Measuring the effects of price movements on private consumption

This paper studies how shocks in the prices of Food, Energy and Financial Assets affect private consumption using a VAR Model. Then, the total effects are broken into direct and indirect effects, using the coefficients taken from the previous model. We use quarterly data for the Portuguese economy from the last 20 years. We found that energy prices and financial assets have a strong connection with consumption, suggesting that the economy may be too exposed to shocks in these markets.

The price of honour: The corporate governance of Banco Espirito Santo

The Price of Honour is a case study, supported with teaching notes, which describes the events and circumstances surrounding the implosion of one of Portugal’s most systemically important banks - Banco Espírito Santo (BES). The case focuses on BES’s corporate governance and how the Espírito Santo family’s tight control of the bank led to its exploitation. Although the situation caught the attention of the bank’s supervisors, their untimely actions could not prevent BES’s financial health from crumbling only two months after a rights issue. With little leeway, the supervisors put forward a resolution which dramatically ended the bank’s centennial legacy.

Equity offerings, stock price crash risk, and the impact of securities regulation: international evidence

We examine whether earnings manipulation around seasoned equity offerings (SEOs) is associated with an increase in the likelihood of a stock price crash post-issue and test whether the enactment of securities regulations attenuate the relation between SEOs and crash risk. Empirical evidence documents that managerial tendency to conceal bad news increases the likelihood of a stock price crash (Jin and Myers, 2006; Hutton, Marcus, and Tehranian, 2009). We test this hypothesis using a sample of firms from 29 EU countries that enacted the Market Abuse Directive (MAD). Consistent with our hypothesis, we find that equity issuers that engage in earnings management experience a significant increase in crash risk post-SEO relative to control groups of non-issuers; this effect is stronger for equity issuers with poor information environments. In addition, our findings show a significant decline in crash risk post-issue after the enactment of MAD that is stronger for firms that actively manage earnings. This decline in post-issue crash risk is more effective in countries with high ex-ante institutional quality and enforcement. These results suggest that the implementation of MAD helps to mitigate managers’ ability to manipulate earnings around SEOs.

Earnings management and stock price crashes post-crossdelisting

We test whether cross-delisted firms from the major U.S. stock exchanges experience an increase in crash risk associated with earnings management. Consistent with our prediction, we find that earnings management have a greater positive impact on stock price crash risk post-cross-delisting when compared to a sample of still cross-listed firms. Moreover, our results suggest that this effect is more pronounced for crossdelisted firms from countries with weaker investor protection and poorer quality of their information environment. We further examine whether managers’ ability to manipulate earnings increases post-cross-delisting around seasoned equity offerings. Our evidence shows that cross-delisted firms that engage in earnings management to inflate reported earnings prior to a seasoned equity offering are more likely to observe a subsequent stock price crash.

Reasons and benefits associated with ISO 9001 - Certification for sugar and ethanol companies

With increasing business competitiveness, companies have sought to adapt their processes and / or products to worldwide established quality standards in order to achieve a greater share of consumers having as favorable aspect the quality assurance of the products and/or services provided. It was observed that companies of different sizes have different challenges regarding the certification however, the degree of difficulty is the same for all of them. The objective of this paper is to verify the reasons for the implementation of ISO 9001, the obstacles encountered during the implementation, the benefits arising from the use of the quality management system and the degree of difficulty to implement this standard. This work was developed based on a survey involving companies certified with ISO 9001:2008 from the productive sector of sugar, ethanol and derivatives of sugarcane, located in all Brazilian states. It was observed that companies of different sizes have different challenges regarding the certification however the degree of difficulty is the same for all of them. Thus, we believe that expected results represent a very important contribution to examining the reasons, benefits and difficulties of the ISO 9001 to both, the companies and certification bodies, and to researchers.

Behavior-based price discrimination in a multi-dimensional preferences market

NIPE WP 04/ 2016

Optimization of low-cost nutritional supplementation for lignocellulosic ethanol fermentation

[Excerpt] Bioethanol from lignocellulosic materials (LCM), also called second generation bioethanol, is considered a promising alternative to first generation bioethanol. An efficient production process of lignocellulosic bioethanol involves an effective pretreatment of LCM to improve the accessibility of cellulose and thus enhance the enzymatic saccharification. One interesting approach is to use the whole slurry from treatment, since allows economical and industrial benefits: washing steps are avoided, water consumption is lower and the sugars from liquid phase can be used, increasing ethanol concentration [1]. However, during the pretreatment step some compounds (such as furans, phenolic compounds and weak acids) are produced. These compounds have an inhibitory effect on the microorganisms used for hydrolysate fermentation [2]. To overcome this, the use of a robust industrial strain together with agro-industrial by-products as nutritional supplementation was proposed to increase the ethanol productivities and yields. (...)

Developing novel strains for butanol production

[Excerpt] The growing global demand for new energy sources combined with environmental concerns had motivated the search for alternative fuels, produced from renewable raw materials. During the last decade, ethanol was considered the next generation of biofuels. But more recently, n-butanol gained attention due to its superior fuel properties when compared with ethanol. Although n-butanol is naturally produced by solventogenic bacteria through ABE fermentation, the low productivities obtained with this bioprocess discouraged its use. Thus, most of n-butanol produced nowadays is chemical synthesized via petrochemical routes and its price is extremely sensitive to crude oil’s price. One possible approach to overcome this issue is to express non-native pathways in microbial factories. (...)

Aprendizaje durante la ontogenia temprana: Estudio de la participación del sistema opioide en la modulación de aprendizajes mediados por el etanol. LEARNING AND EARLY ONTOGENY: ANALYSIS OF THE INVOLVEMENT OF OPIOID SYSTEM IN FETAL AND INFANTILE ETHANOL-MEDIATED EXPERIENCIES.

Este plan de trabajos es continuidad de una línea de investigación centrada en evaluar los mecanismos responsables de la adquisición, expresión y persistencia de experiencias con el etanol. A partir de ello, indagar acerca de los efectos de esta experiencia sobre comportamientos de búsqueda y autoadministración de etanol en neonatos e infantes de rata. Se pretende analizar la participación del sistema opiáceo en los mecanismos implicados en una memoria fetal y/o infantil, generada como consecuencia de la exposición etílica. En una primera etapa, nos proponemos establecer de qué manera experiencias prenatales con la droga modulan el patrón de auto-administración de alcohol y otros reforzadores, como sacarosa. En este primer bloque de experimentos realizaremos manipulaciones fetales para determinar con mayor grado de especificidad la posible acción del sistema opiáceo en los mecanismos de adquisición de una memoria etílica prenatal. Se realizarán administraciones de etanol y el antagonista opiáceo, directamente a nivel fetal, y se evaluará esta experiencia en un paradigma de condicionamiento neonatal positivo, mediado por la droga. De acuerdo a la evidencia previa, esperamos que la exposición prenatal con la droga facilite la expresión de conductas de consumo y búsqueda del etanol o hacia las claves que señalizan al psicotrópico, tanto durante la infancia como en el neonato. A su vez, cuando la droga es presentada bajo los efectos de un antagonista opiáceo esperamos que estas conductas muestren un perfil similar a las desplegadas por sujetos controles. El segundo bloque de experimentos ha sido ideado con el objeto de indagar acerca de la posible participación del sistema opiáceo en la modulación de los aspectos reforzantes de la droga, a través de un esquema de auto-administración etílica infantil. Se utilizará un paradigma de condicionamiento instrumental adaptado para ratas infantes que consta de dos instancias, una de adquisición de la conducta instrumental (DPs 14-17) en la cual los animales reciben un pulso de refuerzo, como consecuencia de la ejecución de la conducta operante. En una segunda fase se analiza el patrón de búsqueda del reforzador ya que se registra la respuesta instrumental, sin que ocurra el refuerzo por la misma. Para analizar la participación del sistema opiáceo, durante la fase de adquisición de la conducta operante (DPs 16 y 17) los animales serán re-expuestos a mínimas cantidades del reforzador, bajo los efectos de un antagonista opiáceo, momentos previos al ensayo instrumental correspondiente para cada uno de estos días (Exp. 3). Esperamos que el bloqueo del sistema opiáceo, durante esta re-exposición al etanol, sea suficiente para disminuir el patrón de respuesta instrumental hacia el refuerzo etílico. Un último experimento incorporará un tercer evento de re-exposición al etanol -bajo los efectos del antagonista- previo al ensayo de extinción de la conducta instrumental (DP 18). Este nuevo evento tiene por objeto analizar la participación de este sistema neurobiológico en los mecanismos de búsqueda de etanol. Si el sistema opiáceo participa en la modulación de patrones tanto de búsqueda como consumatorios del reforzamiento por etanol, se espera que la re-exposición a la droga bajo los efectos del antagonista, inhiba estas respuestas tanto durante la sesión de adquisición, como de extinción de la conducta operante. Este proyecto intenta profundizar en el conocimiento de los mecanismos que regulan reconocimiento, aceptación, búsqueda y consumo de etanol, como consecuencia de experiencias tempranas con la droga. A su vez, es importante identificar y estudiar los sistemas neurobiológicos involucrados en estos mecanismos. Es por ello que se intenta determinar el rol que ejerce el sistema opiáceo en la adquisición de estas experiencias etílicas a nivel fetal e infantil, que se conoce promueven la búsqueda y el consumo de la droga. Our work is directed to analyze the involvement of the opioid system in the generation of pre- and early postnatal ethanol-related memories. As a first step, maternal manipulations with ethanol will be done. Infants will be evaluated in a paradigm of infantile self-administration of different reinforcers (ethanol, sucrose or water), employing a model of operant conditioning adapted to infant rats. A second experiment will be conducted in order to analyze if a central administration of ethanol, directly to the fetus, modifies subsequent patterns of neonatal conditioned responses to an artificial nipple, mediated by ethanol reinforcing effects. Fetal presentation of ethanol will be accompanied with the injection of an opioid antagonist in order to analyze the involvement of this system in acquisition processes of a fetal ethanol-mediated memory. A second set of studies will be conducted to analyze appetitive and consummatory behaviors in an infant model of ethanol self-administration. Involvement of opioid system in the acquisition or expression of this experience will be also inquired. Infant rats (PDs14-17) have to display a target behavior (nose-poke) to gain access to 5% sucrose or 3.75% ethanol. On PD18 an extinction session will be included. At PDs16-17, 6-hr before training, pups will be re-exposed to ethanol under opioid antagonism effects (naloxone). In a follow up experiment, a re-exposure trial will be included at PD18. Prior extinction, pups will receive naloxone and will be re-exposed to ethanol. We aim to observe if opioid system is modulating etha¬nol reinforcing effects, in terms of both appetitive and consummatory behaviors.

List of species of mammals, principally rodents, obtained by W. W. Price, S. E. Meek, G. K. Cherrie and E. S. Thompson, in the States of Iowa, Wyoming, Montana, Idaho, Nevada and California, with descriptions of new species, by D. E. Elliot.

v.1:no.10(1898)

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.

Tacit collusion and capacity withholding in repeated uniform price auctions

This paper contributes to the study of tacit collusion by analyzing infinitely repeated multiunit uniform price auctions in a symmetric oligopoly with capacity constrained firms. Under both the Market Clearing and Maximum Accepted Price rules of determining the uniform price, we show that when each firm sets a price-quantity pair specifying the firm's minimum acceptable price and the maximum quantity the firm is willing to sell at this price, there exists a range of discount factors for which the monopoly outcome with equal sharing is sustainable in the uniform price auction, but not in the corresponding discriminatory auction. Moreover, capacity withholding may be necessary to sustain this out-come. We extend these results to the case where firms may set bids that are arbitrary step functions of price-quantity pairs with any finite number of price steps. Surprisingly, under the Maximum Accepted Price rule, firms need employ no more than two price steps to minimize the value of the discount factor

Double implementation in a market for indivisible goods with a price constraint

I consider the problem of assigning agents to objects where each agent must pay the price of the object he gets and prices must sum to a given number. The objective is to select an assignment-price pair that is envy-free with respect to the true preferences. I prove that the proposed mechanism will implement both in Nash and strong Nash the set of envy-free allocations. The distinguishing feature of the mechanism is that it treats the announced preferences as the true ones and selects an envy-free allocation with respect to the announced preferences.

Collusion and fights in an experiment with price-setting firms and production in advance

We present results from 50-round market experiments in which firms decide repeatedly both on price and quantity of a completely perishable good. Each firm has capacity to serve the whole market. The stage game does not have an equilibrium in pure strategies. We run experiments for markets with two and three identical firms. Firms tend to cooperate to avoid fights, but when they fight bankruptcies are rather frequent. On average, pricing behavior is closer to that for pure quantity than for pure price competition and price and efficiency levels are higher for two than for three firms. Consumer surplus increases with the number of firms, but unsold production leads to higher efficiency losses with more firms. Over time prices tend to the highest possible one for markets both with two and three firms.

Elicited bid functions in (a)symmetric first-price auctions

We report on a series of experiments that examine bidding behavior in first-price sealed bid auctions with symmetric and asymmetric bidders. To study the extent of strategic behavior, we use an experimental design that elicits bidders' complete bid functions in each round (auction) of the experiment. In the aggregate, behavior is consistent with the basic equilibrium predictions for risk neutral or homogenous risk averse bidders (extent of bid shading, average seller's revenues and deviations from equilibrium). However, when we look at the extent of best reply behavior and the shape of bid functions, we find that individual behavior is not in line with the received equilibrium models, although it exhibits strategic sophistication.