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Purpose: Cost behaviour literature is expanding its reach beyond developed economies; however, there is limited knowledge about its causes in emerging economies. This is an exploratory study of sticky costs behaviour determinants in Argentina, a country with periodic political and economic turbulence. The purpose of this paper is to test the effect of GDP, asset intensity, industry and cost type in an inflationary context. Design/methodology/approach: Anderson et al. (2003) empirical regression (ABJ model) is replicated in Argentina with 667 observations from 96 firms between the years 2004 and 2012. It uses panel data and variables are defined as change rates between two periods. The sample excludes financial and insurance firms. It tests if sticky cost behaviour changes in periods of macroeconomic deceleration, or in firms belonging to industries with different asset intensity levels, or among different cost types. Findings: The analysis shows that costs are sticky in Argentina, where a superb economic outlook is required to delay cutting resources or increasing costs. Cost behaviour is affected by social and cultural factors, such as labour inflexibility driven by powerful unions and not by protective employment laws, asset intensity (industry) and macroeconomic environment. Results suggest that costs are sticky for aggregate samples, but not for all subsamples. Practical implications: Administrative costs are sticky when GDP grows; but when growth declines, managers or firms do not delay cost cutting actions. Some subsamples are extreme cases of stickiness while others are anti-sticky, casting some doubt on the usefulness of sticky costs empirical tests applied to country-wide samples. Careful selection of observations for sticky costs studies in emerging economies is critical. Originality/value: Evidence from previous studies show that on average costs are remarkably sticky in Argentina; this study shows that cost reduction activities occur faster but are not persistent enough to change the aggregated long-term results of cost stickiness in the presence of moderate to high inflation. The study contributes to the literature by suggesting that observations used in sticky costs studies from emerging economies might be mainly from positive macroeconomic environments, might have skewed results due to extreme cases of stickiness or might be distorted by inflation. [ABSTRACT FROM AUTHOR]

Agricultural production is a challenging business in Argentina due to output variability, unfavorable government policies, and the absence of public risk management programs. Based on probit modeling and information surveyed from producers farming in the Humid Pampa, this paper studies the influence of (a) risk attitudes, (b) risk perceptions, and (c) socioeconomic factors on the probability of choosing five different risk management strategies. Besides confirming that some results previously found in the literature apply to the Argentine case, we find that local farmers have a particular understanding of specific risk management strategies. Some strategies usually applied to reduce risks, such as the use of futures markets or vertical integration are perceived by Argentine farmers as risk-increasing. Cost control is the preferred strategy for risk-averse farmers. Policymakers and companies providing services should take into consideration the particular way in which Argentine farmers perceive and manage risks to build a common language. [ABSTRACT FROM AUTHOR]

Rapid trade liberalisation can exert profound effects on labour markets. Domestic firms, to sustain competitiveness for survival, could react by cutting labour benefits to achieve cost reductions. Alternatively, trade liberalisation may alter the industry composition of firms, changing the aggregate formality rates. This paper studies the relationship between trade liberalisation and informality in Argentina. Using manufacturing industry-level data for 1992-2003, the results confirm the hypothesis that trade increases informality in industries that experience sudden foreign competition. This explains about a third of the increase in informality. Sectors with higher investment ratios are able to neutralise and reverse this effect. [ABSTRACT FROM PUBLISHER]

Objective: Our study analyzes the cost-effectiveness of the COVID-19 vaccination campaigns in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, and Peru. Methods: Using a previously published SVEIR model, we analyzed the impact of a vaccination campaign (2021) from a national healthcare perspective. The primary outcomes were quality adjusted life years (QALYs) lost and total costs. Other outcomes included COVID-19 cases, hospitalizations, deaths, and life years. We applied a discount rate of 3% for health outcomes. We modeled a realistic vaccination campaign in each country (the realistic country-specific campaign). Additionally, we assessed a standard campaign (similar, "typical" for all countries), and an optimized campaign (similar in all countries with higher but plausible population coverage). One-way deterministic sensitivity analyses were performed. Findings: Vaccination was health improving as well as cost-saving in almost all countries and scenarios. Our analysis shows that vaccination in this group of countries prevented 573,141 deaths (508,826 standard; 685,442 optimized) and gained 5.07 million QALYs (4.53 standard; 6.03 optimized). Despite the incremental costs of vaccination campaigns, they had a total net cost saving to the health system of US$16.29 billion (US$16.47 standard; US$18.58 optimized). The realistic (base case) vaccination campaign in Chile was the only scenario, which was not cost saving, but it was still highly cost-effective with an ICER of US$22 per QALY gained. Main findings were robust in the sensitivity analyses. Interpretation: The COVID-19 vaccination campaign in seven Latin American and Caribbean countries -that comprise nearly 80% of the region- was beneficial for population health and was also cost-saving or highly cost-effective. [ABSTRACT FROM AUTHOR]

This study aims at examining the effect of Healthcare 4.0 (H4.0) implementation on healthcare costs' reduction in hospitals located in developing economies. For that, 159 middle and senior leaders from hospitals located in Brazil, India, Mexico and Argentina were surveyed regarding their adoption level of H4.0 technologies and cost reduction improvements. Responses were analysed using multivariate data analysis techniques. Our findings indicate that the adoption of H4.0 technologies, empirically grouped into two different bundles (Sensing-Communication and Processing-Actuation), is positively related to healthcare costs' reduction and that the extent of such relationship may vary according to the bundle under analysis. Our results elucidate the impact of digital integration on healthcare costs, suggesting a cost-effective path based on H4.0 implementation. The identification of this relationship in hospitals located in developing economies evidences the benefits of healthcare digital transformation despite the challenging socioeconomic conditions, which has been contradictorily reported in previous studies. [ABSTRACT FROM AUTHOR]

We study the efficiency of the Argentine banking system after the 2001–2002 crisis. The financial system had to be restructured from scratch and recovered jointly with the economy, but its productivity and average cost levels have been stagnant since 2007. The analysis includes efficiency frontier estimations for retail banks and a comparison of subsamples for different categories of banks for the period 2005–15. We try to determine whether public banks are more efficient than private ones, whether privatized are more efficient than always private, as well as national versus foreign entities. Our findings show a modest average efficiency of the system and quite similar efficiency rankings for the different groups of banks. On average, public tend to be slightly more cost efficient than private, and national are slightly more efficient than foreign. [ABSTRACT FROM PUBLISHER]

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A comparative economic analysis between photovoltaic (PV) and thermoelectric (TE) generators used to provide lighting for isolated rural homes is presented. Although panel costs are similar in both cases, appreciable lower generation costs are obtained by TEs. The difference is due to greater availability of the thermal source. In addition, regarding present TE cost reductions, this comparison is much better for TEs. Due to high generation costs, high-efficiency appliances of leading technologies are strongly recommended in all cases. [ABSTRACT FROM AUTHOR]