Firms, International Money and Prices. a Survey of the Literature

Sluggish price adjustments with respect to exchange rate shocks take essentially two forms. Firstly, prices do not adjust completely to neutralize the effects of nominal exchange rate shocks. Secondiy, price adjustments after exchange rate shocks only take place in discrete time intervals, in other words they are discontinuous. These two features of price adjustments form our definition of international price rigidities. In this paper we shall present a survey of thc empirical and theoretica literature on international price rigidities. We provide the underlying intuition of the theoretical research and present a brief summary of the empirical findings.

Drought intensity–duration–frequency curves based on deficit in precipitation and streamflow for water resources management

Drought estimates in terms of physically measurable variables such as precipitation deficit or streamflow deficit are key knowledge for an effective water management. How these deficits vary with the drought event severity indicated by commonly used standardized indices is often unclear. Drought severity calculated from the drought index does not necessarily correspond to the same amount of deficit in precipitation or streamflow at different regions, and it is different for each month in the same region. We investigate drought to remove this disadvantage of the index-based drought intensity–duration–frequency (IDF) curves and develop IDF curves in terms of the associated deficit. In order to study the variation of deficits, we use the link between precipitation and streamflow and the associated indices, the Standardized Precipitation Index (SPI) and the Standardized Streamflow Index (SSI). More specifically, the analysis relies on frequency analysis combined with the total probability theorem applied to the critical drought severity. The critical drought has varying durations, and it is extracted from dry periods. IDF curves in terms of precipitation and streamflow deficits for the most severe drought of each drought duration in each year are then subject to comparison of statistical characteristics of droughts for different return periods. Precipitation and streamflow data from two catchments, the Seyhan River (Türkiye) and the Kocher River (Germany), provide examples for two climatically and hydrologically different cases. A comparison of the two cases allows a similar method to be tested in different hydrological conditions. We found that precipitation and streamflow deficits vary systematically, reflecting seasonality and the magnitude of precipitation and streamflow characteristics of the catchments. Deficits change from one month to another at a given station. Higher precipitation deficits were observed in winter months compared to summer months. Additionally, we assessed observed past major droughts experienced in both catchments on the IDF curves, which show that the major droughts have return periods at the order of 100 years at short durations. This coincides with the observation in the catchments and shows the applicability of the IDF curves. The IDF curves can be considered a tool for using in a range of specific activities of agriculture, ecology, industry, energy and water supply, etc. This is particularly important to end users and decision-makers to act against the drought quickly and precisely in a more physically understandable manner.</p

On the Relationships between Decision Management and Performance Measurement

Decision management is of utmost importance for the achievement of strategic and operational goals in any organisational context. Therefore, decisions should be considered as first-class citizens that need to be modelled, analysed, monitored to track their performance, and redesigned if necessary. Up to now, existing literature that studies decisions in the context of business processes has focused on the analysis of the definition of decisions themselves, in terms of accuracy, certainty, consistency, covering and correctness. However, to the best of our knowledge, no prior work exists that analyses the relationship between decisions and performance measurement. This paper identifies and analyses this relationship from three different perspectives, namely: the impact of decisions on process performance, the performance measurement of decisions, and the use of performance indicators in the definition of decisions. Furthermore, we also introduce solutions for the representation of these relationships based, amongst others, on the DMN standard.Ministerio de Economía y Competitividad BELI (TIN2015-70560-R)Junta de Andalucía P12-TIC-1867Junta de Andalucía P10-TIC-590

The Top-Dog Index: A New Measurement for the Demand Consistency of the Size Distribution in Pre-Pack Orders for a Fashion Discounter with Many Small Branches

We propose the new Top-Dog-Index, a measure for the branch-dependent historic deviation of the supply data of apparel sizes from the sales data of a fashion discounter. A common approach is to estimate demand for sizes directly from the sales data. This approach may yield information for the demand for sizes if aggregated over all branches and products. However, as we will show in a real-world business case, this direct approach is in general not capable to provide information about each branch's individual demand for sizes: the supply per branch is so small that either the number of sales is statistically too small for a good estimate (early measurement) or there will be too much unsatisfied demand neglected in the sales data (late measurement). Moreover, in our real-world data we could not verify any of the demand distribution assumptions suggested in the literature. Our approach cannot estimate the demand for sizes directly. It can, however, individually measure for each branch the scarcest and the amplest sizes, aggregated over all products. This measurement can iteratively be used to adapt the size distributions in the pre-pack orders for the future. A real-world blind study shows the potential of this distribution free heuristic optimization approach: The gross yield measured in percent of gross value was almost one percentage point higher in the test-group branches than in the control-group branches.Comment: 22 pages, 15 figure