Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model

Although a major contribution to trade theory, Krugman’s 1979 demonstration that ‘trade can arise and lead to mutual gains even when countries are similar’ fails to make explicit the economic mechanisms that lead up to this result. The current paper attempts to fill this gap by addressing several questions that are implicit in Krugman’s demonstration but which he does not explicitly analyze: - What is the effect of trade upon the demand curve faced by the typical firm in each nation? - How do firms react to the change in the demand curves they face, and what is the short-term outcome of their behaviour? - Why do some firms fail? - What is the role of the failure of firms in the adjustment to the final free trade equilibrium?Krugman, intra-industry trade, economies of scale, monopolistic competition.

Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model

Although a major contribution to trade theory, Krugman's 1979 demonstration that 'trade can arise and lead to mutual gains even when countries are similar' fails to make explicit the economic mechanisms that lead up to this result. The current paper attempts to fill this gap by addressing several questions that are implicit in Krugman's demonstration but which he does not explicitly analyze: - What is the effect of trade upon the demand curve faced by the typical firm in each nation? -How do firms react to the change in the demand curves they face, and what is the short-term outcome of their behaviour? Why do some firms fail? What is the role of the failure of firms in the adjustment to the final free trade equilibrium

Risk management, the subprime crisis and financialisation: the role of risk management in the generation and transmission of the subprime crisis

Documento elaborado e integrado no Projecto FESSUD, University of Leeds, projecto fundado pela União EuropeiaOver time the financial sector has gained greater relevance in the economy, a phenomenon that some call financialisation. Contrary to the mainstream view, financialisation literature emphasises that risk management by financial corporations will not be socially efficient in a context of deregulated markets and will ultimately lead to an increase of aggregate risk and crises. To assess the validity of such claim, in this paper we review the literature on risk management during the Subprime crisis. These failures fall into three categories: technique and methodology, corporate governance and strategy, and regulation and external factors. These failures can be interpreted in the light of the financialisation perspective, which is therefore a valuable approach when addressing regulatory changes in the financial system.info:eu-repo/semantics/publishedVersio

The non-for-profit banks in Portugal: specificities, social role and evolution

Colecção DINÂMIA'CET-RN - Artigo em revista científica nacional com arbitragem científicaEste artigo procura definir as principais diferenças entre a generalidade dos bancos e os dois bancos com atitude não lucrativa que operam no mercado bancário português (Caixa Agrícola e Caixa Económica-Montepio Geral). Encontramos diferenças em termos da forma de captar fundos; em termos dos critérios de governação; do regime fiscal; da aplicação dos lucros; e da atitude em relação ao lucro. A Caixa Agrícola opera de forma mais próxima dos bancos cooperativos do que a Caixa Económica-Montepio Geral. Ambos os bancos têm vindo a modernizar-se e construir grupos financeiros modernos que oferecem uma enorme variedade de produtos e serviços financeiros, semelhantes à generalidade dos bancos. Contudo, isto não foi suficiente para evitar alguma erosão das suas posições no mercado bancário (quer em termos de crédito concedido quer em termos de depósitos recebidos). O impacto da crise financeira de 2008 na rendibilidade da Caixa Agrícola foi semelhante à média do sector bancário. No caso da Caixa Económica-Montepio Geral, o impacto foi menos grave que na média do sector.This paper establishes the main differences between standard commercial banks and the two non-for-profit banks operating in Portugal (Caixa Agrícola – CA – and Caixa Económica Montepio Geral – CE-MG). In particular, we find differences in the way funds are raised, governance criteria, tax regime, application of profits and attitude towards profit. However, CA is more similar to a typical co-operative/mutual bank than CE-MG. Both banks have modernized and transformed into modern financial groups offering a wide variety of financial products similar to any commercial bank. However, this was not enough to avoid an erosion of their market position in terms of credit and deposits. The 2008 financial crisis’ impact on the profitability of CA was similar to the impact on the industry average, whereas on CE-MG the impact was milder.info:eu-repo/semantics/publishedVersio

HEIDEGGER, A FENOMENOLOGIA E O PODER

For Heidegger, phenomenology is not a starting point. It is not asepsis to think. Phenomenology is first of all a way, a way of access to Being to be. It is neither the starting point nor the starting point for a relationship, but above all the very thing, the radical exercise of thought. Without phenomenology there is neither thought nor realization of what is and is being, of what is and is not being, of what is just being. Such is the meaning of the expression of E. Husserl, "die Sache Selbst", the very thing of thought. Thing and cause are not only the same word, but above all they have the same meaning. Meaning is a process and dynamic of realization of every phenomenon. That is why the Greeks took ta onta and ta fainomena as synonyms. To be is to manifest and cover up in the realization and not achievement of being at all.Para Heidegger, a fenomenologia não é um ponto de partida. Não se trata de assepsia para poder pensar. A Fenomenologia é antes de tudo um caminho, uma via de acesso de Ser para ser. Não é nem ponto de partida nem ponto de chegada para um relacionamento, mas sobretudo e em tudo a própria coisa, o exercício radical do pensamento. Sem fenomenologia não se dá nem pensamento nem realização do que é e está sendo, do que não é nem está sendo, do que está apenas vindo a ser. Tal é o sentido da expressão de E. Husserl, “die Sache selbst”, a própria coisa do pensamento. Coisa e causa não são apenas a mesma palavra, como sobretudo têm o mesmo sentido. Sentido é processo e dinâmica de realização de todo fenômeno. Por isso é que os gregos tomavam, como sinônimos, ta onta e ta fainomena. Ser é manifestar-se e encobrir-se na realização e não realização de todo sendo

Financialisation in the european periphery and the sovereign debt crisis: the portuguese case

Working papers com arbitragem científicaThe financial sector has acquired great prominence in most developed economies. However, some authors argue that the growth of finance is at the root of the current financial and economic difficulties. This paper aims to analyse this claim by looking at financialisation in the European periphery, focusing on the Portuguese case. The emergence of this phenomenon is contextualised from a historical, economic and international perspective. Based on the analysis of several indicators, the paper concludes that the Portuguese economy exhibits symptoms of financialisation, and that this has not only revealed the structural weaknesses of the Portuguese economy but also played an important role in the emergence of the recent Portuguese sovereign debt crisis.info:eu-repo/semantics/publishedVersio

Financialisation and the financial and economic crises: the case of Portugal

Documento elaborado e integrado no Projecto FESSUD, University of Leeds, projecto fundado pela União EuropeiaThe notion of 'financialisation' broadly refers to the growing weight of finance in contemporary economies. Taking this into account, the present study focus on the long-run macroeconomic development and recent financial and economic crisis of the Portuguese economy. Contrary to Greece, Ireland, and Spain, the dismal performance of the Portuguese economy is not solely a post-subprime crisis phenomenon. The sharp discontinuity in GDP growth around the turn of the century is a distinctive feature of Portugal in the EU context and, although several factors account for this discontinuity, the process of financialisation of the Portuguese economy is an essential part of the explanation. This process in Portugal was essentially characterised by a large increase in bank credit to the private sector, resulting from a combination of demand- and supply-side factors that produced a wide availability of credit at historically low interest rates. Thus, we suggest that the Portuguese experience can be labelled a ‘debt-led domestic demand growth’ model. However, after 2000 the Portuguese economy experienced a succession of shocks, and an exhaustion of the domestic debt-led growth at a much earlier stage than other countries, resulting in a sharp economic slowdown, with negative consequences for public finances. The high levels of public and private indebtedness were a decisive factor behind the steep rise in the Portuguese sovereign bonds interest rates between 2010 and 2012. Finally, we assess the impact of financialisation in the current account, investment, consumption, and inequality; articulating these domains with the general growth model. Our conclusion is that the increase in the importance of finance ended having a clear negative impact on the three former domains, while the negative impact on income inequality was less pronounced.info:eu-repo/semantics/publishedVersio

Report on the financial system in Portugal

Documento elaborado e integrado no Projecto FESSUD, University of Leeds, projecto fundado pela União EuropeiaThis Report assesses the extent, nature, and effects of financialisation in Portugal. It also discusses the contribution of financialisation for the crisis that presently affects the Portuguese economy. The liberalization of the banking sector, the easier access to international financial markets, and the growth of credit fostered the development of the Portuguese financial sector.info:eu-repo/semantics/publishedVersio

Financialisation in the european periphery and the sovereign debt crisis: the portuguese case

Working papers com arbitragem científicaThe financial sector has acquired great prominence in most developed economies. However, some authors argue that the growth of finance is at the root of the current financial and economic difficulties. This paper aims to analyse this claim by looking at financialisation in the European periphery, focusing on the Portuguese case. The emergence of this phenomenon is contextualised from a historical, economic and international perspective. Based on the analysis of several indicators, the paper concludes that the Portuguese economy exhibits symptoms of financialisation, and that this has not only revealed the structural weaknesses of the Portuguese economy but also played an important role in the emergence of the recent Portuguese sovereign debt crisis.info:eu-repo/semantics/publishedVersio

Fiscal sustainability analysis : the case of PALOP economies

The Global Financial Crisis has typically led to a significant widening of fiscal positions (i.e., higher budget deficits and public debt). We address the sustainability of public finances in Portuguese-speaking African countries (PALOP), through adequate econometric testing. Our findings for the period 1975-2015 suggest that most of the PALOP have compromised the sustainability of their corresponding fiscal positions, leading these economies to be set on unsustainable public finance trajectories.info:eu-repo/semantics/publishedVersio