scholarly journals Dynamic contracting with limited commitment and the ratchet effect

2020 ◽  
Vol 15 (2) ◽  
pp. 583-623 ◽  
Author(s):  
Dino Gerardi ◽  
Lucas Maestri
Keyword(s):  
Adverse Selection ◽  
Prior Probability ◽  
Terms Of Trade ◽  
Limited Commitment ◽  
Equilibrium Outcome ◽  
Short Term ◽  
Ratchet Effect ◽  
Dynamic Contracting ◽  
The Relationship

We study dynamic contracting with adverse selection and limited commitment. A firm (the principal) and a worker (the agent) interact for potentially infinitely many periods. The worker is privately informed about his productivity and the firm can only commit to short‐term contracts. The ratchet effect is in place since the firm has the incentive to change the terms of trade and offer more demanding contracts when it learns that the worker is highly productive. As the parties become arbitrarily patient, the equilibrium outcome takes one of two forms. If the prior probability of the worker being productive is low, the firm offers a pooling contract and no information is ever revealed. In contrast, if this prior probability is high, the firm fires the unproductive worker at the beginning of the relationship.

The Impact of Foreign Trade on the Mexican Economy: Terms of Trade and the Rise of Industry 1880–1923

2000 ◽  
Vol 32 (2) ◽  
pp. 399-433 ◽  
Author(s):  
EDWARD BEATTY
Keyword(s):  
Foreign Trade ◽  
Terms Of Trade ◽  
Published Data ◽  
Short Term ◽  
Concurrent Process ◽  
Domestic Industry ◽  
Severely Handicapped ◽  
The Impact ◽  
The Relationship ◽  
Dramatic Fall

This article uses both new and published data on Mexico's foreign trade to measure terms of trade and to investigate the relationship between trade and the early growth of domestic industry. This analysis yields five conclusions: (1) Mexican terms of trade declined, largely due to the dramatic fall in the price of silver; (2) the growing diversity of Mexican exports significantly cushioned the short-term impact of silver depreciation; (3) declining terms of trade did not characterise the entire era, but instead were concentrated in two periods: 1891–97 and 1912–21; (4) although net barter terms of trade declined, Mexico's capacity to import – measured by the income terms of trade – improved markedly, and (5) this proved absolutely crucial in financing the concurrent process of incipient import-substituting industrialisation. In other words, the Porfiriato witnessed a development process in which trade growth and the spread of domestic manufacturing were highly complementary. Without the former, industrialisation would have been severely handicapped.

scholarly journals International Credit Flows and Pecuniary Externalities

2015 ◽  
Vol 7 (1) ◽  
pp. 297-338 ◽  
Author(s):  
Markus K. Brunnermeier ◽  
Yuliy Sannikov
Keyword(s):  
Incomplete Markets ◽  
Production Capacity ◽  
Capital Controls ◽  
Terms Of Trade ◽  
Equilibrium Outcome ◽  
Short Term ◽  
Stochastic Growth ◽  
Fire Sales ◽  
Pecuniary Externalities ◽  
International Credit

This paper develops a dynamic two-country neoclassical stochastic growth model with incomplete markets. Short-term credit flows can be excessive and reverse suddenly. The equilibrium outcome is constrained inefficient due to pecuniary externalities. First, an undercapitalized country borrows too much since each firm does not internalize that an increase in production capacity undermines their output price, worsening their terms of trade. From an ex ante perspective each firm undermines the natural “terms of trade hedge.” Second, sudden stops and fire sales lead to sharp price drops of illiquid capital. Capital controls or domestic macro-prudential measures that limit short-term borrowing can improve welfare. (JEL F32, F43, G15, O41)

Evaluation of the Efficacy of ST2 and NT-proBNP in the Diagnosis and Prediction of Short- Term Prognosis in Heart Failure with Reduced Ejection Fraction

2017 ◽  
Vol 9 (04) ◽  
Author(s):  
Shivananda B Nayak ◽  
Dharindra Sawh ◽  
Brandon Scott ◽  
Vestra Sears ◽  
Kareshma Seebalack ◽  
...  
Keyword(s):  
Heart Failure ◽  
Ejection Fraction ◽  
Cardiac Biomarkers ◽  
Double Blind Study ◽  
Short Term ◽  
Double Blind ◽  
Reduced Ejection Fraction ◽  
The Mean ◽  
Design And Methods ◽  
The Relationship

Purpose: i) To determine the relationship between the cardiac biomarkers ST2 and NT-proBNP with ejection fraction (EF) in heart failure (HF) patients. ii) Assess whether a superiority existed between the aforementioned cardiac markers in diagnosing the HF with reduced EF. iii) Determine the efficacy of both biomarkers in predicting a 30-day cardiovascular event and rehospitalization in patients with HF with reduced EF iv) To assess the influence of age, gender, BMI, anaemia and renal failure on the ST2 and NT-proBNP levels. Design and Methods: A prospective double-blind study was conducted to obtain data from a sample of 64 cardiology patients. A blood sample was collected to test for ST2 and NT-proBNP. An echocardiogram (to obtain EF value), electrocardiogram and questionnaire were also obtained. Results: Of the 64 patients enrolled, 59.4% of the population had an EF less than 40%. At the end of the 30- day period, 7 patients were warded, 37 were not warded, one died and 17 were non respondent. Both biomarkers were efficacious at diagnosing HF with a reduced EF. However, neither of them were efficacious in predicting 30-day rehospitalization. The mean NT-proBNP values being: not rehospitalized (2114.7486) and 30 day rehospitalization (1008.42860) and the mean ST2 values being: not rehospitalized (336.1975), and 30-day rehospitalization. (281.9657). Conclusion: Neither ST2 or NT-proBNP was efficacious in predicting the short- term prognosis in HF with reduced EF. Both however were successful at confirming the diagnosis of HF in HF patients with reduced EF.

Intersectoral Terms of Trade for Pakistan's Economy: 1970-71 - 1981-82

1987 ◽  
Vol 26 (1) ◽  
pp. 81-105
Author(s):  
Shahnaz Kazi
Keyword(s):  
Terms Of Trade ◽  
Relative Price ◽  
Price Ratio ◽  
Sectoral Output ◽  
The Relationship

The paper estimates intersectoral terms of trade for the period from 1970-71 to 1981-82. On the basis of these results the study further analyses the relationship between terms of trade and aggregate farm output over the period. The findings indicate some improvement in agriculture's terms of trade over the Seventies. However, no conclusive support is provided to the hypothesis of high supply responsiveness of aggregate farm output to shifts in the relative price ratio of sectoral output.

Plebiscitary Politics and the Threats to Legality

2019 ◽  
pp. 275-289
Author(s):  
Claudius Härpfer
Keyword(s):  
The State ◽  
Short Term ◽  
Political Processes ◽  
The Face ◽  
State Of Affairs ◽  
The Relationship

In recent times we find many plebiscitary acts that seek to democratically legitimize political processes in any direction. They have in common that they interrupt the normal routine of representative democracies to a certain degree and create an extra-daily state of affairs, which entails not only direct but also indirect consequences. The text attempts to systematize some of these mechanisms from a Weberian perspective using Brexit as an example. After a brief overview of Weber’s short-term politically inspired statements on plebiscitary democracy, the text systematizes Weber’s understanding of the state as a bureaucratic apparatus that requires any kind of leader to be controlled. Subsequently, the text discusses the relationship between domination, legality, and rationality in order to finally point out the danger of erosion of truth and legality through the emergence of competing consensus communities in the face of competing conceptions of order.

Parasites and promiscuity: Acute disease salience leads to more restricted sexual attitudes

2021 ◽  
pp. 026540752110309
Author(s):  
James B. Moran ◽  
Nicholas Kerry ◽  
Jin X. Goh ◽  
Damian R. Murray
Keyword(s):  
Social Behavior ◽  
Sexual Attitudes ◽  
Experimental Manipulation ◽  
Sexual Relationships ◽  
Experimental Results ◽  
Acute Disease ◽  
Short Term ◽  
Attitudes And Behaviors ◽  
The Relationship ◽  
Sexual Promiscuity

How does disease threat influence sexual attitudes and behaviors? Although research on the influence of disease threat on social behavior has grown considerably, the relationship between perceived disease threat and sexual attitudes remains unclear. The current preregistered study (analyzed N = 510), investigated how experimental reminders of disease threat influence attitudes and anticipated future behaviors pertaining to short-term sexual relationships, using an ecologically valid disease prime. The central preregistered prediction was that experimental manipulation of disease threat would lead to less favorable attitudes and inclinations toward sexual promiscuity. Results were consistent with this preregistered prediction, relative to both a neutral control condition and a non-disease threat condition. These experimental results were buttressed by the finding that dispositional variation in worry about disease threat predicted less favorable attitudes and inclinations toward short-term sexual relationships. This study represents the first preregistered investigation of the implications of acute disease threat for sexual attitudes.

Molecular biology of enzyme adaptations in higher eukaryotes

Genome ◽  
1989 ◽  
Vol 31 (1) ◽  
pp. 272-283 ◽  
Author(s):  
Donal A. Hickey ◽  
Bernhard F. Benkel ◽  
Charalambos Magoulas
Keyword(s):  
Molecular Biology ◽  
Tissue Specificity ◽  
Enzyme System ◽  
Direct Interaction ◽  
Evolutionary Genetics ◽  
Short Term ◽  
Eukaryotic Genes ◽  
Higher Eukaryotes ◽  
The Relationship

Multicellular eukaryotes have evolved complex homeostatic mechanisms that buffer the majority of their cells from direct interaction with the external environment. Thus, in these organisms long-term adaptations are generally achieved by modulating the developmental profile and tissue specificity of gene expression. Nevertheless, a subset of eukaryotic genes are still involved in direct responses to environmental fluctuations. It is the adaptative responses in the expression of these genes that buffers many other genes from direct environmental effects. Both microevolutionary and macroevolutionary patterns of change in the structure and regulation of such genes are illustrated by the sequences encoding α-amylases. The molecular biology and evolution of α-amylases in Drosophila and other higher eukaryotes are presented. The amylase system illustrates the effects of both long-term and short-term natural selection, acting on both the structural and regulatory components of a gene–enzyme system. This system offers an opportunity for linking evolutionary genetics to molecular biology, and it allows us to explore the relationship between short-term microevolutionary changes and long-term adaptations.Key words: gene regulation, molecular evolution, eukaryotes, Drosophila, amylase.

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