Goldberg | Jotup

Dominant currency pricing in international trade of services

Retrieved on:

Giovedì, Aprile 25, 2024

SF1, Goldberg, LCP, Statistics, Research Papers in Economics, VCP, Place of birth, Postal, A.4, Journal of International Economics, Business, International, ISIC, Data collection, Heritage, Macroeconomics, Banco de Portugal, Computer, Tech, Prevalence, MCI, Agriculture, Audiovisual, European Economic Association, CNY, Journal of Monetary Economics, Pauwels, Insurance, Paper, Corsetti, Laurent, Environment, R2, Portuguese Economic Journal, Website, Table, Working paper, VB, Public opinion, World Bank, Collection, Travel, Transport, Science, PII, International economics, PDF, ECB, Foreign exchange market, Policy, Angelo Bacchetta, Social science, Labour economics, Communication, Journal, Research, Classification, A.5, Literature, DCP, European Central Bank, Mining, Export, Equation, Monetary economics, Section 5, Practice of law, Elasticity, ISO, COVID-19, BIS, Electricity, Automation, The Economic Journal, Chung, Employment, A.2, Telecommunications, International Monetary Fund, Tourism, UTC+01:00, Section 4, IUSD, Health care, F14, Database, Section 3, PCP, International finance, NIPE, Annual report, Note, Section 2, Conference, CPI, Central bank, SH42, Incidence, FE, American Economic Review, SF3, Exercise, Test, Justice, Forestry, SK22, Quarterly Journal, GDP, Central Statistics Office (India), Green, SG1, B.1, SF, Swings, Payment, IES, A.6, JPY, Colum, Bank, Reproduction, World Trade Organization, IMF, SF2, F31, Geography, Data, SF4, Cryptocurrency

Abstract

Key Points:

Abstract
We analyze, for the first time, how firms choose the currency in which they price transactions
in international trade of services and investigate, using direct evidence, whether the US dollar
(USD) plays a dominant role in services trade.
JEL: F14, F31, F41
Keywords: dominant currency paradigm, international trade, services.
Related research has
shown that the US dollar (USD) exchange rate is a major source of swings in
global trade in goods?a ?dominant currency pricing? (DCP) phenomenon?since
most goods traded internationally are invoiced and sticky in USD.
Yet it is also key to look at dominant currency pricing in international trade
in services for several reasons.
First, global trade in services is big?accounting for
about a quarter of global gross trade flows and for around 40% in terms of valueadded trade.
Third, and relatedly, the
future of globalisation might be in trade in intermediate services?as progress with
digitech lowers technological barriers to such trade across borders.
But perhaps the main reason is that trade in services is conceptually different
from trade in goods.
Our paper is the first, to our best knowledge, that analyzes how firms choose
the currency in which they price transactions in international trade of services and
that examines whether dominant currency pricing differs between trade in goods
and services using direct evidence? hitherto unavailable?on patterns of currency
choices in international transactions in services compared to goods.
Work on dominant currency pricing has
almost exclusively focused on trade in goods.
One reason is that data on patterns
in invoicing currency for trade in services are ?virtually nonexistent? (Adler et al.
Yet it is important to look at dominant currency pricing in international trade
in services for several reasons.
Using the exporter?s (or producer) currency in exports is known in the literature as producer
currency pricing (PCP), while using the importer?s currency is known as local currency pricing (LCP)
and using a third currency is known as vehicle currency pricing (VCP).
Our paper is the first, to our best knowledge, that analyzes how firms choose the
currency in which they price transactions in international trade of services and that
examines whether dominant currency pricing differs between international trade in
goods and services using direct evidence ? hitherto unavailable ? on patterns of
currency choices in international transactions in services compared to goods.
First,
we rule out compositional effects, that is that differences in the use of currencies
reflect differences in trade partners in services vs. goods trade.
Both in extra-EU and intra-EU trade, the EUR is the
most widely used currency, be it on the export or import side.
Based
on the framework, we stress which factors should determine currency choices in
international trade, and to what extent one should expect differences between
services trade and goods trade.
Second, it can price in the importer?s currency
(local currency pricing, LCP).4 Third, it can use a third currency, say currency
v (vehicle currency pricing, VCP).
That is,
the currency choice problem is equivalent to determining the currency in which the
desired price is least volatile.
(2022)
provide systematic empirical evidence ? firm size and exposure to foreign currencies
in imported inputs ? should also shape currency choices in services trade.
Dominant currency pricing in USD ? services vs. goods trade
Having established that currency choice in international trade of services is an
active firm-level decision as well as the determinants of this decision, we now
8.
Services and goods exports: prevalence of different pricing strategies (percent)
Notes: The table shows the shares (in value terms) of different pricing strategies: producer currency
pricing (PCP), local currency pricing (LCP) and vehicle currency pricing (VCP).
To make comparisons with goods trade, we rely on Eurostat?s
macro data on international trade in goods by invoivcing currency.
If intra-EU trade is more important in services than
in goods trade, this could hence be an explanation for the lower prevalence of the
USD in services trade.
We showed
that while the USD is also extensively used as a vehicle currency in services trade, its
prevalence is systematically lower than in goods trade.
Hence for all travel services exports
the invoicing currency is the EUR; for travel imports it is the currency of the
destination of travel (i.e.
Also for these
ECB Working Paper Series No 2932

33

services it seems plausible that trade does not take place vis-?-vis all counterparts
in each currency.
Figure B.2: Share of international trade in services in global GDP broken down by type (%)
Notes: Authors? calculations using World Bank and World Trade Organization data.
An earlier version of this paper circulated under the title ?Currency choices and the role of the
U.S. dollar in international services trade?.

A new measure of firm-level competition: an application to euro area banks

Retrieved on:

Giovedì, Aprile 18, 2024

Glass, RPD, Journal of Economic Perspectives, Goldberg, Employment, Lead, Competition, SCP, Research Papers in Economics, TCF, Intuition, Laboratory, Euromoney, Bank of Canada, Calendar, International political economy, Manufacturing, Oxford Economic Papers, Harvard University Press, Paper, Linearity, R2, Environment, Delicatessen, System, Website, Panzar, Working paper, World Bank, Elzinga, Friends, Madiga, CPB, Investment, Lerner index, Statistics, Croatian National Bank, PDF, Elsevier, ECB, Industrial organization, Policy, Social science, JEL, Operations research, Internet, Journal, Research, Literature, European Central Bank, Journal of Economic Surveys, MRP, Commercial, Section 5, Financial intermediary, Ministry of Social Affairs, Elasticity, National bank, Government, Developed country, Cell, Tarazi, Wealth, Publishing, Springer Nature, Prudential, Marketing, Law, The Economic Journal, Lerner, L16, Business economics, OECD, International Monetary Fund, Section 4, Database, Section 3, Krieger, EMU, Section 2, Pressure, Central bank, Economics Letters, Bank, Jorgenson, Character, Sparkassen-Finanzgruppe, Life, EDS, American Economic Review, K2, Appendix, Applied economics, CEE, Palgrave Macmillan, Livret A, Bell Labs, GDP, Part, Country, Public policy, De Economist, Management, Publication, Motivation, Cooperative, Reproduction, IMF, Edward Elgar Publishing, Housing, Handbook, G21, Real estate

Abstract

Key Points:

Abstract
This paper extends Boone (2008) by introducing a competition measure at the individual
firm level rather than for an entire market segment.
We apply this extended Boone indicator to individual bank-level competition
in the loan market in the four largest euro area countries and Austria.
Our new measure of firm-level competition enriches and complements
other competition measures and provides a promising starting point for future market
power analyses.
The only measure among non-structural measures that is based on the
concept of competition as a process of rivalry is the Boone (2008) indicator.
We introduce
a new performance measure of competition by extending the Boone indicator to the
individual firm level.
Introduction
The ability to reliably measure competition is valuable to researchers, analysts, and
policymakers, especially antitrust authorities, financial supervisors, and central banks.
One broad
category of indicators often used to measure competition are structural competition
measures, such as static concentration measures, and dynamic measures, e.g., entry and
exit rates.
Out of these measures, the only measure based on the
concept of competition as a process of rivalry is the Boone indicator.
This study introduces a new performance measure of competition by extending the
Boone indicator to the individual firm level.
It thus measures the
increase in profits in percent of one percentage point increase in efficiency, with marginal
costs as measure of efficiency.
We extend the theoretical
underpinning of the measurement of competition for the entire market of Boone (2008) by
a new measure of individual firm-level competition.
A concern of the literature is the gap
between the practical application and the theoretical framework of Boone (2008).
We introduce within the same theoretical
framework a new measure of competition on firm level, the MRP.
Our new
measure significantly augments the antitrust evaluative framework by shedding light on
whether a merger results in a less competitive market.
Our novel indicator focuses on
firms? incentives to enhance their relative efficiency, as manifested in the elasticity
between relative profits and efficiency.
However, an inefficient firm that is foreclosed could be more
competitive than the larger efficient firm that relies on its scale economies.
Our new metric of competition unveils
banks? ability to influence their profitability in the short term by cutting costs relative to
their peers.
The new MRP indicator provides the ability to assess the impact
of individual banks? competitiveness on their interest rate-setting behaviour in loan
markets.
Incorporating this information promises a more refined understanding of the impact and
timing of monetary policy rates changes on the real economy.
Section 3 introduces within the Boone
(2008) theoretical framework our new measure of individual firm-level competition,
including the interpretation of the MRP.
Section 4 provides an application of our new
ECB Working Paper Series No 2925
6

individual firm-level competition measure to the loan market.
The StructureConduct-Performance paradigm (SCP) provides a traditional framework in the field of
industrial organization for analysing competition behaviour in markets.
Concentrated
markets ease the possibilities to collude implicitly or explicitly and therefore concentrated
markets result in higher prices and profits.
For example, a tougher competition
setup may lead to a reallocation of market shares, potentially forcing some firms to exit
the market.
This approach gives firms? strategic behaviour
central stage and focuses on the strategic interaction on prices and quantities, known as
conjectural variation.
Another measure from
this strand of literature is the H-statistic developed by Panzar and Rosse (1987).
The only competition measure from this performance literature where competition is the
outcome from a process of rivalry is the Boone indicator.
A continuous and monotonically increasing relationship exists between
RPD and the level of competition if firms are ranked by decreasing efficiency.
(2013) compare the Boone indicator with the price-cost margin
and conclude that the profit elasticity is a more reliable measure of competition.
The high
elasticity of profits to efficiency unequivocally indicates that the high market shares and
therefore high profits are due to high efficiency.
A firm that quickly passes changes to the input prices is seen as a price
taker with little market power.
Indicators of competition tend to measure different phenomenon and may provide
conflicting messages, as reported for European banking by Carbo et al.
Application 2: Test the ?quiet life? and related market structure hypotheses using the
MRP as competition or market structure measure.
Data
Our application to individual bank-level competition in the euro area loan market uses
balance sheet and income statement data from the Moody?s Analytics BankFocus for the
calendar years 2013-2020.
As such, most publications
on competition in the euro area includes the largest four member states.
Due to these restrictions the database was reduced to an unbalanced panel of up to 1862
banks (depending on the year) from five euro area countries.
Application 1: Measure bank competition using MRP
Looking at the distribution of the MRP for individual banks (Fig.
A similar finding for the four largest euro area countries as a group is
reported in Carbo et al.
Application 2: Test of market structure hypotheses using MRP
Our new measure of individual-bank competition can be used to test market structure
theories.
Euro area banks? market power,
lending channel and stability: the effects of negative policy rates, European Central Bank
Working Paper, 2790 (February).
A
new approach to measuring competition in the loan markets of the euro area, Applied
Economics, 43 (23), 3155?3167.
Impact of bank competition on the interest rate pass-through in the euro area, Applied
Economics, 45 (11), 1359?1380.

Telesat and Government of Canada Agree to Terms on C$2.14 Billion Loan in Support of Telesat Lightspeed

Retrieved on:

Lunedì, Aprile 1, 2024

LEO, Government, Letter, Documentation, Growth, Speed of light, Goldberg, History, TSAT, TSX, Interest, Communications satellite

The letter states that, following several months of negotiations between Telesat and federal officials, the Government of Canada (GoC) is prepared to invest C$2.14 billion in Telesat Lightspeed by way of a loan to Telesat LEO Inc., a wholly owned subsidiary of Telesat, that is developing and will own and operate the highly advanced Telesat Lightspeed Low Earth Orbit (LEO) global broadband satellite constellation.

Key Points:

The letter states that, following several months of negotiations between Telesat and federal officials, the Government of Canada (GoC) is prepared to invest C$2.14 billion in Telesat Lightspeed by way of a loan to Telesat LEO Inc., a wholly owned subsidiary of Telesat, that is developing and will own and operate the highly advanced Telesat Lightspeed Low Earth Orbit (LEO) global broadband satellite constellation.
The loan will carry a floating interest rate that is 4.75% above the Canadian Overnight Repo Rate Average (CORRA) with a 15-year maturity.
Interest is payable in-kind during the Telesat Lightspeed construction period, followed by a 10-year sculpted amortization.
Furthermore, Telesat LEO Inc. will provide the GoC with warrants for 10% of the common shares of Telesat LEO based upon an equity valuation for Telesat LEO of US$3 billion.

Hilco Corporate Finance Expands Investment Banking Advisory Team

Retrieved on:

Martedì, Marzo 12, 2024

Consumer, Corporate services, Business, Goldberg, CRE, Acquisition, University, Senior, HCF, Capital market, Hilco Global, Financial services

CHICAGO, March 12, 2024 /PRNewswire/ -- Hilco Corporate Finance (HCF), Hilco Global's investment banking advisory firm, continues to strengthen its team with the appointment of two industry leaders. Josh Goldberg joins as Senior Managing Director for Consumer and Retail M&A, based in New York City, while Alina Mardesich assumes the role of Managing Director for Commercial Real Estate Finance, based in Los Angeles.

Key Points:

Josh Goldberg joins the team as Senior Managing Director for Consumer & Retail M&A Advisory, and Alina Mardesich as Managing Director for Commercial Real Estate Finance
CHICAGO, March 12, 2024 /PRNewswire/ -- Hilco Corporate Finance (HCF), Hilco Global's investment banking advisory firm, continues to strengthen its team with the appointment of two industry leaders.
Mr. Goldberg commented, "What excited me about joining Hilco to build the healthy M&A advisory practice is the sheer depth of experience and network within the Hilco Corporate Finance team, as well as the Hilco Global organization.
I was impressed with the strength of the existing Hilco Corporate Finance team in both Special Situations and Capital Markets and, with a new M&A advisory team, Hilco Corporate Finance is positioned to provide investment banking services to our clients at every stage and circumstance of our middle-market clients."
Encompassing capital advisory, M&A advisory, and special situations/ restructuring investment banking services, we continue to build our practice from a client's point of view – focusing on a solutions-oriented, not merely a transactional, approach.

Seward & Kissel Appoints Kevin Neubauer as Co-Head of the Firm’s Investment Management Group

Retrieved on:

Lunedì, Marzo 4, 2024

Professional Services, Legal, Finance, Consulting, Banking, Accounting, Private equity, Goldberg, Growth, Lawsuit, Seward & Kissel, Government, Private, Kelley Drye & Warren, Kirkland & Ellis, Organization, King & Spalding, Russell Johnston, Providence Equity

Seward & Kissel is pleased to announce that Kevin Neubauer has been named co-head of the firm’s Investment Management Group, effective March 1.

Key Points:

Seward & Kissel is pleased to announce that Kevin Neubauer has been named co-head of the firm’s Investment Management Group, effective March 1.
He succeeds Robert Van Grover , who served in the role for more than 10 years and will remain an active partner in the Investment Management Group.
“Kevin has repeatedly demonstrated his ability to be an effective leader, both with respect to client matters and strategic firm initiatives,” said Seward & Kissel managing partner Jim Cofer .
Neubauer, who was elevated to partner at Seward & Kissel in 2020, originally joined the firm in 2009.

Sonita Bennitt Joins Seward & Kissel’s Tax Group

Retrieved on:

Mercoledì, Febbraio 28, 2024

Seward & Kissel LLP announced today that Sonita M. Bennitt , former counsel with Goodwin Procter LLP, has joined the firm’s New York office as a partner in the Tax Group .

Key Points:

Seward & Kissel LLP announced today that Sonita M. Bennitt , former counsel with Goodwin Procter LLP, has joined the firm’s New York office as a partner in the Tax Group .
She also advised clients on tax aspects of real estate joint ventures and real estate investment trusts.
“Sonita’s wealth of experience makes her a valuable addition to our firm and the Tax Group,” said Jim Cofer , managing partner of Seward & Kissel and a partner in the firm’s Tax Group.
“Her deep background in private fund formation and structuring makes her an ideal fit with our Tax Group and the broader work of the firm.”
Prior to Goodwin Procter, Bennitt practiced as a tax associate at Debevoise & Plimpton LLP.

GOLDBERGS GROUP PARTNERS WITH SECOND HELPINGS ATLANTA TO PROVIDE HEALTHY BREAKFASTS FOR STUDENTS DURING WINTER BREAK

Retrieved on:

Giovedì, Febbraio 22, 2024

App Store (iOS/iPadOS), Goldberg, Food, SHA, Google Play, Second Helpings, CIS, Hunger

MARIETTA, Ga., Feb. 22, 2024 /PRNewswire/ -- Goldbergs Group, a local food manufacturer and beloved restaurant group for more than 50 years, joined forces with Second Helpings Atlanta (SHA), a small but mighty food rescue organization, to supply nearly 9,000 children with nutritious breakfast options during the upcoming winter school break.

Key Points:

In a move that reflects their commitment to community stewardship, Goldbergs Group collaborated with Evergreen Waffles, contributing over six pallets of waffles and waffle sandwiches.
The retail value of the donated goods exceeds $40,000 and marks a significant milestone in the fight against childhood hunger.
The winter break donation is a continuation of Goldbergs Group's ongoing support of SHA's mission.
Download the Goldbergs Fine Foods app via Google Play or the App Store and receive 10% off your first mobile order.

Seward & Kissel Adds Former Chief Marketing Officer From Shearman & Sterling

Retrieved on:

Mercoledì, Febbraio 14, 2024

Seward & Kissel LLP announced today that Nora Shearer , the former chief marketing officer at Shearman & Sterling, has become Seward & Kissel’s chief marketing and business development officer, effective immediately.

Key Points:

Seward & Kissel LLP announced today that Nora Shearer , the former chief marketing officer at Shearman & Sterling, has become Seward & Kissel’s chief marketing and business development officer, effective immediately.
View the full release here: https://www.businesswire.com/news/home/20240214675950/en/
Seward & Kissel Adds Nora Shearer as Chief Marketing and Business Development Officer (Photo: Business Wire)
“Nora has a proven ability to connect premier law firms with their most important audiences,” said Jim Cofer , managing partner of Seward & Kissel.
Most recently, she served as the chief business development and marketing officer at Nardello & Co., the global investigations and business intelligence firm.
Notaro previously served at other elite firms, including Skadden, Arps, Slate, Meagher & Flom and Orrick, Herrington & Sutcliffe, before joining as Seward & Kissel’s first chief operating officer.

SCHOCHOR, STATON, GOLDBERG AND CARDEA, P.A. AND JANET, JANET & SUGGS, LLC TO OPPOSE THE ARCHDIOCESE OF WASHINGTON'S MOTION TO DISMISS ITS CLASS ACTION LAWSUIT IN UPCOMING HEARING

Retrieved on:

Lunedì, Febbraio 12, 2024

Chairperson, General assembly, Child, Survivor, Hearing, Minor, Assembly, Goldberg, Language, Clergy, Conference, History, Personal injury, Immunity, Circuit court, Johns Hopkins Hospital

BALTIMORE, Feb. 12, 2024 /PRNewswire/ -- Schochor, Staton, Goldberg and Cardea, P.A. and Janet, Janet & Suggs, LLC, two leading Maryland-based medical malpractice, personal injury, and civil litigation law firms, are partnering to oppose a motion to dismiss a class action lawsuit against the Archdiocese of Washington in an upcoming March hearing on behalf of sex abuse victims who have come forward seeking justice.

Key Points:

The class action against the Archdiocese of Washington was filed the same day.
The Archdiocese of Washington has requested that the lawsuit be dismissed, arguing that the Child Victims Act is unconstitutional.
and Janet, Janet & Suggs, LLC, on behalf of the plaintiffs, argue that the 2017 law was not a "statute of repose."
and Janet, Janet & Suggs, LLC, have previously partnered in a class action against Johns Hopkins Hospital arising from sexual abuse committed by one of its doctors.

Oliver Asmus Joins DAS42 as Field Chief Technology Officer to Drive Data Modernization Success

Retrieved on:

Martedì, Febbraio 6, 2024

Technology, Mobile, Wireless, Consulting, Other Technology, Business, Professional Services, Software, Networks, Data Management, Cloud, Goldberg, Big Three, Television, Advantage Business Media, Maxim Healthcare Services, Management

DAS42 , a leading data consultancy, today announced it has welcomed former Slalom executive Oliver Asmus as Field Chief Technology Officer to drive innovation at DAS42 and lead the consulting organization to help customers become genuine data-driven entities.

Key Points:

DAS42 , a leading data consultancy, today announced it has welcomed former Slalom executive Oliver Asmus as Field Chief Technology Officer to drive innovation at DAS42 and lead the consulting organization to help customers become genuine data-driven entities.
Asmus will work closely with, and report to, CEO Frank Farrall and lead the charge on evolving DAS42’s data analytic offerings.
Asmus has strong experience implementing data-driven solutions in the media and entertainment industry and supporting the adoption and optimization of Snowflake Data Cloud.
“I’m honored to join DAS42 to help drive the technology strategy forward and enhance our innovative data solutions and Snowflake offerings,” said Asmus.