Valuation of insurers’ contingent capital with counterparty risk and price endogeneity

This study develops a structural framework to value insurers’ contingent capital with counterparty risk (CR) and overcomes the problem of price endogeneity (PE) in the valuation model. Our results on the focal contingent capital instrument – catastrophe equity put option (CatEPut) – indicate that prices can be significantly overestimated without considering CR and be significantly underestimated without considering PE. This study also examines how CatEPuts affect the buyer’s probability of default (PD). Our results show that buying a CatEPut lowers the PD for high-risk insurers, but not necessarily so for low-risk insurers; however, without taking CR and PE into account, one may significantly overestimate the credit enhancement provided by the CatEPuts.     

More than just a utensil: The influence of drinking straw size on perceived consumption

This research replicates and extends Wansink and colleagues' research on the effect of container size on actual consumption by examining the influence of medium size of consumption (straw size) on perceived consumption. Results from two studies show that participants who used a thin straw perceived their consumption as greater than those who used a thick straw, because straw size can lead to different perceptions of consumption time. Furthermore, sip size does not moderate the effect of straw size on perceived consumption.     

中国经济增长模式演进的就业效应

自20世纪90年代初期以来,中国经济从原来的劳动密集的增长模式转变为资本深化的增长模式。前一种增长模式能够实现产出和就业的双重增长,缺陷在于劳动报酬增长滞后于产出增长;后一种增长模式能够促进产出增长和劳动报酬的提高,缺陷是创造就业的能力表现不足。但从现实性来考虑,后一种模式比前一种模式更具可行性。     

Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation

Technical analysis, also known as 'charting,' has been a part of financial practice for many decades, but this discipline has not received the same level of academic scrutiny and acceptance as more traditional approaches such as fundamental analysis. One of the main obstacles is the highly subjective nature of technical analysis—the presence of geometric shapes in historical price charts is often in the eyes of the beholder. In this paper, we propose a systematic and automatic approach to technical pattern recognition using nonparametric kernel regression, and we apply this method to a large number of U.S. stocks from 1962 to 1996 to evaluate the effectiveness of technical analysis. By comparing the unconditional empirical distribution of daily stock returns to the conditional distribution—conditioned on specific technical indicators such as head-and-shoulders or double bottoms—we find that over the 31-year sample period, several technical indicators do provide incremental information and may have some practical value.     

KfW/ZEW CO2 Panel: Vermeiden oder kaufen – Deutsche Unternehmen im Emissionshandel

The European Emission Trading Scheme (EU-ETS) is the first large-scale and inter-regional trading scheme for greenhouse gas emissions. It is seen as the central instrument of European climate policy. After a first testing-phase (2005–2007), the second trading period of the EU-ETS had started in 2008, with stronger incentives for investment in low-carbon technologies and carbon dioxide abatement. However, there is hardly any evidence how emissions trading fares in practice. The KfW/ZEW CO₂ Barometer shows that trading of emission permits is actively used by 75 percent of German companies, but the price-signals that stem from the EU-ETS were relatively weak so far—too weak to set strong incentives for carbon dioxide emission reductions on the company-level. Also in the case of the ‘clean development mechanism’ (CDM) which was introduced to promote emission reductions in developing counties, there is need for further development.     

Are students customers? Tourism and hospitality students’ evaluation of their higher education experience

ABSTRACT

Research has suggested that higher education students assume multiple roles during their studies. Moreover, the student-as-customer model has been discussed for years and needs more in-depth discussions than other roles. Few studies have investigated education experiences from this perspective. This research contains two studies. Study one investigates faculty members’ perceptions on students’ roles in higher education and found students should not be considered purely as customers. Other roles were found. Study two investigates students’ perception of their roles in university education and how the education experiences influence their satisfaction towards university choice. A majority of the students see themselves as the “recipient of knowledge”. The six dimensions of higher education experience include “student-centred service” (SCS), “diversity and global citizenship” (DGC), “coproduction of learning experience”, “reliance on teachers” (ROT), “responsibility”, and “whole person development” (WPL). SCS, DGC, ROT, and WPL were found to have significant impact on student satisfaction.     

Import penetration and returns to tasks: recent evidence from the Peruvian labour market

This paper provides original evidence on the impact of import penetration on wages of individuals performing manual/cognitive task-intensive jobs in the Pe     

Revisiting the socioeconomic determinants of exclusive breastfeeding practices: evidence from Eastern Indonesia

This paper attempts to fill several important research gaps on the socioeconomic determinants of exclusive breastfeeding practices. In contrast to previous studies that have focused on the timely initiation and duration of breastfeeding, this article examines exclusive breastfeeding practices. Using data on 1138 children from the Indonesian Family Life Survey East 2012, we revisited to what extent mothers’ education levels and work in non-traditional sectors influence exclusive breastfeeding patterns. Furthermore, we investigated to what extent health-care demand and supply factors influence exclusive breastfeeding practices. Controlling for a wide range of individual, household, and community characteristics, our findings suggest that exclusive breastfeeding practices are affected positively by mothers’ education and negatively by mothers’ labour market participation in non-traditional employment contracts. Moreover, our results indicate that a higher availability and quality of health-care supply does not necessarily lead to better exclusive breastfeeding practices. Only when health-care supply was matched with a significant demand for such services, did we observe a higher chance for optimal exclusive breastfeeding.     

The strategic and cultural legitimacy of HR professionalization in Hong Kong

In Hong Kong, human resources (HR) practice has reached a point of professionalization not yet apparent in other parts of China creating opportunities for best practice diffusion across rapidly developing cities, provinces, and regions. The aim of this paper is to ascertain the strategic and cultural legitimacy of human resource management (HRM) in Hong Kong from the perspective of the occupation’s status as an emerging profession. Combining established theory on professions with documented insights from normative associational ideals, this paper derives four major sources of HR professionalization, which it entitles strategy, communication, administration, and discipline. Assuming that tasks performed by the most senior, qualified and experienced practitioners hold greatest empirical sway over the prospect of occupational association, this study finds that a combination of strategic and communication practices emerge as the two most likely routes to HR professionalization. Based on survey responses from a representative sample of 172 certified practitioners, the findings support the notion of HR as a strategic asset, raising important implications for the professional status of the occupation within an Asian management context.     

Can Financial Economics Cure Cancer?

Funding for early-stage biomedical innovation has become more difficult to secure at the same time that medical breakthroughs seem to be occurring at ever increasing rates. One explanation for this counterintuitive trend is that increasing scientific knowledge can actually lead to greater economic risk for investors in the life sciences. While the Human Genome Project, high-throughput screening, genetic biomarkers, immunotherapies, and gene therapies have made a tremendously positive impact on biomedical research and, consequently, patient lives, they have also increased the cost and complexity of the drug development process, causing many investors to shift their assets to more attractive investment opportunities. This suggests that new business models and financing strategies can be used to reduce the risk and increase the attractiveness of biomedical innovation so as to bring new and better therapies to patients faster.