This study identifies the main factors that explain the recovery of the Mexican economy after the currency crisis of 1995. A growth decomposition exercise shows that export growth mitigated somewhat the effect of the crisis in 1995, but contributed only modestly to the recovery afterwards. The V-shaped behavior of fixed investment was the main factor behind the economic slowdown during the crisis and the strength of the subsequent recovery.
This paper focuses on how decisions about the role of the state are made. Part I reveiws current thinking on the appropriate role of the state, and Part II puts forward five new propositions for improving the processes that underlie government action.
Shareholders of a Regional Bell Operating Company (RBOC) tend to live in the area which it serves, and an RBOC's customers tend to hold its shares rather than other RBOCs' equity. The geographic bias of the RBOC investors is closely related to the general tendency of households' portfolios to be concentrated, of employees' tendency to own their employers' stocks in their retirement accounts, and to the home country bias in the international arena.
Most of the market microstructure literature focuses on the liquidity of individual securities, whereas much of the asset pricing literature examines the association between systematic risk and return. We document the presence of a systematic, time-varying component of liquidity. At the moment, neither the inventory nor the asymmetric information-based approach to liquidity explains the systematic, time-varying component of liquidity.
This article provides a stochastic valuation framework for bond and stock returns that builds on three di¤erent pricing traditions: a¢ne models of the term structure, present-value pricing of equities, and consumptionbased asset pricing. Our model provides a more general application of the a¢ne framework in that both bonds and equities are priced in a consistent fashion. This pricing consistency implies that term structure variables help price stocks while stock price fundamentals help price the term structure.
In this paper we review the literature on first offers in negotiations. We explore the determinants of who will make the first offer, how extreme that first offer will be, what effect the first offer has on the value of the final outcome, and how first offers influence post-negotiation evaluations. The PDF attached here may not exactly replicate the final version published in the APA journal. It is not the copy of record. Copyright © 2001 by the American Psychological Association. Reproduced with permission.
The effects of justice and dispositional attribution on reactions to negative supervisory feedback were examined in two studies. Study 1 showed that criticism delivered with greater interpersonal fairness resulted in more favourable dispositional attributions about the supervisor, more acceptance of the feedback, and more favourable reactions towards the superior and the organization. The beneficial influence of just interpersonal treatment was general across various feedback contexts, although the magnitude varied.
We demonstrate that counterfactuals prime a mental simulation mind-set in which relevant but potentially converse alternatives are considered and that this mind-set activation has behavioral consequences. This mind-set is closely related to the simulation heuristic (Kahneman & Tversky, 1982). Participants primed with a counterfactual were more likely to solve the Duncker candle problem (Experiment 1), suggesting that they noticed an alternative function for one of the objects, an awareness that is critical to solving the problem.
Using 3 experiments, the authors explored the role of perspective-taking in debiasing social thought. In the 1st 2 experiments, perspective-taking was contrasted with stereotype suppression as a possible strategy for achieving stereotype control. In Experiment 1, perspective-taking decreased stereotypic biases on both a conscious and a nonconscious task.