity for growth. Additionally, the effects of certain explanatory variables on the probability of expanding to a given country are different for public and private banks.     

Using “Rapid Response” as a competitive tool

New technology allows companies to respond quickly to customer demands that differ from country to country. In the international arena, time and flexibility are competitive weapons.     

Entrepreneurial rents and the theory of the firm

The creation of entrepreneurial rents occurs under conditions of uncertainty. Yet current theories of rent appropriation such as transactions cost theories of the firm focus their efforts primarily on how quasi-rents – rents that have already been created – are appropriated by parties to that exchange. Entrepreneurs face a dual challenge, that of creating entrepreneurial rents and appropriating some of these rents. Moreover, this challenge usually exists at a time when the entrepreneurial rents that might be created are not known or anticipatable. Indeed, entrepreneurs not only concern themselves with ensuring that they are able to appropriate at least some of the rents that might be eventually created but in fact they may not create any rents or potentially lose value. Understanding the dual nature of the rent creation and the rent appropriation problem has a variety of implications for the study of entrepreneurial organizations and generally for theory of the firm discussions.     

Hospital economic impact from hemostatic matrix usage in cardiac surgery

Objective:

Improved health outcomes can result in economic savings for hospitals and payers. While effectiveness of topical hemostatic agents in cardiac surgery has been demonstrated, evaluations of their economic benefit are limited. This study quantifies the cost consequences to hospitals, based on clinical outcomes, from using a flowable hemostatic matrix vs non-flowable topical hemostatic agents in cardiac surgery.

Research design and methods:

Applying clinical outcomes from a prospective randomized clinical trial, a cost consequence framework was utilized to model the economic impact of comparator groups. From that study, clinical outcomes were obtained and analyzed for a flowable hemostatic matrix (FLOSEAL, Baxter Healthcare Corporation) vs non-flowable topical hemostats (SURGICEL Nu-Knit, Ethicon–Johnson &; Johnson; GELFOAM, Pfizer). Costing analyses focused on the following outcomes: complications, blood transfusions, surgical revisions, and operating room (OR) time. Cardiac surgery costs were analyzed and expressed in 2012 US dollars based on available literature searches and US data. Comparator group variability in cost consequences (i.e., cost savings) was calculated based on annualized impact and scenario testing.

Results:

Results suggest that if a flowable hemostatic matrix (rather than a non-flowable hemostat) was utilized exclusively in 600 mixed cardiac surgeries annually, a hospital could improve patient outcomes by a reduction of 33 major complications, 76 minor complications, 54 surgical revisions, 194 transfusions, and 242?h of OR time. These outcomes correspond to a net annualized cost consequence savings of $5.38 million, with complication avoidance as the largest contributor.

Conclusions:

This cost consequence framework and supportive modeling was used to evaluate the hospital economic impact of outcomes resulting from the usage of various hemostatic agents. These analyses support that cost savings can be achieved from routine use of a flowable hemostatic matrix, rather than a non-flowable topical hemostat, in cardiac surgery.     

Speedier delivery: coastal shipping times and speeds during the Age of Sail †

There is a debate about whether coastal shipping experienced substantial productivity growth prior to the advent of steam power. To study changes over the long eighteenth century, this article uses thousands of coastal journey times culled from Board of Trade crew lists between 1835 and 1844 and coastal port books for the mid‐to‐late 1600s, along with a newly digitized coastal network. Comparisons between matched samples show that journey speeds, defined as miles sailed per day, were significantly higher in the crew lists compared to the port books, and that voyage cycle times, defined as days between starting two identical voyages, were substantially lower. The study also shows that voyage times in the east coast coal trade were substantially lower around 1840 than around 1700, but the difference was much smaller when peace years are compared. These new data imply that total factor productivity growth in the east coast coal trade was significant, especially if one accounts for gains from peace after 1815. The findings contribute to the larger literature studying the rate and sources of productivity growth during the industrial revolution.