Financial constraints, working capital and the dynamic behavior of the firm

Financial constraints are widespread in developing countries, where even short term credit is limited. Finance held by firms as working capital is a substantial proportion of sales revenue, yet the role of working capital is largely neglected by existing models of financial constraints. I present a dynamic model of the firm that incorporates working capital by introducing a delay between factor payments and the receipt of revenue. In contrast with previous models, the working capital model predicts that firms under binding constraints will substitute between labor and capital in response to demand shocks, causing investment to be countercyclical. For firms near the margin of being constrained, constraints bind when positive production opportunities arise. Output growth is therefore constrained in response to positive shocks but not to negative shocks. Simulations suggest that models without working capital may understate the predicted effects of financial constraints on production efficiency, firm profit and growth over time. I test the predictions using the recently completed Bangladesh Panel Survey for manufacturing firms. Consistent with the theory, I find evidence that constraints bind when output price increases, that investment by constrained firms is countercyclical, and that output response to positive shocks is dampened for firms that are sometimes constrained. The results also are important for policy. In order to maximize growth, efforts to relieve credit constraints should be focused on periods when demand shocks are high

Why liquidity matters to the export decision of the firm

Under financial constraints, exporting may have less to do with productivity and more to do with financial resources. The established relationship between exporting and productivity would differ when examined through the lens of the working capital needs of the firm. I approach the hypothesis that working capital matters in the firm's exporting decision in two ways: first, by articulating a dynamic working capital model of the firm that incorporates the firm's export decision. Secondly, by testing the hypothesis empirically using a unique firm level dataset from Bangladesh, where issues of financial constraints are particularly acute. The model shows that productivity determines export status of the firm as long as it is not under financial constraints. However, under financial constraints, export status is less dependent on productivity and more dependent on the availability of working capital. Empirical results support the model's prediction. The relationship between exporting time and the need for greater liquidity is also borne out empirically as shown by a positive and significant correlation between the amount of working capital and the distance of export destination. An important policy implication from the analysis is that short term liquidity is critical in allowing productive firms to export and that access to finance may prevent the benefits of trade liberalization within a country to be fully realized

Exploratory Study of the Download Speed of Leading University Hospitality and Tourism Department Websites Worldwide

Increased broadband penetration (BP) rates around the world have encouraged web designers to include more web content and additional functions on their web sites, thereby enhancing the richness and playfulness of the information. However, it is often very difficult for web surfers who are still using narrowband connections to access such web sites. Many university web sites target international audiences; therefore their download performance should be considered, as it may directly influence the user experience. This exploratory study examined 331 university hospitality and tourism department web sites in 37 countries. The empirical results showed that entry web pages of universities in Asia, with a medium BP rate (mid-BP), have the slowest download speeds, and those in Australia and New Zealand perform the best. The adoption rate of the Cascade Style Sheet (CSS) in Asia is relatively lower than that of other regions

Simple Methods for Determining the Accuracy of Tumor Blood Flow Measurements Using Radioactive Microspheres in Rats

Two simple methods are presented that allow positive identification of the accuracy and precision of the microsphere technique and a quick verification of sphere entrapment in tumor vessels. A known flow of Ringer\u27s solution from a motor-driven syringe is perfused through the rat\u27s isolated systemic circulation from left ventricle to right atrium and collected in a funnel. Using this preparation, total blood flow in rats measured with radioactive microspheres injected into the left ventricle was 97% of actual flow. The coefficient of variation (standard deviation/mean) of the microsphere measurements was 0.22. In the same preparation, non-entrapment of microspheres in subcutaneous tumor nodules grown on a hind limb could be measured from the difference in counts collected in venous effluent before and after placement of a tourniquet proximal to the tumor. For example, in two types of transplantable carcinoma, we found non-entrapment of less than 0.1% of the injected microspheres. Such a shunt would correspond to less than 10% of microspheres entering a typical tumor nodule and, in turn, less than 10% underestimation of true flow to the tumor. These two techniques may be helpful to other investigators in testing the accuracy of microsphere methods in various small animal tumor models

The Genetic Basis of Natural Variation in Drosophila melanogaster Immune Defense against Enterococcus faecalis

This work is licensed under a Creative Commons Attribution 4.0 International License.Dissecting the genetic basis of natural variation in disease response in hosts provides insights into the coevolutionary dynamics of host-pathogen interactions. Here, a genome-wide association study of Drosophila melanogaster survival after infection with the Gram-positive entomopathogenic bacterium Enterococcus faecalis is reported. There was considerable variation in defense against E. faecalis infection among inbred lines of the Drosophila Genetics Reference Panel. We identified single nucleotide polymorphisms associated with six genes with a significant (p < 10−08, corresponding to a false discovery rate of 2.4%) association with survival, none of which were canonical immune genes. To validate the role of these genes in immune defense, their expression was knocked-down using RNAi and survival of infected hosts was followed, which confirmed a role for the genes krishah and S6k in immune defense. We further identified a putative role for the Bomanin gene BomBc1 (also known as IM23), in E. faecalis infection response. This study adds to the growing set of association studies for infection in Drosophila melanogaster and suggests that the genetic causes of variation in immune defense differ for different pathogens

Abnormal Response of Tumor Vasculature to Vasoactive Drugs

The effects of the vasoconstrictor, phenylephrine, and the vasodilator, hydralazine, on blood flow to tumor were studied and compared to those on blood flow to normal tissues in vivo. Regional blood flow and cardiac output were measured with the use of radioactive microspheres in 150- to 250 g inbred Harlan F344 rats bearing subcutaneous nodules of two types of transplantable carcinoma ( hard and soft ) with microscopically different vascular patterns. Three groups of rats were treated with hydralazine, saline, or phenylephrine, and regional blood flow was determined at the time of maximum blood pressure response. Results were correlated with quantitative morphometric analysis of arteriolar and capillary wall thickness in tumor and normal tissue. Phenylephrine decreased, and hydralazine increased, normal tissue perfusion as indicated by cardiac output. Tumor blood flow remained low and was not significantly influenced by drug treatment, except for the phenylephrine effect on hard tumors. Histological study of tumor vessel walls revealed· an absence of smooth muscle capable of responding to the vasoactive drugs by constriction or dilation. Evidently, by their selective action on normal vessels, vasoactive drugs can change the ratio of tumor to normal tissue perfusion. In particular, the increase of normal tissue vs. tumor blood flow by vasodilator drugs may enhance the selectivity of local heat therapy

Theoretical Feasibility of Vasodilator-enhanced Local Tumor Heating

Normal arterioles, in contrast to the abnormal microvasculature of many solid tumors, provide a target for selective drug action that can enhance local heat treatment of the tumors. Measurements of tissue blood flow with radioactive microspheres and estimates of changes in blood flow with thermal clearance methods revealed that vasodilator drugs either decreased or did not alter blood flow in hamster melanoma, rat hepatoma, and canine transmissible venereal tumor, while increasing perfusion in adjacent normal tissues 2 to 4-fold. Solutions of the bio-heat transfer equation, which take into account such selective effects of vasodilators on blood flow in normal tissues, clearly demonstrate improved selective heating for spheroidal tumors over 2 cm in diameter. In the presence of vasodilator drug effect, steady-state center tumor temperatures of 45-50°C can be achieved by increased power input, while surrounding normal tissues remain below 42°C

Public healthcare financing and provision in Hong Kong : a public-private partnership approach

published_or_final_versionPolitics and Public AdministrationMasterMaster of Public Administratio

Dynamic Clustering of Histogram Data Based on Adaptive Squared Wasserstein Distances

This paper deals with clustering methods based on adaptive distances for histogram data using a dynamic clustering algorithm. Histogram data describes individuals in terms of empirical distributions. These kind of data can be considered as complex descriptions of phenomena observed on complex objects: images, groups of individuals, spatial or temporal variant data, results of queries, environmental data, and so on. The Wasserstein distance is used to compare two histograms. The Wasserstein distance between histograms is constituted by two components: the first based on the means, and the second, to internal dispersions (standard deviation, skewness, kurtosis, and so on) of the histograms. To cluster sets of histogram data, we propose to use Dynamic Clustering Algorithm, (based on adaptive squared Wasserstein distances) that is a k-means-like algorithm for clustering a set of individuals into $K$ classes that are apriori fixed. The main aim of this research is to provide a tool for clustering histograms, emphasizing the different contributions of the histogram variables, and their components, to the definition of the clusters. We demonstrate that this can be achieved using adaptive distances. Two kind of adaptive distances are considered: the first takes into account the variability of each component of each descriptor for the whole set of individuals; the second takes into account the variability of each component of each descriptor in each cluster. We furnish interpretative tools of the obtained partition based on an extension of the classical measures (indexes) to the use of adaptive distances in the clustering criterion function. Applications on synthetic and real-world data corroborate the proposed procedure