Social Constructs and their Usefulness in Original Institutionalist Research: Quality Matters

Some institutionalist researchers are reluctant to use quantitative methods, possibly limiting the extent and influence of institutional research. Social indicators may provide useful inputs into institutionalist analyses, but caution is warranted. This article discusses the importance of exploring a social indicator’s quality before adopting it as a research input.     

Agent-based modelling in directional-change intrinsic time

We describe an agent-based model where trades happen in event-based time called directional-change intrinsic time. Events are defined as the reversal price moves of a directional-change threshold from a local extreme. The price impact of traded volumes is modelled according to the empirically observed squared root impact function. The time series generated by the agents is characterised by statistical properties typical for foreign-exchange rates: low autocorrelation of returns, fat-tailed distribution of returns, aggregated normality, and the price jump scaling law. Furthermore, we introduce and use as a benchmark, the overshoot scaling law, which is an omnipresent feature of liquid markets and relates the expected length of price overshoots to the length of the corresponding directional-change threshold.     

Chilean Consumer Law and Policy: A Brief Outlook

Journal of Consumer Policy - Chilean consumer law and policy has a short but enthralling history. As compared with other jurisdictions such as EU countries, its bedrock is still in formation,...     

MULTIFRACTIONAL STOCHASTIC VOLATILITY MODELS

The aim of this work is to advocate the use of multifractional Brownian motion (mBm) as a relevant model in financial mathematics. mBm is an extension of fractional Brownian motion where the Hurst parameter is allowed to vary in time. This enables the possibility to accommodate for varying local regularity, and to decouple it from long‐range dependence properties. While we believe that mBm is potentially useful in a variety of applications in finance, we focus here on a multifractional stochastic volatility Hull & White model that is an extension of the model studied in Comte and Renault. Using the stochastic calculus with respect to mBm developed in Lebovits and Lévy Véhel, we solve the corresponding stochastic differential equations. Since the solutions are of course not explicit, we take advantage of recently developed numerical techniques, namely functional quantization‐based cubature methods, to get accurate approximations. This allows us to test the behavior of our model (as well as the one in Comte and Renault) with respect to its parameters, and in particular its ability to explain some features of the implied volatility surface. An advantage of our model is that it is able both to fit smiles at different maturities, and to take volatility persistence into account in a more precise way than Comte and Renault.     

Linking entrepreneurial and market orientation to the SME’s performance growth: the moderating role of entrepreneurial experience and networks

Entrepreneurial orientation and market orientation (EO and MO, respectively) have received extensive research attention in the past several decades. Although scholars widely agree that both MO and EO are critical to firms’ performances, a better understanding is still needed about how market and entrepreneurial orientation develop over time as well as their relative impact on the growth of the SME’s performance. This study does not consider MO and EO as generic resources that always positively influence firms’ performances; instead, it tries to explore contingent elements, such as social and business networks and accumulated entrepreneurial experience. The hypotheses were tested on 191 small and medium-sized electronic firms located in an Italian geographical cluster during two periods: 2005 and 2016. This study suggests that SMEs, which develop social networks, may enjoy considerable advantages from entrepreneurial and market orientation, improving their performance benefits. Moreover, our results show that previous entrepreneurial experience, when specific, can reinforce the impact of entrepreneurial and market orientation on firms’ performance growth. This analysis makes several important contributions to the management literature on the strategic orientation of firms, the entrepreneurial experience and network development.

     

Beyond Bureaucracy: How Prosecutors and Public Defenders Enforce Urban Planning Laws in São Paulo,Brazil

Cities need law to thrive, but it is not clear how abstract texts become tangible policy outcomes. Existing research on the role of law in urban affairs conceives law as either an algorithm that shapes urban life or a reflection of political disputes. The former assumes that the meaning of law is obvious; the latter claims it is irrelevant. In contrast to these views, I argue that laws are multipurpose instruments that acquire a specific function when enforced by those government agents who operate at the frontlines of public service. To understand what these agents do and why, I conducted a qualitative study of the Ministério Público and the Defensoria Pública in São Paulo, Brazil. Through this process, I found that these government agencies are not cohesive bureaucracies but heterarchies composed of distinct internal factions with different evaluative principles. Moreover, officials within them are not isolated from other entities in society but tightly entangled with them, and these connections influence what these officials do. Finally, enforcement agents are not always resigned to solving conflicts as they arise. Rather, they strive to find acceptable solutions in the interstices of existing conditions or even change the circumstances that created the conflict in the first place.     

Policy aspects of driver support systems implementation: results of an international Delphi study

Driver support systems are generally assumed to contribute to public traffic goals. However, much uncertainty exists about their future: technology development, market introduction and impacts on driver and traffic behaviour. An international Delphi study, collecting expert opinions on these issues, is describe this paper. In three rounds opinions were collected from 50 experts from USA, Japan and Europe. The article focuses on market introduction, driver behaviour, general barriers and policy options.     

Accelerating leadership development via immersive learning and cognitive apprenticeship

The authors put forward an approach to leadership development that builds on the principle of accelerated learning. They argue that leadership development, particularly in a period of recession or slow economic growth, needs to deliver results more quickly and with fewer resources. Indeed, they raise the question of whether or not this is what is necessary for training and development more generally.