The PIGS, does the Group Exist? An empirical macroeconomic analysis based on the Okun Law

Will the current crisis accelerate the PIGS collapse? We approach the subject by comparing the responses of the unemployment rate to an output shock on those economies (Portugal, Italy, Greece and Spain) with those of a benchmark economy – the USA. Our methodological strategy relies on one of the pillars of empirical macroeconomics the Okun Law (OL) which we incorporated in a VAR model. We addressed two drawbacks usually present in OL, the interdependency problem and the non-stationarity problem. We have included in our models the participation rate as a way to overcome the former problem and for the later one we have analysed the time series properties of the variables used on our models. We propose stable VAR models for each of the economies involved and also a fixed-effects panel-VAR for the PIGS. The time for the absorption of shocks and the disequilibrium levels are much more favourable to USA, but we conclude also that in terms of unemployment we are not allowed to consider the PIGS as a homogenous group.Okun Law, C-I, VAR, Participation rate, Stability and Impulses.

L’Intégration Européenne et la Soutenabilité Externe de l’Union Européenne: une application de la thèse de Feldstein-Horioka

The Feldstein-Horioka thesis was considered one of the greatest puzzles in economics. Born to measure international capital mobility, has known a process of immunisation to be conformed to empirical evidence and respect econometric knowledge. We apply to EU countries a formulation of the thesis which is adequate to test external sustainability and international capital mobility. Applying appropriate methods we conclude for the external sustainability of enlarged Europe as well as for high level of capital mobility. The capital mobility is more important for the old EU than for the enlarged one.Feldstein-Horioka, Mobilité du Capital, Épargne, Investissement, Contrainte extérieure

Entrepreneurial attitude, geographical isolation and university students - some evidence from the Atlantic

Some regions like Island of Madeira show high levels of firm birth rate. But the entrepreneurial experience is quite different from the European reality given the high level of micro-business owing o subsistence reasons, as a response to the reduced opportunity costs, the lack of profitable employment options and the high levels of unemployment. As a consequence the high level of entrepreneurship is only partially related to high tech innovative firms, qualified employment growth and economic diversification. The majority of the new firms are linked with traditional sectors (restaurants, boutiques, personal services and civil construction. Firm creation is also a result of the EU integration and cohesion policies. On the other hand infra-structure development policies explain the increasing importance of the public administration in terms of employment and consequently the low levels of unemployment. Traditionally, in the islands, the government intervention in terms of employment, economic planning is considered excessive. The island economies have been able to benefit from large streams of international solidarity in terms of high external aid per capita especially due to their strategic relevance. But the global economic and political change associated with the globalisation put increasing pressure on the island forcing them to reformulate their economic, social and political options. International donors and institutions like World Bank stresses issues such as economic diversification, economic and social modernisation and macroeconomic policies focused o supply side effects and the development of economic growth determining factors. Due to the reduced levels of international aid, islands are obliged to diminish levels of government intervention connected to public employment and direct production activities and to enhance private initiatives and entrepreneurship. In what concerns the outermost regions the EU enlargement demands increasing levels of competitivity, financial autonomy, economic diversification and entrepreneurial attitude. Given the lack of studies in this geographical area, the on-going economic, social and cultural modernisation induced by the integration in The EU sphere and the widespread perception about the changing times, we intend in this study to give some answers to the following questions: .how is the entrepreneurial attitude affected by the historical record of high levels of government intervention and public employment? .what kind of impacts results from the perceived “island penalty”, in terms of propensity towards entrepreneurship? .What is the main obstacle to the entrepreneurial event? .Should one wish to create a firm, what is the probability of the stated preference is in the high tech sectors? What kind of support will be required and welcomed from the public institutions? Studies and academic studies in islands have some advantages. The agglomeration of institutions, populations, firms and social networks in a reduced geographical space enable us to capture in some detail a vast group of variables, relationships and cause effects linked to a specific subject. Islands societies have a large and cohesive social capital, and share a homogenous set of values and cultural attitudes, which facilitates experiences of collective action. To conduct an empirical test in order to find out the most influential variables in the entrepreneurship attitude we use logit equations. The sample is made up of local university students, theoretically the most apt in developing innovative firms. We investigate also the differences between economics and managements and humanities students in terms of entrepreneurship propensity. An important matter in isolated, peripheral and underdeveloped regions is the diffusion of innovations. Consequently, student’s sources of information and knowledge regarding the overall tendencies of profitable, innovative and fashionable entrepreneurial experiences must be identified. Therefore, this paper describes the changing and uncertain economic and political environment faced by islands societies. A contextualisation of the relationship between entrepreneurship, economic growth and insular penalty is stretched and lastly, we provide an empirical study related to the entrepreneurial attitude in an insular region: The Island of Madeira.

The revolution will be tweeted : how the internet can stimulate the public exercise of freedoms

This article discusses how new technologies of communication, especially the Internet and, more specifically, social network services, can interfere in social interactions and in political relations. The main objective is to problematize the concept of public liberty and verify how the new technologies can promote the reoccupation of public spaces and the recovery of public life, in opposition to the tendency to valorize the private sphere, observed in the second half of the twentieth century. The theoretical benchmark adopted for the investigation is Hannah Arendt's theory about the exercise of fundamental political capacities in order to establish a public space of freedom, as presented in “On Revolution”. The “Praia da Estação” (“Station Beach”) case is chosen to test the hypothesis. In 2010 in the Brazilian city of Belo Horizonte, different individuals articulated a movement through blogs, Twitter and facebook, in order to protest against the Mayor’s act that banned the assembling of cultural events in one of the main public places of the city, the “Praça da Estação” (Station Square). By applying Arendt's concepts to the selected case, it is possible to demonstrate that the Internet can assume an important role against governmental arbitrariness and abuse of power, as it can stimulate the public exercise of fundamental freedoms, such as freedom of assembly and manifestation

The Fundamentals of the Portuguese Crisis

This paper analyses the fundamentals of the Portuguese crisis. The financial crisis of 2007 worsened and triggered the current Portuguese crisis. We argue that the main problem that the economy is facing is its output stagnation due to a kind of Dutch disease that has created high and increasing levels of indebtedness, low and decreasing levels of saving and has reduced Portuguese competitiveness. Moreover, the existence of a dualist labour market and a new vague of emigration reproduces inefficiency increasing unemployment of younger workers and the supply of human capital abroad funded by the Portuguese taxpayers. Governance problems such as bad public budget governance, lack of transparency and accountability are also at stake and have to be solved to allow the economy to return to its long-run growth path.Growth, Debt, Saving, Dutch disease, Unemployment, Budget policy.

The Fundamentals of the Portuguese Crisis

This paper analyses the fundamentals of the Portuguese crisis. The financial crisis of 2007 worsened and triggered the current Portuguese crisis. We argue that the main problem the economy is facing is its output stagnation due to a kind of Dutch disease that has created high and increasing levels of indebtedness, low and decreasing levels of saving and has reduced Portuguese competitiveness. Moreover, the existence of a dualist labour market and a new wave of emigration produce inefficiency, increasing unemployment of younger workers and the supply of human capital abroad funded by the Portuguese taxpayers. Governance problems such as poor public budget governance and lack of transparency and accountability are also at stake. These governance problems must be solved to allow the economy to return to its long-run growth path.ntion paid to it than hitherto.Growth, Debt, Saving, Dutch disease, Unemployment, Budget policy

Os efeitos da banda neuromuscular na mobilidade da coluna lombar

Projeto de Graduação apresentado à Universidade Fernando Pessoa como parte dos requisitos para obtenção do grau de Licenciado em FisioterapiaObjetivo: O principal objetivo deste estudo foi analisar as alterações provocadas pelas bandas neuromusculares (BNM) na mobilidade da coluna lombar. Métodos: Neste estudo participaram 31 alunos da Universidade Fernando Pessoa do curso de fisioterapia. Estes foram divididos em 3 grupos, 10 no Grupo Controlo (GC), 11 no Grupo Ligadura Elástica Adesiva (GLEA) e 10 no Grupo Banda Neuromusuclar (GBNM). A mobilidade lombar foi medida através do teste Sit & Reach, teste Schober modificado. Estas medições foram realizadas num só dia, com a excepção do GBNM, que sofreu reavaliação após 24 horas. Resultados: No Sit & Reach verificou-se que todos os grupos aumentaram a mobilidade após sofrerem intervenção ou controlo. No GBNM apenas ocorreram diferenças significativas entre os momentos 1 e 2 da avaliação. No teste Schober não houve diferenças nos indivíduos antes e após aplicação da técnica. Conclusão: Os 3 grupos apresentaram resultados idênticos entre si, por isto mesmo, não foi possível verificar que as BNM tenham influência na mobilidade da coluna lombar em comparação com o GC ou GLEA. Objective: The main purpose of this study was to analyze the changes caused by Kinesio Tape (KT) in the mobility of the lumbar spine. Methods: Thirty one students of the physical therapy course of the University of Fernando Pessoa participated in this study. These were divided into 3 groups, 10 in the Control Group (CG), 11 in Adhesive Elastic Bandage Group (AEBG) and 10 in KT Group (KTG). The lumbar mobility was measured by the Sit & Reach test and modified Schober test. These measurements were performed in a single day, with the exception of the KTG, which has undergone re-evaluation after 24 hours. Results: In the Sit & Reach test it was found that both groups increased mobility after intervention or control. In the KTG it was only found significant differences between the first and second moments of the evaluation. Schober test showed no differences between individuals before and after applying the technique. Conclusion: The 3 groups showed similar results to each other and for this reason, it was not possible to verify if KT had any influence on the mobility of the lumbar spine compared with CG or AEBG

How the gold standard functioned in Portugal: an analysis of some macroeconomic aspects

This paper studies the Gold Standard in Portugal. It was the first country in Europe to join Great Britain in 1854. The principle of free gold convertibility was abandoned in 1891. For the purposes of a macroeconomic study, we also extended the analysis up to 1913. Our study points out the mistake of comparing different systems with the same indicators. Examination of demand, supply and monetary shocks in the context of a VAR model confirm the idea that the principles of classical economics are appropriate for the Gold Standard in Portugal.Gold Standard, Macroeconomic Stability, Convertibility, Portugal, VAR and Unit Roots

How the Gold Standard Functioned in Portugal: An Analysis of Some Macroeconomic Aspects

The purpose of this study is to improve understanding of the gold standard period in Portugal through comparison with other monetary systems that were operated afterwards. Portugal was the first country in Europe to join Great Britain in the gold standard, in 1854, and it adhered to it for quite a long time. The principle of free gold convertibility of the Portuguese currency at a fixed price was abandoned in 1891, even though the classical gold standard as an international monetary system only began to fall apart as a result of the upheavals of the First World War. For the purposes of a macroeconomic study, we can thus first look at the expansion of the functioning of the gold standard in Portugal up to 1913. In addition to a desire to share the same monetary system as its trading and financial partner, the low price of gold and the domestic circulation of British gold coins also played a part, along with other factors, in the adoption of the gold standard in Portugal. While it was in force, it provided a nominal stable anchor and a mechanism of credible commitment, even though Portugal’s monetary authorities broke the “rules of the game”. Our analysis points out the mistake of comparing the stability of different monetary systems with the same indicators. The application of a VAR model enabled us to isolate the period 1854-1891 as being the one that actually corresponds to what we expect of gold standard behaviour. Examination of demand, supply and monetary shocks yields interesting results that confirm the idea that the principles of classical economics are appropriate for the gold standard period.Gold Standard, Macroeconomic Stability, Convertibility, Portugal, VAR, Unit Roots