FORECASTING VOLATILITY WITH THE MULTIFRACTAL RANDOM WALK MODEL

We study the problem of forecasting volatility for the multifractal random walk model. In order to avoid the ill‐posed problem of estimating the correlation length T of the model, we introduce a limiting object defined in a quotient space; formally, this object is an infinite range log volatility. For this object and the nonlimiting object, we obtain precise prediction formulas and we apply them to the problem of forecasting volatility and pricing options with the MRW model in the absence of a reliable estimate of σ and T.     

Revisiting the ‘Court of Generations’ Amendment : A conversation

In 1991, futurist Bruce E. Tonn proposed a ‘Court of Generations’ Amendment to the US Constitution. His proposed ‘Court of Generations’ lacked punitive powers but, hopefully, would have sufficient legitimacy to counteract extreme present-minded thinking evident in US political processes and institutions. Although Tonn's ‘Court of Generations’ Amendment has been well received in the futures community, who else has heard of it? Otherwise, has it made any difference? How can the cumbersome and nonfuturistic amendment procedure in the US Constitution generate a futures-oriented ‘Court of Generations’? And for those who sincerely look forward to a ‘Court of Generations,’ precisely what kind of tactically savvy visionary leadership will give the ‘Court of Generations’ any chance of being approved? During 1997, Vincent Kelly Pollard engaged Dr. Tonn in an Internet conversation aimed at clarifying these issues.     

Exchange rate devaluation,monetary policy and wages: A general equilibrium analysis for Chile

A range of devaluation, monetary and wage policy mixes are analysed for the Chilean economy using a 10 sector comparative static model built along neoclassical lines. The model, while focusing on the real side of the economy, also contains a simple monetary sector. Quantifying the short-run implications of each policy mix for key macroeconomic and sectoral variables enables judgements to be made about the effectiveness of each mix in reaching specified targets and their feasibility. Money wage flexibility downwards is crucial if balance of trade and employment targets are to be achieved with lower domestic inflation and a smaller nominal devaluation.     

Technology-based environmental health risks in developing nations

This paper addresses two questions: 1) To what extent are developing nations vulnerable to technology- related environmental health risks? 2) To what extent does the export of hazardous technologies and products contribute to overall levels of environmental health risk in developing nations? The paper focuses on three major types of environmental health risks: the failure of large-scale technological systems; the use or misuse of consumer goods, mechanical devices, and chemicals; and industrial emissions of toxic substances. In addition, three categories of hazardous exports are examined: hazardous products (e.g., pesticides), hazardous production processes (e.g., asbestos processing), and hazardous wastes (e.g., chemical and radioactive waste). The paper concludes that technology-based environmental health risks pose a significant public health problem in most developing nations, even when compared to much larger public health problems such as tropical and gastrointestinal diseases. Technology-based risks are growing in number and frequency. If developing and developed nations continue their current policies, these risks will grow at a significantly greater rate.     

Targeted poverty investments and economic growth in China

In the mid-1980s, the Chinese government launched its ambitious poor area development policy, which was centered around a series of grant, credit, and Food-for-Work programs. Ironically, for the remainder of the 1980s rural poverty remained at about 90 to 100 million, or approximately 10% of the rural population. The lack of progress cannot necessarily be blamed on ineffective poor area policies, since much of the agricultural economy was mired in a deep recession between the mid-1980s and the early 1990s. By the mid-1990s substantial additional poverty reduction had been achieved. Even in the late-1980s, farmers in many poor counties did better than the national average in terms of income growth. After accounting for the effects of macroeconomic elements, what factors can help explain the differences in performance among poor regions and between poor areas and rich ones? Can part of these differences be accounted for by poor area policies, in general, or by the way local and regional officials allocate their poor area investment funds, in particular?The overall objective of this paper is to analyze the effectiveness of Chinese poor area policy. Specifically, the paper seeks to meet three objectives. First, we want to understand the evolution of poor area policy since the mid-1980s, trying to deduce the true goals of central and regional poor area officials, as well as how these policies have been implemented in the provinces. Next, we want to understand the magnitude and scope of investment into poor areas, and examine if changes in these policies have affected the uses of the investment funds. Finally, we want to determine the effectiveness of the investment of poor area funds, analyzing which types of investments have generated growth, and which ones have not.     

Business Ethics: Law As A Determinant of Business Conduct

The Principles of Corporate Governance require that business conduct conform to the law. In recent years, news reports of business misconduct have cast doubt on a conclusion that conformity is the prevalent practice. This article explores the influence of law on business conduct by comparing the law’s requirements and purposes with actual business conduct in the market. Specifically, it explores whether certain legal regimes are more effective than others in inducing greater commitment to legal compliance by corporate actors. The conclusion drawn is that the prevalent legal regime – a vague common law or legislative mandate – is typically associated with corporate conduct that evades or ignores the law’s mandate or its underlying purpose. Vincent Di Lorenzo is Professor of Law; Senior Fellow, Vincentian Center for Church and Society, St. John's University; J.D. Columbia University (Harlan Fiske Stone Scholar); Associate Articles Editor, Columbia Journal of Law and Social Problems. Before joining the faculty at St. John's University School of Law, Professor Di Lorenzo was a member of the faculty at The Wharton School, University of Pennsylvania, and was associated with a major Wall Street firm practicing in the real estate-banking department. He is a member of the American Bar Association and the New York State Bar Association. Professor Di Lorenzo has authored many articles and books in the banking, legislation and real estate areas.     

越俎代庖的美联储

在过去几周里，美国联邦储备委员会（Fed）基本上是重新定义了央行应在市场经济中扮演的角色。     

Practicing effective knowledge sharing in international hotel joint ventures

Knowledge sharing can be described as the process by which individuals mutually exchange their knowledge and collaboratively generate new knowledge. Since international hotel joint venture partners typically possess skills in competing areas, this process of knowledge sharing is critical to the success of these alliances. Therefore, this article presents a framework that can be used to foster effective knowledge sharing at the individual joint venture manager level, at the relationship level between individuals, and across the entire organization.     

STRUCTURAL HOMOPHILY

Homophily, or the fact that similar individuals tend to interact with each other, is a prominent feature of economic and social networks. I show that the equilibrium structure of homophily has empirical power. I build a strategic model of network formation, which produces a unique equilibrium network. Individuals have homophilic preferences and face capacity constraints on the number of links. I develop a novel empirical method, based on the shape of the equilibrium network, which allows for the identification and estimation of the underlying homophilic preferences. I apply this new methodology to the formation of friendship networks.