Culture and social resistance to reform: a theory about the endogeneity of public beliefs with an application to the case of Argentina

This paper attempts to understand the factors that explain the degree of support or criticism that a reform process may be subject to. Understanding these determinants is critical, in turn, to assess the feasibility and sustainability of those reforms. In particular, we want to assess what are the elements that create societal consensus for reform and which are the main factors that turn public opinion against it. In the case of Argentina, for example, such dynamics are critical to understand how public opinion imposed constraints on government behavior, affected macroeconomic performance, and ultimately, determined the chance of success of reforms.

A Note on the Equivalence between Contractual and Tort Liability

The aim of this paper is to conciliate some conclusions of the economic theories of breach of contract and tort law. The main result is that the two efficient alternatives that tort law identifies (negligence rule and strict liability with a defense of contributory negligence) are mirrored by two efficient ways of defining contract damages. The first consists of forcing the debtor to pay expectation damages but limiting the level of the creditor’s reliance (rule of damage mitigation). The second consists of obliging the debtor to pay expectation damages only when his breach of contract implies negligence, otherwise using restitution remedies (doctrines of impracticability and force majeure).

Cavity-enhanced second harmonic generation via nonlinear-overlap optimization

We describe an approach based on topology optimization that enables automatic discovery of wavelength-scale photonic structures for achieving high-efficiency second-harmonic generation (SHG). A key distinction from previous formulation and designs that seek to maximize Purcell factors at individual frequencies is that our method not only aims to achieve frequency matching (across an entire octave) and large radiative lifetimes, but also optimizes the equally important nonlinear--coupling figure of merit $\bar{\beta}$, involving a complicated spatial overlap-integral between modes. We apply this method to the particular problem of optimizing micropost and grating-slab cavities (one-dimensional multilayered structures) and demonstrate that a variety of material platforms can support modes with the requisite frequencies, large lifetimes $Q > 10^4$, small modal volumes $\sim (\lambda/n)^3$, and extremely large $\bar{\beta} \gtrsim 10^{-2}$, leading to orders of magnitude enhancements in SHG efficiency compared to state of the art photonic designs. Such giant $\bar{\beta}$ alleviate the need for ultra-narrow linewidths and thus pave the way for wavelength-scale SHG devices with faster operating timescales and higher tolerance to fabrication imperfections

International Research Project on Job Retention and Return to Work Strategies for Disabled Workers: New Zealand

[Excerpt] The International Research Project on Job Retention and Return to Work Strategies for Disabled Workers is an initiative of the International Labour Organisation (ILO) and the Global Applied Research and Information Network on Employment and Training (GLADNET). It reflects ILO and GLADNET joint aims of establishing a base for cross-national research and strengthening links between research analysis and policy reform in the field of employment of disabled people. The Project is a response to a combination of developments which highlight the need for more effective policies and practices in support of workers whose prospects of remaining in employment are jeopardised by work injury, illness or disability. Persons with disabilities are increasingly claiming rights to stay in work as well as to access employment. Pressures on state budgets, the rising costs of compensation claims and disability benefits, and changes in the structure of the labour market are strengthening policies in favour of job retention and return to work. Enterprises are developing their own strategies to minimise the costs of disability and to retain valued employees. Overall, the balance of responsibility is shifting from the state to the enterprise. Policies and practices to prevent disabled workers from leaving work unnecessarily, and to facilitate rapid return to employment if job loss cannot be prevented, are recent developments in many countries. The cross-national exchange of information on initiatives and their effects is limited. The first aim of this Project has been to gather information about what has been attempted, by whom, for what purposes, in which contexts and to what effects. The second, more ambitious, aim, is to examine the interaction between the various policies and practices, identify dysfunctions, and work towards more coherent and cost-effective strategies for job retention and return to work which might be applied in different national systems. The ultimate objective is to identify strategies which can be put into effect in the workplace

Valuation of Debt Indexed to Real Values I. The case of the Argentinean Growth Coupon: a Simple Mode

This paper is the first of a series of works whose aim is trying to provide a framework for the understanding and valuation of debt indexed to real (gener- ally non-tradable) variables. In particular, in the present paper we develop a methodology to analytically value the new GDP-linked Argentinean warrant.

Analysis of Latin America's Corporations as a Rational Response to the Economic Environment Present in the Region - Part I

This is the first of a series of working papers analyzing the basic characteristics of the economic environment in which Latin American Corporations live and the optimal design of incentive programs compatible with such environment. By economic environment we mean the technology that the organizations have access to, the legal framework present in these countries, the macro-economical characteristics, the markets in which they operate (competitors, monopolies, customers, reliability of suppliers, etc.), the nature of their capital markets and in general of the sources of financing for their companies, etc. We could broadly say that any key feature of the economy that has the potential to influence the way business is run in Latin America is part of its economic environment. The underlying unifying idea in this series is that, unless we have clear evidence to the contrary, corporate practices observed in Latin American firms are rational responses to the environment in which they operate. They are a sort of Darwinian adaptation to such environment. Therefore, much like in biological systems, these characteristics of corporations should be considered optimal in a relative sense. That is, in order to survive in the market, the observed corporate practices should be better that the ones from the competition for the given economic environment. This observation suggests that improvements to the observed practices are indeed possible. In fact, the present series of working papers is in part structured to explore possible improvements. These improvements, however, are not likely to be the simple copy of corporate practices that evolved as an optimal response to the environment of the developed world. In this first work we present some important empirical characteristics of the Latin American Corporations and the first key aspect of the economic environment prevailing in this region: the legal framework. We show how many of the empirical characteristics presented can be see as optimal responses to the legal framework.

Quantifying Latin American firms'exposure to external factors

This is the last of a series of three working papers analyzing the basic characteristics of the economic environment in which Latin American firms operate and the optimal design of incentive programs compatible with such environment. Executive pay-for-performance compensation schemes are usually based on stock returns. However, stock returns change in response to forces beyond management control (e.g., market crushes). The economic environment in which Latin American firms operate is highly unstable, which means that this is a very important limitation for Latin American firms. In the present paper, we present a procedure to decompose variability in stock returns in order to identify and measure components that respond to external factors beyond management control. For this, we have created indices that capture statistically the external influences that affect stock returns. We show how such indices can be used to construct a risk profile that allows management to know to what extent observed outcomes depend on external factors, versus their own actions. In addition, these indices can be used as a basis to develop "indexed options": financial instruments designed to factor out the effects of external risks, making it possible for executives to be evaluated only on the basis of the value they generate. We show that these indices can be developed out of purely local information, but that the solutions tend to be moderately unstable, which implies that compensation instruments developed with this methodology should be of relatively short maturity.