Pragmatic Economics and Sustainable Finance

Building solutions for a better world

Industrial Economics

Industrial Economics and International Trade are very interesting fields. Technical, yes, but full of important insights on competition and economic behavior.

How (a)symmetric is the response of import demand to changes in its determinants? Evidence from European energy imports – Energy Economics (forthcoming), with Svetlana Fedoseeva.

Our results have important implication for the geopolitics of energy markets in Europe. In particular, we find that that income is the most important energy important determinant and that coal behaves as a normal instead of an inferior good; economic growth and fossil fuel consumption are correlated, even in the context of European subsidies for renewables; and that exchange-rate pass-through is only relevant for crude oil. Moreover, primary energy imports are heavily affected by the dynamics of the natural gas market and coal prices affect oil imports. Implications are straightforward: European economic recovery may derail the drive for lower fossil fuel consumption and changes in the natural gas market, especially regarding Russia as the primary supplier to the Eurozone, may complicate this drive, as natural gas is a substitute for oil imports.

Tacit Collusion under Imperfect Monitoring in the Canadian Manufacturing Industry – Applied Economics (2015)

The evidence provides weak support for optimal collusion in one industry, which is consistent with the idea that such collusive arrangements are unusual.

Psychological biases and economic expectations: Evidence on industry experts – Journal of Neurology, Psychology and Economics (2015)
This article investigates possible psychological biases concerning the expectations of firm representatives (experts) using a survey of 30 industrial sectors in Brazil during the 1999Q3 through 2009Q4 period. The econometric approach builds on the work of Bovi (2009) by considering the significance of discrepancies between ex-post evaluations and ex-ante expectations. We extend the analysis by highlighting sectoral evidence from industry experts instead of aggregate evidence from lay people. The evidence, in the case of perceptions of general economic conditions, indicates the presence of important psychological biases on experts’ expectations, even when they have the incentive to collect costly information.
Dynamic Firm Entry and Exit  – International Journal of the Economics of Business (2015)

The empirical evidence is partially consistent with a multiplier effect where synergetic factors prevail by exit inducing exit. Evidence partially supports a competition effect that could be related to a selection process favoring efficiency, as exit induces entry.

Complementarity of Innovation Policies – International Journal of Production Economics (2014)

We can detect substitutability and complementarity for specific pairs of obstacles regarding the propensity to innovate, and some evidence of complementarities in obstacles when considering intensity of innovation. Evidence is suggestive and favors the adoption of more targeted incentive policies for innovation.

Measuring Market Conduct in the Brazilian Cement Industry – Review of Industrial Organization (2009)

The evidence clearly indicates nonnegligible and distinct market power in different regions and also distinct conduct patterns in the short and long run.

Adverse Selection in the Health Insurance Market– European Journal of Health Economics (2010)

The consideration of complex sampling in the probit estimations led to empirical evidence that does not indicate the presence of adverse selection, but which highlighted some interesting features of the relationship between the selected variables.

Development and Patterns of Trade between Brazil and the European Union  – Book chapter (2009)

The results of this analysis reveal a typical North-South trade pattern between the EU and Brazil. Trade specialization is primarily based on factor endowment although some evidence of increasing intra-industry trade and trade diversification appears.

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