Fair Valuation of a Guaranteed Life Insurance Participating Contract Embedding a Surrender Option

In this article we deal with the problem of pricing a guaranteed life insurance participating policy, sold in the Italian market, which embeds a surrender option. This feature is an American‐style put option that enables the policyholder to sell back the contract to the insurer at the cash surrender value. Employing a recursive binomial formula patterned after the Cox, Ross, and Rubinstein (1979) discrete option pricing model we compute, first of all, the total price of the contract, which also includes a compensation for the participation feature (“participation option,” henceforth). Then this price is split into the value of three components: the basic contract, the participation option, and the surrender option. The numerical implementation of the model allows us to catch some comparative statics properties and to tackle the problem of suitably fixing the contractual parameters in order to obtain the premium computed by insurance companies according to standard actuarial practice.     

Behavioural factors in young people's fruit consumption

This study aims to find out the determinant factors affecting fruit consumption behaviour in Portuguese young people, based on the Health Action Process Approach (HAPA) model, and determine if this model explains differences according to gender, age and rural/urban environments. This research is innovative because it tests the HAPA model with young people, and because it adds social support to the HAPA model as an extra predictor of young people's behaviour. To gather the data, a questionnaire survey was applied in two public schools, one in a rural area and the other in a city. The survey was answered by 266 Portuguese young people, aged 15–21 years, from the 10th to the 12th grades. Authorization for the survey was given in advance, from the Ministry of Education, schools and parents, after which the survey was performed. Before applying the questionnaire, two pre‐tests were carried out, each with ten participants and with similar characteristics to the population studied. This study analyses action self‐efficacy, outcome expectancies, action planning, risk perception, intention, maintenance self‐efficacy and social support variables. The result was obtained through a two‐step process, by determining the measurement and structural model, using Smart PLS 2.0. The results show that young females have more factors determining fruit consumption, with greater social support for action self‐efficacy, greater maintenance self‐efficacy through action self‐efficacy, and greater perception of risk regarding fruit consumption. In terms of age, young people over 16 years present greater outcome expectations for the intention, greater perception of risk and action self‐efficacy for fruit consumption. The multi‐group analysis referring to differences between young people living in rural or urban environments did not show proof of the model giving a better explanation of one situation or the other. It can be concluded that the HAPA model is appropriate to the investigation of behaviour factors that influence young people's fruit consumption. The results also indicate that in the scope of the behaviour analysed the proposed model gives a better explanation for females and for those over 16 years.     

Fundamental ratios as predictors of ESG scores: a machine learning approach

Decisions in Economics and Finance - Sustainable and responsible finance incorporates Environmental, Social, and Governance (ESG) principles into business decisions and investment strategies. In...     

Determinants of the income velocity of money in Portugal: 1891–1998

This paper performs a long-run time series analysis of the behaviour of the income velocity of money in Portugal between 1891 and 1998 by assessing the importance of both macroeconomic and institutional factors and looking for particularities in the Portuguese case. We estimate two cointegration vectors for the income velocity of money, macroeconomic variables and institutional variables. It is apparent that one of these vectors reflects the relationship between income velocity and macroeconomic variables, while the other reflects the relationship between income velocity and institutional variables. Moreover, a regression analysis reveals that the usual U-shaped pattern is displayed with a relatively late inflection point located around 1970, which is consistent with the Spanish case. It is further noted that this is a feature of countries with a late economic and institutional development process.     

Closed-loop supply chains: a guide to theory and practice

During the last decades, attention to the environment has grown substantially. A remarkable and significant trend has been the recognition of the strategic importance of reverse logistics and closed-loop supply chain (CLSC) as a consequence of the Directive on Waste of Electrical and Electronic Equipment. In this paper, we analyse the transformation from an ‘open-loop supply chain’ to a ‘closed-loop supply chain’. Our aim is to guide the reader through the main aspects of both theory and practice in CLSCs: starting from the existing literature, we adopt a broader approach and define the guidelines for managers to follow in the supply chain decision process. Assuming a producer responsibility perspective, we pay a special attention to some of the most important sustainable strategic decisions that a company has to face in order to implement and effectively manage the CLSC: (i) location–allocation, (ii) returns collection, (iii) inventory control of returns, (iv) returns grading and (v) performance management of CLSC. We describe each typology of problems, their mathematical formulations and the implications through both an environment and business perspective. We highlight the managerial implication and then underline the limits of the current literature, and define future directions for research to explore.     

European Pension Funds and Sustainable Development: Trade‐Offs between Finance and Responsibility

Pension funds try to account for sustainable development in their operations. This mainly translates in responsible investing. We investigate how this interacts with the financial objectives. We use a survey of more than 250 pension funds based in 15 European countries. Multinomial logistic regression is used to find out how pension funds trade off sustainable development and financial objectives. Our findings suggest that pension funds that have not included responsibility in their strategy and investments have a clear priority regarding their financial performance. Pension funds who integrate sustainable development in their strategy can bring balance between finance and responsibility. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

The impacts of tourism on poverty alleviation: an integrated research framework

This paper aims to contribute to the academic research on tourism and poverty alleviation, by providing an integrated research framework on the impacts of tourism on poverty. First, a conceptual discussion is presented in order to understand the potential of tourism to reduce poverty, as well as different approaches to promoting a direct link between tourism and poverty alleviation. Second, empirical studies published between 1999 and July 2014 were critically analysed in order to generate an empirical research framework that embraces the following issues: geographical scope, level of analysis, tourism context, study methods and poverty measure. Moreover, an integrative discussion of the empirical evidence regarding the contribution of tourism to poverty reduction is included. The proposed framework, which is intended to be useful for guiding future empirical research in this field, suggests associations between tourism initiatives, the poverty rate and the economic, socio-cultural and environmental conditions of the poor.     

USING WEB 2.0 TO SHARE KNOWLEDGE OF CONSTRUCTION SAFETY: THE FABLE OF ECONOMIC ANIMALS

Gone are the days when knowledge sharing depended solely on face‐to‐face meetings. With the help of Web 2.0, rapid and dynamic cross‐border knowledge sharing among construction safety researchers has become possible. Nevertheless, empirical observation has shown that researchers are falling behind the curve. Generally speaking, there are two major types of motivations: intrinsic and extrinsic. Introducing extrinsic motivators on top of intrinsic motivators can produce better results than relying solely on intrinsic motivation.