Instituto Tecnológico Autónomo de México

About: Instituto Tecnológico Autónomo de México is a education organization based out in Mexico City, Mexico. It is known for research contribution in the topics: Politics & Population. The organization has 1098 authors who have published 2532 publications receiving 39083 citations. The organization is also known as: Instituto Tecnologico Autonomo de Mexico & Mexico Autonomous Institute of Technology.

Contagion of financial crises in sovereign debt markets

Abstract: This paper develops a quantitative model of contagion of flnancial crisis and sovereign default for small open economies that cannot credibly commit to honor their international debts and have common risk averse investors. The existence of common investors with preferences that exhibit decreasing absolute risk aversion (DARA) generates flnancial links between the emerging economies’ sovereign debt markets. These links help to explain the endogenous determination of credit limits, capital ∞ows, and the risk premium in sovereign bond prices as function not only of the economy’s fundamentals and the investors’ characteristics (wealth and the degree of risk aversion), but more importantly as a function of the fundamentals of other emerging economies. Therefore this paper provides a theoretical formalization for the endogenous explanation of the contagion of flnancial crises. The model shows that whenever a country sufiers a domestic shock that forces it to default, the associated decrease in investor’s wealth will reduce her tolerance of risk; in turn her investments in other emerging economies will be reduced, producing a contagion of the crisis in those countries whose fundamentals are not solid. Also, even when a crisis in one country does not force that country to default, the domestic shock afiects the overall riskiness of the investor’s portfolio. Therefore the investor is forced to rebalance her portfolio. In this case the investor moves away from countries that are \too" risky towards countries that are relatively solid, exhibiting a behavior consistent with the observed phenomena denominated as \∞ight to quality". Quantitatively, the model is applied to the case of the Argentinean default of 2001 and the posterior contagion of the crisis to the neighboring country Uruguay. This application shows that the model presented in this paper is not only consistent with the business cycle behavior of the emerging economies considered; but it is also superior to models that do not contemplate flnancial links in several dimensions: i.) the model explains a larger proportion and volatility of the spread between sovereign bonds and riskless assets; ii.) the model explains endogenously the positive correlation between the economies’ sovereign bonds spreads, debt ∞ows and consumption, and iii.) the model exhibits the behavior observed in the data of higher volatility and comovement of the series of emerging economies during periods of volatility in flnancial markets prompted by a crisis in some emerging country.

Board versus TMT international experience: a study of their joint effects

Abstract: Purpose – The purpose of this paper is to test the relationship between board and top management team (TMT) members' international experience and CEO multinationality, with their firm's degree of internationalization. Through the lenses of upper echelon theory, on a sample of 108 European and US firms, the author tests the variables “international experience” and “CEO multinationality”, at the board and at the TMT levels.Design/methodology/approach – A longitudinal research design is used to examine director's individual attributes in 2001 and firm's degree of internationalization in 2003‐2008. The sample comprised directors of the 108 largest European and US service and industrial firms by market capitalization, as listed in the Financial Times (FT) Global index of 2007.Findings – A positive effect is found on internationalization for international experience of both boards and TMTs; also a positive relationship is found between CEO multinationality of TMTs and internationalization.Research limitations/i...

Assessing the Potential of Interior Methods for Nonlinear Optimization

Abstract: A series of numerical experiments with interior point (LOQO, KNITRO) and active-set sequential quadratic programming (SNOPT, filterSQP) codes are reported and analyzed. The tests were performed with small, medium-size and moderately large problems, and are examined by problem classes. Detailed observations on the performance of the codes, and several suggestions on how to improve them are presented. Overall, interior methods appear to be strong competitors of act ive-set SQP methods, but all codes show much room for improvement.

Large-Scale Affirmative Action in School Choice: Admissions to IITs in India

Abstract: We provide a real-life application of a large scale affirmative action policy in school choice in the context of engineering school admissions in India where students not only care about what program they are matched to but also what type of seat category they are admitted under. We explain the market and the mechanism currently in use. Two significant shortcomings of the current mechanism are explained. The affirmative action policy in use leaves many seats vacant even though there are students who would take these seats. We provide the insight of a potential matching-theoretical solution to these problems.

Building Virtual Bridges to Home: The Use of the Internet by Transnational Communities of Immigrants

Abstract: For decades transnational communities of immigrants have used various forms of communication to maintain ties with their places of origin. Trans national communities of immigrants are creating and enhancing virtual spaces for (re)creating and m aintaining a SOC across national borders. This paper explores the concept of sense of virtual comm unity in transnational groups of immigrants. We review research from different disciplines to un derstand how the Internet is shaping the ability of dispersed national groups to create, preserve an d extend their SOC in virtual spaces. The theory of SOC applied to virtual communities provides the frame of reference in which this phenomenon is analysed. Based on our analysis of the literatur e we argue that the unique characteristics of communities of immigrants—such as shared histories, cultural values, experiences, common country of origin, and offline interaction—shape th e nature and dynamics of their interactions online. Social, political and economic implications of the offline/online interaction are also addressed for the host and home society.