Trade disclosure and price dispersion

This paper determines the effects of post-trade opaqueness on market performance. We find that the degree of market transparency has important effects on market equilibria. In particular, we show that dealers operating in a transparent structure set regret-free prices at each period making zero expected profits in each of the two trading rounds, whereas in the opaque market dealers invest in acquiring information at the beginning of the trading day. Moreover, we obtain that if there is no trading activity in the first period, then market makers only change their quotes in the opaque market. Additionally, we show that trade disclosure increases the informational efficiency of transaction prices and reduces volatility. Finally, concerning welfare of market participants, we obtain ambiguous results. Keywords: Market microstructure, Post-trade transparency, Price experimentation, Price dispersion.

Accuracy vs. simplicity: a complex trade-off

Inductive learning aims at finding general rules that hold true in a database. Targeted learning seeks rules for the predictions of the value of a variable based on the values of others, as in the case of linear or non-parametric regression analysis. Non-targeted learning finds regularities without a specific prediction goal. We model the product of non-targeted learning as rules that state that a certain phenomenon never happens, or that certain conditions necessitate another. For all types of rules, there is a trade-off between the rule's accuracy and its simplicity. Thus rule selection can be viewed as a choice problem, among pairs of degree of accuracy and degree of complexity. However, one cannot in general tell what is the feasible set in the accuracy-complexity space. Formally, we show that finding out whether a point belongs to this set is computationally hard. In particular, in the context of linear regression, finding a small set of variables that obtain a certain value of R2 is computationally hard. Computational complexity may explain why a person is not always aware of rules that, if asked, she would find valid. This, in turn, may explain why one can change other people's minds (opinions, beliefs) without providing new information.

Countervailing power? Collusion in markets with decentralized trade

We consider the collective incentives of buyers and sellers to form cartels in markets where trade is realized through decentralized pairwise bargaining. Cartels are coalitions of buyers or sellers that limit market participation and compensate inactive members for abstaining from trade. In a stable market outcome, cartels set Nash equilibrium quantities and cartel memberships are immune to defections. We prove that the set of stable market outcomes is non-empty and we provide its full characterization. Stable market outcomes are of two types: (i) at least one cartel actively restrains trade and the levels of market participation are balanced, or (ii) only one cartel, eventually the cartel that forms on the long side of the market, is active and it reduces trade slightly below the opponent's.

Asymmetries in the capacity-inflation trade-off

This paper analyzes the joint dynamics of two key macroeconomic variables for the conduct of monetary policy: inflation and the aggregate capacity utilization rate. An econometric procedure useful for estimating dynamic rational expectation models with unobserved components is developed and applied in this context. The method combines the flexibility of the unobserved components approach, based on the Kalman recursion, with the power of the general method of moments estimation procedure. A 'hyb id' Phillips curve relating inflation to the capacity utilization gap and incorporating forward and backward looking components is estimated. The results show that such a relationship in non-linear: the slope of the Phillips curve depends significantly on the magnitude of the capacity gap. These findings provide support for studying the implications of asymmetricmonetary policy rules.

Colombian international trade from a physical perspective: towards an ecologial "Prebisch Thesis"

Prebisch's approach to economic development was based on the notion that there is an international historical division of labour. Peripheral countries are specialized in exporting primary goods while centre countries export industrial goods. The Terms of trade for peripheral countries tend to deteriorate. This approach can be extendend to ecological issues. The international Centre-Periphery division does not only involve the monetary exchange of goods and capital, but also the physical exchange in which Southern countries provide materials and energy so that Northern countries can develop their socioconomic metabolism. This metabolism process is guaranteed through cheap prices for primary goods. This paper aims to apply and extend Prebisch's thought on unequal exchange, both monetary and ecological, in relation to colombian trade in the period 1970-2002, using material flow analysis.

Efectos del gen halotano sobre el bienestar animal, la calidad de carne y la productividad en porcinos

El Centro de Tecnología de la Carne fue responsable de tres de los objetivos fundamentales de este proyecto. Los experimentos consistieron en el sacrificio de dos lotes de cerdos que se diferenciaban en su genotipo halotano y en la línea paterna, que fueron sometidos a distintos tratamientos ante-mortem (transporte y espera largos versus transporte y espera cortos). En el primer lote, se compararon animales libres del gen con heterocigotos que procedían de una línea paterna Pietrain o una línea híbrida Large White x Pietrain. En el segundo lote, se comparó la descendencia heterocigota (Nn) de un macho Pietrain positivo al halotano (nn) con la descendencia libre del gen (NN) de dos machos Pietrain también libres del gen. Las hembras utilizadas en ambos lotes fueron las mismas, todas ellas libres del gen halotano

Suplementación de tranquilizantes naturales en la dieta de cerdos con diferente genotipo al estrés: sobre el bienestar animal y la calidad tecnológica y sensorial de la carne

El objetivo principal del proyecto era estudiar el efecto de tranquilizantes naturales sobre el bienestar de los animales y la calidad de la carne desde un punto de vista tecnológico y sensorial. Este objetivo se desglosaba en dos: OBJETIVO 1 – Evaluar la eficacia de tranquilizantes naturales (Magnesio, triptófano) en la disminución del nivel de estrés en cerdos de tres genotipos diferentes respecto del gen Hal, homocigotos dominantes NN, o portadores (Nn y nn) en el período anterior al sacrificio. OBJETIVO 2 – Estudiar el efecto de los tranquilizantes en la calidad tecnológica y sensorial de la carne (pH, capacidad de retención de agua, color, textura, olor sexual, …). Para ello se planteaban dos experimentos, el primero utilizando animales extremos, libres del gen, NN, y Hal +, nn, y el segundo con animales libres, NN, y portadores, Nn.

Valoración del bienestar animal del cerdo. Parámetros evaluados en el matadero

La preocupación por el bienestar animal es creciente en toda Europa, tanto por parte del consumidor como por parte del poder legislativo. La información que se facilite a los consumidores sobre los sistemas de producción y un etiquetado adecuado de las condiciones de producción de los productos de origen animal pueden constituir dos elementos esenciales de la cadena alimentaria europea en los próximos años. Es en este contexto que la Comisión Europea financia desde el año 2004 un proyecto europeo integrado, conocido con el acrónimo de “Welfare Quality®”. Uno de los objetivos principales del proyecto es obtener un sistema de valoración del bienestar de los animales de abasto que sea aplicable en granjas y mataderos, y que pueda convertirse en un sistema estandarizado para toda Europa. Además, el sistema de valoración, debe proporcionar información sobre el bienestar de los animales de una forma sencilla y entendible por el público y, a su vez, identificar de forma inequívoca los productos procedentes de estos estándares de bienestar animal. El sistema de valoración utilizado priorizará las medidas basadas en los propios animales sobre aquellas basadas en el ambiente o el manejo de estos. La inclusión de parámetros en el protocolo final de valoración del bienestar del porcino en el matadero depende de factores tales como su validez como indicador del bienestar animal, la facilidad con la que pueda ser valorado por distintos observadores en distintos entornos y condiciones con un error mínimo, que precise de poco tiempo para ser valorada y que combinada con otras medidas dé un resultado final óptimo. A modo de ejemplo, se presentan algunos de los parámetros que serán incluidos en el sistema de valoración del bienestar del porcino en matadero, tales como la valoración del miedo, resbalones, caídas, cojeras, presencia de heridas o índice de mortalidad y eficiencia del aturdimiento previo al sacrificio. Para más información se puede consultar la dirección www.welfarequality.net.

Novetats que afecten a la nutrició animal a Europa. Nou model europeu de producció animal

La nutrició animal a la Unió Europea (UE) ha estat afectada per vàries crisis, com la de les vaques boges (encefalopatia bovina espongiforme) (BSE), les hormones a la carn, la contaminació per les dioxines, els Organismes Genèticament Modificats (GMO) i l’ús d’antibiòtics com a promotors de creixement (AMGP). Des dels anys 70, la producció animal a la UE ha estat encaminada a buscar regulacions legals per a millorar la seva seguretat i eficàcia. Si més no, durant els últims cinc anys, casos com la BSE i d’altres han col·locat al sector en primera línia de les notícies, la qual cosa ha trencat la confiança dels consumidors en el consum de carn. Aquesta presentació intentarà explicar per què i com la UE està tractant aquests temes i què és el que el sector està fent per recobrar la confiança dels consumidors. La intenció és respondre a algunes qüestions que preocupen al sector, com per exemple: La producció animal europea, és menys segura que les altres? Per què les regulacions legals són més exigents per a nutrició animal que per als humans? El sector s’està preguntant si aquesta crisi pot produir un nou model europeu de producció animal. Finalment, l’actual sistema de ramaderia s’haurà de discutir: quantitat o qualitat.

North-South trade and directed technical change

In a world where poor countries provide weak protection for intellectual property rights (IPRs), market integration shifts technical change in favor of rich nations. Through this channel, free trade may amplify international income differences. At the same time, integration with countries where IPRs are weakly protected can slow down the world growth rate. An important implication of these results is that protection of intellectual property is most beneficial in open countries. This prediction, which is novel in the literature, is consistent with evidence from a panel of 53 countries observed in the years 1965-1990. The paper also provides empirical support for the mechanism linking North-South trade to the direction of technical change: an increase in import penetration from low-wage, low-IPRs, countries is followed by a sharp fall in R&D investment in a panel of US manufacturing sectors.

Trade of permits for greenhouse gas emissions; bilateral trade need not be the answer

The Kyoto Protocol sets national quotas on CO2 emissions and allows international trade of these quotas. We argue that this trade is characterized by asymmetric, identity-dependent externalities, and show that bilateral trade may not be sufficient for an efficient allocation of emissions. We derive conditions under which bilateral trade does improve the allocation of permits. The conditions are strong. In this sense, we argue that, for emissions permits, market design matters.

The international trade as the sole engine of growth for an economy

Can international trade act as the sole engine of growth for an economy? If yes, what are the mechanisms through which trade operates in transmitting permanent growth? This paper answers these questions with two simple two-country models, in which only one country enjoys sustained growth in autarky. The models differ in the assumptions on technical change, which is either labour- or capital-augmenting. In both cases, the stagnant economy imports growth by trading. In the first model, growth is transmitted because of permanent increases in the trade volume. In the alternative framework, the stagnant economy imports sustained growth because its terms of trade permanently improve.