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on Economics of Strategic Management |
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Issue of 2007‒01‒06
six papers chosen by Joao Jose de Matos Ferreira University of the Biera Interior |
| By: | Nanak Kakwani; Marcelo Neri; Hyun H. Son |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:epgewp:634&r=cse |
| By: | Michael G. Papaioannou |
| Abstract: | Measuring and managing exchange rate risk exposure is important for reducing a firm's vulnerabilities from major exchange rate movements, which could adversely affect profit margins and the value of assets. This paper reviews the traditional types of exchange rate risk faced by firms, namely transaction, translation and economic risks, presents the VaR approach as the currently predominant method of measuring a firm's exchange rate risk exposure, and examines the main advantages and disadvantages of various exchange rate risk management strategies, including tactical versus strategical and passive versus active hedging. In addition, it outlines a set of widely accepted best practices in managing currency risk and presents some of the main hedging instruments in the OTC and exchange-traded markets. The paper also provides some data on the use of financial derivatives instruments, and hedging practices by U.S. firms. |
| Keywords: | Financial risk , financial management , foreign exchange hedging , exchange hedging , corporate hedging practices , Financial risk , Risk management , Foreign exchange , Exchange rates , Industry , Economic models , |
| Date: | 2006–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/255&r=cse |
| By: | Eva Gutierrez |
| Abstract: | This paper reviews a broad set of indicators of competitiveness in the Macedonian economy and estimates the equilibrium real effective exchange rate (REER) using different methodologies. Although the REER is broadly in equilibrium at present, structural factors are found to hamper competitiveness. While a more competitive exchange rate might improve short-term export performance, sustained improvements require enhanced productivity and resource reallocation to more dynamic sectors, which depends on reforms to improve the business environment. |
| Keywords: | Competitiveness , equilibrium exchange rate , Export performance , Macedonia, FYR , Competition , Exchange rates , |
| Date: | 2006–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/261&r=cse |
| By: | Abbas Mirakhor; Iqbal Mehdi Zaidi |
| Abstract: | This paper attempts to set out the principal issues that need to be resolved in formulating a proposal for quotas and voice reform in the IMF that could command broad support. Following John Rawls, we argue that "justice is the first virtue of social institutions," and we use his theory of justice to provide a method for understanding what should be the case, in the context of voice and voting shares, before international institutions, such as the IMF, are to be justifiable to their members. The implementation of this process suggests, among other things, that a major revision of the quota formulas is long overdue, and leaving this unaddressed raises serious questions regarding the IMF's governance which could develop into a core mission risk and jeopardize the relevance of the institution. |
| Keywords: | Governance , International Monetary Arrangements and Institutions , International Monetary Fund , Quota increases , Quota distribution , Voting power , Quota calculations , Governance , Transparency , |
| Date: | 2006–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/273&r=cse |
| By: | Emilia Del Bono (ISER, University of Essex and IZA Bonn); Daniela Vuri (University of Rome Tor Vergata, CHILD, CESifo and IZA Bonn) |
| Abstract: | This paper explores newly available Italian data derived from a 1:90 sample of social security administrative records (INPS) to investigate gender differences in pay during the initial stages of a worker’s career. We find that a significant and growing pay differential between men and women emerges during the first years of labour market experience, and that gender differences are highest when workers move across firms. In particular, we find that the most significant gender gap in log wage growth is associated with job moves which take place within a very short period of time, involve positive wage growth and result in the highest salary increases. Moreover, this gender mobility penalty occurs mainly when workers move to larger firms and we show that this is most likely explained by the fact that women value more than men some of the characteristics of these jobs or employers. Overall our results suggest that job and firm characteristics, rather than differences in worker characteristics or across-the-board discrimination, are the most important determinants of the gender wage growth differential in the Italian labour market. |
| Keywords: | job mobility, gender gap, wage growth, fixed effects panel estimation |
| JEL: | J16 J31 C23 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2523&r=cse |
| By: | Ana Rute Cardoso (IZA and University of Minho); Miguel Portela (Tinbergen Institute, NIPE-University of Minho and IZA); Carla Sá (Tinbergen Institute and NIPE-University of Minho); Fernando Alexandre (NIPE-University of Minho) |
| Abstract: | The Bologna process aims at creating a European Higher Education Area where intercountry mobility of students and staff, as well as workers holding a degree, is facilitated. While several aspects of the process deserve wide public support, the reduction of the length of the first cycle of studies to three years, in several continental European countries where it used to last for four or five years, is less consensual. The paper checks the extent of public confidence in the restructuring of higher education currently underway, by looking at its implications on the demand for academic programs. It exploits the fact that some programs have restructured under the Bologna process and others have not, in Portugal. Precise quantification of the demand for each academic program is facilitated by the rules of access to higher education, in a nation-wide competition, where candidates must list up to six preferences of institution and program. We use regression analysis applied to count data, estimating negative binomial models. Results indicate that the programs that restructured to follow the Bologna principles were subject to higher demand than comparable programs that did not restructure, as if Bologna were understood as a quality stamp. This positive impact was reinforced if the institution was a leader, i.e. the single one in the country that restructured the program. Still an additional increase in demand was experienced by large programs that restructured to offer an integrated master degree, thus conforming to Bologna principles while not reducing the program duration. |
| Keywords: | education policy, European Higher Education Area, economic, social and cultural integration, count data |
| JEL: | I28 I21 F15 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2532&r=cse |