“Differences in efficiency between Formal and Informal Micro Firms in Mexico”

The economic role of micro firms is still the subject of much discussion and debate. While these firms can be seen as potential growth drivers, as they are usually related to entrepreneurship, a relatively high share of micro firms can also be a sign of an underdeveloped productive system, which applies especially to developing countries, where micro firms represent the majority of business activity. Unlike other studies, this research separates formal and informal micro firms in order to test whether there are efficiency differences between them, and to explain these differences. One of the novelties of the study is the use of the Oaxaca-Blinder decomposition method, which enables an analysis of the differences between both groups of firms after controlling for their different allocation of factors. Micro firms in Mexico are taken as a case study, with the Encuesta Nacional de Micronegocios (ENAMIN, or the National Micro Firm Survey), for 2008, 2010 and 2011, used to carry out the analysis. The empirical evidence suggests that output differences can be explained by endowment characteristics, while efficiency differences are explained by endowment returns. The main variables to explain the gap between the groups are the owner’s level of education, the firm’s age, the owner’s motivations, and financing.informality, micro firms, efficiency, productivity, decomposition method. JEL classification: D00, D22, D2

The Role of Professionalization and Managerialization in Family Business Succession

This paper aims to analyze the role of professionalization (the involvement of professional non-family managers) and of managerialization (the use of managerial mechanisms) in the family firm’s succession process. In the light of the scarce literature on such issues, it aims to "open the black box", giving some insights on the relationship between the involvement of non-family managers, the use of managerial mechanisms, such as strategic planning (SP) and management control systems (MCSs), and family business succession. This is an explorative paper aimed at developing a theoretical framework on the outlined issues. The research method is based on the longitudinal analysis of a case study of a European medium-sized family firm, that made different choices in terms of: 1) how to cope with the family succession, 2) the involvement of non-family members, and 3) the role assigned to SP and MCSs. The longitudinal analysis of the case study shows that non-family professional managers may have a relevant role in the family firm’s succession, but in particular former employees of the company. A significant role of both family and firm governance mechanisms is also showed. Instead, managerial mechanisms, such as SP and MCSs, are introduced mostly to cope with firm’s and environment’s complexity and agency conflicts. Consistently with research findings, we propose a research framework, articulated in a few propositions, concerning the role of professionalization and managerialization in helping family firms to overcome generation succession

Bentham on Spanish protectionism

In 1821, John Bowring published a manuscript of Bentham's under the title of Observations on the restrictive and prohibitory commercial system: especially with a reference to the Decrep of the Spanish Cortes of July 1820. In all probability this text was originally conceived as an appendix to a book that Bentham never published, to Wit Rid Yourselves of Ultramarina, the commentary on Spanish colonization. The 1821 publisned text has been reprinted by W. Stark in the third volume of Jeremy Bentham's Economic With some corrections of obvious misprints, but without the benefit of the mauscript. Stark was very dismissive of this work, which he thought demonstrated how barren Bentham's economic thought had become. Stark believed thad Bentham was too orthodox in attacking Spanish protectionism when, Stark said, Spain was a case fit for an educational tariff, in the fashion proposed by list. However, many economists today think that few things are so harmful for an underdevelooped country as a tariff, eduational or not (except when it is low rated, revenue raising and accompanied by an equivalent domestic excise tax).Proteccionismo; España; Jeremy Bentham

Consideraciones metodológicas sobre el análisis económico y la Hacienda Pública

La consideración de la Hacienda Pública como disciplina científica implica la necesidad de establecer en su estudio unos elementos metodológicos que sirvan como base para el desarrollo de su conocimiento. En este trabajo se trata de reflejar ese planteamiento metodológico que, partiendo de una adecuada delimitación conceptual de la Hacienda Pública dentro del conjunto de la economía, permita abordar el estudio de esta materia de acuerdo con las reglas generalmente admitidas del conocimiento científico. Para ello, se parte del establecimiento de una demarcación del carácter especifico y singular de la Hacienda Pública que diferencia conceptualmente esta disciplina. Los aspectos metodológicos en el conocimiento científico general y en la economía y la Hacienda Pública son desarrollados a continuación con un carácter aproximativo y sintético, fundamentado en la evolución histórica del pensamiento sobre el estudio del método científico y en la selección de aquellos elementos más relevantes para el estudio y desarrollo de las materias incluidas en el campo de análisis de la Hacienda y la Economía Pública.Delimitación conceptual de la Hacienda Públic

Preparing France’s balance of payments in accordance with the new international standards: a statistical response to economic globalisation

This study analyses the impact on France’s balance of payments and international investment position data of the new international methodology developed by the IMF, which better reflects international trade in goods and services.balance of payments, international investment position, methodology, global value chai

The new technology-based firm profile required for a delimitation of its definition in empirical studies

The main objective we pretend to reach is to obtain a conclusive final definition and the characterisation of new technology-based firm (NTBF). This quest for an integrative and commonly recognised profile gains even more force when focused on its application within the field of social and economic empirical studies. Within the social and economic empirical research, the formulation of the definition and full profile becomes highly relevant, because we cannot gather data without previous identifying and conceptualising the object of the research. That is, as the own proximity to the data access impregnates and clarifies the proper definition, at some NTBF studies. This paper debates existing approaches as well as defines the key factors needed to delimitate the definition and the parameters of the NTBF.new technology based firms; NTBF definition; key parameters; entrepreneurship; technology intensity; technology management; firm profiles

El ABC de lo económico: a propósito de dos textos introductorios

Parece existir una cierta correlación negativa entre las condiciones económicas de una economía y la atención prestada por el público a los economistas y a la Economía. En realidad, esto no debería sorprender demasiado. Al fin y al cabo, en tanto enfermos potenciales sólo tomamos conciencia de la labor desempeñada por nuestros médicos cuando nuestra salud sufre quebrantos. Es comprensible que en tiempos de bonanza económica el público no se vea interesado por las controversias teóricas que desde siempre han mantenido los economistas. "If it works, don't fix it", parece ser la filosofía imperante en tales circunstancias. Sin embargo, desde los años 70, el ciudadano medio ha sometido a la ciencia económica a un escrutinio de magnitud desconocida en los más de doscientos años de vida oficial que el conocimiento económico lleva acumulados.ABC de lo Económico; Economistas; Economización; Siglo XX

The City of Detroit: 'Its past failures, present bankruptcy and future implications'

Detroit was founded as a city with a rich history and base in the auto manufacturing industry. However, its strengths became its weaknesses when the industry left the area. In addition to numerous other factors such as politics and racial tensions, Detroit's economy has degraded since the 1950s. Due to the lack of economic stimulating activities and population decline, as of 18 July 2013, the city filed for Chapter 9 Bankruptcy protection. Certain controversies surround the case regarding eligibility and creditor rights, specifically in terms of pension obligations. Can and should pensions be impaired as requested by the city? Detroit was also claiming to have more pension debt than reported on their financials. On 15 December 2013, Judge Steve Rhodes decided that pensions could indeed be impaired but any impairment would have to be approved by the courts. With that ruling, Kevyn Orr, the city's emergency manager has come up with a few proposals for settlement in regards to their pensions and the rest of the debt, some of which include severe pension impairment and outside funding made to the plan. However, no firm decision on the future of Detroit and its bankruptcy has been finalised.Detroit bankruptcy; government accounting; US cities; regulation; pensions; USA; United States; eligibility; creditor rights; pension obligations; pension debt; pension impairment

STF2HES_EX: MATLAB example scripts for "FX smile in the Heston model"

These example scripts illustrate the concepts brought forward in Chapter 4 "FX smile in the Heston model" of "Statistical Tools for Finance and Insurance (2nd ed.)" edited by P.Cizek, W.Haerdle and R.Weron, published by Springer, 2011. The zip file includes 7 scripts allowing to reproduce the chapter's figures in Matlab. The scripts require 9 Matlab functions for proper operation: GarmanKohlhagen.m, HestonFFTVanilla.m, HestonVanilla.m, HestonVanillaFitSmile.m, HestonVanillaLipton.m, HestonVanillaSmile.m, pdfHeston.m, simGBM.m, simHeston.m; see STF2HES.zip at http://ideas.repec.org/c/wuu/hscode/zip10002.html.Option premium, FX option, Volatility smile, Stochastic volatility, Heston (1993) model, Carr and Madan (1999) FFT approach, Lipton (2002) approach, Garman and Kohlhagen (1983) model, Calibratio