FDI, Foreign Affiliate Operations, and the Transfer Process: Macroeconomic Adjustment to FDI Inflows in the Case of Costa Rica

The theoretical and empirical literature on the macroeconomic effects of capital inflows posits that a net inflow of foreign capital leads to an equilibrium real exchange rate (RER) appreciation through an expansion in aggregate demand. But this literature fails to distinguish between the different types of flows, or their specific mechanisms of influence. This paper analyses the adjustment process to FDI inflows in the case of Costa Rica, and focuses on whether, to what extent and through what mechanisms such adjustment requires a RER appreciation. It argues that a study of the process of macroeconomic adjustment to a net inflow of FDI -the transfer process- should not be detached from an investigation into the trade and financial practices of the foreign-owned firms towards which FDI flows. A two-sector model is developed to capture the basic interactions between foreign investment, domestic investment and the RER. It shows that the sectoral allocation of FDI, the response of domestic investment to exogenous changes in the foreign capital stock, the input composition of foreign capital, and the financial practices of foreign investors, are crucial determinants of the long-run equilibrium RER. The paper also includes two empirical parts. The first one provides an overview of the general trends of aggregate FDI inflows into Costa Rica between 1970-99, and analyses some data on the trade and financial patterns of foreign affiliates operating in the country. The second undertakes an econometric examination of the impact of FDI on output, investment, exports, imports and the RER, using cointegration techniques. The study is based on annual data for the period 1970-99. It is found that FDI exerts a strong negative impact on the equilibrium RER.

The growth companies puzzle: can growth opportunities measures predict firm growth?

While numerous empirical studies include proxies for growth opportunities in their analyses, there is limited evidence as to the validity of the various growth proxies used. Based on a sample of 1942 firm-years for listed UK companies over the 1990-2004 period, we assess the performance of eight growth opportunities measures. Our results show that while all the growth measures show some ability to predict growth in company sales, total assets, or equity, there are substantial differences between the various models. In particular, Tobin's Q performs poorly while dividend-based measures generally perform best. However, none of the measures has any success in predicting earnings per share growth, even when controlling for mean reversion and other time-series patterns in earnings. We term this the 'growth companies puzzle'. Growth companies do grow, but they do not grow in the key dimension (earnings) theory predicts. Whether the failure of 'growth companies' to deliver superior earnings growth is attributable to increased competition, poor investments, or behavioural biases, it is still a puzzle why growth companies on average fail to deliver superior earnings growth

The Late Oxfordian to Kimmeridgian history of the Rob Roy and Ivanhoe Fields, Outer Moray Firth

A biostratigraphic anomaly posed by the co-existence of characteristic Late Oxfordian dinoflagellate cyst floras and Kimmeridgian ammonites in the Humber Group of the Outer Moray Firth is thoroughly investigated. Fossils from ten sequences in U.K. Blocks 15/2la and 15/22 cored by Amerada Hess Ltd. are compared with those from onshore Late Oxfordian to Kimmeridgian sequences at South Ferriby (South Humberside), Eathie (Cromarty), and between Brora and Helmsdale in the Moray Firth. The results indicate that the key dinoflagellate cyst marker species Scriniodinium crystallinum (Deflandre) and Endoscrinium galeritum (Deflandre) have ranges extending into younger sediments than previously supposed; both are recorded in the Mutabilis Zone of the Northern North Sea. Ammonite faunas collected from both the North Sea wells and onshore provide support for an informal subzonation of the Cymodoce and Mutabilis Zones of the Sub-Boreal Kimmeridgian. This detailed biostratigraphic control is applied to give precise definition of the timing of transgressive and tectonic events and their relationship to resultant sedimentary responses. The "I Shale" Transgression is demonstrated to be basal Kimmeridgian in age, and the Kimmeridge Clay transgression is dated as early Eudoxus Zone. It is considered likely that the Kimmeridge Clay transgression accompanied the onset of Late Cimmerian tectonism within the Witch Ground Graben, and a Eudoxus Zone age is suggested for this event. By comparison with East Greenland sections an assessment is made of the degree of overprinting of regional sea-level events by local tectonic events. The conclusions are important in the construction of a depositional model for the reservoir sands of the area

‘The Triumph of the Will’: The German Expressionist Body c. 1905-1945 and the Philosophy of Arthur Schopenhauer.

This thesis explores depictions of the human body in German Expressionist art and the ways in which they might be interpreted through Arthur Schopenhauer’s philosophy. It is inspired by Franz Marc’s claim that, in Schopenhauer’s terms, the world as will took precedence over the world as representation in his own day. Discussion begins with an assessment of Vasily Kandinsky’s development of abstract art in relation to Schopenhauer’s philosophy of the world as representation. Here attention is given to Kandinsky’s personal reading of Schopenhauer’s doctrine of vision and colour. Chapter 2 explores depictions of dance in Expressionism, where the body is considered to be an objectification of the will. Discussion is negotiated through a case study of the work of Emil Nolde. In addition to the body in movement, the theme of the naked body was also central to Expressionist ideology and practice. Hence, Chapter 3 engages in an interpretation of Expressionist depictions of the naked body according to Schopenhauer’s doctrine of the Platonic ideas and the world as representation. The outbreak of war in 1914 presented the Expressionist generation with new challenges. Chapter 4, therefore, examines the military experiences of selected Expressionist artists in order to assess their affirmation or denial of the will to war. The final chapters of the thesis reflect upon the relationship between Expressionism and the emergent Nazi regime in the 1930s. Chapter 5 takes as its theme an exploration of ‘degenerate art’ and ‘degenerate’ bodies in relation to the artist Otto Mueller and his depiction of gypsies, according to Schopenhauer’s moral philosophy. Finally, Chapter 6 investigates Emil Nolde’s association with Nazism and offers a new interpretation of these associations according to Schopenhauer’s doctrine of free will. In conclusion, the thesis demonstrates that Marc’s claims were broadly valid throughout this period but not without exception

Single-inhaler fluticasone furoate/umeclidinium/vilanterol versus fluticasone furoate/vilanterol plus umeclidinium using two inhalers for chronic obstructive pulmonary disease: A randomized non-inferiority study

Background: Single-inhaler fluticasone furoate/umeclidinium/vilanterol (FF/UMEC/VI) 100/62.5/25 μg has been shown to improve lung function and health status, and reduce exacerbations, versus budesonide/formoterol in patients with chronic obstructive pulmonary disease (COPD). We evaluated the non-inferiority of single-inhaler FF/UMEC/VI versus FF/VI + UMEC using two inhalers. Methods: Eligible patients with COPD (aged ≥40 years; ≥1 moderate/severe exacerbation in the 12 months before screening) were randomized (1:1; stratified by the number of long-acting bronchodilators [0, 1 or 2] per day during run-in) to receive 24-week FF/UMEC/VI 100/62.5/25 μg and placebo or FF/VI 100/25 μg + UMEC 62.5 μg; all treatments/placebo were delivered using the ELLIPTA inhaler once-daily in the morning. Primary endpoint: change from baseline in trough forced expiratory volume in 1 s (FEV1) at Week 24. The non-inferiority margin for the lower 95% confidence limit was set at − 50 mL. Results: A total of 1055 patients (844 [80%] of whom were enrolled on combination maintenance therapy) were randomized to receive FF/UMEC/VI (n = 527) or FF/VI + UMEC (n = 528). Mean change from baseline in trough FEV1 at Week 24 was 113 mL (95% CI 91, 135) for FF/UMEC/VI and 95 mL (95% CI 72, 117) for FF/VI + UMEC; the between-treatment difference of 18 mL (95% CI -13, 50) confirmed FF/UMEC/VI’s was considered non-inferior to FF/ VI + UMEC. At Week 24, the proportion of responders based on St George’s Respiratory Questionnaire Total score was 50% (FF/UMEC/VI) and 51% (FF/VI + UMEC); the proportion of responders based on the Transitional Dyspnea Index focal score was similar (56% both groups). A similar proportion of patients experienced a moderate/severe exacerbation in the FF/UMEC/VI (24%) and FF/VI + UMEC (27%) groups; the hazard ratio for time to first moderate/ severe exacerbation with FF/UMEC/VI versus FF/VI + UMEC was 0.87 (95% CI 0.68, 1.12). The incidence of adverse events was comparable in both groups (48%); the incidence of serious adverse events was 10% (FF/UMEC/VI) and 11% (FF/VI + UMEC). Conclusions: Single-inhaler triple therapy (FF/UMEC/VI) is non-inferior to two inhalers (FF/VI + UMEC) on trough FEV1 change from baseline at 24 weeks. Results were similar on all other measures of efficacy, health-related quality of life, and safety. Trial registration: GSK study CTT200812; ClinicalTrials.gov NCT02729051 (submitted 31 March 2016)

Testing for inconsistencies in the estimation of UK capital structure determinants

This article analyses the determinants of the capital structure of 1054 UK companies from 1991 to 1997, and the extent to which the influence of these determinants are affected by time-invariant firm-specific heterogeneity. Comparing the results of pooled OLS and fixed effects panel estimation, significant differences in the results are found. While the OLS results are generally consistent with prior literature, the results of our fixed effects panel estimation contradict many of the traditional theories of the determinants of corporate financial structure. This suggests that results of traditional studies may be biased owing to a failure to control for firm-specific, time-invariant heterogeneity. The results of the fixed effects panel estimation find larger companies to have higher levels of both long-term and short-term debt than do smaller firms, profitability to be negatively correlated with the level of gearing, although profitable firms tend to have more short-term bank borrowing than less profitable firms, and tangibility to positively influence the level of short-term bank borrowing, as well as all long-term debt elements. However, the level of growth opportunities appears to have little influence on the level of gearing, other than short-term bank borrowing, where a significant negative relationship is observed

Comparison of stroke volume measurement between non-invasive bioreactance and esophageal Doppler in patients undergoing major abdominal-pelvic surgery

PURPOSE: Bioreactance is a non-invasive technology for measuring stroke volume (SV) in the operating room and critical care setting. We evaluated how the NICOM® bioreactance device performed against the CardioQ® esophageal Doppler monitor in patients undergoing major abdominal–pelvic surgery, focusing on the effect of different hemodynamic interventions. METHODS: SVNICOM and SVODM were simultaneously measured intraoperatively, including before and after interventions including fluid challenge, vasopressor boluses, peritoneal gas insufflation/removal, and Trendelenburg/reverse Trendelenburg patient positioning. RESULTS: A total of 768 values were collected from 21 patients. Pre- and post-intervention measures were recorded on 155 occasions. Bland–Altman analysis revealed a bias of 8.6 ml and poor precision with wide limits of agreement (54 and −37 ml) and a percentage error of 50.6%. No improvement in precision was detected after taking into account repeated measurements for each patient (bias: 8 ml; limits of agreement: 74 and −59 ml). Concordance between changes in SVNICOM and SVODM before and after interventions was also poor: 78.7% (all measures), 82.4% (after vasopressor administration), and 74.3% (after fluid challenge). Using Doppler SV as the reference technique, the area under the receiver operating characteristic curve assessing the ability of the NICOM device to predict fluid responsiveness was 0.81 (0.7–0.9). CONCLUSIONS: In patients undergoing major abdomino-pelvic surgery, SV values obtained by NICOM showed neither clinically or statistically acceptable agreement with those obtained by esophageal Doppler. Although, in the setting of this study, bioreactance technology cannot reliably replace esophageal Doppler monitoring, its accuracy for predicting fluid responsiveness was higher, up to approximately 80%

The role of the discount rate in tendering highway concessions under the LPVR approach.

Flexible-term highway concessions are becoming quite popular around the world as a means of mitigating the traffic risk ultimately allocated to the concessionaire. The most sophisticated mechanism within flexible-term concession approaches is the least present value of the revenues (LPVR). This mechanism consists of awarding the concession to the bidder who offers the least present value of the revenues discounted at a discount rate fixed by the government in the contract. Consequently, the concession will come to an end when the present value of the revenues initially requested has been eventually reached. The aim of this paper is to evaluate the effect that the discount rate established by the government in the bidding terms has on the traffic-risk profile ultimately allocated to the concessionaire. To analyze this effect, a mathematical model is developed in order to obtain the results. I found that the lower the discount rate the larger will be the traffic risk allocated to the concessionaire. Moreover, I found that, if a maximum term is established in the contract, the lower the discount rate, the less skewed towards the downside will be the traffic-risk profile allocated to the concessionair

Noise-induced volatility of collective dynamics

"Noise-induced volatility" refers to a phenomenon of increased level of fluctuations in the collective dynamics of bistable units in the presence of a rapidly varying external signal, and intermediate noise levels. The archetypical signature of this phenomenon is that --beyond the increase in the level of fluctuations-- the response of the system becomes uncorrelated with the external driving force, making it different from stochastic resonance. Numerical simulations and an analytical theory of a stochastic dynamical version of the Ising model on regular and random networks demonstrate the ubiquity and robustness of this phenomenon, which is argued to be a possible cause of excess volatility in financial markets, of enhanced effective temperatures in a variety of out-of-equilibrium systems and of strong selective responses of immune systems of complex biological organisms. Extensive numerical simulations are compared with a mean-field theory for different network topologies