Interest rate setting at the ECB: Individual preferences and collective decision making

We investigate whether the members of the Governing Council of the European Central Bank take into account the specific economic conditions of their states of origin, to set the interest rates for the euro area. Testing the national-based view against the Europeanist perspective is a challenging issue, because voting inside the Governing Council is secret, and the final outcome depends both on the individual preferences and the procedures followed by the Governing Council to arrive at a decision. Accordingly, we model interest rate setting as a two-stage process: first, each member of the Governing Council sets his/her preferred rate, and next the Governing Council meets and decides the actual figure. Our empirical analysis shows that domestic developments play a major role in determining the preferred interest rate of the each member; and that some members exert agenda setting power, that precludes some interest rate policies to be considered at the meeting.     

A new class of slash-elliptical distributions

In this paper, we consider a generalization of the modified slash distribution. We define the new family through the quotient between an elliptically distributed random variable and the power of an exponential random variable with parameter equals to 2, both independent. We use the same idea to extend the model for the multivariate case and study general important properties from the resultant family. We perform inference by the method of moments and maximum likelihood. We present a simulation study which indicates satisfactory parameter recovery by using the estimation approaches. Illustrations reveals that it has potential for doing well in real problems.     

Cognitive ergonomics: the use of mind mapping tool in maintaining productive sector of a Brazilian paper company

The use of mind maps as a method of building knowledge, planning, organizing activities and ideas can be seen in the literature related to ergonomics. The results of such use are relevant and its use in academic area found. However, regarding to its use in industrial environments, studies can't not be found. With this scenario, and based on the perception of the ergonomist about the importance of using methods such as mind maps in support of human cognition, it seems pertinent to its use in industry sectors whose cognitive demand requires. Given these assumptions, this study aimed to apply the method of Mind Maps in Productive Maintenance sector of a Brazilian paper. The Productive Maintenance sector in the Paper Industry has an important contribution to operational performance. With practical Predictive Maintenance, Preventive Maintenance and Corrective Maintenance, the industry advocates to make the machines to produce paper is not to stop producing when they are programmed to do so. Among the practices cited, the Preventive Maintenance is one that leads to pre-determined intervals in order to reduce the possibility of placing the equipment in a condition below the required level of acceptance. Therefore, this article aims to propose using the tool "mental maps" in order to collaborate in planning and implementation of preventive maintenance activities in the sector of mechanical maintenance of a pulp and paper industry in southern Brazil. The study investigated the maintenance sector through its employees, who went through training about the tool and then use it and ergonomists company.     

The Impact on Inequality of Raising the Minimum Wage: Gap‐narrowing and Reranking Effects

Raising the minimum wage may reduce inequality by increasing the wages of low‐skill workers, but it may also increase inequality due to negative impacts on employment that produce wage losses. Using previous estimates of the elasticities of wages and employment to changes in the minimum wage in Colombia and Brazil, we show that the net impact on inequality of increasing the minimum wage may depend on the distributional weights used for inequality measurement. The results are obtained by decomposing the Gini index into reranking and gap‐narrowing effects. Inequality‐increasing reranking effects, which are associated with job losses, may dominate inequality‐decreasing gap‐narrowing effects, which are associated with wage gains, when high weights are placed on workers with low earnings. For standard distributional weights, however, the likely net impact is a reduction in wage inequality.     

Technology-based total factor productivity and benchmarking: New proposals and an application

The present study fills a gap between the benchmarking literature and multi-output based efficiency and productivity studies by proposing a benchmarking framework to analyze total factor productivity (TFP). Different specifications of the Hicks–Moorsteen TFP index are tailored for specific benchmarking perspectives: (1) static, (2) fixed base and unit, and (3) dynamic TFP change. These approaches assume fixed units and/or base technologies as benchmarks. In contrast to most technology-based productivity indices, the standard Hicks–Moorsteen index always leads to feasible results. Through these specifications, managers can assess different facets of the firm's strategic choices in comparison with firm-specific relevant benchmarks and thus have a broad background for decision making. An empirical application for the Spanish banking industry between 1998 and 2006 illustrates the managerial implications of the proposed framework.     

Robust Stochastic Lot‐Sizing by Means of Histograms

Traditional approaches in inventory control first estimate the demand distribution among a predefined family of distributions based on data fitting of historical demand observations, and then optimize the inventory control using the estimated distributions. These approaches often lead to fragile solutions whenever the preselected family of distributions was inadequate. In this article, we propose a minimax robust model that integrates data fitting and inventory optimization for the single‐item multi‐period periodic review stochastic lot‐sizing problem. In contrast with the standard assumption of given distributions, we assume that histograms are part of the input. The robust model generalizes the Bayesian model, and it can be interpreted as minimizing history‐dependent risk measures. We prove that the optimal inventory control policies of the robust model share the same structure as the traditional stochastic dynamic programming counterpart. In particular, we analyze the robust model based on the chi‐square goodness‐of‐fit test. If demand samples are obtained from a known distribution, the robust model converges to the stochastic model with true distribution under generous conditions. Its effectiveness is also validated by numerical experiments.     

Lower bounds and recursive methods for the problem of adjudicating conflicting claims

For the problem of adjudicating conflicting claims, we propose the following method to extend a lower bound rule: (i) for each problem, assign the amounts recommended by the lower bound rule and revise the problem accordingly; (ii) assign the amounts recommended by the lower bound rule to the revised problem. The “recursive-extension” of a lower bound rule is obtained by recursive application of this procedure. We show that if a lower bound rule satisfies positivity then it’s recursive extension singles out a unique awards rule.We then study the relation between desirable properties satisfied by a lower bound rule and properties satisfied by its recursive extension.     

Haptic Habituation to Temperature Is Slower in Newborns of Depressed Mothers

Forty newborns (M age = 27 hr old) of depressed and nondepressed mothers were habituated to a cold or warm temperature tube by hand. Both groups of infants habituated the temperature of the tube, as indicated by a decrease in holding, and dishabituated, as indexed by an increase in holding when the temperature of the tube changed. However, the newborns of depressed mothers (a) required twice as long to habituate; (b) showed a sensitization effect, as indexed by an increase in holding from the second to the third trial of habituation; and (c) passively handled the objects with their hand.     

Ethnic Origins and Religious Transformations in the Afro-Colombian Muslim Community of Buenaventura

The aim of this article is to analyse the origins and transformations of a Muslim community in western Colombia. The history of this small religious group of Afro-Colombians is presented over a period divided into four phases. This division is based on four dominant interpretations of Islamic doctrines adopted by the majority of the group over a period of time. These changes were not only due to religious motivations but also due to changes in the social milieu and the need for taking advantage of emerging opportunities. The religious conversion of Afro-Colombians to Islam took place within the complex socio-political context of the Colombian conflict which began in mid-1960s and is still ongoing. The adoption of this new religious perspective did not evolve in an isolated manner, rather, it transformed the identity of the community by strengthening the value of ethnic differences in a place of segregation. In this context, this paper analyses the role of religion as an important element in the construction of ethnic identity. It is also important to recognize that this cultural negotiation happens at the margins of the dominant society, which views Afro-Colombian minorities negatively or simply ignores their presence.