WHY DO EMERGING ECONOMIES BORROW SHORT TERM?

We argue that one reason why emerging economies borrow short term is that it is cheaper than borrowing long term. This is especially the case during crises, as during these episodes the relative cost of long‐term borrowing increases. We construct a unique database of sovereign bond prices, returns, and issuances at different maturities for 11 emerging economies from 1990 to 2009 and present a set of new stylized facts. On average, these countries pay a higher risk premium on long‐term than on short‐term bonds. During crises, the difference between the two risk premia increases and issuance shifts towards shorter maturities. To illustrate our argument, we present a simple model in which the maturity structure is the outcome of a risk‐sharing problem between an emerging economy subject to rollover crises and risk‐averse international investors.     

Flexibility,endogenous risk,and the protection premium

We introduce two types of protection premia. The unconstrained protection premium, ^u, is the individual's willingness to pay for certain protection efficiency given flexibility to adjust optimally the investment in protection. The constrained protection premium, ^c, measures willingness to pay for certain protection efficiency given no flexibility to adjust the investment in protection. ^u depends on tastes and wealth as well as protection technology whereas ^c depends only on technology. We show that ^c cannot exceed ^u and develop necessary conditions for ^c=^u. Optimal protection for an individual with decision flexibility may be larger or smaller than that desired under no flexibility.Journal Paper No. J-15504 of the Iowa Agriculture and Home Economics Experiment Station, Ames, Iowa. Project No. 3048.     

Vanishing financial contagion?

While a number of crises in emerging markets generated widespread contagion in financial markets during the 1990s, more recent crises (notably, in Argentina) have been mostly contained within national borders. This has led some observers to wonder whether contagion might have become a feature of the past, with financial markets now better discriminating between emerging countries with good and bad fundamentals. Available data suggest that the main channels that contribute to transmitting financial crises across countries are – if anything – even stronger today than in the 1990s. Moreover, anticipation by international investors may help to explain the near-absence of contagion in the context of the Argentine crisis. This paper argues that a prudent working assumption is that financial contagion has not vanished.     

Matching Efficiency and Labour Market Reform in Italy: A Macroeconometric Assessment

Abstract. A matching theory approach is used to assess the impact on the Italian labour market of the 1997 Treu Act (legge Treu), which considerably eased the regulation of temporary work and favoured its growth in Italy. We re‐parameterize the matching function as a Beveridge Curve and estimate it as a production frontier, finding huge differences in matching efficiency between the South and the rest of the country. The Treu Act appears to have improved matching efficiency in the North of the country, particularly for skilled workers, but also to have strengthened competition among skilled and unskilled workers, especially in the South.     

Bayesian analysis of multivariate threshold autoregressive models with missing data

In some fields, we are forced to work with missing data in multivariate time series. Unfortunately, the data analysis in this context cannot be carried out in the same way as in the case of complete data. To deal with this problem, a Bayesian analysis of multivariate threshold autoregressive models with exogenous inputs and missing data is carried out. In this paper, Markov chain Monte Carlo methods are used to obtain samples from the involved posterior distributions, including threshold values and missing data. In order to identify autoregressive orders, we adapt the Bayesian variable selection method in this class of multivariate process. The number of regimes is estimated using marginal likelihood or product parameter-space strategies.     

Metabolic impact of shift work

In developing countries, shift work represents a considerable contingent workforce. Recently, studies have shown that overweight and obesity are more prevalent in shift workers than day workers. In addition, shift work has been associated with a higher propensity for the development of many metabolic disorders, such as insulin resistance, diabetes, dislipidemias and metabolic syndrome. Recent data have pointed that decrease of the sleep time, desynchronization of circadian rhythm and alteration of environmental aspects are the main factors related to such problems. Shortened or disturbed sleep is among the most common health-related effects of shift work. The plausible physiological and biological mechanisms are related to the activation of the autonomic nervous system, inflammation, changes in lipid and glucose metabolism, and related changes in the risk for atherosclerosis, metabolic syndrome, and type II diabetes. The present review will discuss the impact of shift work on obesity and metabolic disorders and how disruption of sleep and circadian misalignment may contribute to these metabolic dysfunctions.     

Kinematic analysis of post office employees' workstations

This study analyzed a post office clerk's tasks, comparing two workstation models. The clerk was facing the client in one, and seated at 45 degrees to the counter in the other. We analyzed the most frequent tasks and those presenting the most critical points: 1) payment of a postal order; 2) accepting a registered letter, breaking them down into subtasks. We used an optoelectronic system for kinematic analysis, and calculated the range of motion of the trunk and arms in the three spatial planes. The 45( position required less torsion of the trunk and head when using the printer, placed to the left of the employee. A larger worktop improved the workstation, leaving more room for equipment and allowing the worker to sit frontally to the monitor. However, this solution involved a shorter distance between the worker and the client with longer extension of the shoulder and elbow and less trunk flexion. These findings suggested a modification in the layout that shortens the distance between the worker and client.     

Reassessing Brer Rabbit: friendship,altruism, and community in the folklore of enslaved African-Americans

This article examines the Brer Rabbit trickster tales of enslaved African Americans. It challenges earlier interpretations of scholars who view the world of Brer Rabbit as amoral and anarchic. Lawrence Levine, for example, claimed that friendship was portrayed as a ‘fragile reed’ in the Brer Rabbit tales. Instead, this article argues that Brer Rabbit did not live in an amoral world; rather, he lived in a world of ethical boundaries. Indeed, friendship, altruism, and commitment to vulnerable members of the community were prized – not derided. For enslaved people in the United States, these values were crucial for survival; yet historians have failed to pay sufficient attention to these themes in the tales.