Media bias and central bank response. Evidence from the nominal exchange rate behavior in Colombia

Since 1991 Colombia has had a market-determined Peso - US Dollar Nominal Exchange Rate (NER), after more than 20 years of controlled and multiple exchange rates. The behavior (revaluation / devaluation) of the NER is constantly reported in news, editorials and op-eds of major newspapers of the nation with particular attention to revaluation. The uneven reporting of revaluation episodes can be explained by the existence of an interest group particulary affected by revaluation, looking to increase awareness and sympathy for help from public institutions. Using the number of news and op-eds from a major Colombian newspaper, it is shown that there is an over-reporting of revaluation episodes in contrast to devaluation ones. Secondly, using text analysis upon the content of the news, it is also shown that the words devaluation and revaluation are far apart in the distribution of words within the news; and revaluation is highly correlated with words related to: public institutions, exporters and the need of assistance. Finally it is also shown that the probability of the central bank buying US dollars to lessen revaluation effects increases with the number of news; even though the central bank allegedly intervenes in the exchange rate market only to tame volatility or accumulate international reserves.

An analysis of the relationship between wages in the public and private sector in colombia : a panel data approach

This document examines the time-series properties of the wage differentials that arise between the public and private sector in Colombia during the sample period 1984 to 2005. We Find conflicting results in unit-root and stationary tests when looking at wage differentials at an aggregate level (such as for men, women or both). However, when we analyse wage differentials at higher levels of disaggregation, treat them jointly as a panel of data, and allow for the presence of potential cross section dependence, there is more supportive evidence for the view that wage differentials are stationary. This implies that although wage differentials do exist, they have not been consistently increasing (or decreasing) over time.

Revisiting the Relationship between Income Distribution and Economic Growth

La mayoría de los modelos que exploran la relación entre la desigualdad en la distribución del ingreso y el crecimiento económico, postulan la existencia de una correlación negativa entre las dos que es generada a través de diferentes mecanismos. Paralelamente a los modelos teóricos, un número importante de estudios empíricos han tratado de evaluar esta relación. De este esfuerzo ha surgido un consenso amplio que valida la existencia de dicha relación negativa. No obstante, estudios recientes basados en el uso de datos de panel han producido el resultado contrario, documentando la presencia de una relación positiva entre desigualdad y crecimiento. El examen del debate generado a partir de estos resultados, así como el trabajo empírico adelantado en este estudio, indican que las estimaciones obtenidas en diversos trabajos pueden no ser tan robustas como se creía En consecuencia, se sugiere que la realización de estudios de caso por país puede ser una mejor vía para explorar este tema.

Natural resource windfalls and efficiency of local government expenditures: evidence from Peru

We study the role of natural resource windfalls in explaining the efficiency of public expenditures. Using a rich dataset of expenditures and public good provision for 1,836 municipalities in Peru for period 2001-2010, we estimate a non-monotonic relationship between the efficiency of public good provision and the level of natural resource transfers. Local governments that were extremely favored by the boom of mineral prices were more efficient in using fiscal windfalls whereas those benefited with modest transfers were more inefficient. These results can be explained by the increase in political competition associated with the boom. However, the fact that increases in efficiency were related to reductions in public good provision casts doubts about the beneficial effects of political competition in promoting efficiency.

Microstructure and magnetic properties of Ni50 Mn37 Sn13 Heusler alloy ribbons

The Heusler alloy Ni50 Mn37 Sn13 was successfully produced as ribbon flakes of thickness around 7-10 μm melt spinning. Fracture cross section micrographs in the ribbon show the formation of a microcrystalline columnarlike microstructure, with their longer axes perpendicular to the ribbon plane. Phase transition temperatures of the martensite-austenite transformation were found to be MS =218 K, Mf =207 K, AS =224 K, and Af =232 K; the thermal hysteresis of the transformation is 15 K. Ferromagnetic L 21 bcc austenite phase shows a Curie point of 313 K, with cell parameter a=0.5971 (5) nm at 298 K, transforming into a modulated 7M orthorhombic martensite with a=0.6121 (7) nm, b=0.6058 (8) nm, and c=0.5660 (2) nm, at 150 K

Off-road sampling reveals a different grassland bird community than roadside sampling: implications for survey design and estimates to guide conservation

Grassland bird species continue to decline steeply across North America. Road-based surveys such as the North American Breeding Bird Survey (BBS) are often used to estimate trends and population sizes and to build species distribution models for grassland birds, although roadside survey counts may introduce bias in estimates because of differences in habitats along roadsides and in off-road surveys. We tested for differences in land cover composition and in the avian community on 21 roadside-based survey routes and in an equal number of adjacent off-road walking routes in the grasslands of southern Alberta, Canada. Off-road routes (n = 225 point counts) had more native grassland and short shrubs and less fallow land and road area than the roadside routes (n = 225 point counts). Consequently, 17 of the 39 bird species differed between the two route types in frequency of occurrence and relative abundance, measured using an indicator species analysis. Six species, including five obligate grassland species, were more prevalent at off-road sites; they included four species listed under the Canadian federal Species At Risk Act or listed by the Committee on the Status of Endangered Wildlife in Canada: Sprague’s Pipit (Anthus spragueii), Baird’s Sparrow (Ammodramus bairdii), the Chestnut-collared Longspur (Calcarius ornatus), and McCown’s Longspur (Rhynchophanes mccownii). The six species were as much as four times more abundant on off-road sites. Species more prevalent along roadside routes included common species and those typical of farmland and other human-modified habitats, e.g., the European Starling (Sturnus vulgaris), the Black-billed Magpie (Pica hudsonia), and the House Sparrow (Passer domesticus). Differences in avian community composition between roadside and off-road surveys suggest that the use of BBS data when generating population estimates or distribution models may overestimate certain common species and underestimate others of conservation concern. Our results highlight the need to develop appropriate corrections for bias in estimates derived from roadside sampling, and the need to design surveys that sample bird communities across a more representative cross-section of the landscape, both near and far from roads. 

A comparison of cross-hole electrical and seismic data in fractured rock

Cross-hole anisotropic electrical and seismic tomograms of fractured metamorphic rock have been obtained at a test site where extensive hydrological data were available. A strong correlation between electrical resistivity anisotropy and seismic compressional-wave velocity anisotropy has been observed. Analysis of core samples from the site reveal that the shale-rich rocks have fabric-related average velocity anisotropy of between 10% and 30%. The cross-hole seismic data are consistent with these values, indicating that observed anisotropy might be principally due to the inherent rock fabric rather than to the aligned sets of open fractures. One region with velocity anisotropy greater than 30% has been modelled as aligned open fractures within an anisotropic rock matrix and this model is consistent with available fracture density and hydraulic transmissivity data from the boreholes and the cross-hole resistivity tomography data. However, in general the study highlights the uncertainties that can arise, due to the relative influence of rock fabric and fluid-filled fractures, when using geophysical techniques for hydrological investigations.

Construction management contracts: law and practice

The context of construction management (CM) reveals that this method of procurement is as much a management philosophy as a contract structure. It is important to consider legal and contractual issues in this context. The interplay between management and law is complex and often misunderstood. Before considering specific issues, the use of contractual remedies in business agreements is discussed. In addition, the extent to which standardising a form of contract detracts or contributes to the success of projects is also considered. The dearth of judicial decisions, and the lack of a standard form, render it difficult to be specific about legal issues. Therefore, the main discussion of legal issues is centred around a recently completed research project which involved eliciting the views of a cross-section of experienced construction management clients, consultants and trade contractors. These interviews are used as the basis for highlighting some of the most important legal points to consider when setting up CM projects. The interviews revealed that the advantage of CM is the proximity of the client to the trade contractors and the disadvantage is that it depends on a high degree of professionalism and experience; qualities which are unfortunately difficult to find in the UK construction industry.

Resolution of the uncertainties in the radiative forcing of HFC-134a

HFC-134a (CF3CH2F) is the most rapidly growing hydrofluorocarbon in terms of atmospheric abundance. It is currently used in a large number of household refrigerators and air-conditioning systems and its concentration in the atmosphere is forecast to increase substantially over the next 50–100 years. Previous estimates of its radiative forcing per unit concentration have differed significantly 25%. This paper uses a two-step approach to resolve this discrepancy. In the first step six independent absorption cross section datasets are analysed. We find that, for the integrated cross section in the spectral bands that contribute most to the radiative forcing, the differences between the various datasets are typically smaller than 5% and that the dependence on pressure and temperature is not significant. A “recommended'' HFC-134a infrared absorption spectrum was obtained based on the average band intensities of the strongest bands. In the second step, the “recommended'' HFC-134a spectrum was used in six different radiative transfer models to calculate the HFC-134a radiative forcing efficiency. The clear-sky instantaneous radiative forcing, using a single global and annual mean profile, differed by 8%, between the 6 models, and the latitudinally-resolved adjusted cloudy sky radiative forcing estimates differed by a similar amount.

The radial width of a coronal mass ejection between 0.1 and 0.4 AU estimated from the heliospheric imager on STEREO

On 15-17 February 2008, a CME with an approximately circular cross section was tracked through successive images obtained by the Heliospheric Imager (HI) instrument onboard the STEREO-A spacecraft. Reasoning that an idealised flux rope is cylindrical in shape with a circular cross-section, best fit circles are used to determine the radial width of the CME. As part of the process the radial velocity and longitude of propagation are determined by fits to elongation-time maps as 252±5 km/s and 70±5° respectively. With the longitude known, the radial size is calculated from the images, taking projection effects into account. The radial width of the CME, S (AU), obeys a power law with heliocentric distance, R, as the CME travels between 0.1 and 0.4 AU, such that S=0.26 R0.6±0.1. The exponent value obtained is compared to published studies based on statistical surveys of in situ spacecraft observations of ICMEs between 0.3 and 1.0 AU, and general agreement is found. This paper demonstrates the new opportunities provided by HI to track the radial width of CMEs through the previously unobservable zone between the LASCO field of view and Helios in situ measurements.

Magnetic cloud distortion resulting from propagation through a structured solar wind: Models and observations

Numerical simulations of magnetic clouds (MCs) propagating through a structured solar wind suggest that MC-associated magnetic flux ropes are highly distorted by inhomogeneities in the ambient medium. In particular, a solar wind configuration of fast wind from high latitudes and slow wind at low latitudes, common at periods close to solar minimum, should distort the cross section of magnetic clouds into concave-outward structures. This phenomenon has been reported in observations of shock front orientations, but not in the body of magnetic clouds. In this study an analytical magnetic cloud model based upon a kinematically distorted flux rope is modified to simulate propagation through a structured medium. This new model is then used to identify specific time series signatures of the resulting concave-outward flux ropes. In situ observations of three well studied magnetic clouds are examined with comparison to the model, but the expected concave-outward signatures are not present. Indeed, the observations are better described by the convex-outward flux rope model. This may be due to a sharp latitudinal transition from fast to slow wind, resulting in a globally concave-outward flux rope, but with convex-outward signatures on a local scale.

Improving flood models using LiDAR: progress and problems

Airborne scanning laser altimetry (LiDAR) is an important new data source for river flood modelling. LiDAR can give dense and accurate DTMs of floodplains for use as model bathymetry. Spatial resolutions of 0.5m or less are possible, with a height accuracy of 0.15m. LiDAR gives a Digital Surface Model (DSM), so vegetation removal software (e.g. TERRASCAN) must be used to obtain a DTM. An example used to illustrate the current state of the art will be the LiDAR data provided by the EA, which has been processed by their in-house software to convert the raw data to a ground DTM and separate vegetation height map. Their method distinguishes trees from buildings on the basis of object size. EA data products include the DTM with or without buildings removed, a vegetation height map, a DTM with bridges removed, etc. Most vegetation removal software ignores short vegetation less than say 1m high. We have attempted to extend vegetation height measurement to short vegetation using local height texture. Typically most of a floodplain may be covered in such vegetation. The idea is to assign friction coefficients depending on local vegetation height, so that friction is spatially varying. This obviates the need to calibrate a global floodplain friction coefficient. It’s not clear at present if the method is useful, but it’s worth testing further. The LiDAR DTM is usually determined by looking for local minima in the raw data, then interpolating between these to form a space-filling height surface. This is a low pass filtering operation, in which objects of high spatial frequency such as buildings, river embankments and walls may be incorrectly classed as vegetation. The problem is particularly acute in urban areas. A solution may be to apply pattern recognition techniques to LiDAR height data fused with other data types such as LiDAR intensity or multispectral CASI data. We are attempting to use digital map data (Mastermap structured topography data) to help to distinguish buildings from trees, and roads from areas of short vegetation. The problems involved in doing this will be discussed. A related problem of how best to merge historic river cross-section data with a LiDAR DTM will also be considered. LiDAR data may also be used to help generate a finite element mesh. In rural area we have decomposed a floodplain mesh according to taller vegetation features such as hedges and trees, so that e.g. hedge elements can be assigned higher friction coefficients than those in adjacent fields. We are attempting to extend this approach to urban area, so that the mesh is decomposed in the vicinity of buildings, roads, etc as well as trees and hedges. A dominant points algorithm is used to identify points of high curvature on a building or road, which act as initial nodes in the meshing process. A difficulty is that the resulting mesh may contain a very large number of nodes. However, the mesh generated may be useful to allow a high resolution FE model to act as a benchmark for a more practical lower resolution model. A further problem discussed will be how best to exploit data redundancy due to the high resolution of the LiDAR compared to that of a typical flood model. Problems occur if features have dimensions smaller than the model cell size e.g. for a 5m-wide embankment within a raster grid model with 15m cell size, the maximum height of the embankment locally could be assigned to each cell covering the embankment. But how could a 5m-wide ditch be represented? Again, this redundancy has been exploited to improve wetting/drying algorithms using the sub-grid-scale LiDAR heights within finite elements at the waterline.

Wormlike micelle formation and flow alignment of a pluronic block copolymer in aqueous solution

The self-assembly into wormlike micelles of a poly(ethylene oxide)-b-poly(propylene oxide)-b-poly(ethylene oxide) triblock copolymer Pluronic P84 in aqueous salt solution (2 M NaCl) has been studied by rheology, small-angle X-ray and neutron scattering (SAXS/SANS), and light scattering. Measurements of the flow curves by controlled stress rheometry indicated phase separation under flow. SAXS on solutions subjected to capillary flow showed alignment of micelles at intermediate shear rates, although loss of alignment was observed for high shear rates. For dilute solutions, SAXS and static light scattering data on unaligned samples could be superposed over three decades in scattering vector, providing unique information on the wormlike micelle structure over several length scales. SANS data provided information on even shorter length scales, in particular, concerning "blob" scattering from the micelle corona. The data could be modeled based on a system of semiflexible self-avoiding cylinders with a circular cross-section, as described by the wormlike chain model with excluded volume interactions. The micelle structure was compared at two temperatures close to the cloud point (47 degrees C). The micellar radius was found not to vary with temperature in this region, although the contour length increased with increasing temperature, whereas the Kuhn length decreased. These variations result in an increase of the low-concentration radius of gyration with increasing temperature. This was consistent with dynamic light scattering results, and, applying theoretical results from the literature, this is in agreement with an increase in endcap energy due to changes in hydration of the poly(ethylene oxide) blocks as the temperature is increased.

The relative importance sector and regional factors in Italy

The benefits of sector and regional diversification have been well documented in the literature but have not previously been investigated in Italy. In addition, previous studies have used geographically defined regions, rather than economically functional areas, when performing the analysis even though most would argue that it is the economic structure of the area that will lead to differences in demand and hence property performance. This study therefore uses economically defined regions of Italy to test the relative benefits of regional diversification versus sector diversification within the Italian real estate portfolio. To examine this issue we use constrained cross-section regressions the on the sector and regional affiliation of 14 cities in Italy to extract the “pure” return effects of the different factors using annual data over the period 1989 to 2003. In contrast, to previous studies we find that regional factors effects in Italy have a much greater influence on property returns than sector-specific effects, which is probably a direct result of using the extremely diverse economic regions of Italy rather than arbitrary geographically locations. Be that as it may, the results strongly suggest that that diversification across the regions of Italy used here is likely to offer larger risk reduction benefits than a sector diversification strategy within a region. In other words, fund managers in Italy must monitor the regional composition of their portfolios more closely than its sector allocation. Additionally, the results supports that contemporary position that ‘regional areas’ based on economic function, provide greater diversification benefits rather than areas defined by geographical location.

Particle image velocimetry measurements of turbulent flow within outdoor and indoor urban scale models and flushing motions in urban canopy layers

We investigate the spatial characteristics of urban-like canopy flow by applying particle image velocimetry (PIV) to atmospheric turbulence. The study site was a Comprehensive Outdoor Scale MOdel (COSMO) experiment for urban climate in Japan. The PIV system captured the two-dimensional flow field within the canopy layer continuously for an hour with a sampling frequency of 30 Hz, thereby providing reliable outdoor turbulence statistics. PIV measurements in a wind-tunnel facility using similar roughness geometry, but with a lower sampling frequency of 4 Hz, were also done for comparison. The turbulent momentum flux from COSMO, and the wind tunnel showed similar values and distributions when scaled using friction velocity. Some different characteristics between outdoor and indoor flow fields were mainly caused by the larger fluctuations in wind direction for the atmospheric turbulence. The focus of the analysis is on a variety of instantaneous turbulent flow structures. One remarkable flow structure is termed 'flushing', that is, a large-scale upward motion prevailing across the whole vertical cross-section of a building gap. This is observed intermittently, whereby tracer particles are flushed vertically out from the canopy layer. Flushing phenomena are also observed in the wind tunnel where there is neither thermal stratification nor outer-layer turbulence. It is suggested that flushing phenomena are correlated with the passing of large-scale low-momentum regions above the canopy.