Finance and Pensions & Investments Blog

• 17Dec

  Each gold medal costs about 40 million euros to a government

  business, Economy, Finance, general, Global, gold medal costs, government No Comments

  To reach this result, researchers have been calculating the price with a model that measures the number of medals in terms of government spending on sports, among other variables. “This model allows us to measure precisely how much extra spending is needed to win a medal,” explained UC3M teachers, Juan de Dios Tena and J. Ramón Flores, who have done this study within the research group in Economics of Sport, led by Professor David Forrest, University of Salford (England) and also comprises Ismael Sanz, Universidad Rey Juan Carlos and Jaime Alvarez , University Complutense of Madrid.

  “We have estimated the relationship between these costs and Olympic success once also takes into account the effect of economic variables, political and relevant demographic, as the size of the country,” said Tena. This work was presented at the workshop “The Economic of the Olympic Games in Groningen in July 2008 under the title” Can governments buy Olympic medals? ” and is currently under review in a research journal.

  In the area of Economics of Sport these researchers use econometric models (usually regression type) to analyze sporting events in which conditions appear economic. The general idea of the hub is that there are many possible causes of a phenomenon. “A regression model provides an estimate of the individual effect of each of these cases once they control all the others,” says Professor Flores, allowing rigorous conclusions from statistical models that can determine the specific influence of a element in the sporting context.

  The dilemma to fire coach

  For football teams, for example, this group of researchers has analyzed the figure of technical trainer and found that the effect of firing a coach mid-season is more negative than positive when it tends to repeat this situation. “A coaching change reduces average number of points scored in eight games in a unit,” he commented.

  From the results obtained for several seasons by the league clubs in Argentina, the econometric model developed shows an inverse relationship between the redundancy and performance. In short, the more layoffs, the worse results in the medium term. “Similar work done in European leagues, where the number of layoffs is lower, show no such effect, suggesting that the abuse of layoffs may generate negative consequences in this context,” they conclude these professors in the Department of Statistics UC3M.

  Another related issue that these investigators have studied was the effect it had the Bosman ruling of 1995 in the competitiveness of major league soccer. Before it, in national competitions governed a very strong limitation on the number of foreigners per team fichables, resulting in the good foreign players landfall usually available at big clubs. With the new legislation removed that limitation, greatly increased the number of players available, which mid-level clubs could also be strengthened under properly and increase their level as well as the competitiveness of the tournaments.

  “To measure this increased use measures well known in the literature, for example the percentage of the total points achieved by the two, four or ten best teams in the league, while taking into account other factors that influenced the change of market, such as the introduction of the Champions League and their subsequent rewards “they say. The conclusion: since the entry into force of the Bosman ruling reduced the ratio of points of the two best teams in 2 per cent and eight at 4 percent.

  This type of data and research can provide guidance and assistance in the decision making process. In addition, the responses obtained can be extrapolated to broader contexts. “Our intention is to apply them profusely and assist in the resolution of questions that generate debate in society that produce interesting findings that are rarely studied with the rigor they deserve,” say these teachers on the campus of the UC3M Colmer, who have the impression that in this area are often presented as ‘analysis’ work goes beyond just mere opinion.

  “Because of the media for everything related to sports – complain – usually appear low statistical studies or made directly by amateurs, Derived from pedestrians from samples that do not offer the slightest guarantee.”

• 16Dec

  81% of Aragon in favor of renewable energy use

  Aragon, Economy, Finance, renewable energy No Comments

  A study by the Center for Research and Food Technology of Aragon (CITA) reveals that 81% of the population of Aragon in favor of renewable energy use despite its higher cost. Women, youth and student population are those that are more in favor of this type of energy and also testing new products and make a higher garbage collection.

  The study, conducted by the Department of Science, Technology and the University through the Center for Research and Food Technology of Aragon (CITA), in collaboration with La Caixa, Aragon indicates that citizens are more in favor of energy use of solar and wind (about 85% of respondents in each case) whereas the majority of respondents remain more indifferent with regard to hydroelectric.

  There is consensus among respondents in the environmental and economic benefits of using renewable energy as well as their increased cost of production.

  The European Union (EU) has fixed that by 2020 emissions of greenhouse gases must be reduced 20%, increasing the share of renewables in energy consumption by another 20%. These goals involve changing the current energy consumption pattern for a sustainable model in which renewable energy derived from natural sources inexhaustible, to take greater role as a substitute for conventional fossil fuels (oil, coal and gas).

  Of examinations performed by Dr. Azucena Gracia CITA leading a research team can obtain useful information for businesses operating in the energy sector and for public policy makers in promoting energy renewable.

• 15Dec

  Unemployment remains a major concern in Spain

  business, Economy, Finance, general, Global No Comments

  The CIS survey, released today, shows that the main problem for two-thirds of the pooblación living in Spain is unemployment. 48.4% of respondents priority is economic issues, which continue, terrorism (18.3%), immigration (14.3%) and insecurity (12.8%).

  Compared with the figures in July, the problem of unemployment experienced a rise of two points and so does the number of people (70.8% in September) they believe the economic situation is “bad” or very bad. “Only 24% of the public appreciates that the situation will improve in the next twelve months.

  The evolution of the economic situation within a year experienced a more optimistic. 24.2% of the population thinks it will improve, compared to 22.8% that they promised before the summer.

  The protection of network data

  In the surveys received, it is assessed that the privacy of online data has a low security level. 40% of respondents said that does not give any assurance to bank online, and give the card to make a purchase on the network (51.4%).

  More than two thirds of the population ensures that any institution or similar to what is not aware of giving their personal data, has called on the phone or sent an SMS for advertising.

  47% sure you never consent to fill out forms when you ask where your personal information so you can dispose of and 52% of those who said they had requested to cancel their data they found it “difficult” or ” very difficult “to do so.

  On the other hand, 35.6% never read the privacy policies of the pages you visit and 46.3% do not know of the existence of the Data Protection Agency.

  To obtain the results of the survey have been conducted 2475 interviews in 239 municipalities and 49 provinces other than between 4 and 14 September.

• 11Dec

  The price of land has grown nine times more than the CPI during the housing boom

  business, Economy, Finance, general, Global No Comments

  The value of housing in Spain has increased by 3.6 from 1997 to 2007, which corresponds to the real estate boom. According to the study in 1998 was necessary to use the 5-year average salary to buy a house of 90 m2, while in 2007 it was necessary 12 years.

  Responsible for 84% of the increase in housing prices during the boom was the price of land, compared to rising prices of the building that represented only 16%. The Basque Country is the region where the expensive price of land has more impact on the price of housing with 91% of the total, said Ezequiel Uriel, director of the report.

  The autonomous communities that offer the greatest capital stock of housing with 53% in Spain in 2007 were Catalonia (993,395,000), Comunidad de Madrid (928,782,000) and Andalusia (771,522,000). On the other hand, Andalucía, Ceuta and Melilla are the regions where it has increased the value of housing between 1998 and 2007.

  During the period that has lasted the housing bubble, housing prices have grown at an average annual rate of 12% as did the CPI to 2.9% annually. The most populated municipalities (more than 100 000 inhabitants) and the coastal present higher prices.

  The Community of Madrid is the region with the 2007 housing price per square meter high (3,221 per m2) and the lowest price we found in Extremadura to 887 per m2).

  Francisco Perez, director of the Ivie, wanted to point out that “have to analyze the consequences of a housing bubble of this magnitude has had on the growth pattern and learn from it, since the rate of housing production has led to a surplus and now must adjust. “Both experts agree that the housing boom could happen again but do not venture to predict when.

  All data in this study appear in the monograph “The capital stock of housing in Spain and its geographical distribution (1900-2007), directed by Ezequiel Uriel, a professor at the University of Valencia and Ivie researcher and conducted in collaboration with Carlos Albert, Eva and Vincent Benages Cucarella, Ivie technicians.

• 06Dec

  Elinor Ostrom becomes the first woman to receive the Nobel Prize for Economics

  business, Economy, Finance, general, Global, Nobel Prize No Comments

  Elinor Ostrom, professor at the University of Indiana (USA), is the first woman to win the Nobel Prize in Economics is awarded since 1969, for his analysis of economic governance, especially the commons. “Ostrom said stay stunned Upon learning of the award. “It’s a great and exciting surprise,” he said.

  The U.S. also Oliver Williamson, a professor at the University of California at Berkeley, was honored for his theories “that indicate that large corporations are, first, because they are efficient,” and for “his analysis of political governance, especially in regarding the limits of the company, “ie, how some of the economic measures are decided in other markets and within firms.

  Ostrom was born in Los Angeles in 1933 and is a lecturer in political science from the University of California. He also founded and directed the Center for the Study of Institutional Diversity at the University of Arizona. This research bases its work on the analysis of public property management, whose work has challenged the conventional wisdom that common property is managed poorly and should be regulated by central authorities or be privatized.

  For his part, Oliver Williamson received his doctorate in economics in 1963 at Carnegie Mellon University in Pittsburgh, and professor at the University of Berkeley (California). The Economist has discovered in his work that markets and hierarchical organizations represent corporate governance structures that differ in their approaches towards the resolution of conflicts of interest.

  The two winners will share equally the officially known as Sveriges Riksbank Prize in Economic Sciences and endowed with 10 million kronor (1.4 million U.S. dollars).

  The Nobel Prize in Economics was instituted by the Bank of Sweden in 1969 and is the only award not established left Alfred Nobel in his will. Last year the award went to U.S. researcher and broadcaster Paul Krugman. This is the last of six Nobel announced this year.

• 28Nov

  If you get unemployed you will be paid less on your next job

  business, Economy, Finance, general, Global No Comments

  “Of the countries studied, Spain, Italy and Portugal are the countries of the European Union where the long-term unemployment affects more negatively to salary, once the individual returns to work,” explains to SINC Carlos García Serrano, a researcher University of Alcalá (UAH) and one of the authors.

  The paper analyzes the labor mobility and “losses relative” of wages when the individual passes the idle-state workers not actively seeking work or have use for it-or unemployment in Spain, Italy, Portugal, United Kingdom, France and Germany for seven consecutive years (1995-2001), from data collected in the Panel Survey Household Panel (ECHP).

  “We wanted to know the effect on wages in unemployment and inactivity, and see if the selected countries were grouped according to level of impact on remuneration. To this end, we took into account the different labor market institutions and social protection systems that exist in each country, “said Garcia Serrano.

  The results, published in Manchester School, show that the countries studied are divided into three groups. The first one is formed by Germany and France, countries representative “of protective institutions, ie, following a more proactive model of social security or to the job.

  For its part, Spain, Italy and Portugal, have a similar preventive policy but “weaker” and differences in the system of collective bargaining and active labor market policies work. And finally, the United Kingdom has the most flexible and lowest unemployment protection.

  “We expected that the impact of inactivity and unemployment was higher in countries like France and Germany, but it was not. Only in the case of inaction, France, Germany and Portugal are at the forefront of negative impact on wages in the later work, “says the researcher.

  A temporary phenomenon

  But not all negative data: periods of relative wage losses after unemployment are not permanent. “In workers who have moved from job due to a recent period of unemployment, wage figures are 4.5% lower in Spain, Italy 5.6% and 7% in Portugal compared to those have remained in occupation, but his recovery is quick as they disappear after one year, “he stresses.

  Younger workers have the highest wage increases in every country (especially if they move voluntarily). However, individuals between 31 and 45 years are most affected by periods of unemployment on wages later and they are more permanent effects.

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