Is there club convergence in Latin America?

Previous studies of the income convergence hypothesis for Latin American economies indicate that almost all are not systematically closing their income gap with developed nations. The few studies to consider whether they instead exhibit club convergence—i.e., convergence to a steady-state equilibrium significantly inferior to that of the developed economies—offer little convincing evidence of this either. We argue that this reflects the limitations of their measure of relative income (which includes their sample’s average income) and/or the assumptions underlying the discrete-break unit-root tests they employ. By avoiding these limitations, we obtain evidence of two Latin American convergence clubs

Web Hosting Service Level Agreements

This paper proposes a model for a relatively simple Web hosting provider. The model assumes the existence of a load-dispatcher and a finite number of Web-servers. We quantify the quality of service towards the clients of this facility based on a service level agreement between the two parts: the web hosting provider and the client. We assume that the client has the knowledge and resources to quantify its needs. Based on these quantifications, which in our model become parameters, the provider can establish a service offer. In our model, this offer covers the quality of service and the price options for it

Policy Coherence for Development: Five Challenges

‘Policy Coherence for Development’ (PCD) seeks to ensure that non-aid public policies are consistent with a government’s international development goals. In the light of a number of years of PCD reviews and institutional reforms at both EU and member state level, this paper reflects on the dynamics of the PCD policy environment and discusses five challenges for the PCD policy agenda. These include the opposing interests of domestic and development constituencies, conflicts between development objectives themselves, disagreements between experts on what ‘good’ development policy is, difficulties in identifying the true development interest of developing countries, and the growing heterogeneity between and within developing countries. While the challenges discussed in this paper have general relevance, we draw on EU and Irish policies to illustrate the arguments. We conclude with a series of recommendations on how these challenges might be addressed and how to make the PCD agenda more effective.Policy Coherence for Development, European Trade and Agriculture Policy, Development Policy, Millennium Development Goals

Analyzing financial sectors in transition : with special reference to the Former Soviet Union

This paper proposes a framework for analyzing the evolution of financial sectors in economies transiting from command to market structures. Most commentators have tended to regard this"Transition"as an undifferentiated period to be traversed as rapidly as possible. In doing so they ignore the increasing evidence that the Transition can be an extended, even enduring, state of the world, resulting from a complex interaction of economic, political, cultural and psychological factors. As such, it can and does generate incentives which fundamentally distort the behavior of economic agents in unpredictable ways. The authors argue that one result of ignoring the true messiness of the Transition is that the analysis and policy recommendations offered to governments can be flawed and often provide conclusions which are odds with the reality on the ground. The paper discusses this concern and proposes a simple analytical framework both for focusing on the Transition itself and also for use in defining and evaluating possible public policy interventions for the banking sector. This paper is organized as follows. Section II sketches the main shortcomings of the traditional analyses of the financial sector in transition - particularly the limitations of current thinking on the sequencing of financial sector reforms. Section III introduces and elaborates on the basic framework proposed. Section IV uses the framework to distill some simple but important propositions about transition banking. Section V provides an initial qualitative test of the framework, by using it as a lens through which to view some of the characteristics of transition banks which we have observed. It shows that behavior patterns which, at first glance, seem curious and counterproductive, do indeed have a rational explanation when viewed in relation to the analytical framework we propose. Section VI applies the proposed analytical approach to assess the appropriateness of various interventions -- especially those which have proved popular in the World Bank -- to support the financial sector transition. Two Annexes then elaborate particular aspects of the analysis. Annex 1 assesses how our analysis might recondition thinking about the appropriate regulatory and supervisory structures for transition banking. Annex 2 provides some initial empirical results based on our proposed framework of analysis.Environmental Economics&Policies,Banks&Banking Reform,Financial Intermediation,Payment Systems&Infrastructure,Labor Policies,Financial Intermediation,Environmental Economics&Policies,Insurance&Risk Mitigation,Financial Crisis Management&Restructuring,Banks&Banking Reform

Corporate Financial Policy, Taxes, and Uncertainty: An Integration

In this paper, we present a simple general equilibrium model of the portfolio behavior of households and institutions, paying particular attention to the influence of differences in tax rates and attitudes toward risk. Under the plausible assumptions that households are more risk averse than institutions and possess a greater relative "tax preference" for equity versus debt, we are able to characterize the equilibria which may result when debt is subject to bankruptcy risk. Among the issues which we study are the effects of tax rate changes, changes in risk, and changes in firm leverage on the relative asset holdings of the two types of investor and the rates of return earned on equity and debt. Numerical simulations provide additional understanding of the model's characteristics.

Taxation, Portfolio Choice, and Debt-Equity Ratios: A General Equilibrium Model

This paper explores the portfolio behavior of investors differing with respect to both tax rates and risk-aversion, emphasizing the role of constraints on individual and firm behavior in ensuring the existence of and characterizing portfolio equilibrium. Under certain conditions on the securities available in the market, which also are required for shareholders to be unanimous in supporting firm value maximization, investors will be segmented by tax rate into two groups, one specialized in equity and the other in debt. Though the relative wealths of the two groups determines the aggregate debt-equity ratio, each firm will be indifferent to its financial policy.

Image processing for smarter browsing of ocean color data products: investigating algal blooms

Remote sensing technology continues to play a significant role in the understanding of our environment and the investigation of the Earth. Ocean color is the water hue due to the presence of tiny plants containing the pigment chlorophyll, sediments, and colored dissolved organic material and so can provide valuable information on coastal ecosystems. We propose to make the browsing of Ocean Color data more efficient for users by using image processing techniques to extract useful information which can be accessible through browser searching. Image processing is applied to chlorophyll and sea surface temperature images. The automatic image processing of the visual level 1 and level 2 data allow us to investigate the occurrence of algal blooms. Images with colors in a certain range (red, orange etc.) are used to address possible algal blooms and allow us to examine the seasonal variation of algal blooms in Europe (around Ireland and in the Baltic Sea). Yearly seasonal variation of algal blooms in Europe based on image processing for smarting browsing of Ocean Color are presented

Two-Rowed Hecke Algebra Representations at Roots of Unity

In this paper, we initiate a study into the explicit construction of irreducible representations of the Hecke algebra $H_n(q)$ of type $A_{n-1}$ in the non-generic case where $q$ is a root of unity. The approach is via the Specht modules of $H_n(q)$ which are irreducible in the generic case, and possess a natural basis indexed by Young tableaux. The general framework in which the irreducible non-generic $H_n(q)$-modules are to be constructed is set up and, in particular, the full set of modules corresponding to two-part partitions is described. Plentiful examples are given.Comment: LaTeX, 9 pages. Submitted for the Proceedings of the 4th International Colloquium ``Quantum Groups and Integrable Systems,'' Prague, 22-24 June 199