does exchange rate variability depress trade flows evidence from error correction models this paper examines the impact of exchange rate volatility on the trade flows of the g 7 countries in the context of a multivariate error correction model the error correction models do not show any sign of parameter instability the results indicate that the exchange rate volatility has a significant negative impact on the volume of exports in each of the g 7 countries assuming market participants are risk averse these results imply that exchange rate uncertainty causes them to reduce their activities change prices or shift sources of demand and supply in order to minimize their exposure to the effects of exchange rate volatility this in turn can change the distribution of output across many sectors in these countries it is quite possible that the surprisingly weak relationship between trade flows and exchange rate volatility reported in several previous studies are due to insufficient attention to the stochastic properties of the relevant time series copyright 1993 by mit press

exchange rate volatility and export growth in nigeria this article examines the impact of exchange rate volatility on nigeria s exports to its most important trading partner the united states over the quarterly period january 1980 to april 2001 using cointegration and vector error correction vecm framework empirical tests indicate the presence of a unique cointegrating vector linking real exports real foreign income relative export prices and real exchange rate volatility in the long run furthermore the results show that increases in the volatility of the real exchange rate raise uncertainty about profits to be made which exert significant negative effects on exports both in the short and long run our results also show that improvements in the terms of trade represented by declines in the real exchange rate and real foreign income exert positive effects on export activity most importantly we found that the trade liberalization and economic reform policies implemented in the post 1986 structural adjustment period contributed to nigeria s export

exchange rate volatility and irish uk trade 1979 1992 this study examines how exchange rate volatility affected ireland s exports to its most important trading partner the united kingdom from 1979 to 1992 to ensure reliable inferences regarding income and price elasticities and the impact of exchange rate volatility on exports the time series properties of the series used are investigated the analysis here is conducted at both aggregate and 2 digit sitc division levels since exchange rate volatility can reasonably be presumed to affect sectors differently since expectations matter for exchange rate determination real volatility was generated according to a first order garch process both real and nominal volatility were important determinants for over 35 of irish uk trade with positive effects predominating this may be due to the nature of irish firms operating in a small open economy where they have little option in dealing with increased exchange rate risk except to weather the storm for fear of losing market share or facing costs of either exit

space risk and opportunity the evolution of paid sex markets the emergence of paid sex markets is a product of various locational economies by this it is meant that coherent paid sex markets are intimately linked with various economies of agglomeration synergy complementarity and laddering whereby an entrant to paid sex consumption may progress from low intimacy low value added products to those of higher intimacy higher value added physical clustering of traded sex commodities can also enhance the progression of the consumer s ladder by heightening the stimulus to enter such markets for the first time this paper discusses the above factors in the context of the economic theory of clubs with particular reference to the use of zoning ordinances to control the location of adult entertainment providers

real exchange rate volatility and economic openness theory and evidence this paper relates the volatility of the trade weighted effective real exchange rate to the degree of trade openness of an economy the theoretical part presents an intertemporal monetary model of a small open economy with nominal rigidities both monetary and aggregate supply shocks are shown to produce ceteris paribus smaller real exchange rate movements if the country is more open to foreign trade empirical evidence on a cross section of forty eight countries confirms this relationship differences in trade openness explain a large part of the cross country variation in the volatility of the effective real exchange rate

short run exchange rate uncertainty in latin america this paper to obtain an ex ante measure of exchange rate uncertainty in 11 latin american countries as a preliminary issue the purchasing power parity ppp condition is tested using engle and granger two step procedure and johansen method the argument is that exchange rate uncertainty could be lower if ppp holds in the long run the expected exchange rate uncertainty is estimated according to an extended version of the autoregressive conditionally heteroscedastic arch model the results show that the arch adjusment produces more efficient estimates in seven countries and that the acceptance of ppp has little effect on exchange rate uncertainty

u s bilateral trade flows and exchange risk during the floating period abstract this paper tests for real exchange rate risk effects on u s bilateral trade flows during the floating period using several new as well as previously used risk measures significant negative effects occur in five of six u s import flows and in two of six u s export flows with one export flow showing a significant positive effect these results are consistent with several previous findings for aggregate u s trade two risk measures using the forward exchange rate and assuming a time varying risk premium provide marginally more significant results than the others

modeling inertia and variety seeking tendencies in brand choice behavior theories of exploratory behavior suggest that inertia and variety seeking tendencies may coexist within the individual implying that the same individual may exhibit inertia and variety seeking at different times depending on his her choice history past research has not allowed for such within consumer variability in these tendencies the purpose of this study is to present a choice model that allows us to identify such hybrid behavior i e a mixture of inertia and variety seeking and to distinguish hybrid behavior from simpler types of behavior such as pure inertia pure variety seeking and zero order behavior the model is estimated at the household level using panel data for three product classes covering a total of 1069 households the empirical analysis shows that more than half the households analyzed exhibited hybrid behavior rather than simpler types of behavior

power competition and the free trader vulgaris competition is taken for granted by neoclassical economics its cause is human nature and its functioning is the result of spontaneous interactions as such it is contrasted with power which is an unnatural restriction on human liberty by contrast marx discusses competition as a coercive mechanism historically competition develops with the development of market relations and what today appears as human nature is part of this process thus it is within competition and not outside of it that marx explains the coercive nature of capitalism his critique shows that competition and power appear to be antithetical because market relations are based on individual freedom however class relations are another essential aspect of capitalism by neglecting these relations neoclassical economists including those of a radical inspiration implicitly espouse the ruling class s viewpoint which they simply translate into rigorous mathematical terms in this sense they are the modern expression of what marx called the vulgar political economy

has the european monetary system led to more exports evidence from four european union countries abstract we attempt to investigate whether the exchange rate mechanism erm period has coincided with an increase in intra eu exports we conclude that this has not been the case but it is likely that the elimination of nominal exchange rate variability arising from a single currency will boost intra european union trade

assessing the impact of the exchange rate and its volatility on canadian pork and live swine exports to the united states and japan a model of a representative canadian pork exporter is developed to examine the impacts of the exchange rate and its volatility on pork and live swine exports the pork export supply equation is expressed as a function of the expected level of real exchange rate and a time varying variance of real exchange rate an ar p model is used to represent the expected real exchange rate and a garch p q model is used to generate the time varying variance the same model is used to examine the sensitivity of pork exports to japan from canada the united states and denmark the parameters of all pork and live swine export equations have theoretically consistent signs and many are significant that is the domestic price in the exporting country has a negative effect on exports because it is a major input price in the exporter s cost function while the price in the market of destination has a positive effect the level of the exchange rate has a positive impact on pork exports while the volatility of the exchange rate has a negative impact most of the volatility parameters are not significant

conditional exchange rate volatility and the volume of foreign trade evidence from seven industrialized countries there has long been a concern over the volatility of exchange rates and their impact on the volume of foreign trade however very little attention has been paid to the choice of an appropriate volatility variable as well as the proper specification of the trade equation the sample standard deviation of the exchange rate has been used as a proxy for exchangerate uncertainty in empirical studies that examine the effects of exchange rate uncertainty on the volume of foreign trade see for example akhtar and hilton 1 and gotur 27 these studies have provided conflicting evidence on this issue it has been argued that use of the sample standard deviation is inappropriate because the empirical distribution of exchange rates is not normal 22 10 in this regard subsequent empirical research 12 36 40 41 11 has employed a moving standard deviation of the rate of change of the exchange rate as a proxy for exchange rate uncertainty chowdhury 11 obtained a clear pattern of results that support the hypothesis that the higher volatility of exchange rates led to a reduction in international trade transactions after the breakdown of the bretton woods system in march 1973 other studies have reported ambiguous results 2 the moving standard deviation used in these studies has been criticized in the literature for a ignoring relevant information on the random process generating exchange rates 18 b underestimating the effect of volatility on decisions 52 c distorting the measurement of the volatility variable by smoothing the series 9 and d injecting an element of arbitrariness into the calculation through decisions about the order m of the moving average 43 3

exchange rate volatility and japan u s commodity trade an asymmetry analysis exchange rate volatility is said to affect trade flows in either direction when increased volatility is separated from decreased volatility asymmetric analysis reveals even more support for the fact that both increased volatility and decreased volatility affect trade flows in either direction we add to this new literature by considering 57 industries that trade between japan and the us in addition to providing evidence of asymmetric response of their trade flows to a measure of exchange rate volatility our approach identifies industries that could benefit from increased exchange rate volatility and those that could be hurt similarly we identify industries that could benefit from decreased volatility and those that could be hurt the overall conclusion is the adverse effects of dollar yen volatility on the trade between the two countries

a probabilistic choice model for market segmentation and elasticity structure marketing scholars commonly characterize market structure by studying the patterns of substitution implied by brand switching though the approach is useful it typically ignores the destabilizing

exchange rate volatility and aggregate export growth in bangladesh the long and short run determinants of bangladeshi export growth are examined these are modelled as depending on world trade volume bangladeshi and world export prices and exchange rate volatility several techniques are used to estimate and test hypotheses about the cointegration space of these variables we find that there are two plausible restricted cointegrating vectors one appears to be an export demand while the other is suggestive of an export supply these are then imposed on an error correction model estimates suggest that in the long run bangladeshi export growth is driven by the volume of world trade and is negatively and inelastically related to the volatility of bangladeshi exchange rates once these long run effects are accounted for it is found that none of the variables significantly explains any short run changes in export growth

the organization of work a historical dimension abstract an evaluation of the organizational efficiencies of various modes of production by o e williamson has led him to conclude that given identical technologies the factory was more efficient than the putting out system the superior organizational efficiency of the former he maintains was one reason for the transition to factory production during the nineteenth century this paper challenges that view it is argued that the way in which williamson evaluates efficiency is open to methodological and other objections and that there is limited empirical support for his hypothesis given an identical technology the evidence suggests that the putting out system was usually able to compete with the factory

a model of stochastic variety seeking in this paper we propose and test a stochastic model of consumer choice that incorporates attribute based variety seeking our stochastic variety seeking model svs has nested within it a fixed variety seeking model a zero order model of choice and a first order pure variety model we compare the svs model to alternative models under stochastic variety seeking we examine the nature of the variety sought and provide a test of the satiation hypothesis unlike fixed variety seeking models our model allows variety seeking to vary in intensity and consistency over individuals as well as over purchase occasions we show that the model is equivalent to a random utility model with the features that the attributes of brands relative to those of the brand previously bought influence choice and the extent of variety seeking is random over choice occasions for a given individual the model permits a closed form solution to the conditional switching probabilities parameterized by variety seeking parameters and dependent on brand attributes we apply our model to individual choice data obtained from a field study specifically designed for the purpose at hand

the effects of exchange rate volatility on exports some new estimates investigations of the impact of exchange rate volatility on exports have not allowed for the integrated non stationary of the variables employed in estimation the results reported in this note are suggestive that in the context of an error correction framework real exchange rate volatility has a significant impact on exports

anti williamson a marxian critique of new institutional economics new institutional economics explains capitalist institutions by means of neoclassical tools this method consists of introducing non market institutions as solutions to market failures the explicit or implicit assumption is that in the beginning there were markets in this paper we criticise this conception inherited from neoclassical economics by focusing on williamson s theory first we discuss williamson s speculative method which idealises the market and presents it as natural and universal we then suggest that williamson s categories his method and conception are themselves products of bourgeois ideology in this sense we conclude williamson himself is ultimately an institution of capitalism

exchange rate volatility and international trade a general equilibrium analysis abstract we analyze the relation between exchange rate volatility and the volume of international trade in a general equilibrium stochastic endowment economy with imperfect international commodity markets and treating both variables as endogenous even in the simplest model the sign of the relation depends on the source for the change in volatility for instance more volatility of the endowments and higher costs to international trade both boost exchange risk and lower welfare but the first increases the expected volume of trade while the second decreases trade note that even the inter equilibria relation between trade and welfare is ambiguous

the long shadow of the iron curtain for female sex workers in german cities border effects and regional differences this paper assesses determinants of habits and prices about sexual work in germany the paper alludes to a regional pattern in particular in pricing this pattern varies with the size of cities and across as well as along the former east west german border in particular the evidence suggests that there is a long shadow of the former iron curtain which leads to higher conditional prices in the former east than in the west in particular in larger agglomerations such as berlin moreover there is evidence of habit formation and spillovers within regions which leads to regionally clustered prices as well as unsafe sex services being offered by sexworkers

transaction cost economics the comparative contracting perspective abstract gregory dow s assessment of transaction cost economics is both thoughtful and provocative although we agree on many matters these remarks focus on our differences i begin with a brief sketch of the framework out of which transaction cost economics operates i then examine the purported bias of transaction cost economics in favor of capital managed as against labor managed firms and my alleged failure to deal with downward opportunism dow s claim that transaction cost economics is given to functionalist excesses is considered next concluding remarks follow

exchange rate depreciation and exports the case of singapore revisited this article revisits the weak relationship between exchange rate depreciation and exports for singapore using a bivariate generalized autoregressive conditional heteroscedasticity in mean model that simultaneously estimates time varying risk the evidence shows that depreciation does not significantly improve exports but that exchange rate risk significantly impedes exports in sum singaporean policy makers can better promote export growth by stabilizing the exchange rate rather than generating its depreciation

exchange rate variation commodity price variation and the implications for international trade abstract a commonly cited disadvantage of floating exchange rates is that a fluctuating exchange rate reduces international trade when firm owners are risk averse risk averse firm owners are concerned with the variation in the real domestic currency price of the good they export or import this price variation depends on exchange rate variation but also on a good s foreign currency price variation domestic price level variation and the covariation between these three variables the empirical results presented here show that for many commodities floating exchange rates did not cause a significant increase in overall real domestic currency price variation

a theory of prostitution prostitution is low skill labor intensive female and well paid this paper proposes a marriage market explanation to this puzzle if a prostitute compromises her marriage market prospects she will have to be compensated for forgone marriage market opportunities we discuss the link between poverty and prostitution and show that prostitution may decrease with male income if wives and prostitutes are drawn from the same pool of women we point to the role of male sex ratios and males in transit in sustaining high levels of prostitution and we discuss possible reasons for its low reputation and implications for marriage patterns

variety seeking through brand switching a concept of variety seeking behavior is modeled as a stochastic brand choice model the model yields a measure of variety seeking for each individual consumer panel data for 28 products are analyzed for each household and the possibility of market segmentation by variety seeking behavior is explored

home bias exchange rate disconnect and optimal exchange rate policy abstract this paper examines how much the central bank should adjust the interest rate in response to real exchange rate fluctuations the paper first demonstrates in a two country dynamic stochastic general equilibrium dsge model that home bias in consumption is important to replicate the exchange rate volatility and exchange rate disconnect documented in the data when home bias is high the shock to uncovered interest rate parity uip can substantially drive up exchange rate volatility while leaving the volatility of real macroeconomic variables such as gdp almost untouched the model predicts that the volatility of the real exchange rate relative to that of gdp increases with the extent of home bias this relation is supported by the data a second order accurate solution method is employed to find the optimal operational monetary policy rule our model suggests that the monetary authority should not seek to vigorously stabilize exchange rate fluctuations in particular when the central bank does not take a strong stance against the inflation rate exchange rate stabilization may induce substantial welfare loss the model does not detect welfare gain from international monetary cooperation which extends obstfeld and rogoff s obstfeld m rogoff k 2002 global implications of self oriented national monetary rules quarterly journal of economics may 503 535 findings to a dsge model

good bye lenin or not the effect of communism on people s preferences preferences for redistribution as well as the generosities of welfare states differ significantly across countries in this paper we test whether there exists a feedback process of the economic regime on individual preferences we exploit the experiment of german separation and reunification to establish exogeneity of the economic system from 1945 to 1990 east germans lived under a communist regime with heavy state intervention and extensive redistribution we find that after german reunification east germans are more in favor of redistribution and state intervention than west germans even after controlling for economic incentives this effect is especially strong for older cohorts who lived under communism for a longer time period we further find that east germans preferences converge towards those of west germans we calculate that it will take one to two generations for preferences to converge completely

exchange rate effects on the volume and variability of trade flows abstract this paper investigates the effects of exchange rate uncertainty on the volume and variability of trade flows employing a signal extraction framework we show that the direction and magnitude of importers and exporters optimal trading activities depend upon the source of the uncertainty general microstructure shocks fundamental factors driving the exchange rate process or a noisy signal of policy innovations providing a rationale for the contradictory empirical evidence in the literature we also show that exchange rate uncertainty emanating from general microstructure shocks and the fundamental factors reduces the variability of trade flows while that related to a noisy signal of policy innovations increases variability

exchange rate uncertainty and foreign trade abstract this paper starts with reviewing the existing literature on exchange rate uncertainty and trade flows it then argues that potential costs of medium term uncertainty in exchange rates and competitiveness are likely to be much larger than that of exchange risk which has been the focus of the existing literature two measures of medium term exchange rate uncertainty are constructed one is a weighted function of the magnitude of past movements in nominal exchange rates and the current deviation of the exchange rate from equilibrium while the second depends on both the duration and the amplitude of misalignment from equilibrium exchange rates the empirical evidence reported in the paper suggests that when exchange rate uncertainty is defined over a medium term period it does affect adversely trade flows of the industrial countries under review with the notable exception of the united states

estimation of latent class models with heterogeneous choice probabilities an application to market structuring recently grover and srinivasan developed a latent class based approach to analyze market structure by using brand switching data the authors provide an iterative maximum likelihood procedure for

an investigation into the order of the brand choice process this paper investigates the order of the brand choice process at the individual family level using a variety of tests t likelihood ratio binomial runs and multinomial runs tests the test of stationarity developed permits separate analyses for stationary and nonstationary purchase sequences our analyses indicate that the purchase sequences of a majority of stationary consumers are consistent with the zero order assumption this result is observed for all the nine frequently bought packaged goods studied with the use of panel data and for a product category soft drinks using experimental data

impact of exchange rate uncertainty on trade flows evidence from commodity trade between the united states and the united kingdom previous studies that investigated the impact of exchange rate volatility on the trade flows employed aggregate trade data and standard estimation techniques they provided mixed results in this paper we use disaggregated import and export data for 177 commodities traded between the united states and the united kingdom to investigate whether volatility of the real bilateral dollar pound exchange rate has any detrimental effect on trade flows at the commodity level additionally we employ the bounds testing approach to cointegration and error correction modelling that is suitable for the models used mostly because it does not require pre unit root testing and variables in the model could be stationary non stationary or a combination of the two in most trade flow models estimated we found a negative effect of exchange rate volatility on commodity trade

intertemporal optimizing models of trade and current account balance a survey abstract this study surveys the intertemporal optimizing models of trade and current account balance that were developed calibrated and empirically tested since they came into vogue in the 1980s the implications of these models often differ from those of static and dynamic conventional non optimizing models the literature on optimizing models has not only grown reasonably fast but has also witnessed significant advances in methodology and these models have culminated into a distinct strand of new open economy macroeconomics the studies conducted until the late 1980s have used deterministic perfect foresight models while several studies conducted since the 1990s relax the perfect foresight and certainty equivalence assumptions and develop stochastic dynamic general equilibrium models to account for uncertainty confronting the optimizing agents the future research needs to explore the possibility of tracing any preferred specification of household preferences model the effect of time varying discount factor on household utility function and intertemporal budget constraint examine the role of costs in international trade place a parallel emphasis on the empirical verifications of theoretical propositions examine the relative performance of optimizing vis a vis non optimizing models and rationalize the extreme propositions of perfect and imperfect capital mobility in the wake of moderately open capital accounts

exchange rate volatility and export performance a cointegrated var approach during the last decades norwegian exporters have despite various forms of exchange rate targeting faced a rather volatile exchange rate which may have influenced their behaviour recently the shift to inflation targeting and a freely floating exchange rate has brought about an even more volatile exchange rate we examine the causal link between export performance and exchange rate volatility across different monetary policy regimes within the cointegrated vector autoregression var framework using the implied conditional variance from a generalized autoregressive conditional heteroskedasticity garch model as a measure of volatility although treating the volatility measure as either a stationary or a nonstationary variable in the var we are not able to find any evidence suggesting that export performance has been significantly affected by exchange rate uncertainty we find however that volatility changes proxied by blip dummies related to the monetary policy change from a fixed to a managed floatin

the real exchange rate and macroeconomic performance in sub saharan africa abstract pooled time series and cross section data for 33 countries in sub saharan africa ssa confirm the negative relationship between the real exchange rate rer misalignment and economic performance economic growth imports exports saving and investment macroeconomic instability also slows growth and other indicators of performance higher levels of misalignment are accompanied by higher levels of macroeconomic instability both lower levels of rer misalignment and instability lead to better economic performance the edwards model of rer determination performs well for the region black market premia tend to show a greater degree of misalignment in rer than alternative measures

the intergenerational transmission of risk and trust attitudes recent theories endogenize the attitude endowments of individuals assuming that they are shaped by the attitudes of parents and other role models this paper tests empirically for the relevance of three aspects of the attitude transmission process highlighted in this theoretical literature 1 transmission of attitudes from parents to children 2 an impact of prevailing attitudes in the local environment on child attitudes and 3 positive assortative mating of parents which enhances the ability of a parent to pass on his or her attitudes to the child we focus on two fundamentally important attitudes willingness to take risks and willingness to trust others we find empirical support for all three aspects providing an empirical underpinning for the literature an investigation of underlying mechanisms shows that socialization is important in the transmission process various parental characteristics and aspects of family structure are found to strengthen the socialization process with implications for modeling the socialization production function and for policies focused on affecting children s non cognitive skills the paper also provides evidence that the transmission of risk and trust attitudes affects a wide variety of child outcomes implying a potentially large total effect on children s economic situation

the empire is dead long live the empire long run persistence of trust and corruption in the bureaucracy we hypothesise that the habsburg empire with its well respected administration increased citizens trust in local public services in several eastern european countries communities on both sides of the long gone habsburg border have shared common formal institutions for a century now we use a border specification and a two dimensional geographic regression discontinuity design to identify from individuals living within a restricted band around the former border we find that historical habsburg affiliation increases current trust and reduces corruption in courts and police falsification tests of spuriously moved borders geographic and pre existing differences and interpersonal trust corroborate a genuine habsburg effect

export promotion through exchange rate policy exchange rate depreciation or stabilization exchange rate movements affect exports in two ways rate depreciation and rate variability risk a depreciation raises exports but the associated exchange rate risk could offset that positive effect the present paper investigates the net effect for eight asian countries using a dynamic conditional correlation bivariate garch m model that simultaneously estimates time varying correlation and exchange rate risk depreciation encourages exports as expected for most countries but its contribution to export growth is weak exchange rate risk contributes to export growth in malaysia and the philippines leading to positive net effects exchange rate risk generates a negative effect for six of the countries resulting in a negative net effect in indonesia japan singapore and taiwan and a zero net effect in korea and thailand exchange rate movements affect exports in two ways rate depreciation and rate volatility risk the two effects have received considerable attention since the collapse of fixed exchange rates in the early 1970s but no research considers the net total effect on exports of the two potentially offsetting effects this paper investigates the net effect for eight asian countries with engle s 2002 dynamic conditional correlation dcc bivariate garch m model that simultaneously estimates time varying correlation and exchange rate risk the net effect relates to the goal of a foreign exchange intervention depreciation lowers the foreign currency price of exports and probably increases the quantity of exports and export revenue in domestic currency conditions may exist however where export revenue falls highly inelastic foreign import demand leads to falling export revenue ambiguity also arises if export production incorporates high import content since the domestic cost or price of exports rises with depreciation during periods of appreciation exporters might price to market lowering their domestic currency price to maintain export market share theory and empirical evidence exhibits ambiguity as to the effect of the exchange rate on exports and export revenue junz and rhomberg 1973 and wilson and takacs 1979 find that devaluation

currency hedging and goods trade abstract a puzzle in empirical international finance is the difficulty in finding a large and negative effect of exchange rate volatility on international trade a common explanation is the availability of hedging instruments this paper examines the empirical validity of this explanation using data on over 1000 country pairs which countries have currency hedging instruments is not perfectly observable this paper deals with the problem by specifying an endogenous regime switching regression there are two main findings first there is no evidence in the data to support the validity of the hedging hypothesis second for country pairs with large trade potential exchange rate volatility deters goods trade to an extent much larger than that typically has been documented in the literature without using the switching regression specification

appropriation violent enforcement and transaction costs a critical survey this paper focuses on the extension of transaction costs to appropriative activity and coercive power in the property rights approach it has been argued that including the costs of appropriation and violent enforcement in transaction costs is based on the assumption that coaseian bargaining can be extended to any institutional scenario i e voluntary as well as coercive exchange however voluntary transactions cannot capture the logic of coercive power this means that the assumption of an efficient political market is not valid and that the political coase theorem lacks the logical consistency to provide a cornerstone for political theory

the neglect of society in the theory of the firm a systems theory perspective the prevailing theories of the firm acknowledge the importance of trust and loyalty but neglect such behaviour in the substance of their analyses the present paper unravels this paradox by drawing on niklas luhmann s ground breaking insight that the complexity reducing function of social systems leads them to neglect their critical environmental dependencies thereby compromising their own sustainability if the firm is conceived as a social system luhmann s theory implies that the neglect of social behaviour by the predominant theories of the firm can be explained as reflecting the neglect of society by actual firms this argument promises to not only furnish the theory of the firm with a concern for sustainability but also render it more amenable to unconventional institutions such as cooperatives and non profit organisations that help compensate for the damage inflicted by conventional firms on the social environment

measuring and analysing the effects of short term volatility in real exchange rates this paper examines short term volatility in the real effective exchange rates of industrial countries and its impact on their imports it yields three conclusions first volatility has not diminished as markets have gained experience with floating exchange rates the trend appears to be in the opposite direction for some countries second exposure to short term volatility has differed among countries japan and sweden have experienced much more than most other industrial countries third volatility appears to depress the volume of international trade this third finding is consistent with results reported by cushman and by akhtar and hilton and challenges earlier findings by hooper and kohlhagen

are exports a monotonic function of exchange rate volatility evidence from disaggregated pork exports production and marketing lags in agri food supply chains often force agricultural producers and food processors to commit to output targets before prices and exchange rates are realized a theoretical model illustrates how the processor s degree of risk aversion and domestic sales may cause the relationship between volatility of the exchange rate and exports to be non monotonic the relationship between exchange rate volatility and quebec pork exports to the united states and japan is investigated using linear and non linear estimation methods the results support the hypothesis that the relationship between exports and volatility is non monotonic

inferring the order of the choice process using consumer purchase histories the small sample properties of the multinomial runs mr test which is often used to test for effects of previous brand choices on current brand choice probabilities are explored in this article through a monte carlo study of different buyer level brand choice probability models the power and the actual size of this test under a null hypothesis of no previous brand choice effects are shown to depend on the nature of the true underlying model length of purchase history and skewness in baseline choice probabilities we provide some guidelines for when the mr test is more useful in empirical research

exchange rates and traded goods prices abstract this paper presents a partial equilibrium model of the determination of domestic and export prices by a monopolistic competitive firm the model stresses the role of exchange rate uncertainty and expectations the most important result of the analysis is that the stochastic properties of deviations from the law of one price are crucially affected by the currency of denomination of export prices using data on domestic and dollar export prices of japanese goods i find that deviations from the law of one price are due to exchange rate surprises but also to price staggering and ex ante price discrimination

what money buys clients of street sex workers in the us the article presents a review of current theoretical and empirical approaches to sex work followed by the presentation of an original theoretical framework della giusta et al 2006 which is tested with an econometric model of the characteristics of demand for sex services by a sample of clients of street sex workers in the us we present findings in relation to stigma and the relationship between paid and unpaid sex that corroborate our model s hypotheses and are in line with findings from other empirical studies furthermore we identify in our sample two diametrically opposite profiles one for clients whom we label experimenters and one for more experienced ones that we name regulars we also estimate attitudes toward risk and draw implications in terms of both policy and future theoretical and empirical research

the ontology of economic power in capitalism mainstream economics and marx mainstream economics conceives power to be incompatible with perfect competition this conception i argue derives from its deductivist method and the empirical realist ontology that it presupposes following marx i show that capitalism constantly reproduces asymmetrical constraints on classes of individuals independent of the market form my ontological argument is rooted in the philosophy of critical realism my conclusion is that the dichotomy power competition is ontologically untenable if capitalist relations necessarily involve power it is not simply because neoclassical competition does not exist in reality as radical mainstream economists suggest but rather because capitalism altogether is a system of power

does exchange rate risk affect exports asymmetrically asian evidence abstract this paper tests the hypothesis of asymmetric effects of exchange rate risk with a dynamic conditional correlation bivariate garch 1 1 m model the asymmetry means that exchange rate risk volatility affects exports differently during appreciations and depreciations which may reflect exporter s asymmetric risk perception and hedging behavior using bilateral exports from eight asian countries to the us the real exchange rate risk significantly affects exports for all countries negative or positive in periods of depreciation or appreciation thus policy makers can consider the stability of the exchange rate in addition to its depreciation as a method of controlling export growth

a critical assessment of transaction cost theory and governance of public services with special reference to water and sanitation this is a pre copyedited author produced version of an article accepted for publication in cambridge journal of economics following peer review the version of record hulya dagdeviren and simon a robertson a critical assessment of transaction cost theory and governance of public services with special reference to water and sanitation cambridge journal of economics vol 40 6 1707 1724 january 2016 is available online at https doi org 10 1093 cje bev079

international financial volatility and commodity exports evidence from the thai agricultural sector using 1981 2006 data from the bank of thailand i estimate the effect of four measures of real exchange rate volatility on thai exports of five key agricultural commodities controlling for both the level of the real exchange rate and foreign incomes estimates of the effect of volatility on export volume are generally negative and often significant lending support to a range of theoretical models that predict such an effect no such relationship exists between lagged values of exchange rate volatility and agricultural production the range of results obtained using various measures of volatility suggests caution in comparing studies using different measures copyright 2010 oxford university press

exchange rate volatility and pakistan s exports to the developed world 1974 85 abstract the paper attempts to estimate the impact of exchange rate uncertainty on pakistan s exports to the developed world for 1974 85 discovering strong evidence to suggest that exports were adversely affected by the increased variability of its bilateral exchange rates unlike much of the recent evidence on developed countries however it is the variability in nominal rather than real exchange rates that is significant the computations also suggest the presence of strong third country effects

monetary and real shocks productive capacity and exchange rate regimes where producers may diversify internationally international diversification is shown to inuuce a positive correlation between the volatility of productivity shocks and investment in the presence of a phillips curve the expected gnp is lower under a floating exchange rate regime than under a fixed exchange rate regime this result applies both for real and monetary shocks attempts to reduce foreign direct investment by capital controls will tend to reduce welfare without affecting our results regarding the ranking of exchange rate regimes implies that in the presence of market power uncertainty tends to reduce investment in the first part of the paper i demonstrate the international diversi fication of production modifies this result foreign direct investment tends to offset the impact of market power on the concavity of the profit function by weakening the relative price effect associated with output changes and by increasing the flexibility of adjusting the variable input hence international diversification of production is shown to induce a positive correlation between the volatility of productivity shocks and investment the second part of the paper utilizes the framework presented in section i to re examine the welfare ranking of exchange rate regimes in the presence of capital mobility as is well appreciated a one dimensional answer regarding the merits of a fixed exchange rate regime will not do justice to the host of issues relevant for making the choice between exchange rate regimes the second part of the paper focuses on one aspect of the debate the linkages between volatility domestic and foreign direct investment and productive capacity a frequent argument in favour of exchange rate stability relates to the potential cost of exchange rate volatility which may work to increase the cost of international trade and to reduce its volume yet efforts to detect the adverse effects of exchange rate volatility on trade volumes in the last two decades have not delivered clear cut results in fact the experience of international trade among the united states canada europe and japan suggests that there is no natural

exchange rate volatility and exports a firm level analysis the relationship between real exports and exchange rate volatility is investigated using panel data analysis at the firm level results indicate that there is no negative or positive relationship between volatility and real exports in addition firm size and level of international activity do not influence the size and significance of the volatility effect on exports however there is some evidence that firms use import revenue to lower their exchange rate exposure

the contractual nature of the firm for their helpful comments i am grateful to armen a alchian yoram barzel keith leffler john s mcgee and dean worcester 1 ronald h coase the nature of the firm 4 economica 386 1937 the paper however was written several years earlier see note 3 infra 2 the social sciences citation index provides the following information breaking down the period of 1966 80 into three five year periods the total citations of coase s firm paper for each subperiod are 1966 70 17 citations 1971 75 47 citations and 1976 80 105 citations

exchange rate variability and the export demand for malaysia s semiconductors an empirical study this article examines the effects of exchange rate variability on export demand for semiconductors which is the largest sub sector of electronics industry in malaysia as reported by malaysian industrial development authority mida 2004 the empirical results which are estimated based on the johansen s multivariate cointegration tests and error correction model suggest that there is a unique long run relationship among quantities of export relative price real foreign income and real exchange rate variability the major finding of this article is that the variability of real exchange rate has some effect on semiconductor exports in both the long run and the short run in the light of rapid advances in technology in the global markets for electronics products the findings are useful to policy makers for the design and target of appropriate exchange rate and industrial policies to enhance the export competitiveness of semiconductor industry

prostitutes and brides in a seminal paper lena edlund and evelyn korn 2002 introduce a puzzling stylized fact that prostitution is low skilled labor intensive female and well paid and offer a provocative explanation sex workers draw a compensating differential due to the foregone opportunity to sell their fertility in the marriage market in so doing they not only provide the first formal model of occupational choice involving prostitu tion they also draw an intriguing link between the labor market and the marriage market that holds for only one occupation when a woman chooses to become a sex worker she relinquishes the compensation she would otherwise receive in marriage since taboos prevent prostitutes from marrying thus even in settings where prostitu tion is legal it must draw an earnings premium beyond drawing considerable media attention the richness of the edlund korn model has made

does exchange rate volatility matter for international sales evidence from us firm level data we explore the effect of exchange rate volatility on firms foreign sales using destination specific us firm level data at different quantiles of the conditional distribution results show that the sign and significance of the effect depend on the economic conditions firm characteristics the sector that the firms operate and the quantile of the conditional distribution hence using aggregated data utilizing mean regression methods and ignoring firm specific factors can explain the mixed results provided by the existing literature

has exchange risk depressed international trade the impact of third country exchange risk abstract this paper argues that the effect of exchange risk on bilateral and aggregate trade flows should be analyzed by including the impact of third country exchange risk factors in addition to direct bilateral or multilateral risk after a theoretical examination of these effects us bilateral export flow to its six largest trading partners are analyzed empirically i find individuality and jointly significant third country risk effects in most cases in contrast to some recent bilateral efforts i find a steadily growing negative impact on trade flows from exchange risk during floating and in contrast to recent aggregate trade flow studies i conclude that there was no temporary decline in exchange risk during the late 1970s

the impact of the post 1972 floating exchange rate regime on us exports by employing the techniques of cointegration and error correction models this article empirically investigates the impact of the post 1972 floating exchange rate regime on the volume of us bilateral exports to canada germany japan and the uk the econometric models specified in the analysis were estimated using quarterly data for the sample period 1959 1 1997 4 the empirical results provide evidence that the post 1972 exchange rate regime is less conducive to trade than the bretton woods fixed exchange rate regime

a model of balanced choice behavior in some product categories consumers appear to alternate among items in a consistent and purposeful though not entirely deterministic fashion such alternation occurs even in the absence of any apparent external influences on choice to explain such balanced choice behavior we present a model based upon the premise that past consumption influences the utility of items on subsequent choice occasions individuals may seek variety on certain product attributes and exhibit loyalty toward others the model specification yields a logit choice model which may be calibrated using consumption diary panel data at the individual or cross sectional level

the effects of exchange rate variability on international trade a meta regression analysis the trade effects of exchange rate variability have been an issue in international economics for the past 30 years the contribution of this article is to apply meta regression analysis mra to the empirical literature on average exchange rate variability exerts a negative effect on international trade yet mra confirms the view that this result is highly conditional by identifying factors that help to explain why estimated trade effects vary from significantly negative to significantly positive mra evidence on the pronounced heterogeneity of the empirical findings may be instructive for policy first by establishing that average trade effects are not sufficiently robust to generalize across countries and second by suggesting the importance of hedging opportunities hence of financial development for trade promotion for the practice of mra we make a case for checking the robustness of results with respect to estimation technique model specification and sample