The Decision to Export and the Volatility of Sales

This paper studies the export decision of risk-averse firms in a model featuring aggregate uncertainty and no capital markets. Firms seeking to enter the foreign market face a sunk cost as well as a fixed participation cost every period they export. Using a calibrated version of the model, I show that firms are more likely to export when the correlation between domestic and foreign aggregate shocks is negative and when their degree of risk-aversion is higher. Counterfactual experiments show that exporting increases the volatility of total sales.Exports, Aggregate uncertainty, Heterogeneous-firm models of international trade

Exports, Investment and Firm-Level Sales Volatility

This paper presents a dynamic model of risk-averse producers’ decision to invest in physical capital and to export. The model features irreversible investment, no capital markets and fixed and sunk costs to export. Several features of the distribution of investment rates and export participation patterns observed in firm-level data are closely matched in a calibration exercise. Counterfactual experiments show that large adjustments in total sales associated with entry into foreign markets increase the volatility of total sales for exporting firms.exports, investment, uncertainty

Responsabilidad corporativa y discapacidad en Barclays

Ponencias de las Terceras Jornadas sobre Empleo y Discapacidad celebradas el 29 de abril de 2009 en la Universidad Carlos III de MadridNo publicad

Thermal effects on geologic carbon storage

The final publication is available at Springer via http://dx.doi.org/10.1016/j.earscirev.2016.12.011One of the most promising ways to significantly reduce greenhouse gases emissions, while carbon-free energy sources are developed, is Carbon Capture and Storage (CCS). Non-isothermal effects play a major role in all stages of CCS. In this paper, we review the literature on thermal effects related to CCS, which is receiving an increasing interest as a result of the awareness that the comprehension of non-isothermal processes is crucial for a successful deployment of CCS projects. We start by reviewing CO2 transport, which connects the regions where CO2 is captured with suitable geostorage sites. The optimal conditions for CO2 transport, both onshore (through pipelines) and offshore (through pipelines or ships), are such that CO2 stays in liquid state. To minimize costs, CO2 should ideally be injected at the wellhead in similar pressure and temperature conditions as it is delivered by transport. To optimize the injection conditions, coupled wellbore and reservoir simulators that solve the strongly non-linear problem of CO2 pressure, temperature and density within the wellbore and non-isothermal two-phase flow within the storage formation have been developed. CO2 in its way down the injection well heats up due to compression and friction at a lower rate than the geothermal gradient, and thus, reaches the storage formation at a lower temperature than that of the rock. Inside the storage formation, CO2 injection induces temperature changes due to the advection of the cool injected CO2, the Joule-Thomson cooling effect, endothermic water vaporization and exothermic CO2 dissolution. These thermal effects lead to thermo-hydro-mechanical-chemical coupled processes with non-trivial interpretations. These coupled processes also play a relevant role in “Utilization” options that may provide an added value to the injected CO2, such as Enhanced Oil Recovery (EOR), Enhanced Coal Bed Methane (ECBM) and geothermal energy extraction combined with CO2 storage. If the injected CO2 leaks through faults, the caprock or wellbores, strong cooling will occur due to the expansion of CO2 as pressure decreases with depth. Finally, we conclude by identifying research gaps and challenges of thermal effects related to CCS.Peer ReviewedPostprint (author's final draft

Political Environment and Privatization Prices

This paper studies the link between the political and institutional context and privatization sales prices. The latter serves as a measure for assessing the relative performance of the privatization goals. Whereas this link has been studied theoretically, there are very few, if any, empirical papers on this relationship. Using data from 308 privatizations around the world and applying a cross-country approach (including instrumental variables), we find that, while the overall political regime does not matter much for prices, the political processes beyond the basic regime do matter. Institutional context also produces a significant impact on prices. Both results are robust to changes in specification.

Global Engagement and Returns Volatility

This paper finds that a greater reliance on foreign market sales increases the volatility of firms’ stock returns, using high-frequency data for publicly listed Japanese manufacturing firms over the period 2000–10. The two margins of global engagement we consider, namely, exports and sales via foreign affiliates (horizontal foreign direct investment), have both a positive and economically significant effect on firm-level volatility. We find, however, that increasing the intensity of sales through foreign affiliates has a stronger effect on volatility than a similar change in export intensity. We also uncover evidence consistent with the notion that firms’ need to use external finance to cover the substantial costs involved in reaching foreign consumers can be an important channel through which firms’ participation in international markets increases their exposure to economic uncertainty

Corporate Acquisitions and Firm-level Uncertainty: Domestic versus Cross-Border Deals

This paper studies the impact of corporate acquisitions on the uncertainty faced by acquiring firms. We use data for UK public companies from 2004 to 2017 and employ a matching estimator combined with difference-in-differences to control for the endogenous selection of firms into acquiring status. Acquisitions exert a large and persistent effect on the volatility of stock returns of acquirers and is characterized by a pecking order: domestic takeovers lead to a reduction in the uncertainty faced by the acquirer, while cross-border acquisitions|particularly those involving target firms in emerging markets|engender a positive response in acquirers' volatility

On the Well-posedness for the Chen-Lee equation in periodic Sobolev spaces

We prove that the initial value problem associated to a perturbation of the Benjamin-Ono equation or Chen-Lee equation $u_t+uu_x+\beta \mathcal{H}u_{xx}+\eta (\mathcal{H}u_x - u_{xx})=0$, where $x\in \mathbb{T}$, $t> 0$, $\eta >0$ and $\mathcal{H}$ denotes the usual Hilbert transform, is locally and globally well-posed in the Sobolev spaces $H^s(\mathbb{T})$ for any $s>-\frac{1}{2}$. We also prove some ill-posedness issues when $s<-1$.Comment: 15 page