Access to Credit and the Effect of Credit Constraints on Costa Rican Manufacturing Firms

This paper examines the finances and the effect of credit limitations on the behavior and performance of firms in Costa Rica. The study is based on a survey of manufacturing firms conducted by the authors during 2001. The paper characterizes the profile firms’ finances, examines the determinants of firms’ access to banking credit and tries to assess the effect of credit constraints on the behavior and performance of firms. The paper finds that while banks are the main source of credit for larger firms, non-banking credit (trade plus informal credit) remains the leading source of funds for smaller firms. Moreover, own funds and informal credit is a leading form of credit for newly created firms. It is also found that the probability of having banking credit and the fraction of banking credit/total debt is mostly affected by (if anything) characteristics of the firm and not by those of their owners. Indeed, the firm’s value and age, and whether it keeps formal accounting procedures appear as the most relevant determinants of access to banking credit. With respect to the starting up finances of firms, the data is not conclusive on the determinants of banking credit, yet it suggests a negative relationship with the previous entrepreneurship experience of the owner. The paper discusses different explanations, all of which highlight the importance of credit constraints. Adopting ideas from the econometric literature on treatment effects, the paper explores the effect of banking credit on the behavior and performance of firms. Two different methods are used to correct for selection biases: a parametric two-step point method and a non-parametric method that estimates upper and lower bounds for the effects. While the results are not statistically conclusive, both methods do suggest that having access to banking credit positively affects firms’ performance.

Quality of Life in Urban Neighborhoods in Costa Rica

This paper considers valuation of amenities in urban neighborhoods and satisfaction with both those neighborhoods and life in general. First, rents are used to estimate neighborhood amenities price in San Jose, which explain 39 percent of the standardized variation of rents. Some districts rank very high in housing characteristics but poorly in neighborhood amenities, while others rank poorly in housing characteristics but high in neighborhood amenities, suggesting that indirect policy measures might reduce inequality in urban areas through improving neighborhood amenities. Second, the paper explores differences in the valuation of amenities by calculating prices in different urban areas. In more sparsely populated urban areas, distance to national parks becomes less important, but distance to primary roads becomes more important. Finally, housing and safety satisfaction represent the key components of life satisfaction.

Enforcement, Contract Design, and Default: Exploring the Financial Markets of Costa Rica

This paper examines the institutional determinants of incentives to repay in Costa Rica and their effects on defaults and the design of financial contracts. Enforcement mechanisms help to determine how much is paid back to creditors and how much shareholders receive as dividends. Theoretically, however, the most important effects will be on the observable characteristics of contracts, as rational agents foresee the incentives of other parties. As courts enforce contracts and punish defaulters, they determine the form contracts take and the magnitude and direction of investments. The paper contains findings on the practices of financial intermediaries that are discussed in the context of contract theory, with a focus on the formal financial intermediaries that are scattered throughout the country. Much of the information comes from primary sources, including a sample of almost 1,700 civil trials and a detailed survey on the credit policies of 31 intermediaries. This paper reviews the creditor-borrower relationship at all stages—ex ante, interim, and ex post. The evidence supports the importance of collateral and other ex post repayment incentives. The evidence also suggests that, contrary to the common view, banks are not passive lenders. They remain alert to how well projects perform and rely on previous experience and a rather sophisticated informational network in granting credit.

Bailouts in Costa Rica as a Result of Government Centralization and Discretionary Transfers

This paper investigates the inter-relation between the central government and the municipalities in Costa Rica. It examines episodes in which the central government has bailed out the local governments from their obligations. We employ empirical and descriptive methods to show how discretionary grants relate to the degree of fiscal discipline of the municipality to produce hidden bailouts. Political, demographic, and economic variables explain the allocation of these discretionary transfers. We illustrate the effects of the high concentration of decision-making of the central government on the fiscal performance of the municipalities. The municipalities play a limited role and its functioning largely depends upon the central government. We argue that the national administration would face a high political cost if it did not bail out the local government in several of the episodes studied. Using panel data from 1982-1997 on 81 cantones, we find that the fiscal effort of the local government is reduced by the presence of discretionary grants. The local governments finance local expenses with these discretionary transfers according to our empirical results. As expected from the centralization issue, political variables such as the affiliation of the local administration have significant effects on the resources received by the municipalities.

High Field de Haas - van Alphen Studies of the Fermi Surfaces of LaMIn5_{5} (M = Co, Rh, Ir)

We report measurements of the de Haas - van Alphen effect on a series of compounds, LaMIn$_{5}$ (M = Co, Rh, Ir). The results show that each of the Co and Ir Fermi surfaces (FSs) exhibit some portions that are two dimensional and some portions that are three dimensional. The most two dimensional character is exhibited in LaCoIn$_{5}$, less two dimensional behavior is seen in LaIrIn$_{5}$, no part of Fermi surface of LaRhIn$_{5}$ is found to have a two dimensional character. Thus the two dimensionality of portions of the FSs is largely determined by the d character of the energy bands while all of the effective masses remain $\leq$ 1.2. This fact has implications for the causes of the heavy fermion nature of superconductivity and magnetism in the Ce-based compounds having the similar composition and structure. All of the measurements were performed at the National High Magnetic Field Laboratory using either cantilever magnetometry or field modulation methods.Comment: 10 pages, 4 figure

Heisenberg-style bounds for arbitrary estimates of shift parameters including prior information

A rigorous lower bound is obtained for the average resolution of any estimate of a shift parameter, such as an optical phase shift or a spatial translation. The bound has the asymptotic form k_I/ where G is the generator of the shift (with an arbitrary discrete or continuous spectrum), and hence establishes a universally applicable bound of the same form as the usual Heisenberg limit. The scaling constant k_I depends on prior information about the shift parameter. For example, in phase sensing regimes, where the phase shift is confined to some small interval of length L, the relative resolution \delta\hat{\Phi}/L has the strict lower bound (2\pi e^3)^{-1/2}/, where m is the number of probes, each with generator G_1, and entangling joint measurements are permitted. Generalisations using other resource measures and including noise are briefly discussed. The results rely on the derivation of general entropic uncertainty relations for continuous observables, which are of interest in their own right.Comment: v2:new bound added for 'ignorance respecting estimates', some clarification

Trade-offs between overall survival and side-effects in the treatment of metastatic breast cancer : eliciting preferences of patients with primary and metastatic breast cancer using a discrete choice experiment

Acknowledgements We thank all the patients and volunteers who agreed to participate in this study and the study contributors.Peer reviewe

ABA Suppresses Botrytis cinerea Elicited NO Production in Tomato to Influence H2O2 Generation and Increase Host Susceptibility

Contains fulltext : 158667.pdf (publisher's version ) (Open Access)12 p

Sub-Heisenberg estimation of non-random phase-shifts

We provide evidence that the uncertainty in detection of small and deterministic phase-shift deviations from a working point can be lower than the Heisenberg bound, for fixed finite mean number of photons. We achieve that by exploiting non-linearity of estimators and coherence with the vacuum.Comment: Published version. Partially rewritten including further explanations and more numerical simulations. Updated reference