Mean-variance hedging for continuous processes: New proofs and examples

Let be a special semimartingale of the form and denote by the mean-variance tradeoff process of . Let be the space of predictable processes for which the stochastic integral is a square-integrable semimartingale. For a given constant and a given square-integrable random variable , the mean-variance optimal hedging strategy by definition minimizes the distance in between and the space . In financial terms, provides an approximation of the contingent claim by means of a self-financing trading strategy with minimal global risk. Assuming that is bounded and continuous, we first give a simple new proof of the closedness of in and of the existence of the F?llmer-Schweizer decomposition. If moreover is continuous and satisfies an additional condition, we can describe the mean-variance optimal strategy in feedback form, and we provide several examples where it can be computed explicitly. The additional condition states that the minimal and the variance-optimal martingale measures for should coincide. We provide examples where this assumption is satisfied, but we also show that it will typically fail if is not deterministic and includes exogenous randomness which is not induced by .     

The role of endowments,technology and size in international trade: new evidence from product-level data

Using product-level trade data, we empirically investigate the export patterns of more than 150 countries in their exports to the USA, Brazil, India, and Japan. We document strong evidence that exporters specialize according to their relative factor endowments, technology, and economic size. More developed, capital abundant countries are found to export products of higher unit values and a wider range of products to developed, emerging and developing markets. More developed, economically larger, and technologically advanced countries are also the major exporters of new products, spanning a wide range of product categories with high unit values. Our findings provide important insights into the macro phenomenon that a large proportion of the global trade takes place among developed economies, and that the latter are also major exporters to developing markets.     

Hollowing out of middle-pay jobs in Ohio: An exploratory analysis

Hollowing out is a term that refers to the decline in the share of middle-pay and middle-skilled jobs relative to low-pay and high-pay jobs. This study employs county-level occupational data at the place of employment to document hollowing out of middle-pay jobs across regions in Ohio. The county-level data with occupational information allow us to study how regions' economic heterogeneity contributes to the decline of middle-paying jobs in Ohio over the 2001–2019 period. Of 88 counties in Ohio, 77 counties experienced declines in the shares of middle-paying jobs. On average, Appalachian Ohio counties experienced higher hollowing out rates than other counties. We found that the hollowing out of middle-paying jobs in Ohio is associated with the declines in the shares of manufacturing and mining jobs.     

Dutch Disease in the Labor Market: Women, Services, and Industrialization

The light manufacturing export industries have been a springboard for sustained growth in many newly industrializing countries. Women have played an important role in those industries. The author presents a theory linking women's work and industrialization. The theory fits the observation that, in low-growth developing countries, women work mostly in household services, while, in higher-growth developing countries, women work in manufacturing. In the model, the existence of a services equilibrium or an industrialization equilibrium, or multiple equilibria, depends on an economy's endowment of land relative to labor.     

A decision support system for vehicle relocation operations in carsharing systems

This paper presents a novel three-phase optimization-trend-simulation (OTS) decision support system for carsharing operators to determine a set of near-optimal manpower and operating parameters for the vehicle relocation problem. Tested on a set of commercially operational data from a carsharing company in Singapore, the simulation results suggest that the manpower and parameters recommended by the OTS system lead to a reduction in staff cost of 50%, a reduction in zero-vehicle-time ranging between 4.6% and 13.0%, a maintenance of the already low full-port-time and a reduction in number of relocations ranging between 37.1% and 41.1%.     

Has Crisis Communication Been Studied Using an Interdisciplinary Approach? A 20-Year Content Analysis of Communication Journals

This study examines whether the status of crisis communication research is interdisciplinary by paying special attention to different perspectives from varying theories, methods, and authors. One hundred seventy-five articles published in major communication journals from 1991 to 2011 were extracted as crisis communication articles. The results of a quantitative content analysis revealed that, among theories applied to crisis research, most were from communication and public relations disciplines, which included framing, image restoration, situational crisis communication, and excellence theory. Although outside disciplines that have studied crisis communication research included psychology, economics, mathematics, and sociology, those disciplines made up less than one-third of the articles. Regarding the methodological approach, each portion of articles using two or more methods (e.g., experiment and survey) and a triangulation approach (e.g., qualitative and quantitative) was less than 10%. However, the frequency of the triangulation, or mixed-method, approach has dramatically increased since 2006, which indicates that interdisciplinary crisis communication research is evolving into an interdisciplinary field. Another indication of this trend can be found in the variety of authors, institutions, and departments dedicated to crisis communication. Although crisis articles are published primarily by communication, journalism, and public relations departments, other diverse disciplines are also widely contributing to crisis communication research.     

Managing employee performance in an emerging economy: perceptions of Vietnamese managers

This qualitative study explores employee performance management (PM) in Vietnam from the perspectives of Vietnamese managers in three case study organizations: a state-owned enterprise, a joint venture and a private Vietnamese company. Findings suggest that western PM practices and techniques are being utilized in all three organizations and that PM is seen as an essential and strategic component of human resource management policy. These findings suggest an increasing awareness of PM in Vietnamese enterprises and a desire to improve competitiveness by developing a highly skilled and high-performing workforce.     

On the conduct of monetary policy in Vietnam

Vietnam has the highest inflation rate in Southeast Asia (over 20 per cent year‐on‐year in 2011). This paper examines the extent to which inflation in Vietnam is due to its conduct of monetary policy. It is argued that, had the central bank implemented policy on a more timely basis, inflation would not have been as high as it was, but the more fundamental problem is that the central bank does not have the tools it needs to conduct monetary policy effectively. Monetary policy is further complicated by Vietnam's exchange rate policy. By choosing to peg the currency and maintain fairly free capital mobility, the country has all but given up the ability to pursue an independent monetary policy. As a consequence, the central bank is forced to attempt to sterilise its foreign exchange interventions, which it is ill‐equipped to do. The paper argues that financial sector liberalisation is needed not only to promote growth but also to maintain macroeconomic stability.     

走进新时代

去年11月7日，经过多年艰难的谈判，越南终于获准加入WTO，成为该组织第150个成员国——这是正在积极参与国际经济合作的越南一个重大的里程碑。当前，制订和执行“入世”后的相关政策刻不容缓。在“入世”当天，越南总理阮晋勇提出的行动计划包括以下几点：     

Perceived justice in service recovery and behavioral intentions: The role of relationship quality

This study examined restaurant customers’ perceptions of justice according to service recovery effort levels and whether perceived justice influences customers’ future behavioral intentions. This study also investigated whether the effects of perceived justice on future behavioral intentions vary across customers’ relationship quality levels. The results showed that high recovery efforts were consistently evaluated highly in terms of perceived justice when compared to low recovery efforts, regardless of the level of relationship quality. Additionally, perceived justice brought about by service recovery efforts has a positive effect on customers’ future behavioral intentions. Hierarchical regression analyses suggested that relationship quality plays a moderating role between perceived justice and behavioral intentions in the distributive and procedural justice dimensions. Implications for the restaurant industry are also discussed.