Estimation of Markov regime-switching regression models with endogenous switching

Following Hamilton [1989. A new approach to the economic analysis of nonstationary time series and the business cycle. Econometrica 57, 357–384], estimation of Markov regime-switching regressions typically relies on the assumption that the latent state variable controlling regime change is exogenous. We relax this assumption and develop a parsimonious model of endogenous Markov regime-switching. Inference via maximum likelihood estimation is possible with relatively minor modifications to existing recursive filters. The model nests the exogenous switching model, yielding straightforward tests for endogeneity. In Monte Carlo experiments, maximum likelihood estimates of the endogenous switching model parameters were quite accurate, even in the presence of certain model misspecifications. As an application, we extend the volatility feedback model of equity returns given in Turner et al. [1989. A Markov model of heteroskedasticity, risk, and learning in the stock market. Journal of Financial Economics 25, 3–22] to allow for endogenous switching.     

Disclosure and the Cost of Capital: A Survey of the Theoretical Literature

This article offers a survey of theoretical research on disclosure and the cost of capital. We summarize the current state of the literature and discuss the channels through which information affects the cost of capital. After giving an overview of asset pricing theory, we examine the rationale for an accounting risk factor or an ex‐ante effect of information on the cost of capital. Then, we discuss the role of voluntary disclosure, heterogenous beliefs, investor base, liquidity shocks, earnings management, and agency problems as determinants of the cost of capital. Linkages between productive decisions and the cost of capital, and their implication for investor welfare, are also examined.     

Spatial clustering of time series via mixture of autoregressions models and Markov random fields

Time series data arise in many medical and biological imaging scenarios. In such images, a time series is obtained at each of a large number of spatially dependent data units. It is interesting to organize these data into model‐based clusters. A two‐stage procedure is proposed. In stage 1, a mixture of autoregressions (MoAR) model is used to marginally cluster the data. The MoAR model is fitted using maximum marginal likelihood (MMaL) estimation via a minorization–maximization (MM) algorithm. In stage 2, a Markov random field (MRF) model induces a spatial structure onto the stage 1 clustering. The MRF model is fitted using maximum pseudolikelihood (MPL) estimation via an MM algorithm. Both the MMaL and MPL estimators are proved to be consistent. Numerical properties are established for both MM algorithms. A simulation study demonstrates the performance of the two‐stage procedure. An application to the segmentation of a zebrafish brain calcium image is presented.     

The mining sector and indigenous tourism development in Weipa,Queensland

A relatively high proportion of Indigenous Australians live in remote areas where a number of mines are located. Indigenous Australians are more likely than their non-Indigenous counterparts to be unemployed and to be living below the poverty line and in order to overcome this disadvantage it is important for Indigenous people to gain meaningful employment. In these remote areas, in addition to mining, tourism is seen as potentially providing substantial opportunities for Indigenous employment. However many of these Indigenous tourism enterprises will need on-going support to become sustainable. Mining companies have significant resources and infrastructure that could be used to help develop Indigenous tourism and a number of companies, as part of their corporate social responsibility agenda, have directly facilitated the development of Indigenous tourism ventures. This study examined Indigenous involvement in tourism in the Weipa region of north-west Queensland and the role of the then Comalco bauxite mining operation, now called Rio Tinto Aluminium, in assisting this development. The study revealed substantial enthusiasm about market opportunities for Indigenous tourism and potential support from the Comalco mine. However the mine did not see itself as being directly involved but saw itself as a facilitator working with some regional Indigenous organisations. However given the constraints these other organisations face, this approach by Comalco is likely to limit the effectiveness of the mine's efforts.     

Collective and Individual Conflicts in the Workplace: Evidence from France

This article investigates whether collective disputes and individual disputes are substitutes in French workplaces. Using a nationally representative dataset, this article focuses on two prominent and distinct individual disputes in France, that is, employee applications to Employment Tribunals and employer disciplinary action, and considers alternately strikes and non‐strike disputes at the collective level. Our results suggest that collective disputes, with or without a strike, are substitutes only for Employment Tribunal claims, due to a significant negative relationship between them. In contrast, collective disputes are found to heighten disciplinary action in French workplaces.     

Dispositions to Buy Postcards with Aboriginal Designs at Ulu ru-Kata Tjuta National Park

This research note assesses the probability of visitors to the cultural centre at UluruKata Tjuta National Park, Northern Territory, Australia, buying a post card bearing traditional Aboriginal designs. The sample comprised 358 respondents interviewed at two locations, the Desert Park, Alice Springs, and the cafeteria of the cultural centre at Uluru-Kata Tjuta NationalPark.Of the respondents approximately one-third indicated on a Juster Scale that there was a likelihood of 70% or more to purchase such a postcard. However, no specific socio-demographic variables were found to be associated with this group other than they were more likely to be female. It was also found that this interest in postcard purchases bearing 'Aboriginal designs' had no correlation with other items on the scale that related to Aboriginal culture. There is a discussion of ethical issues of any decision to produce 'Aboriginal postcards'.     

Determinants of a lasting purchase: The case of the tattoo patron

Evidence suggests that both cognitive and emotive factors elucidate consumer decision processes; yet, research exploring such factors jointly (i.e., a dual-process approach) as antecedents of high-involvement, lasting purchases is lacking. To address this paucity, we developed two studies, each with a unique dual-process model for explaining consumers’ intention to get a tattoo. Study 1 explores anticipated regret about getting a tattoo, emotional response before and now regarding a tattoo purchase, and self-expression via tattoo acquisition. Study 2 examines perceived trust in the tattoo artist, self-esteem, attitude toward art paintings, and age as determinants of intention to get a tattoo. Data collected for testing these models support dual-process theory in the tattoo context. Implications and future research directions are offered.     

Social Capital,Tourism and Regional Development: SPCC as a Basis for Innovation and Sustainability

Traditional views of regional development have focused on economic factors and potential innovation in technical and resource exploitation processes. Similarly, regional tourism development is usually couched in economic terms, such as number of jobs and increasing land values. This approach usually ignores the social and community aspects of tourism development; thus an alternative view argues that the community needs to be factored into our planning and development strategies to balance the traditional economic view. It is argued in this paper that fostering innovation in regional development is much more than a process of community consultation. Rather, what needs to be factored in is SPCC – social, political and cultural capital. This works in both directions; tourism development depends on a level of social, political and cultural capital in order to be a successful regional development tool (even in economic terms) while at the same time tourism development can be undertaken in a way that contributes to SPCC in the region. The paper outlines the key concepts of social capital, political capital and cultural capital. It does so within the context of regional tourism development and the concepts of systems of innovation and sustainable development.