Creditor's protection and bank loans: lack of competition hamprers bankruptcy reform's effects

This dissertation investigates how credit institutions’ market power limits the effects of creditor protection rules on the interest rate and the spread of bank loans. We use the Brazilian Bankruptcy Reform of June/2005 (BBR) as a legal event affecting the institutional environment of the Brazilian credit market. The law augments creditor protection and aims to improve the access of firms to the credit market and to reduce the cost of borrowing. Either access to credit or the credit cost are also determined by bank industry competition and the market power of suppliers of credit. We derive a simple economic model to study the effect of market power interacting with cost of lending. Using an accounting and operations dataset from July/2004 to December/2007 provided by the Brazilian Central Bank, we estimate that the lack of competition in the bank lending industry hinders the potential reducing effect of the BBR on the interest rate of corporate loans by approximately 30% and on the spread by approximately 23%. We also find no statistical evidence that the BBR affected the concentration level of the Brazilian credit market. We present a brief report on bankruptcy reforms around the world, the changes in the Brazilian legislation and on some recent related articles in our introductory chapter. The second chapter presents the economic model and the testable hypothesis on how the lack of competition in the lending market limits the effects of improved creditor protection. In this chapter, we introduce our empirical strategy using a differences-in-differences model and we estimate the limiting effect of market power on the BBR’s potential to reduce interest rates and on the spread of bank loans. We use the BBR as an exogenous event that affects collateralized corporate loans (treatment group) but that does not affect clean consumer loans (control group) to identify these effects, using different concentration measures. In Chapter 3, we propose a two-stage empirical strategy to handle the H–Statistics proposed by Panzar and Rosse as a measure of market competition. We estimate the limiting effects of the lack of competition in replacing the concentration statistics by the H–Statistics. Chapter 4 presents a structural break test of the concentration index and checks if the BBR affects the dynamic evolution of the concentration index.

Net Neutrality Compendium: Human Rights, Free Competition and the Future of the Internet

The ways in which Internet traffic is managed have direct consequences on Internet users’ rights as well as on their capability to compete on a level playing field. Network neutrality mandates to treat Internet traffic in a non-discriminatory fashion in order to maximise end users’ freedom and safeguard an open Internet. This book is the result of a collective work aimed at providing deeper insight into what is network neutrality, how does it relates to human rights and free competition and how to properly frame this key issue through sustainable policies and regulations. The Net Neutrality Compendium stems from three years of discussions nurtured by the members of the Dynamic Coalition on Network Neutrality (DCNN), an open and multistakeholder group, established under the aegis of the United Nations Internet Governance Forum (IGF).

Do brazilian states engage in the fiscal war of ports? An empiric study of tax competition and an analysis of a natural experiment: the brazilian senate resolution 13/2012

O fim do ano de 2014 marcou o segundo aniversário da Resolução 13/2012 (R13) do Senado brasileiro. Grosso modo, R13 constituiu-se de um normativo do Senado cujo objetivo era o de por um fim na Guerra Fiscal dos Portos (FWP), uma competição fiscal entre os estados que se dá através da concessão de benefícios fiscais sobre operações interestaduais com mercadorias importadas de modo a atrair empresas importadoras para o território do estado concedente. R13 diminuiu o nível da tributação sobre tais operações, esperando com isso diminuir os lucros auferidos e a propensão das firmas de aceitarem tais regimes especiais de incentivação fiscal. Nada obstante, R13 gerou uma grande discussão sobre se os benefícios da atração de investimentos para um estado em particular superariam ou não os custos que esse estado incorreria em renunciar receitas tributárias em razão concessão desses benefícios fiscais. O objetivo do presente trabalho é o de dar uma contribuição a essa discussão, testando se um comportamento de interação estratégica entre estados, tal como aquele que supostamente ocorre no contexto da FWP, de fato emerge dos dados de importação coletados de janeiro de 2010 a maio de 2015, e, também, testando se a R13 de fato afetou tal comportamento de interação estratégica. Utiliza-se aqui um modelo de econometria espacial, no qual se especifica uma matriz de pesos que agrega o nível de importação das jurisdições concorrentes, organizando os dados em um painel de efeitos fixos. Os resultados sugerem que existe um comportamento de interação estratégica entre os estados e que a R13 de fato impactou tal comportamento.

The Limits of political compromise: debt ceilings and political competition

We study the desirability of limits on the public debt and of political competition in an economy where political parties alternate in office. Due to rent-seeking motives, incumbents have an incentive to set public expenditures above the socially optimal level. Parties cannot commit to future policies, but they can forge a political compromise where each party curbs excessive spending when in office if it expects future governments to do the same. In contrast to the received literature, we find that strict limits on government borrowing can exacerbate political-economy distortions by rendering a political compromise unsustainable. This tends to happen when political competition is limited. Conversely, a tight limit on the public debt fosters a compromise that yields the efficient outcome when political competition is vigorous, saving the economy from immiseration. Our analysis thus suggests a legislative tradeoff between restricting political competition and constraining the ability of governments to issue debt.

Exclusivity contracts and competition : the case of the Brazilian fuels market

Exclusivity contracts can help stations by providing brand-value that allows them to obtain higher profits, relative to unbranded retailers. However, branded retailers may have a stronger negative effect over its competitors’ profits. It is not clear which one of these two effects dominates (brand-value vs competition effect). Therefore, the impact of exclusivity over the number of participants in the downstream market is not determined. In this paper, I empirically study the effects of exclusivity agreements on competition in the Brazilian gasoline sector. In order to do so, I estimate an entry model of endogenous product-type choices using data of retailers’ locations and contract choices along with data from the 2010 Brazilian Census. I use my estimates to simulate entry decisions under two counterfactual scenarios: i) mandatory exclusivity and ii) no exclusivity.

A model of competition and interbank network formation

This work aims to understand the interaction between competition and network formation in the banking market. Combining Matutes and Padilla (1994) and Matutes and Vives (2000), we build a model of imperfect bank competition for deposits in which an interbank relationship network is a key strategic decision: it affects banks’ profit and risk position. The competition level exerts influence in the banking network structure since it affects the network outcomes. As result, we have that different competition levels imply different network topologies. Specifically, greater competition imply denser networks. Finally, when we allow for the possibility of collusion, the denser network can come out in the least competitive environment.

Peat humic substances enriched with nutrients for agricultural applications: Competition between nutrients and non-essential metals present in tropical soils

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Competition and phylogeny determine community structure in Mullerian co-mimics

Until recently, the study of negative and antagonistic interactions (for example, competition and predation) has dominated our understanding of community structure, maintenance and assembly(1). Nevertheless, a recent theoretical model suggests that positive interactions (for example, mutualisms) may counterbalance competition, facilitating long-term coexistence even among ecologically undifferentiated species(2). Mullerian mimics are mutualists that share the costs of predator education(3) and are therefore ideally suited for the investigation of positive and negative interactions in community dynamics. The sole empirical test of this model in a Mullerian mimetic community supports the prediction that positive interactions outweigh the negative effects of spatial overlap(4) (without quantifying resource acquisition). Understanding the role of trophic niche partitioning in facilitating the evolution and stability of Mullerian mimetic communities is now of critical importance, but has yet to be formally investigated. Here we show that resource partitioning and phylogeny determine community structure and outweigh the positive effects of Mullerian mimicry in a species-rich group of neotropical catfishes. From multiple, independent reproductively isolated allopatric communities displaying convergently evolved colour patterns, 92% consist of species that do not compete for resources. Significant differences in phylogenetically conserved traits (snout morphology and body size) were consistently linked to trait-specific resource acquisition. Thus, we report the first evidence, to our knowledge, that competition for trophic resources and phylogeny are pivotal factors in the stable evolution of Mullerian mimicry rings. More generally, our work demonstrates that competition for resources is likely to have a dominant role in the structuring of communities that are simultaneously subject to the effects of both positive and negative interactions.

A comparative tunnelling network approach to assess interspecific competition effects in termites

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)

Larval competition for patchy resources in Chrysomya megacephala (Dipt., Calliphoridae): implications of the spatial distribution of immatures

In the present study, a single procedure was established to investigate the effect of the spatial distribution of immatures in patchy resources, on the outcome of larval competition for food. in experimental populations of Chrysomya megacephala. A theoretical model of intraspecific competition was extended and applied to experimental data on survival to adulthood for 20 larval densities, to obtain the theoretical mean number of individuals that will survive, considering a hypothetical previous random adult oviposition in a system of homogeneous patches. The survival curve obtained suggests that the larval competition for food in C. megacephala is of the scramble/exploitative type, which corroborates results from previous studies, although the latter did not consider the correlation between local and global abundances. The present model allows that experimental data could be perfectly applicable, and it incorporates fundamental assumptions about the spatial context of competition for patchy resources in blowflies, and may be applied to the optimization of mass rearing techniques and to the maintenance of insect colonies under experimental conditions.

Intraspecific and interspecific pre-adult competition on the neotropical region colonizer Zaprionus indianus (Diptera: Drosophilidae) under laboratory conditions

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Particle Competition and Cooperation in Networks for Semi-Supervised Learning

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Competition between suppression and production of Fermi acceleration

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Competition between local potentials and attractive particle-particle interactions in superlattices

Naturally occuring or man-made systems displaying periodic spatial modulations of their properties on a nanoscale constitute superlattices. Such modulated structures are important both as prototypes of simple nanotechnological devices and as particular examples of emerging spatial inhomogeneity in interacting many-electron systems. Here we investigate the effect different types of modulation of the system parameters have on the ground-state energy and the charge-density distribution of the system. The superlattices are described by the inhomogeneous attractive Hubbard model, and the calculations are performed by density-functional and density-matrix renormalization group techniques. We find that modulations in local electric potentials are much more effective in shaping the system's properties than modulations in the attractive on-site interaction. This is the same conclusion we previously [M.F. Silva, N.A. Lima, A.L. Malvezzi, K. Capelle, Phys. Rev. B 71 (2005) 125130.] obtained for repulsive interactions, suggesting that it is not an artifact of a specific state, but a general property of modulated structures. (c) 2007 Elsevier Ltd. All rights reserved.

Nitrogen redistribution to sorghum grains as affected by plant competition

An experiment was conducted to study nitrogen absorption and translocation in grain sorghum plants during their reproductive growth. Sorghum was grown in four row spacings: 50 and 70 cm in single rows, 80 and 120 cm in double rows 20 cm apart. Plant populations were 71000, 142000 and 213000 plants/ha. After flowering, samples were taken at 12 day intervals, and the plants were divided into grains and stover, where N was analyzed. There was an increase in N concentration in lower plant populations and in wider row spacings. However, total nitrogen accumulation (in kg/ha) increased as the number of plants was increased. In the vegetative parts of the plants there were higher N concentrations in lower populations showing that there was a higher N absorption and a lower translocation to the grains. When grain sorghum was grown in 50 cm rows, there was a high N accumulation, a high N translocation to the grains and the highest yield. This row spacing led to the highest N use efficiency.