The Economics of Uncovered Interest Parity Condition for Emerging Markets: A Survey

Financial account liberalizations since the second half of the 1980s paved way for the burgeoning literature that investigates foreign exchange market efficiency in emerging markets via testing for the uncovered interest parity (UIP) condition. This paper provides a broad and critical survey on this recent literature as well as a general understanding on the topic through reviewing the related literature on developed economies where recent methodological advances in time series econometrics have provided favorable results, questioning the previously documented UIP puzzle. The literature on emerging markets suggests that these countries deserve a special treatment by taking into account the existence of additional types of risk premia, high inflation episodes, financial contagion, peso problem, simultaneity problem, asymmetricity, and the determination of de facto structural breaks.Uncovered Interest Parity; Forward Premium Bias; Emerging Markets

Mistakes, Crises, and Research Independence: The Perils of Fieldwork as a form of Evidence

Drawing on examples from rural Ethiopia and Uganda, this research note highlights some of the difficulties experienced in fieldwork. These difficulties do not justify the reluctance of increasingly risk-averse universities and funders to support independent fieldwork in Africa, but they do show that the rationale for research and the features of its design can provoke animosity and tensions. They also show that our own failure on occasion to appreciate local political dynamics made the situation more difficult. Challenges and threats came not only from local political forces but also from multinational companies and Fairtrade organizations uncomfortable with our findings and with fully independent research. The research note argues that the details of our experience have a practical value for other researchers, and that at least some of them should be treated as substantive forms of evidence and insight, rather than simply as threats or failures. We conclude that some crude best-practice norms and pressures on academics to form partnerships to conduct policy-relevant work may undermine the potential for truly independent and intensive field research. However, crises should not necessarily be seen as an unwelcome interruption to smooth processes of research; they can illuminate the context and power relations that the research is trying to understand

Fairtrade and Labour Markets in Ethiopia and Uganda

Drawing on four years of fieldwork in Ethiopia and Uganda, this paper addresses gaps in knowledge about the mechanisms linking agricultural exports with poverty reduction, the functioning of rural labour markets, and the relevance to the lives of the poorest people of Fairtrade. Statistical analysis of survey evidence, complemented by qualitative research, highlights the relatively poor payment and non-pay working conditions of those employed in research sites dominated by Fairtrade producer organizations. We conclude that Fairtrade is not an effective way to improve the welfare of the poorest rural people

The welfare effects of government's preferences over spending and its financing

In this paper we examine the welfare effects of government's preferences over consumption and investment spending under different methods of financing in a two-period OLG model. The government has a utility function defined over the decomposition of her spending over two periods and raises funds by issuing bonds and by printing money. She allocates her funds into consumption expenditure that benefits the current population and investment expenditure which benefits the future population. The model is calibrated using data on the U.S. economy for the period 1981-2004. The findings reveal that the government's choice of financing as well as composition of spending into consumption-investment have differing impacts on the welfare of the young and old generations.Seigniorage; Bond financing; Composition of government spending; Overlapping generations

HESS J1826−-130: A Very Hard γ\gamma-Ray Spectrum Source in the Galactic Plane

HESS J1826$-$130 is an unidentified hard spectrum source discovered by H.E.S.S. along the Galactic plane, the spectral index being $\Gamma$ = 1.6 with an exponential cut-off at about 12 TeV. While the source does not have a clear counterpart at longer wavelengths, the very hard spectrum emission at TeV energies implies that electrons or protons accelerated up to several hundreds of TeV are responsible for the emission. In the hadronic case, the VHE emission can be produced by runaway cosmic-rays colliding with the dense molecular clouds spatially coincident with the H.E.S.S. source.Comment: 6 pages, 3 figures, Proceedings of the 6th International Symposium on High Energy Gamma-Ray Astronomy (Gamma2016), Heidelberg, German

Complex organics in IRAS 4A revisited with ALMA and PdBI: Striking contrast between two neighbouring protostellar cores

We used the Atacama Large (sub-)Millimeter Array (ALMA) and the IRAM Plateau de Bure Interferometer (PdBI) to image, with an angular resolution of 0.5$''$ (120 au) and 1$''$ (235 au), respectively, the emission from 11 different organic molecules in the protostellar binary NGC1333 IRAS 4A. We clearly disentangled A1 and A2, the two protostellar cores present. For the first time, we were able to derive the column densities and fractional abundances simultaneously for the two objects, allowing us to analyse the chemical differences between them. Molecular emission from organic molecules is concentrated exclusively in A2 even though A1 is the strongest continuum emitter. The protostellar core A2 displays typical hot corino abundances and its deconvolved size is 70 au. In contrast, the upper limits we placed on molecular abundances for A1 are extremely low, lying about one order of magnitude below prestellar values. The difference in the amount of organic molecules present in A1 and A2 ranges between one and two orders of magnitude. Our results suggest that the optical depth of dust emission at these wavelengths is unlikely to be sufficiently high to completely hide a hot corino in A1 similar in size to that in A2. Thus, the significant contrast in molecular richness found between the two sources is most probably real. We estimate that the size of a hypothetical hot corino in A1 should be less than 12 au. Our results favour a scenario in which the protostar in A2 is either more massive and/or subject to a higher accretion rate than A1, as a result of inhomogeneous fragmentation of the parental molecular clump. This naturally explains the smaller current envelope mass in A2 with respect to A1 along with its molecular richness.Comment: Accepted in Astronomy and Astrophysic