2010-11 EOTM Fellow: Pablo Andres Bejar

Pablo Andres Bejar, Bolivia

Pablo Andres Bejar, Bolivia

My name is Pablo Andres Bejar and I am an international student from Bolivia who graduated in May 2010 from California State University, Fullerton with a Masters in Business Administration and a strong emphasis in Economics.  My education has helped me develop an understanding of the many facets of Business, Finance, Government, and Socioeconomic thinking.  My exposure to a variety of economics and finance courses has fueled my passion for economic and financial research and analysis.

Throughout my academic career I have had significant research and analytical experience in Economics, Business, and International Finance.  For instance, I have written three research papers that I am particularly proud of.  The first one was written in the fall of 2008 and it was titled “Current Relationship between Unemployment and Real GDP for the U.S: Okun’s Law Revisited (1985-2007),” which according to econometrics Professor Barkley Ph.D. was one of the best term paper a student has ever submitted in his class.  The other empirical research paper was written in the fall 2009 with the help of Professor Rokon Bhuiyan PhD.  The title of this paper is Forecasts of the Effects of Monetary Policy Shocks in a Small Open Economy: A Structural VAR Approach (The Canadian Case Revisited 1994-2007). The third paper examines the current empirical relationship between corporate social performance and corporate financial performance for U.S. companies and it is titled “A Current Analysis of Firm Foundation Giving and its Effects on Corporate Financial Performance for American Companies.”  Finally, I recently finished working as the leader for a consulting project for a local small company with Professor Peng Chang PhD.

Having been born and raised in Bolivia, I have witnessed great poverty and underdevelopment.  I truly believe that my experiences in Bolivia have inspired my passion and commitment to help people in need.  For this reason, my goal in life is to help communities in need by working for international organizations such as, the World Bank or the United Nations.

PAPER 1: A Current Analysis of Firm Foundation Giving and its Effects on CorporateFinancial Performance for American Companies (2001-2007)

Abstract: The corporate social – financial performance topic has been in the making for over thirty years. Researchers throughout the years have used different measures of corporate social performance, such as the KLD index, direct corporate giving contributions, Fortune reputation ratings, and transparency reports to name a few (Margolis and Walsh, 2003). This study utilizes foundation giving as the measure for corporate social performance, and analyzes the current situation with extensive data from 2001 to 2007 for medium to large public American companies. Based on the model by Moon (2007), and the assumptions from Waddock and Graves (1997b) I control for the heterogeneous nature of each firm in sample. However, unlike the results from Waddock, Graves, and Moon, after utilizing firm foundation giving as the measure for corporate social performance this research demonstrates that there are currently non-significant consequences of corporate foundation giving on firm ROA, Tobin’s q, and revenues.

PAPER 2: The Current Relationship between unemployment and real GDP: Okun’s Law revisited for the United States (1985-2007)

Abstract: The Okun’s Law model has been accepted as the simple negative relationship between movements of the unemployment rate and the real gross domestic product (GDP). Generally, empirical studies in the United States show that for every one-percentage point by which the actual rate of unemployment exceeds the natural rate of unemployment, real gross domestic product decreases approximately by 2 to 3 percent (Blanchard and Fischer 1989). In this study however, using macroeconomic data from 1985-2007 and the two stage least square methodology to control for the simultaneity nature of the model following Martin Prachowny’s 1993 assumptions, I found that a 1 percent increase in the unemployment rate above its natural rate “ceteris paribus” causes real GDP to decrease by about 1.42 percent. This result shows a coefficient slightly lower than the originally estimated coefficient of 2, but much higher than the one reported by Prachowny of 0.66.

PAPER 3: Projections of the Effects of Monetary Policy Shocks in a Small Open Economy: A Structural VAR Approach (The Canadian Case Revisited 1994-2007)

This paper is based on the conclusions of Rokon Bhuiyan (2008). The main purpose of the paper is to replicate, develop, and summarize a structural VAR model for the Canadian economy. Instead of using the monetary aggregate M1 variable as the main policy instrument used by Cushman and Zha (1997) and Kim and Roubini (2000), in this paper, the overnight rate or Canadian interest target rate will be used as the main instruments. The main findings of this study include: the immediate liquidity and exchange rate effects right after a policy shock, and the delayed responses of output (about 6 months) and inflation rate (about 12 months).

In addition, we found that the transmission of the monetary policy shock functions through both the interest and exchange rates. Unlike the conclusions by Eichenbaum and Evans (1995), we concluded that a contractionary policy shock immediately appreciates the exchange rate, but eventually depreciates with time.

Leave a Reply