Evaluating debt repurchases: what are the alternative to investment?

In this paper a general model of debt repurchases is built which reconciles most of the points raised in the literature on debt buybacks. It is shown that results previously found in the literature can be obtained from this general model and are strongly dependant on assumptions made on its parameters. The condition that determines whether or not buybacks are an attractive solution from the point of the debtor nations is derived. Additionally it is shown that if there are other assets safer than investment, a debt buyback will always lead to an increase in investment and a reduction in the holdings of such other assets. This result holds independently of the source of the resources used for the buyback, unlike previous suggestions. With a buyback out of current resources, optimal reserves levels fall by more than what is used for the buyback, releasing extra resources for investment purposes, while current consumption does not fall. (JEL F34

Evaluating debt repurchases: what are the alternative to investment?.

In this paper a general model of debt repurchases is built which reconciles most of the points raised in the literature on debt buybacks. It is shown that results previously found in the literature can be obtained from this general model and are strongly dependant on assumptions made on its parameters. The condition that determines whether or not buybacks are an attractive solution from the point of the debtor nations is derived. Additionally it is shown that if there are other assets safer than investment, a debt buyback will always lead to an increase in investment and a reduction in the holdings of such other assets. This result holds independently of the source of the resources used for the buyback, unlike previous suggestions. With a buyback out of current resources, optimal reserves levels fall by more than what is used for the buyback, releasing extra resources for investment purposes, while current consumption does not fall. (JEL F34)Debt Overhang; Debt Repurchases; Investment Incentives;

Incentives for cost reducing innovations under quantitative import restraints

The effect of quotas on fmns' incentive to invest in cost-reducing R&D is studied in a two-stage price-setting duopoly. A domestic and a foreign firm choose initially R&D efforts and then set the prices of their differentiated products in the domestic market. With a quota imposed at, or close to, the free-trade level of imports, the domestic fmn faces less competition than under free-trade and chooses to invest less in R&D. Contrarily, the constrained foreign fmn invests more in R&D as the negative strategic effect of a reduction in its cost is now absent. These results differ from the Coumot duopoly case in which R&D expenditures are lower for both fmns. We also show that as the quota becomes more restrictive, the domestic fmn increases and the foreign fmn decreases its expenditures in R&D. Finally, we show that domestic welfare is a1ways higher under free-trade than under any quota regardless of the degree of product substitutability

The role of commitment and the choice of trade policy instruments

The incentives for governments to impose subsidies and tariffs on R&D and output is analyzed in a differentiated good industry where firms invest in a cost saving technology. When government commitment is credible, subsidies to R&D and output are positive both under Bertrand and Cournot competition. In the absence of government commitment the policy instrument is a tariff under Bertrand, and a subsidy under Cournot, competition. However, welfare under free trade is always greater than imposing a tariff unilaterally, or bilaterally, and hence non-committal under price competition is never an equilibrium. If a government has to choose either a subsidy on R&D (or on output) then, independent of price or quantity competition, it subsidies R&D for low levels of product substitutability and output for higherlevels of substitutability

Incitations à l'innovation afin de réduire les coûts de production sous des restrictions quantitatives à l'importation.

The effect of trade quotas on firms’ incentive to invest in cost-reducing R&D is studied in a two-stage price-setting duopoly game. A domestic and a foreign firm first choose R&D levels and then set the prices of their differentiated products in the domestic market. With a quota imposed at, or close to, the free-trade level of imports, the domestic firm faces less competition than under free-trade and invests less in R&D. Contrarily, the constrained foreign firm invests more in R&D as the negative strategic effect of a reduction in its cost is now absent. These results differ partially from the Cournot duopoly case in which R&D expenditures are lower for both the firms. As the quota becomes more restrictive, the domestic firm increases and the foreign firm decreases its expenditures on R&D. Domestic welfare is always higher under free-trade than under any quota regardless of the degree of product substitutability.-------------------------------------------------------Dans cet article, une firme nationale et une firme étrangère choisissent leurs niveaux de R&D dans un premier temps, puis fixent les prix de leurs produits différenciés sur le marché national. Si le quota imposé est égal ou est suffisamment proche du niveau des importations sous libre échange, la firme nationale investit moins en R&D. La firme étrangère contrainte investit plus, vu que l’effet stratégique négatif de la réduction des coûts par la R&D disparaît. On montre aussi que le niveau de bien-être national est toujours plus élevé sous libre échange indépendamment du degré de substituabilité des produits.Kujal and Petrakis acknowledge support from the DGICYT grant PB95-287 and financial support from the grant Accio´ n Integrada Hispano-Portuguesa 1996, 29 B. Cabral acknowledges financial support from the grant Açôes Integradas Luso- Espanholas E-63/96.Publicad

Mercado de crédito no Brasil: o papel do judiciário e de outras instituições

"Este artigo foi realizado como parte do projeto de pesquisa Institutional Arrangements to Ensure Willingness to Pay in Financial Markets: A Comparative Analysis of Latin America and Europe, conduzido no Brasil pelo Centro de Estudos de Reforma do Estado (Ceres/EPGE/FGV), no contexto da Rede de Centros de Pesquisa do Banco Interamericano de Desenvolvimento (BID)."1. Introdução -- 2. Tamanho e estrutura dos mercados de crédito no Brasil --2.1. Tamanho dos mercados de crédito e alocação de crédito -- 2.2. Taxas de juros -- 2.3. Taxas de crédito -- 3. Recuperando um empréstimo: quais as alternativas do credor? -- 4. Impacto do Judiciário nos mercaos de crédito: uma análise interestadual -- 4.1. Atividade de crédito e o desempenho do judiciário no nível estatal -- 4.2. Estimando o impacto do desempenho do judiciário no tamanho dos mercados de crédito -- 5. Arranjos alternativos privados e públicos para assegurar a propenção a pagar -- 5.1. Agências de crédito -- 5.1.1. Um modelo de inadimplência e informação -- 5.1.2. Bancos de dados -- 5.1.3. Cheques pré-datados -- 5.1.4. Agências de cobrança -- 5.2. Bancos públicos -- 5.3. Pressão dos pares -- 5.3.1. Cooperativas de crédito -- 5.3.2. BNDES Solidário -- 6. Comentários finais -- Anexo A. Glossário -- Anexo B. Estatísticas do mercado de crédito -- Anexo C. Regimento legal das garantias do credor -- Anexo D. Serviços oferecidos pelo Serasa -- Referências Bibliográfica

“Belonging without being”: Relationships between problematic gaming, internet use, and social group attachment in adolescence

ABSTRACT: Gaming and Internet use are positively associated with benefits for interpersonal relationships in adolescence, with these behaviors when excessive having been negatively linked with positive aspects of interpersonal connections, such as secure attachment. Using a representative sample of 7918 Portuguese adolescents, with ages ranging from 13 to 19 (Mage = 15.5, 53.3% females), and three self-report measures of problematic gaming, problematic Internet use, and social group attachment (secure, anxious, avoidant), this cross-sectional study aimed to examine the associations between problematic gaming, as well as problematic Internet use, and secure and insecure (anxious and avoidant) social group attachment styles, in the groups with and without these problems. In the groups without problematic gaming and without problematic Internet use, excessive gaming and involvement with the Internet were negatively associated with secure social group attachment and positively associated with anxious social group attachment; on the other hand, in the groups with severe levels of these problems, problematic gaming and Internet use were positively associated with secure social group attachment and negatively associated with anxious social group attachment. These results go against what had been initially hypothesized and suggest that in the case of adolescents with severe levels of these problems, they may serve as an effective compensatory mechanism for coping with the negative effects of insecure attachment styles, which in turn likely contributes to the maintenance of problematic gaming and Internet use.info:eu-repo/semantics/publishedVersio

Emotion regulation weakens the associations between parental antipathy and neglect and self-harm

ABSTRACT: Using a representative sample of 7918 Portuguese adolescents (Mage = 15.5, SD = 1.7, 53.3% female gender) and three self-report measures of parental antipathy and neglect, self-harm and its functions, and emotion regulation, this cross-sectional study examined the moderating role of emotion regulation in the links between these negative childhood experiences and self-harm in adolescence. Maternal and paternal antipathy and neglect had the largest effects on self-harm for youth with low levels of emotion regulation. These results emphasize the relevance of promoting emotion regulation across multiple contexts (e.g., school, family, legal system) for the prevention of adolescent self-harm, even in situations with a history of childhood emotional abuse and/or neglect.info:eu-repo/semantics/publishedVersio