The Supply of Social Insurance

We propose a theory of the welfare state, in which social transfers are chosen by a governing group interacting with non-governing groups repeatedly. Social demands from the non-governing groups are credible because these groups have the ability to generate social conflict. In this context social insurance is supplied as an equilibrium response to income risks within a self-enforcing social contract. When we explore the implications of such a view of the social contract, we find four main determinants of the welfare state: the degree of aggregate income risk; the heterogeneity of group-specific income risks; the public administration’s ability to implement group-specific transfers; and the ability of the non-governing groups to coordinate their social demands. We also analyze the link between public good provision and social insurance

Artistic creation and intellectual property

We analyze artistic markets considering three key distinctive features that have been overlooked by the standard analysis on intellectual property. These features are the dynamic link between the current number of young artists and future high-quality artistic creation, Rosen's superstars phenomenon, and the role played by promotion costs. Introducing them into an overlapping-generations model brings about a new perspective on the consequences for artistic creation of changes in the copyright term, progress in communication technologies favoring market concentration by stars, and the enlargement of markets. The conventional result that longer copyrights always stimulate artistic creation only holds as a particular case

A sustainable management model based on business excellence as applied to mining companies

The success of a sustainable business project depends on different factors but there is no doubt that the excellence of business management is the single most critical factor, because of it is what connects all the others. In a constantly changing world, a new way of doing things will be proposed setting criteria for taking decisions that create value today and in the future. Professional ethics and transparency must be applied to employees, suppliers, customers and shareholders. A change organizational culture is necessary to respect social and environmental concerns, avoiding erroneous business decisions that endanger the well-being of future generations. In this paper, a model based on excellence and sustainability is proposed, which is based on a diagnostics tool to determine defects and problems, where the areas for improvement are identified and defined both qualitatively and quantitatively, so an action plan could be designed. Subsequently, both solutions and the right tools are applied to move progressively toward our proposed model. The model proposed in this paper represents a new approach to sustainable business management based on excellence, is applied specifically to mining companies

Effects of methamphetamine on locomotor activity and thalamic gene expression in leptin-deficient obese mice

Leptin is an adipose-derived hormone that regulates energy balance. Leptin receptors are expressed in extrahypothalamic sites and several reports showed that leptin can influence feeding and locomotor behavior via direct actions on dopaminergic neurons. The leptin deficient mouse (ob/ob) has been used as an animal model of blunted leptin action, and presents with obesity and mild type 2 diabetes. We used ob/ob mice to study the effect of repeated 7-day methamphetamine (METH) administration analyzing locomotion, behavioral sensitization, and somatosensory thalamic mRNA expression of voltage-gated calcium channels and glutamatergic receptors using RT-PCR. We observed reduced METH-mediated responses in ob/ob mice associated with enhanced in mRNA expression of key voltage-gated and glutamate receptors in the somatosensory thalamus. Results described here are important for understanding the control of locomotion and thalamocortical excitability by leptin.Fil: Gonzalez, Betina. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Houssay. Instituto de Investigaciones Farmacológicas. Universidad de Buenos Aires. Facultad de Farmacia y Bioquímica. Instituto de Investigaciones Farmacológicas; ArgentinaFil: Gonzalez, Candela Rocio. Universidad Maimónides. Área de Investigaciones Biomédicas y Biotecnológicas. Centro de Estudios Biomédicos, Biotecnológicos, Ambientales y de Diagnóstico; ArgentinaFil: Bisagno, Veronica. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Houssay. Instituto de Investigaciones Farmacológicas. Universidad de Buenos Aires. Facultad de Farmacia y Bioquímica. Instituto de Investigaciones Farmacológicas; ArgentinaFil: Urbano Suarez, Francisco Jose. Consejo Nacional de Investigaciones Científicas y Técnicas. Oficina de Coordinación Administrativa Ciudad Universitaria. Instituto de Fisiología, Biología Molecular y Neurociencias. Universidad de Buenos Aires. Facultad de Ciencias Exactas y Naturales. Instituto de Fisiología, Biología Molecular y Neurociencias; Argentin

An Equilibrium Theory of Declining Reservation Wages and Learning

In this paper we consider learning from search as a mechanism to understand the relationship between unemployment duration and search outcomes as a labor market equilibrium. We rely on the assumption that workers do not have precise knowledge of their job finding probabilities and therefore, learn about them from their search histories. Embedding this assumption in a model of the labor market with directed search, we provide an equilibrium theory of declining reservation wages over unemployment spells. After each period of search, unemployed workers update their beliefs about the market matching efficiency. We characterize situations where reservation wages decline with unemployment duration. Consequently, the wage distribution is non-degenerate, despite the facts that matches are homogeneous and search is directed. Moreover, aggregate matching probability decreases with unemployment duration, in contrast to individual workers' matching probability, which increases over individual unemployment spells. The difficulty in establishing these results is that learning generates non-differentiable value functions and multiple solutions to a worker's optimization problem. We overcome this difficulty by exploiting a connection between convexity of a worker's value function and the property of supermodularity.Reservation wages; Learning; Directed search; Supermodularity

Artistic creation and intellectual property

We analyze artistic markets considering three key distinctive features that have been overlooked by the standard analysis on intellectual property. These features are the dynamic link between the current number of young artists and future high-quality artistic creation, Rosen's superstars phenomenon, and the role played by promotion costs. Introducing them into an overlapping-generations model brings about a new perspective on the consequences for artistic creation of changes in the copyright term, progress in communication technologies favoring market concentration by stars, and the enlargement of markets. The conventional result that longer copyrights always stimulate artistic creation only holds as a particular case.superstars; copyright; innate abilities; talent

An Equilibrium Theory of Learning, Search and Wages

We construct an equilibrium theory of learning from search in the labor market, which addresses the search behavior of workers, the creation of jobs, and the wage distribution as functions of unemployment duration. In the model, each worker has incomplete information about his job-finding ability and learns about it from his search outcomes. The theory formalizes a notion akin to that of discouragement: over the unemployment spell, unemployed workers update their beliefs about their job-finding abilities downward and reduce their desired wages. One contribution of the paper is to integrate learning from search into an equilibrium framework. We show that the equilibrium exhibits wage dispersion among homogeneous workers, and that workers with longer unemployment spells have lower permanent incomes. Another contribution is to apply lattice-theoretic techniques to analyze learning from experience, which is useful because learning generates convex value functions and, in principle, multiple solutions to a worker's optimization problem.Learning; Wages; Unemployment; Directed search; Supermodularity.

The Impact of Product Market Competition on Private Benefits of Control

This paper investigates the impact of product market competition (PMC) on private benefits of control (PBC). We estimate PBC using the voting premium between shares with differential voting rights. We use two measures of the intensity of product market competition: an external competition measure based on industry-level import penetration, and an internal measure derived from domestic product market regulations. Using data for publicly-traded firms in 19 countries for which information on dual class shares is available we find that PMC is strongly negatively correlated with PBC. The evidence indicates that the effect is particularly strong for firms in industries that are likely to be concentrated and in countries with poor legal environments. We further examine the channels through which PMC enhances governance. We find evidence indicating that improvements in the availability of industry information and the higher default probability associated with tougher competition are two important forces in reducing the estimated price gap between dual class shares. Using exchange rates and terms of trade as instruments for import penetration, we find that the link between competition in product markets and private benefits of control is not spurious. Overall, our results suggest that product market competition can help in curbing private benefits of control.private benefits of control, competition, corporate governance, import penetration