Financing Constraints and Corporate Growth

This paper analyses the dynamic investment and growth prospects of a financially constrained firm. Three types of financing constraints are examined: internal finance, debt ceiling and exponential interest costs. To study the growth dynamics of firms subject to the above constraints, numerical solutions, for assigned parameter values, are provided using the reverse shooting Runge-Kutta algorithm. The simulation results suggest that the firm"s real and financial variables are highly correlated for constrained firms, as the optimal policy of these businesses is to over-invest in capital in the initial years, and then deplete this excess capacity in future periods. This, however, results in slower rates of growth for the constrained firm, and for entities facing a debt ceiling, greater rates of fluctuation in their rates of expansionFinancing Constraints, Corporate Growth

Foreign direct investment and tourism in SIDS: evidence from panel causality tests

This study applies panel causality methods to investigate the relationship between foreign direct investment (FDI) and tourism in Small Island Developing States (SIDS). The results of the homogenous and instantaneous causality tests suggest that there is a bi-directional causal relationship between the variables. However, this causality is not homogenous for the group of countries. Indeed, heterogeneous causality procedures indicate that there exists a bi-directional causal relationship for only a small set of countries. For the most part, the causal relationship runs from FDI to tourism, implying that FDI provides much needed capacity for SIDS and therefore allows these countries to expand their tourism product.Tourism, FDI, Panel causality tests

Does Consumer Price Rigidity Exist in Barbados?

This paper uses a unique micro data set of price records underlying the Barbados retail price index between 1994 and 2008 to provide a detailed assessment of consumer price rigidity. The major aim is to calculate price durations and the patterns of price-setting across sectors. We also check whether price cuts are as frequent as increases, and whether there is specific downward nominal rigidity. We find that prices in Barbados tend to change relatively frequently, with between 50 and 80 percent of items in every category reporting a price change every month. While there are regular monthly price reductions as well as increases, the reductions are always smaller and fewer than the increases. The paper also reports no measurable impact of changes in the money supply or national inflation on the frequency of price changes

On the non-radial oscillations of a star II. Further amplifications

The two algorisms that one uses for determining the complex characteristic frequencies, σ = σ0 + iσi, belonging to the quasi-normal modes of oscillations of a star, are shown to be equivalent. In the first algorism, one searches directly in the complex σ-plane to satisfy the requirement that at infinity there are only outgoing waves (and no incoming waves). In the second algorism, one restricts oneself to real σs and selects the solution with the minimum flux of gravitational radiation at infinity

Semileptonic Hyperon Decays

We review the status of hyperon semileptonic decays. The central issue is the $V_{us}$ element of the CKM matrix, where we obtain $V_{us}=0.2250 (27)$. This value is of similar precision, but higher, than the one derived from $K_{l3}$, and in better agreement with the unitarity requirement, $|V_{ud}|^2+|V_{us}|^2+|V_{ub}|^2=1$. We find that the Cabibbo model gives an excellent fit of the existing form factor data on baryon beta decays ($\chi^{2} = 2.96$ for 3 degrees of freedom) with $F + D = 1.2670 \pm 0.0030$, $F - D = -0.341 \pm 0.016$, and no indication of flavour-SU(3)-breaking effects. We indicate the need of more experimental and theoretical work, both on hyperon beta decays and on $K_{l3}$ decays.Comment: 37 pages, 8 figures, 4 tables, Final version of this material is scheduled to appear in the Annual Review of Nuclear and Particle Science Vol. 5

Foreign direct investment and tourism in SIDS: evidence from panel causality tests

This study applies panel causality methods to investigate the relationship between foreign direct investment (FDI) and tourism in Small Island Developing States (SIDS). The results of the homogenous and instantaneous causality tests suggest that there is a bi-directional causal relationship between the variables. However, this causality is not homogenous for the group of countries. Indeed, heterogeneous causality procedures indicate that there exists a bi-directional causal relationship for only a small set of countries. For the most part, the causal relationship runs from FDI to tourism, implying that FDI provides much needed capacity for SIDS and therefore allows these countries to expand their tourism product

Price Reform and Household Demand for Electricity

This paper uses an estimated model of residential electricity demand to examine the impact of proposed tariff changes on a representative sample of 130 Barbadian households. The estimated equation results suggest that the price elasticities of demand for particular appliances varied significantly, with households that utilize solar water heating being more price elastic than households that utilize air conditioning and electric water heating electric heating. The income effects were, however, statistically insignificant, as they may have been captured by choices of appliances rather than utilisation. The estimated model results were then employed to examine the effect of a proposed change in the tariff structure for electricity in Barbados. The simulated results seem to indicate that changes in the electricity rate structure are likely to have very little impact on households demand for electricity. However, changes in consumption patterns could occur within upper consumption and upper income households

Fiscal policy and the duration of financial crises

Financial systems across the world have all come under pressure due to the on-going financial crisis. One of the most often asked questions during a collapse is how long and how deep will the decline be as well as what policy initiatives can be employed to shorten the recession. This study estimates a model of the duration of financial crises in an attempt to identify whether fiscal policy can reduce the time to recovery. The results suggest that fiscal shocks, which could provoke an overreaction on the part of markets, tend to lengthen crisis duration. Significant nonlinear effects of government spending are also reported in relation to trade openness and financial openness

Semileptonic Hyperon Decays and CKM Unitarity

Using a technique that is not subject to first-order SU(3) symmetry breaking effects, we determine the $V_{us}$ element of the CKM matrix from data on semileptonic hyperon decays. We obtain $V_{us}$ =0.2250(27). This value is of similar precision to the one derived from $K_{l3}$, but higher and in better agreement with the unitarity requirement, $|V_{ud}|^2+|V_{us}|^2+|V_{ub}|^2=1$.Comment: 3 pages, 1 tabl

Price Reform and Household Demand for Electricity

This paper uses an estimated model of residential electricity demand to examine the impact of proposed tariff changes on a representative sample of 130 Barbadian households. The estimated equation results suggest that the price elasticities of demand for particular appliances varied significantly, with households that utilize solar water heating being more price elastic than households that utilize air conditioning and electric water heating electric heating. The income effects were, however, statistically insignificant, as they may have been captured by choices of appliances rather than utilisation. The estimated model results were then employed to examine the effect of a proposed change in the tariff structure for electricity in Barbados. The simulated results seem to indicate that changes in the electricity rate structure are likely to have very little impact on households demand for electricity. However, changes in consumption patterns could occur within upper consumption and upper income households