A multicriteria model for the assessment of rural development plans in Greece

In the last decades rural communities face the problems of ageing of population, high share of elder farmers and imbalanced distribution of farmers across age classes. The Rural Development Plans (RDPs) of Common Agricultural Policy (CAP) in European Union (EU) are the policy instruments that affect agriculture and the people living in rural areas. The RDP measure “Setting up Young Farmers” aims to fight the demographic problems of these areas. This study is an attempt to highlight the role and the impacts of RDPs and especially of the “Setting up Young Farmers” measure in the prefecture of Thessaloniki in Greece. To this end, a multicriteria mathematical programming model was implemented. This methodology was chosen using the Knowledge Brokerage Approach in the context of the LIAISE project, which proposes a set of support modules that are linked to the impact assessment process with a final goal to support future policies and design. The results showed that the “Setting up young farmers” measure achieved its goals to transfer land to young, trained farmers, to offset the set-up costs faced by young people when establishing themselves in farming.     

A decision method for supplier selection in multi-service outsourcing

Although supplier selection in multi-service outsourcing is a very important decision problem, research concerning this issue is still relatively scarce. This paper proposes a decision method for selecting a pool of suppliers for the provision of different service process/product elements. It pioneers the use of collaborative utility between partner firms for supplier selection. A multi-objective model is built to select desired suppliers. This model is proved to be NP-hard, so we develop a multi-objective algorithm based on Tabu search for solving it. We then use an example to show the applicability of the proposed model and algorithm. Extensive computational experiments are also conducted to further test the performance of the proposed algorithm.     

Further participatory adaptation is required for community leaders to champion conservation agriculture in Africa

There is a recognized need for the participation of local communities in designing and implementing agricultural interventions for the sustainable intensification in smallholder systems. This study examines the perspectives of local community leaders towards the widely promoted, but not widely adopted, practice of Conservation Agriculture (CA) in African smallholder systems. Perceptions from 47 community leaders (both from traditional local authorities and farmer organizations) across six African countries are documented regarding how CA matches the wants, needs and capabilities of farmers in their communities. While community leaders generally perceived CA as potentially beneficial, they also indicated that CA is not currently perceived as feasible within their communities and hence has limited relevance. Three key themes were identified that limit both CA use and sustainable intensification more generally: [1] a perceived reluctance of farmers to engage with the community platform as part of a higher input, market-oriented production system; [2] informational constraints due to non-functional exchange mechanisms; and [3] a lack of local adaptation of CA underscored by the persistence of top-down, linear research and extension approaches. Through greater understanding of local perspectives, a clearer picture emerges of the need for greater participatory engagement and local adaptation if sustainable intensification of African smallholder agricultural systems is to be achieved.     

Advantageous redistribution with three smooth CES utility functions

We present a parametric example of three-country advantageous redistribution with two Cobb–Douglas utility functions and one CES utility function for which the elasticity of substitution is 1/2. This paper indicates that the possibility of advantageous redistribution strongly depends on the three countries’ taste patterns, endowment distributions, and the elasticity of substitution. In particular, we will show with specific examples that greater difference between the donor and recipient’s taste patterns and a lower elasticity of substitution can increase the chance of advantageous redistribution.     

The impact of variation in reporting practices on the validity of recommended birdstrike risk assessment processes for aerodromes

Birdstrikes are a major hazard to aviation; costing millions of pounds a year in damage and delays, as well as occasional hull losses and loss of life. The numbers and species of birds on and around airfields therefore need to be managed. To aid this process, airport staff often use risk assessments to identify which bird species cause the greatest risk and use the outcome to target their bird control effort. To this end, a number of national and international regulators, airports and other organisations recommend, or use, a derivation of a risk assessment process first published in 2006. This was developed using the UK Civil Aviation Authority's birdstrike database, employing data collected between 1976 and 1996. The risk assessment process relies on using the proportion of reported strikes that cause damage to the aircraft as a proxy for the likely severity of the outcome of strike incidents, so any change in the relative level of reporting of damaging and non-damaging strikes may significantly bias the results. The implementation of mandatory birdstrike reporting by the UK CAA in 2004 led to a significant increase in the number of strikes reported. If this involved a disproportionate increase in the number of non-damaging compared to damaging incidents reported, it may have impacted on the accuracy of the risk assessment process. This paper examines how differential reporting of damaging and non-damaging strikes can impact on the risk assessment process. It shows that changes in reporting practices since the original risk assessment was developed have impacted on the apparent birdstrike risk at UK airports, giving a false impression of increasing risk over the period. It makes recommendations for how the process can be better adapted to cope with such changes in the future, and how it should be modified for use in countries with different reporting regimes to that in the UK.     

BEHAVIORAL PORTFOLIO SELECTION: ASYMPTOTICS AND STABILITY ALONG A SEQUENCE OF MODELS

We consider a sequence of financial markets that converges weakly in a suitable sense and maximize a behavioral preference functional in each market. For expected concave utilities, it is well known that the maximal expected utilities and the corresponding final positions converge to the corresponding quantities in the limit model. We prove similar results for nonconcave utilities and distorted expectations as employed in behavioral finance, and we illustrate by a counterexample that these results require a stronger notion of convergence of the underlying models compared to the concave utility maximization. We use the results to analyze the stability of behavioral portfolio selection problems and to provide numerically tractable methods to solve such problems in complete continuous‐time models.     

Curriculum assessment through a capstone course: a case study in hospitality and tourism programs

The purpose of this study was to develop a systematic process that other educational institutions and programs could follow to establish a consistent and accurate evaluation method for a capstone course. Hospitality industry professionals and hospitality management faculty were interviewed through focus-group discussions, and a post-focus-group survey was conducted to determine a weighted percentage for each of the nine determined content domains. A test blueprint for a hospitality management capstone course was developed to measure programmatic student learning outcomes based on the weighted domains determined through this study. The results provide a usable instrument for hospitality and tourism management programs to enhance their current assessment methodology.     

Optimal dynamic reinsurance with dependent risks: variance premium principle

In this paper, we consider the optimal proportional reinsurance strategy in a risk model with two dependent classes of insurance business, where the two claim number processes are correlated through a common shock component. Under the criterion of maximizing the expected exponential utility with the variance premium principle, we adopt a nonstandard approach to examining the existence and uniqueness of the optimal reinsurance strategy. Using the technique of stochastic control theory, closed-form expressions for the optimal strategy and the value function are derived for the compound Poisson risk model as well as for the Brownian motion risk model. From the numerical examples, we see that the optimal results for the compound Poisson risk model are very different from those for the diffusion model. The former depends not only on the safety loading, time, and the interest rate, but also on the claim size distributions and the claim number processes, while the latter depends only on the safety loading, time, and the interest rate.     

Risk, uncertainty, and option exercise

Many economic decisions can be described as an option exercise or optimal stopping problem under uncertainty. Motivated by experimental evidence such as the Ellsberg Paradox, we follow Knight (1921) and distinguish risk from uncertainty. To capture this distinction, we adopt the multiple-priors utility model. We show that the impact of ambiguity on the option exercise decision depends on the relative degrees of ambiguity about continuation payoffs and termination payoffs. Consequently, ambiguity may accelerate or delay option exercise. We apply our results to investment and exit problems, and show that the myopic NPV rule can be optimal for an agent having an extremely high degree of ambiguity aversion.     

Pricing of the time-change risks

We develop an equilibrium endowment economy with Epstein-Zin recursive utility and a Lévy time-change subordinator, which represents a clock that connects business and calendar time. Our setup provides a tractable equilibrium framework for pricing non-Gaussian jump-like risks induced by the time-change, with closed-form solutions for asset prices. Persistence of the time-change shocks leads to predictability of consumption and dividends and time-variation in asset prices and risk premia in calendar time. In numerical calibrations, we show that the risk compensation for Lévy risks accounts for about one-third of the overall equity premium.