This article deals with an analysis of the M&A strategy utilized by Unilever Group, as well as with issues relating to identifying the factors defining the value of a diversified company. This article includes an estimation of the effectiveness of Unilever Group’s mergers and acquisitions strategy, aimed at creating the optimum business portfolio within the diversified corporate structure (company) by how it affects value of the company. The general hypothesis assumes that diversification does not have a destructive effect on the value of an international multi-business company that builds its portfolio based on the success of certain brands and business areas.
In the last 15 years the reciprocity of regional trade agreements on services has become a global phenomenon. Whereas main provisions regulating access to the services market are fixed by specific obligations under the General Agreement on Trade in Services, RTAs have been considered a flexible means for liberalization and an expedient to protect national service providers. This article explores the role of the GATS and other agreements, both under and not under the mandate of the World Trade Organization, in trade blocs. The econometric model developed by the authors shows that the removal of restrictions for foreign suppliers under domestic regulation (consumer protection, regulation of labor market) and the elimination of discriminatory measures on foreign investments that affect trade in goods are likely to be more important for the expansion of services trade on a preferential basis than the GATS-type liberalization.
This paper presents estimates for the consumption Euler equation for Russia. The estimation is based on micro-level panel data and accounts for the preference heterogeneity, measurement errors, and the impact of macroeconomic shocks. The presence of multiplicative habits is checked with the LM-test in a GMM framework. We obtain estimates of the elasticity of intertemporal substitution and of the subjective discount factor, which are consistent with the theoretical model and can be used for calibration, as well as for a Bayesian estimation of DSGE models for the Russian economy. We also show that the effects of habit formation are not significant. The hypotheses on habits (external, internal, and both external and internal) are not supported by the data.
A great number of recent researches have found importance of country specific shocks for optimal monetary policy construction in the context of a currency union. This however was almost completely overlooked by the analysis of optimal monetary policy under model uncertainty. The main purpose of our work is to fill this gap. For a model of a two-country currency union with sticky prices we have derived robust monetary policy that works reasonably well even in the worst case of model perturbations. We find some anti-attenuation effect of uncertainty and show that the central bank’s optimal reaction to economic shocks becomes more aggressive with an increase in the extent of misspecification.
Solving the problem of stabilizing the economy is directly tied to the necessity of keeping the main macroeconomic variables stable. However, macroeconomic stability is not in the general case a purely fiscal or a purely monetary problem. How the central bank and the government interact is of principle importance. We investigate the impact of macroeconomic policies on the dynamics of the exchange rate, inflation, output and stabilization fund and consider different forms of strategic interaction between the government and the central bank. In this paper we build a stylized model of an export-oriented economy. We use numerical examples for our analysis and practical conclusions. The effective interaction of fiscal and monetary policies is possible under Stackelberg interaction with the government as leader and under cooperation. It is shown that the independence of the central bank does not play a crucial role.