Correcting microstructure comovement biases for integrated covariance

Finding a precise variance–covariance matrix is the building block of empirical finance. While microstructure-noise-robust methods for realized volatility are in the mainstream of financial econometrics, little if any attention has been devoted to estimating a noise-free realized covariance for overlooking the well-documented manifestation of commonality in market microstructure factors such as order flows, liquidity or herding. By documenting and recognizing this fact, we propose a microstructure-noise-free nonparametric covariance estimator to uncover the virtual integrated covariance. The estimator is easy to implement and performs admirably.     

Environmental practices in the wine industry: An empirical application of the theory of reasoned action and stakeholder theory in the United States and New Zealand

Industry transformation related to environmental stewardship has received significant scholarly attention over the past decade. However, limited theoretical and empirical work examines the motivations for improving environmental performance in an industry in different countries. In this paper, we develop a set of hypotheses, based in the theory of reasoned action and stakeholder theory, regarding drivers of the adoption of environmental practices in the wine industries of New Zealand and the United States. We test our hypotheses using data from survey questionnaires collected in each country. Our findings suggest that subjective norms and internal stakeholder pressures are common drivers of the adoption of environmental practices in these two countries. However, managerial attitudes and external stakeholder pressures are not significant drivers. We also find that managerial attitudes and export dependence are stronger determinants of environmental practice adoption in New Zealand compared to the U.S.     

Determinants of transport mode choice: a comparison of Germany and the USA

Germany and the USA have among the highest motorization rates in the world. Yet Germans make a four times higher share of trips by foot, bike, and public transport and drive for a 25% lower share of trips as Americans. Using two comparable national travel surveys this paper empirically investigates determinants of transport mode choice in Germany and the USA.In both countries higher population density, a greater mix of land-uses, household proximity to public transport, and fewer cars per household are associated with a lower share of trips by automobile. However, considerable differences remain: all groups of society in America are more car-dependent than Germans. Even controlling for dissimilarities in socio-economic factors and land-use, Germans are more likely to walk, cycle, and use public transport. Moreover, Americans living in dense, mixed-use areas, and close to public transport are more likely to drive than Germans living in lower density areas, with more limited mix of land-uses, and farther from public transport. Differences in transport policy that make car travel slower, more expensive, less convenient, and alternatives to the automobile more attractive in Germany may help account for the remaining differences.     

ERM crisis in retrospect: What if a European central bank had been in existence before 1992?

This paper explores whether policy coordination or a single monetary policy implemented earlier would have kept the U.K. in the process of European monetary integration. On the basis of the pre-ERM crisis empirics by Douven and Plasmans (1996), a counterfactual game simulation approach is used, and five scenarios are established for comparison with the actual historical records. The final answer is negative.     

Renminbi Internationalization： Progress, Prospect and Comparison

Using principal component analyses, this paper constructs two internationalization indices for the renminbi (RMB) and 32 other major currencies. We find that the RMB's currency internationalization degree index (CIDI) is still low, and far behind the 4 most important international currencies. In 2009, it was ranked 18th among all important international currencies. However, in terms of the currency internationalization prospect index (CIPI), the RMB has remained the world's fifth highest since 2006. Although it is still far behind the US dollar and the euro, surpassing the ranking of the yen and the pound is possible in the near future. The dramatic difference in the ranking between the CIDI and the CIPI is a result of China's tight capital account control, the usage continuity of international currency due to network externalities, and the narrow foreign exchange and imperfect financial markets. Hence, to a large degree, the RMB's potential as an international currency depends on China's capital account liberalization.     

Sorting it out: pile sorting as a mixed methodology for exploring barriers to cancer screening

We discuss a mixed methodology for analyzing pile sorting data. We created a list of 14 barriers to colon cancer screening and recruited 18, 13, and 14 participants from three American Indian (AI) communities to perform pile sorting. Quantitative data were analyzed by cluster analysis and multidimensional scaling. Differences across sites were compared using permutation bootstrapping. Qualitative data collected during sorting were compiled by AI staff members who determined names for the clusters found in quantitative analysis. Results showed five clusters of barriers in each site although barriers in the clusters varied slightly across sites. Simulation demonstrated type I error rates around the nominal 0.05 level whereas power depended on the numbers of clusters, and between and within cluster variability.     

Die Erwartungen der Wirtschaft für 2012

Nach einem wirtschaftlich sehr positiven Jahr 2011, mussten die ?konomischen Prognosen für das Wachstum 2012 deutlich herabgesetzt werden. Die Wirtschaftsforschungsinstitute erwarten für Deutschland nur noch ein Wachstum von 0,8%. Die Vertreter der einzelnen Industriezweige sind aber etwas optimistischer als die Prognosen für die Gesamtwirtschaft.     

ECONOMIC TRANSITION IN CENTRAL AND EASTERN EUROPE: THE CONSEQUENCES FOR TRADE STRUCTURE AND TRADE VOLUME

The foreign policy literature typically sees Congress abdicating its policy making role to the executive, implying a presidential dominance model is superior to other policy process models (joint participation, congressional dominance, and bureaucratic dominance). This article uses two theoretical approaches to investigate who actually makes U.S. trade policy: a political economy approach and an institutional approach. We look at the 1985 96 period and at individual presidencies: Reagan (1985-88), Bush (1989-92), and Clinton (1993-96). Contrary to the literature, we find strong evidence that Congress is an active participant in the trade policy making process. Using a variety of empirical techniques (crosstabs, the Index of Revealed Comparative Advantage, pairwise correlations, and stepwise logistic regressions), we confirm that the trade policy process for product-industry-specific policies tends to be dominated by Congress whereas the executive branch is more influential in the policy process for country-specific policies. We conclude by noting the advantage of integrating aspects of both the political economy of trade and institu tional literatures to understand the nuances of U.S. foreign trade policy making.