DOCSLIB.ORG

Productivity, Reallocation, and Economic Crisis: Evidence from Ecuadorian Firm-Level Data∗

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Productivity, Reallocation, and Economic Crisis: Evidence from Ecuadorian Firm-Level Data∗ Productivity, Reallocation, and Economic Crisis: Evidence from Ecuadorian Firm-Level Data∗ Anson T. Y. Hoy Kim P. Huynhz David T. Jacho-Ch´avezx German Cubas{ Abstract The cleansing effect of recessions dictates that inefficient firms exit while only the most efficient firms enter. In a developing small open economy, distortions may prevent this efficient adjustment. Ecuador serves as an important case study because of its large eco- nomic crisis in the late 1990s. We study Ecuadorian firm dynamics to understand the sources of aggregate productivity growth. We find that reallocation of factor inputs and technical efficiency growth are the dominant factors. The reallocation due to net entry is only significant during the crisis period. These results illustrate the relative importance of extensive and intensive margins of reallocation. Keywords and phrases: Cleansing Effect, Aggregate Productivity, Input Distortions. JEL codes: D24, E25, L11, O11, O47. ∗We acknowledge the usage of the np package by Hayfield and Racine (2008) and the use of the Quarry High Performance Cluster at Indiana University where all the computations were performed. We thank Jason Allen, Calin Arcalean, Eric Bartelsman, Paul Carrillo, Kaiji Chen, John Earle, Oleksiy Kryvtsov, Jamil Mahuad, Os- waldo Molina, Mitsukuni Nishida, Amil Petrin, Robert Petrunia, B. Ravikumar, Bob Rijkers, Richard Rogerson, Kjetil Storesletten, Gustavo Ventura, Carolina Villegas-Sanchez, Kirk White, Yifan Zhang and participants of various workshops for comments. We thank Amil Petrin and Kirk White for sharing their productivity decompo- sition programs. The staff at the Ecuadorian National Statistics Office (INEC) provided great assistance with the data and answered many of our queries, in particular Galo Arias, Telmo Molina, Ver´onicaVel´azquez,Margarita Viera and Byron Villac´ıs. Ho thanks the U.S. Census Bureau for financial support. Jacho-Ch´avez thanks the Center for Latin American and Caribbean Studies (CLACS) at Indiana University for financial support. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to either the Bank of Canada or the Bank of Uruguay. All errors are our own. yDepartment of Economics, Kansas State University, 327 Waters Hall, Manhattan, KS 66506-4000, USA. Email: [email protected]. zBank of Canada, 234 Wellington Ave., Ottawa ON, K1A 0G9, Canada. Email: [email protected]. xDepartment of Economics, Emory University, Rich Building 306, 1602 Fishburne Dr., Atlanta, GA 30322- 2240, USA. E-mail: [email protected]. {Bank of Uruguay and Department of Economics, FCS-UDELAR, Diagonal Fabini 777, Oficina 501, Monte- video, Uruguay CP 11100. Email: [email protected]. 1 1. Introduction Recent economic crises highlight the need for understanding the effects of a severe recession on developing small open economies. Ecuador's economic crisis of the late 1990's serves as an important case study of economic reallocation. Figure 1 illustrates the macroeconomic condi- tions faced by Ecuador in 1998-2000. One, the exchange rate suffered a massive depreciation in both nominal and real terms. Second, oil prices, one of the main exports, hit a record low (less than 10 US dollars per barrel). Third, the economy suffered massive capital flight due to the 1998 Asian financial crisis. During this crisis several financial and labour market reforms were undertaken. The rationale for these reforms were to remove impediments for the efficient allocation of economic resources. To understand the aggregate effects of a severe recession, we need to look at the micro evidence using firm level data because it allows to understand the inherent heterogeneity of firm behaviour. For example, Davis and Haltiwanger (1990) and Caballero and Hammour (1994) say that recessions, although painful, serve as a cleansing effect i.e. inefficient firms are culled while the efficient ones thrive. Using Ecuadorian firm level data from the annual survey of manufacturing and mining from 1998 to 2007, Figure 2 provides some salient facts regarding firm turnover and reallocation. One, job destruction was greater than job creation in both Light (labour-intensive economic sectors) and Heavy (capital-intensive) industries. Also, the firm exit rate was higher than firm entry rate in both industries. However, at least in the light industries entrants during this period were larger than the exitors. These graphs are suggestive of the cleansing effect of recessions. There is also an alternative view that recessions may have a negative reallocation effect. Barlevy (2002) observes that job quality is procylical and in the presence of job search frictions will generate low quality job matches. These low quality matches of firms and workers is an inefficient reallocation of labour and is known as the sullying effects of recessions. From a capital point of view, Ouyang (2009) shows that recessions may destroy potentially superior firms during their infancy, an effect known as scarring. These examples of market frictions prevent the efficient allocation of resources and is reflected in a distortion on the economy. These distortions may manifest themselves in either labour and/or capital inputs. We use the methodology developed by Restuccia and Rogerson (2008), Guner, Ventura, and Xu (2008), and Hsieh and Klenow (2009) to quantify input (capital/labour) distortions. Our results suggest that both the cleansing and sullying effect existed in Ecuador. In the labour market, the sullying effect is observed in both industries for most years. However, capital and labour input distortions fell temporarily after 2000 when the economy started to recover and substantial economic reforms took place. In those years, we find cleansing effects in the sharp decrease in labour and capital distortions. Distortions affect reallocation on the extensive and intensive margins. On the extensive 2 margin, distortions may prevent inefficient firms from exiting and efficient firms from entering, leading to a negative cleansing effect. On the intensive margin, distortions may prevent resources flowing from unproductive firms to productive ones as in a well-functioning economy. Petrin and Sivadasan (forthcoming) study Chile and find that labour market immobility could be a reason for large gaps in the value of marginal product of an input versus its marginal cost at any plant. Oberfield (2011) and Chen and Irarrazabal (2012) also find that misallocation has strong effects on TFP in the Chilean manufacturing sector. In terms of cross-country studies, Collard-Wexler, Asker, and Loecker (2011) find that much of the dispersion in TFP or capital misallocation is due to the dynamic adjustment costs of capital. Also, the presence of distortions may stimulate incumbent firms to improve their technical efficiencies to increase their chances of survival. With the existence of distortions, it is important to understand the relative importance of different effects and how they translate into aggregate productivity. To achieve this, we em- ployed the method developed by Petrin and Levinsohn (forthcoming) to decompose aggregate productivity growth (APG) into the effects of technical efficiency improvement, reallocation between incumbent firms (intensive margin), and reallocation due to entry and exit (extensive margin). Our results show that the dominant contribution to APG is a positive input reallo- cation, on average 4.9 and 6.4 percent for the Light and Heavy industries, respectively. This result reflects the substantial lessening input distortion during the economic crisis. Technical efficiency improved 4.6 and 3.7 percent for the Light and Heavy industries, respectively. Real- location on extensive margin or net entry was minimal, 0.1 and 1.8 percent for the Light and Heavy industries, respectively. Our study finds that reallocation has a cleansing effect on the intensive margin of reallocation. These findings are similar to Petrin, Reiter, and White (2011) who highlight the positive role of reallocation in the United States. Our findings contrast with previous work from Japan that indicates the natural selection mechanism may not lead to efficient reallocation, see Nishimura, Nakajima, and Kiyota (2005). Hallward-Driemeier and Rijkers (2010) document that in Indone- sia financial market imperfections attenuated relationship between productivity and survival. Understanding the underlying mechanism of APG, distortions and reallocation is important for policymakers as it quantifies on what margin (if any) policies should be directed towards. This paper is organized in the following fashion: Section 2 offers a background on the eco- nomic conditions during this period; section 3 describes the data used, offers some descriptive statistics, and investigates the reallocation and productivity patterns; section 4 analyzes the input distortions while section 5 discusses the APG decompositions; and section 6 concludes. 3 2. Background on the Ecuadorian Economic Crisis This section aims to provide a stylized summary about the currency crisis, and the subsequent official dollarization in Ecuador from 1998 to 2000. For a detailed analysis of the Ecuadorian currency crisis, see Beckerman (2002), and J´acome (2004).1 The Ecuadorian currency crisis originated from a series of external shocks. While agriculture products and crude oil were the major exports of Ecuador, El Ni~nofloods in late 1997 and 1998 destroyed vast agricultural areas in the coastal region and reduced Ecuador's agricultural productions. Oil prices in the world market also sank to a historical low - less than 10 USD per barrel - significantly
Load more

Recommended publications
  • UC Irvine Electronic Theses and Dissertations
    UC Irvine UC Irvine Electronic Theses and Dissertations Title Making Popular and Solidarity Economies in Dollarized Ecuador: Money, Law, and the Social After Neoliberalism Permalink https://escholarship.org/uc/item/3xx5n43g Author Nelms, Taylor Campbell Nahikian Publication Date 2015 Peer reviewed|Thesis/dissertation eScholarship.org Powered by the California Digital Library University of California UNIVERSITY OF CALIFORNIA, IRVINE Making Popular and Solidarity Economies in Dollarized Ecuador: Money, Law, and the Social After Neoliberalism DISSERTATION submitted in partial satisfaction of the requirements for the degree of DOCTOR OF PHILOSOPHY in Anthropology by Taylor Campbell Nahikian Nelms Dissertation Committee: Professor Bill Maurer, Chair Associate Professor Julia Elyachar Professor George Marcus 2015 Portion of Chapter 1 © 2015 John Wiley & Sons, Inc. All other materials © 2015 Taylor Campbell Nahikian Nelms TABLE OF CONTENTS Page LIST OF FIGURES iii ACKNOWLEDGEMENTS iv CURRICULUM VITAE vii ABSTRACT OF THE DISSERTATION xi INTRODUCTION 1 CHAPTER 1: “The Problem of Delimitation”: Expertise, Bureaucracy, and the Popular 51 and Solidarity Economy in Theory and Practice CHAPTER 2: Saving Sucres: Money and Memory in Post-Neoliberal Ecuador 91 CHAPTER 3: Dollarization, Denomination, and Difference 139 INTERLUDE: On Trust 176 CHAPTER 4: Trust in the Social 180 CHAPTER 5: Law, Labor, and Exhaustion 216 CHAPTER 6: Negotiable Instruments and the Aesthetics of Debt 256 CHAPTER 7: Interest and Infrastructure 300 WORKS CITED 354 ii LIST OF FIGURES Page Figure 1 Field Sites and Methods 49 Figure 2 Breakdown of Interviewees 50 Figure 3 State Institutions of the Popular and Solidarity Economy in Ecuador 90 Figure 4 A Brief Summary of Four Cajas (and an Association), as of January 2012 215 Figure 5 An Emic Taxonomy of Debt Relations (Bárbara’s Portfolio) 299 iii ACKNOWLEDGEMENTS Every anthropologist seems to have a story like this one.
    [Show full text]
  • Country Codes and Currency Codes in Research Datasets Technical Report 2020-01
    Country codes and currency codes in research datasets Technical Report 2020-01 Technical Report: version 1 Deutsche Bundesbank, Research Data and Service Centre Harald Stahl Deutsche Bundesbank Research Data and Service Centre 2 Abstract We describe the country and currency codes provided in research datasets. Keywords: country, currency, iso-3166, iso-4217 Technical Report: version 1 DOI: 10.12757/BBk.CountryCodes.01.01 Citation: Stahl, H. (2020). Country codes and currency codes in research datasets: Technical Report 2020-01 – Deutsche Bundesbank, Research Data and Service Centre. 3 Contents Special cases ......................................... 4 1 Appendix: Alpha code .................................. 6 1.1 Countries sorted by code . 6 1.2 Countries sorted by description . 11 1.3 Currencies sorted by code . 17 1.4 Currencies sorted by descriptio . 23 2 Appendix: previous numeric code ............................ 30 2.1 Countries numeric by code . 30 2.2 Countries by description . 35 Deutsche Bundesbank Research Data and Service Centre 4 Special cases From 2020 on research datasets shall provide ISO-3166 two-letter code. However, there are addi- tional codes beginning with ‘X’ that are requested by the European Commission for some statistics and the breakdown of countries may vary between datasets. For bank related data it is import- ant to have separate data for Guernsey, Jersey and Isle of Man, whereas researchers of the real economy have an interest in small territories like Ceuta and Melilla that are not always covered by ISO-3166. Countries that are treated differently in different statistics are described below. These are – United Kingdom of Great Britain and Northern Ireland – France – Spain – Former Yugoslavia – Serbia United Kingdom of Great Britain and Northern Ireland.
    [Show full text]
  • The Latin American Dollar Standard in the Post-Crisis Era
    THE LATIN AMERICAN DOLLAR STANDARD IN THE POST-CRISIS ERA REID W. CLICK* Associate Professor George Washington University Department of International Business Washington, DC 20052 (202) 994-0656 [email protected] March 15, 2007 *This paper was started while I was visiting the Consorcio de Investigación Económica y Social (CIES) in Lima, Peru, during July 2006, and I am grateful for their hospitality. The work has benefited from provided by economists throughout Lima, as well as participants at the conference on Small Open Economies in a Globalized World in Rimini, Italy, August 2006. I am grateful for financial support from the U.S. Department of Education, Title VI Business and International Education Grant, to conduct this research. THE LATIN AMERICAN DOLLAR STANDARD IN THE POST-CRISIS ERA ABSTRACT This paper examines the extent to which there is currently a “dollar standard” in Latin America by empirically looking at the time series relationships between local currencies and the major global currencies using daily data over the period 2003-2006. The results indicate that three countries in the Andes – Ecuador (which is officially dollarized), Bolivia, and Peru – are on practically perfect dollar standards and might find additional financial integration fairly practicable. Four more countries – Guyana, Uruguay, Argentina, and Paraguay – are nearly on a dollar standard and might easily move closer to dollarization. Guyana, Uruguay, and Paraguay have economies substantially smaller than that of Ecuador, which has already officially dollarized, and might find similar full dollarization relatively easy. Argentina, although having abandoned its currency board mechanism, seems to be engineering (or at least allowing) a persistent, though imperfect, link to the dollar.
    [Show full text]
  • Tourism, the Economy, Population Growth, and Conservation in Galapagos
    Tourism, the Economy, Population Growth, and Conservation in Galapagos Bruce Epler CHARLES DARWIN FOUNDATION Puerto Ayora, Santa Cruz Island, Galapagos Islands, Ecuador Revised and Updated in September 2007 Tourism, the Economy, Population Growth, and Conservation in Galapagos ACKNOWLEDGMENTS The author is particularly indebted to Susana Cardenas who, in addition to providing general guidance and logistical support, oversaw the distribution and collection of surveys and data entry. Johanna Castañeda assisted in distributing surveys to tourists waiting to depart the airport on Baltra and data entry. Liz Llerena assisted in data entry and interviews with hotel owners on Santa Cruz. Jairo Alvarado circulated surveys in the airport on San Cristóbal. Paulina Buenaño, Carmen Nicolade, and Delsy Jaramillo assisted with surveys and interviews with hotels on Santa Cruz, San Cristóbal, and Isabela. Graham Watkins, Executive Director of the Charles Darwin Foundation (CDF), oversaw the study, provided numerous and relevant data files and studies, and submitted comments that improved the study. Johannah Barry, President of the Galapagos Conservancy, contributed data and insight into tourists’ and industry donations. Roslyn Cameron shared her knowledge about tour vessels, tourists, and fundraising. Craig MacFarland added information on the early years of the CDF, the development of the tourism industry, and ongoing and evolving issues and concerns. Oscar Aguirre, of the Galapagos Chamber of Tourism (CAPTURGAL), generously supplied summaries of survey information collected over several years. Edwin Naula, Head of the Galapagos National Park Service’s Tourism Unit, and Daniel Silva provided useful data compiled by the Park Service. Eliecer Cruz, of the World Wildlife Fund, provided insight into immigration, industry trends, and changes occurring in populated areas.
    [Show full text]
  • Ecuador, Officially the Republic of Ecuador, Is a Country Located in the Northwestern Side of South America
    ECU A DOR Ecuador, officially the Republic of Ecuador, is a country located in the northwestern side of South America. Colombia on its north, Peru on its south and east and the Pacific Ocean on its west . With an area of 256,370 km2 ( including the Galapa gos Islands that also belong to Ecuador), is the country with the highest concentration of rivers per km2 and its territory is a part of the Amazon. It is divided from north to south by the mountains of the Andes and has 70 volcanoes. The government of Ecu ador is divided into five branches: the executive, legislative, judicial, electoral power and the power of citizen participation. The country is divided into 24 provinces; Quito that was declared a cultural heritage site by UNESCO , is the capital, the poli tical and economic center of the country. Guayaquil is the most populous city and has the most important port of Ecuador. Ecuador is a country with an ethnically diverse population; Amerindians and mestizos are the major ethnic communities , however, you ca n find descendants of Spanish colonists or mulattos ( African descent turn of former slaves brought from Africa ) . Ecuador's official language is Spanish, though in some regions languages prior to the colonial period as Quichua and Shuar are still spoken . According to surveys, 90% of the Ecuadorians are Roman Catholic, although in recent years groups of Pro testants, Evangelicals, Mormons have been growing and practicing N ew Age practices. Oil makes up 40% of its exports, which in its turn, balances the economic s and financial s of the country.
    [Show full text]
  • Reallocation, Productivity, and the Ecuadorian Economic Crisis
    Reallocation, Productivity, and the Ecuadorian Economic Crisis German Cubas∗ Anson T.Y. Ho† Kim P. Huynh‡ David T. Jacho-Ch´avez§ February 16, 2011 Abstract Ecuador’s large economic crisis in the late 1990s serves as an important case study of re- source reallocation. We conduct an empirical analysis using firm level data for 1998-2007 to investigate resource reallocation, firm turnover, and productivity patterns. We use the model by Restuccia and Rogerson (2008) to examine firm-level distortions and productiv- ity during the crisis. Our results indicate that distortions increased as the crisis deepened and decreased after the Ecuadorian economy recovered. Additionally, we decompose pro- ductivity changes as suggested by Petrin and Levinsohn (2010) and find that there is a large negative reallocation effect during the crisis. Keywords and phrases: Reallocation, Productivity, Distortions, Firm Dynamics. JEL codes: F31, D24, L11, O11. ∗Bank of Uruguay, Diagonal Fabini 777, Oficina 501 Montevideo, Uruguay CP 11100. Email: german- [email protected]. †Department of Economics, University of Iowa, W210 John Pappajohn Bus Bldg, Iowa City, IA 52242, USA. Email: [email protected]. ‡Corresponding Author: Bank of Canada, 234 Wellington Ave., Ottawa ON, K1A 0G9, Canada. Email: [email protected] and Department of Economics, Indiana University, 105 Wylie Hall, 100 S Woodlawn, Bloomington, IN 47405, USA. E-mail: [email protected]. §Department of Economics, Indiana University, 105 Wylie Hall, 100 S Woodlawn, Bloomington, IN 47405, USA. E-mail: [email protected]. 1 1. Introduction Ecuador’s economic crisis serves as an important case study of economic reallocation. In the late 1990s, the Ecuadorian economy suffered a series of shocks including natural disasters, worsening balance of trade, and the spillover effects from other financial crises.
    [Show full text]
  • Project and Sub-Transmission (Phase B-2) Project External Evaluator: Masafumi Ikeno (KRI International Corporation) Field Survey: August-September and November 2006 1
    Ecuador Transmission (Phase D) Project and Sub-Transmission (Phase B-2) Project External Evaluator: Masafumi Ikeno (KRI International Corporation) Field Survey: August-September and November 2006 1. Project Profile and Japan’s ODA Loan Ecuador Colombia Quito Guayaquil Cuenca Pacific Ocean Peru Map of project area: Entire Area Dos Cerritos Transformer Station of Ecuador 1.1 Background During the 1980s, installation of electric power infrastructure in Ecuador1 progressed, for example with the start of operation of the Paute Hydroelectric Plant (facility capacity 500 MW) which met approximately 50% of the domestic power demand at the time (1983). The electric power supply of cities was boosted, and rural areas were in the process of being electrified. However, due to the growing demand for further improvement in electric power supply services, a number of issues began to surface, including the inadequacy of power supply in urban areas and the need for stable power supply in rural areas. Two priority issues in particular were raised. The first was the need for reinforcement of the mainline transmission system that connects Guayaquil, the largest city in Ecuador, with the Paute Hydroelectric Plant. The second was the need for installation of a sub-transmission system2 that would link the mainline transmission system that extends nationwide with regional electricity distribution networks. In view of the above conditions, the Ecuadorian government needed to promote the construction of the above-mentioned mainline transmission system and the 1 Ecuador has a population of 13 million, and the land area is approximately equivalent to that of the Japanese islands of Honshu and Kyushu.
    [Show full text]
  • The State of Stablecoins Why They Matter and Five Use Cases the State of Stablecoins - Why They Matter and Five Use Cases Robert Lin & Mark Conrad
    The State of Stablecoins Why They Matter and Five Use Cases The State of Stablecoins - Why They Matter and Five Use Cases Robert Lin & Mark Conrad Acknowledgements Stably Eyal Granit, Founder and CEO of Escapades Ventures David Segura, Chief Operations Officer of Carbon-12 Labs James Gan, Global Innovation Exchange University of Washington Masters Student Kate Mitselmakher, Founder and CEO of Bloccelerate Venture Capital Deryck Gebe, Business Analyst at Stably and studying Business Administrations at University of Washington Kory Hoang, Founder and CEO of Stably Katey Harrison, Director of Program Management at Bittrex Sheikh Mohammed Irfan , VP of Global Operations at Bloccelerate Venture Capital Anthony Waddell, Intern at Bloccelerate and studying Computer Science and Software Engineering at University of Washington Eric Moos, Editor at CryptoSlate Brian Freyburger, former CTO of Basis 2 TABLE OF CONTENTS Acknowledgements ................................................................................ 2 Abstract ......................................................................................................... 4 Introduction ................................................................................................. 5 1. History and Context for Stablecoins .......................................... 6 1.1 History of Currencies ................................................................... 6 1.2. What is the Key Opportunity for Stablecoins? ............... 7 1.3. The Meaning of Money ............................................................
    [Show full text]
  • Ecuador's Financial Rollercoaster
    Boom & Bust: Ecuador’s Financial Rollercoaster The Interplay between Finance, Politics and Social Conditions in 20th century Ecuador Pablo R. Izurieta Andrade Copyright © 2015 Vernon Press, an imprint of Vernon Art and Science Inc, on behalf of the author. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Vernon Art and Science Inc. www.vernonpress.com In the Americas: In the rest of the world Vernon Press Vernon Press 1000 N West Street, C/Sancti Espiritu 17, Suite 1200, Wilmington, Malaga, 29006 Delaware 19801 Spain United States Library of Congress Control Number: 2015942450 ISBN: 978-1-62273-470-2 Images used with permission. Product and company names mentioned in this work are the trademarks of their respective owners. While every care has been taken in preparing this work, neither the author nor Vernon Art and Science Inc. may be held responsible for any loss or damage caused or alleged to be caused directly or indirectly by the information contained in it. Synopsis This work proposes a connection of financial circumstances with major socio-political events in 20th-century Ecuador. It highlights the state of the nation’s economy as a determinant factor in the outcome of events. Throughout the history of Ecuador, the ambivalent evolution of major political and social events such as the stability of serving presidents, coups and war, has had an interesting and direct relationship to the financial environment. If the economy was healthy, did the country also experience stability? If it went into disarray, did the non-financial environment follow? Data collected from the Central Bank of Ecuador, unpublished diplomatic papers, and personal documents from relevant historical figures, as well as from the work of previous historians, indicate a strong effect of financial and economic performance on major political and social events.
    [Show full text]
  • Annex a to the 1998 Fx and Currency Option Definitions
    ANNEX A to the 1998 FX and Currency Option Definitions ISDAÒ INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC. EMTA® EMERGING MARKETS TRADERS ASSOCIATION THE FOREIGN EXCHANGE COMMITTEE Copyright © 1998 by INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC. EMERGING MARKETS TRADERS ASSOCIATION THE FOREIGN EXCHANGE COMMITTEE ISDA, EMTA and The Foreign Exchange Committee consent to the use and photocopying of this document for the preparation of agreements with respect to derivative transactions. ISDA, EMTA and The Foreign Exchange Committee do not, however, consent to the reproduction of this document for purposes of public distribution or sale. To obtain written permission for any use of this document (other than for the preparation of agreements with respect to derivative transactions), please contact: INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC. 600 Fifth Avenue, 27th Floor Rockefeller Center New York, N.Y. 10020-2302 TABLE OF CONTENTS Page INTRODUCTION TO ANNEX A TO THE 1998 FX AND CURRENCY OPTION DEFINITIONS ................................................... i ANNEX A CALCULATION OF RATES FOR CERTAIN SETTLEMENT RATE OPTIONS SECTION 4.3. Currencies .................................................. 1 SECTION 4.4. Principal Financial Center .......................... 10 SECTION 4.5. Settlement Rate Options ............................. 15 SECTION 4.6. Certain Definitions Relating to Settlement Rate Options ........................ 37 SECTION 4.7. Corrections to Published and Displayed Rates...................................... 39 INDEX OF TERMS .................................................................... 41 ANNEX A March 1998 INTRODUCTION TO ANNEX A TO THE 1998 FX AND CURRENCY OPTION DEFINITIONS Annex A to the 1998 FX and Currency Option Definitions ("Annex A") is intended for use in conjunction with the 1998 FX and Currency Option Definitions (the "Definitions") in confirmations of individual transactions governed by (i) the 1992 ISDA Master Agreements published by the International Swaps and Derivatives Association, Inc.
    [Show full text]
  • Athena Torri Land of Opportunities December 9, 2016 – January 8, 2017 Deli Gallery Is Pleased to Announce Land of Opportunitie
    Athena Torri Land of Opportunities December 9, 2016 – January 8, 2017 Deli Gallery is pleased to announce Land of Opportunities by Athena Torri. The exhibition, the artist’s first solo show, contains over eighteen works and a site-specific installation. Made during a recent visit to her childhood home, Torri’s newest body of work captures the violent eruption of Tungurahua and its surrounding area. With its name derived from native Quichua meaning “Throat of Fire”, Tungurahua is an active stratovolcano located eighty miles south of the capital city of Quito. The large-scale print Tungurahua Al Mediodia illustrates the artist’s initial encounter with the volcano during March 2016 when an eruption shot a cloud of ash over 5,000m into the sky. Counter-balancing the geological, grand views of the volcano are intimate expositions of the domestic environment at the base of the mountain. While illustrating daily life, these photographs expose the ways that the town is entwined with the active volcano both in its architecture and commerce. “In Ecuador, geological and political unrest seem to erupt simultaneously. For example, in 1999—the year my family and I left Ecuador and immigrated to the United States—a major economic crash coincided with the eruption of Pichincha volcano. Hundreds of thousands of Ecuadorians took to the streets and forced the resignation of President Jamil Mahuad in response to a banking crisis that had led to the closure of 24 banks, the immobilization of Ecuadorians’ savings accounts, and the collapse of the Ecuadorian sucre. I remember participating in one of the daily volcano drills at school while my parents, like most other Ecuadorians, rushed to their banks to withdraw as much money as possible.
    [Show full text]
  • EXCHANGE RATES DATA FEED TERMS and CONDITIONS July 2013 Version
    EXCHANGE RATES DATA FEED TERMS AND CONDITIONS July 2013 Version BETWEEN FXTOP company, Limited liability company with capital of 16 000 euros minimum, registered in Versailles (France) under number B 438 847 899, company headquarters 11 rue Kléber 78500 Sartrouville, France. Represented by Laurent PELÉ, general manager Hereafter called « FXTOP » First party, AND The subscriber of the service Hereafter called « The SUBSCRIBER » Second party OBJECT OF THE CONTRACT This contract defines the terms and conditions for the supply of exchange rates data from FXTOP to the subscriber NON-COMPETITION The subscriber should not resell or publish exchange rates in any other way than the ones defined in the present terms and conditions, especially those in the « Copyright » paragraph. The subscriber will inform FXTOP of any third party query to use exchange rates in a way that does not comply with the present terms and conditions. ACCESS PRIVACY Fxtop will give the subscriber a login and a password to access services and data. The subscriber will divulge to FXTOP any password leak that he knows about. Fxtop has the right to change the password, especially if it seems that it has been used for third party access. Fxtop could also limit access to a limited IP address range so that only the subscriber’s server(s) can access its services. EXCHANGE RATE DATA FEED The subscriber can choose the way they access the exchange rate data : - Using one of the ready-made formats (XML, Text with semi colon separation between fields (CSV), Structured Query Language (SQL) queries, Javascript Script, Ajax/JQuery, exchange rates graph).
    [Show full text]