Local privatization, intermunicipal cooperation, transaction costs and political interests: Evidence from Spain

Several empirical studies have analyzed the factors that influence local privatization. Variables related to fiscal stress, cost reduction, political processes and ideological attitudes are the most common explanatory variables used in these studies. In this paper, we add to this literature by examining the influence of transaction costs and political factors on local governments’ choices through new variables. In addition to this, we consider the role of additional aspects, such as intermunicipal cooperation as a potential alternative to privatization in order to exploit scale economies or scope economies. We consider two relevant services: solid waste collection and water distribution. Results from our estimates show that privatization (that is, contracting out to a private firm) is less common for water distribution than for solid waste collection. Higher transaction costs in water distribution are consistent with this finding. Furthermore, we find that municipalities with a conservative ruling party privatize more often regardless of the ideological orientation of the constituency. This shows that those political interests able to influence local elections are more important in determining the form of delivery than is the basic ideological stance of the constituency. Finally, we find that intermunicipal cooperation is an alternative to local privatization.

Essays on pricing of risk and international linkage of Russian stock market

Last two decades have seen a rapid change in the global economic and financial situation; the economic conditions in many small and large underdeveloped countries started to improve and they became recognized as emerging markets. This led to growth in the amounts of global investments in these countries, partly spurred by expectations of higher returns, favorable risk-return opportunities, and better diversification alternatives to global investors. This process, however, has not been without problems and it has emphasized the need for more information on these markets. In particular, the liberalization of financial markets around the world, globalization of trade and companies, recent formation of economic and regional blocks, and the rapid development of underdeveloped countries during the last two decades have brought a major challenge to the financial world and researchers alike. This doctoral dissertation studies one of the largest emerging markets, namely Russia. The motivation why the Russian equity market is worth investigating includes, among other factors, its sheer size, rapid and robust economic growth since the turn of the millennium, future prospect for international investors, and a number of important major financial reforms implemented since the early 1990s. Another interesting feature of the Russian economy, which gives motivation to study Russian market, is Russia’s 1998 financial crisis, considered as one of the worst crisis in recent times, affecting both developed and developing economies. Therefore, special attention has been paid to Russia’s 1998 financial crisis throughout this dissertation. This thesis covers the period from the birth of the modern Russian financial markets to the present day, Special attention is given to the international linkage and the 1998 financial crisis. This study first identifies the risks associated with Russian market and then deals with their pricing issues. Finally some insights about portfolio construction within Russian market are presented. The first research paper of this dissertation considers the linkage of the Russian equity market to the world equity market by examining the international transmission of the Russia’s 1998 financial crisis utilizing the GARCH-BEKK model proposed by Engle and Kroner. Empirical results shows evidence of direct linkage between the Russian equity market and the world market both in regards of returns and volatility. However, the weakness of the linkage suggests that the Russian equity market was only partially integrated into the world market, even though the contagion can be clearly seen during the time of the crisis period. The second and the third paper, co-authored with Mika Vaihekoski, investigate whether global, local and currency risks are priced in the Russian stock market from a US investors’ point of view. Furthermore, the dynamics of these sources of risk are studied, i.e., whether the prices of the global and local risk factors are constant or time-varying over time. We utilize the multivariate GARCH-M framework of De Santis and Gérard (1998). Similar to them we find price of global market risk to be time-varying. Currency risk also found to be priced and highly time varying in the Russian market. Moreover, our results suggest that the Russian market is partially segmented and local risk is also priced in the market. The model also implies that the biggest impact on the US market risk premium is coming from the world risk component whereas the Russian risk premium is on average caused mostly by the local and currency components. The purpose of the fourth paper is to look at the relationship between the stock and the bond market of Russia. The objective is to examine whether the correlations between two classes of assets are time varying by using multivariate conditional volatility models. The Constant Conditional Correlation model by Bollerslev (1990), the Dynamic Conditional Correlation model by Engle (2002), and an asymmetric version of the Dynamic Conditional Correlation model by Cappiello et al. (2006) are used in the analysis. The empirical results do not support the assumption of constant conditional correlation and there was clear evidence of time varying correlations between the Russian stocks and bond market and both asset markets exhibit positive asymmetries. The implications of the results in this dissertation are useful for both companies and international investors who are interested in investing in Russia. Our results give useful insights to those involved in minimising or managing financial risk exposures, such as, portfolio managers, international investors, risk analysts and financial researchers. When portfolio managers aim to optimize the risk-return relationship, the results indicate that at least in the case of Russia, one should account for the local market as well as currency risk when calculating the key inputs for the optimization. In addition, the pricing of exchange rate risk implies that exchange rate exposure is partly non-diversifiable and investors are compensated for bearing the risk. Likewise, international transmission of stock market volatility can profoundly influence corporate capital budgeting decisions, investors’ investment decisions, and other business cycle variables. Finally, the weak integration of the Russian market and low correlations between Russian stock and bond market offers good opportunities to the international investors to diversify their portfolios.

Estudio multidisciplinario del ecosistema manglar en la comunidad tradicional de Curral Velho : Estudio sobre la pesca artesanal y análisis de sus diferencias con la acuicultura del camarón

Curral Velho es una comunitat tradicional, situada al nord-est de Brasil, que manté una relació directa amb els ecosistemes que la envolten. La comunitat depèn del estat de conservació del medi natura, ja que obtenen diferents serveis ecositemics. En aquest territori es desenvolupen dos tipus d’economies amb unes bases molt diferents. Una economia tradicional, desenvolupada per la pròpia comunitat, que es basa en la propietat col·lectiva del territori i en optimitzar a llarg termini els beneficis que s’obtenen del medi; y un altre com la camaronicultura, la base de la qual es la obtenció de beneficis a curt termini i amb un territori de propietat privada. Aquesta superposició de models de producció genera impactes ambientals, i un conflicte socio-ambiental entre la comunitat i els que desenvolupen la camaronicultura. L’objectiu es realitzar un estudi econòmic de la pesca artesanal de Curral Velho caracteritzant manera de viure, creant una base de dades sobre pesca artesanal i elaborant indicador de beneficis econòmics generats per la pesca artesanal. Per contextualitzar els resultats es va fer un anàlisis de les dos economies existents a la comunitat. Els resultats obtinguts en primer lloc són que l’economia d’explotació intensiva aporta més guanys per les persones de la comunitat que tenen un relació directa que les que es dediquen a la pesca artesanal, però es important no aturar-se aquí: s’ha de realitzar un anàlisis més profund. Com a conclusió, la activitat pesquera es més rentable a llarg termini ja que els recursos extrets de manera sostenible i així són il·limitats y accessibles a tota la comunitat. A diferència de la camaronicultura, la pesca artesanal no genera desigualtats socials ni vulneracions dels drets humans. Tot el contrari, genera forts vincles entre els individus de la comunitat basats en el treball en equip i l’aprenentatge vivencial e intergeneracional.

A dynamic analysis of asymmetric shocks in EU manufacturing

Available empirical evidence regarding the degree of symmetry between European economies in the context of Monetary Unification is not conclusive. This paper offers new empirical evidence concerning this issue related to the manufacturing sector. Instead of using a static approach as most empirical studies do, we analyse the dynamic evolution of shock symmetry using a state-space model. The results show a clear reduction of asymmetries in terms of demand shocks between 1975 and 1996, with an increase in terms of supply shocks at the end of the period.

Local human capital and productivity: An analysis for Spanish regions

In this paper, we examine the relationship between the stock of human capital and productivity in the Spanish regions (NUTS III), and assess whether the transmission channel involves external economies. The empirical evidence points to a positive relationship between the two variables, although it cannot be explained in terms of the impact of exogenous local human capital external economies, but rather in terms of other demand factors.

Creative Industries: a Preliminary Insight to their Location Determinants

This paper is about location decisions of Creative Industries and the role played by existent spatial distribution and agglomeration economies of these kinds of activities in order to analyse their location determinants. Our main statistical source is the REIC (Catalan Manufacturing Establishments Register), which has plant-level microdata on location of new plants. Using Count Data Models, our main results show that location determinants are quite similar between both industries and also both non-creative and creative firms are positively influenced by the specialisation level in Creative Industries of municipalities. Moreover, our results provide evidence that the unobserved ‘creative milieu’ has a limited impact on attracting firms. Keywords: creative industries, creative milieu, count data models, industrial location, agglomeration economies

The determinants of capital intensity in Japan and the U.S

We estimate the determinants of capital intensity in Japan and the US, characterized by striking different paths. We augment an otherwise standard Constant Elasticity of Substitution (CES) model with demand-side considerations, which we find especially relevant in the US. In this augmented setting, the elasticity of substitution between capital and labor is placed around 0.85 in Japan, and 0.30 in the US. We also find evidence of biased technical change, which is capital-saving in Japan but labor-saving in the US. These differences help us explain the diverse experience in the capital deepening process of these economies, and lead us to conclude that demand-side drivers may also be relevant to account for different growth experiences. A close look at the nature of technological change is also needed before designing one-size-fits-all industrial, economic growth, and/or labor market policies.

Real unit labour costs in Eurozone countries: drivers and clusters

We examine the trajectories of the real unit labour costs (RULCs) in a selection of Eurozone economies. Strong asymmetries in the convergence process of the RULCs and its components —real wages, capital intensity, and technology— are uncovered through decomposition and cluster analyses. In the last three decades, the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) succeeded in reducing their RULCs by more than their northern partners. With the exception of Ireland, however, technological progress was weak; it was through capital intensification that periphery economies gained efficiency and competitiveness. Cluster heterogeneity, and lack of robustness in cluster composition, is a reflection of the difficulties in achieving real convergence and, by extension, nominal convergence. We conclude by outlining technology as the key convergence factor, and call for a renewed attention to real convergence indicators to strengthen the process of European integration.

Principals intercanvis de mercaderies entre València Port i la Xina en el període 1996-2014

La present memòria es planteja com una aportació a la comprensió de les últimes dos dècades de relacions comercials amb la Xina des del port de València, en fase d'integració amb el de Sagunt i Gandia, i el seu hinterland constituït a més de pel País Valencià per una àrea que abasta tota la zona est i central de la Península Ibèrica. La Xina és el país protagonista d'entre les economies emergents en l'actualitat, així l'estudi analitza, des d'una perspectiva eminentment valenciana, quins són els principals intercanvis de mercaderies entre València Port i els principals ports de la Xina.

Suorien ulkomaisten investointien vaikutukset kohdemaassa: Itäisen Euroopan siirtymätaloudet

Tämä kandidaatintyö käsittelee suorien ulkomaisten investointien vaikutuksia itäisen Euroopan siirtymätalouksissa keskittyen erityisesti Puolaan, Viroon ja Ukrainaan. Suorat ulkomaiset investoinnit ovat tärkeä osa kansainvälistä kauppaa ja niillä on suuri rooli monen maan taloudessa. Työ koostuu kolmesta suuremmasta kokonaisuudesta, joista ensimmäisenä on suoran ulkomaisen investoinnin teoria. Toisessa osiossa esitellään lyhyesti kohdemaat, minkä jälkeen kolmannessa osiossa keskitytään suorien ulkomaisten investointien teoreettisiin vaikutuksiin. Teoreettisista vaikutuksista käsitellään tarkemmin vaikutukset talouskasvuun, maksutaseeseen, tuottavuuteen, tuotantoon, teknologiaan, työvoimaan, markkinarakenteeseen ja ympäristöön. Näitä suorien ulkomaisten investointien vaikutuksia havainnollistetaan esimerkeillä kohdemaista.

Assessment of Coals from Russia and Countries of Former Soviet Union for Utility Fluidized Bed Boilers

With the occurrence of fossil fuels such as oil, gas and coal we found new sources of energy that have played a critical role in the progress of our modern society. Coal is very ample compared to the other two fossil fuels. Global coal reserves at the end of 2005 were estimated at 847,5 billion tones. Along with the major energy sources, coal is the most fast growing fuel on a global basis, it provides 26% of primary energy needs and remains essential to the economies of many developed and developing countries. Coal-fired power generation accounts for 41% of the world‘s total electricity production and in some countries, such as South Africa, Poland, China, Australia, Kazakhstan and India is on very high level. Still, coal utilization represents challenges related to high emissions of air pollutants such as sulphur and nitrogen dioxides, particulate matter, mercury and carbon dioxide. In relation to these a number of technologies have been developed and are in marketable use, with further potential developments towards ―Near Zero Emission‖ coal plants. In present work, coals mined in Russia and countries of Former Soviet Union were reviewed. Distribution of coal reserves on the territory of Russia and the potential for power generation from coal-fired plants across Russia was shown. Physical and chemical properties of coals produced were listed and examined, as main factor influencing on design of the combustion facility and incineration process performance. The ash-related problems in coal-fired boilers were described. The analysis of coal ash of Russia and countries of Former Soviet Union were prepared. Feasible combustion technologies also were reviewed.

The introduction of Mormonism to Finnish society, 1840-1900

This study examines the place of The Church of Jesus Christ of Latter-day Saints (commonly known as the Mormon church) in the Russian Grand Duchy of Finland between the years 1840 and 1900. Attention is put on both the internal workings of the movement and the reactions of society. Theoretical insight is gained through the concepts of social construction and religious economies. Mormon image formation in Finland began by 1840 through newspaper reports on activities abroad and through essays on the faith’s history and doctrine. Mormons are mentioned almost 3,500 times in Finnish newspapers between 1840 and 1900, and at least twelve unique book titles sold in the country were explicitly devoted to discussing Mormonism. Most of the publicity was derived from foreign sources. Discourse analysis of this textual corpus shows a hegemonic discourse that combined themes such as fraud, deception, and theocracy in explaining the Mormon movement. Accompanied by plural marriage, these themes contributed to the construction of a strongly negative image of Mormonism already before the first missionaries arrived in 1875. In a society with a stringently regulated religious economy, this image contributed to a high level of resistance by civil authorities and Lutheran clergy. Twenty-five Mormon missionaries worked in Finland between 1875 and 1900, with a concentrated effort taking place between 1875 and 1889. At least 78 persons converted, mostly in the coastal areas among the Swedish-speaking minority population. Nine percent emigrated to Utah, 36% were excommunicated, others fell into oblivion, while still others clung to their new faith. The work was led from Sweden, with no stable church organization emerging among the isolated pockets of converts. Mormonism’s presence was thus characterized by private or small-group religiosity rather than a vibrant movement. The lack of religious community, conversation, and secondary socialization eventually caused the nineteenth-century manifestation of Finnish Mormonism to die out. Only one group of converts was perpetuated past World War II, after which large-scale proselytizing began.

Working Capital Management: a Bibliometric Study

This thesis is a study of articles published in scientific journals about working capital management using bibliometric methods. The study was restricted to articles published in 1990–2010 that deal with the whole working capital management topic not a single sub-area of it. Working capital is defined as current assets minus current liabilities; sometimes also a definition of inventory plus accounts receivable minus accounts payable is used. The data was retrieved from the databases ISI Web of Science and Sciverse Scopus. Articles about working capital management were found 23. Content analysis, statistical analysis and citation analysis was performed to the articles. The most cited articles found in citation analysis were also analyzed by nearly same methods. This study found that scientific research of working capital management seems not to be concentrated to specific persons, organizations or journals. The originality and novelty in many articles is low. Many articles studied relation between working capital management and profitability in firms or working capital management practices of firms using statistical analyses. Data in articles was firms of all sizes, except in developing economies only big firms were used. Interesting areas for future research could be surveys made about working capital management practices in firms, finding of best practices, tools for working capital management, inventing or improving alternative views to working capital management like process-oriented view and firm or industry specific studies.

Siirtymätalouksien tutkimuslaitoksen (BOFIT) kokoelma

Suomen Pankin kirjastolla on erilliskokoelma Siirtymätalouksien tutkimuslaitoksessa, BOFITissa. Kokoelma on painottunut siirtymätalouksia käsittelevään tieteelliseen kirjallisuuteen, tilasto- ja kausijulkaisuihin. Kokoelmaa on kartutettu 1980-luvulta lähtien ja siihen sisältyy merkittävä määrä nimekkeitä, joita ei ole hankittu muihin suomalaisiin kirjastoihin. Kokoelmaa on rajattu sekä aihepiireiltään että maantieteellisesti kulloistenkin tutkimuspainopisteiden mukaisesti. Kokoelman keskeinen aihealue on makrotalous ja erityisinä painopisteinä ovat rahatalous, talouspolitiikka ja talousuudistukset. Paljon kirjallisuutta löytyy myös raha- ja valuuttapolitiikasta, pankkitoiminnasta ja kansainvälisistä taloussuhteista. Maantieteellisinä painopisteinä ovat tällä hetkellä erityisesti Venäjä ja Kiina. Vanhempaa aineistoa löytyy myös Baltian sekä Itä-Euroopan maista, Neuvostoliitosta sekä Suomen idänkaupasta. Kirjakokoelma sisältää n. 5300 nimekettä, lehtikokoelma n. 150 nimekettä. Artikkeliviitteitä löytyy n. 2300 vuodesta 1990 lähtien. Kokoelma sisältää tiedot myös kaikesta BOFITin omasta julkaisutuotannosta. Suurin osa kokoelmasta on englanninkielistä.

Suuri ikäluokka jää eläkkeelle - Ratkaisukeinot ongelmiin

Tutkimuksen päätavoitteena on keskittyä tarkastelemaan ratkaisukeinoja mitä suuren ikäluokan eläkkeelle jääminen mahdollisesti kansantalouksissa aiheuttaa. Ikäpyramidi muuttuu seuraavien 40 vuoden aikana vähitellen käänteiseksi, mikä tarkoittaa sitä, että kansantalouksissa on enemmän eläkeikäisiä ihmisiä kuin lapsia. Ihmisen elinikä on nousussa jatkuvasti edistyneen terveydenhuollon ansiosta, mikä myös osaltaan aiheuttaa ongelmia. Päätavoitteena on keskittyä selvittämään sitä, mikä tai mitkä olisivat parhaat ongelmien ratkaisuvaihtoehdot. Tutkimuksessa pohditaan tulevien sukupolvien kohtaamia ongelmia työvoiman pienentyessä ja kansantalouksia koskettavia muutoksia ja haasteita, joita suuren ikäluokan eläkkeelle siirtyminen aiheuttaa. Ongelma koskettaa suuresti Eurooppaa, jossa ikääntyminen on jo alkanut. On ennustettu, että tulevaisuuden Euroopassa jopa 60 prosentille työikäisestä väestöstä tulisi maksaa eläkettä.