Continuous-time mean-variance portfolio optimization in a jump-diffusion market

In this paper, we take up an approach of (Lindberg, in Bernoulli, 15(2):464–474, 2009) who introduced a new parameterization of the Black–Scholes model that allows for an easy solution of the continuous-time Markowitz mean-variance problem. We generalize the results of (Lindberg, in Bernoulli, 15(2):464–474, 2009) to a jump-diffusion market setting and slightly correct the proof and the assertion of the main result. Further, we demonstrate the implications of the Lindberg parameterization for the stock price drift vector in different market settings, analyse the dependence of the optimal portfolio from jump and diffusion risk and finally indicate how to use the method. We particularly also show how the optimal strategy can be obtained with the restricted use of historical data.     

The interest rate–inflation relationship under an inflation targeting regime: The case of Turkey

This paper examines the relationship between nominal interest rates and the expected inflation rate for the Turkish economy between 2002 and 2009, a period when the inflation-targeting regime was implemented as monetary policy. We use the test of cointegrating rank with a trend-break (a method introduced by Inoue, 1999) and we also apply exogeneity tests. Empirical findings indicate that monetary policy rates depend on inflationary expectations; long-term interest rates are affected by monetary policy; and the weak form of the Fisher effect is valid. This evidence implies that monetary policy has actually influenced the real long-term interest rates; the inflation targeting regime pursued by the Central Bank of Turkey is reliable; and hence realized inflation has remained close to its targeted level.     

Testing the proposed “GuidePerf” scale for tourism: performances of tour guides in relation to various tour guiding diplomas

The satisfaction perceived from the performance of tour guides (TGs) affects tour operators and other services in the tourism industry. As the tour guiding performance becomes more crucial in service quality and tourist satisfaction, education also becomes a critical tool to enhance the tour guiding performance. Using semi-structured, face-to-face interviews with seven TGs in Cappadocia/Turkey and employing content analysis of the data, the Tour Guide Performance Scale (GuidePerf) was developed in this particular study. Reliability and validity of GuidePerf were supported by exploratory factor analysis and confirmatory factor analysis. The scale was composed of 18 items and three dimensions, namely: “personality and efficiency,” “presentableness,” and “proficiency.” Proceeding to the next step with the approval, the GuidePerf was conducted on the tour participants (TPs) who were guided by three different TG types in terms of the education they had received. The results revealed that there is significance when “presentableness,” and “proficiency” dimensions are considered.     

Public–private wage differentials in Turkey: public policy or market dynamics?

We evaluate public–private sector wage differentials by gender in Turkey between the years 2005 and 2013. Using micro data from Household Labor Force Surveys we find a positive premium for low wage earners and a penalty of working in the public sector at the higher end of the distribution. Although the penalty has not disappeared, the price effect has increased at both ends of the distribution. The increase at the lower tail is attributed to a higher price effect in the public sector, whereas at the higher tail it has been a result of a relatively uneven wage increase in the private sector along the distribution, rather than an explicit public wage policy.     

IPO mechanism selection by using Classification and Regression Trees

The Turkish IPO market gives issuers and underwriters a choice of three different IPO selling mechanisms. The current paper sheds new light on the determinants of these issue procedures within the context of the following methods (i) book building mechanism, (ii) fixed price offer, and (iii) sale through the stock exchange. Most of the empirical models in the IPO literature use binary probit and logit models to determine the factors behind the choice of one method over another and try to answer the question of “why is such a mechanism chosen”. To understand the reasons on issuers’ selection of IPO mechanism, we have conducted a Classification and Regression Trees (CART) methodology to represent decision rules in a form of binary trees. Our results indicate that, CART methodology predicts a firms’ IPO selling mechanism with 77.42% accuracy. The most important variable that determines the IPO selling mechanism is the Arrangement Type between the issuer and the underwriter as in the form of best effort and firm-commitment.     

An examination of the Fisher Hypothesis: the case of Turkey

This study examines the famous Fisher Hypothesis (FH) for Turkey. FH asserts that nominal interest rates adjust on a one-to-one basis to expected changes in inflation rates. Using the Johansen cointegration method for the Turkish monthly interest rate and inflation rate data, we find that it is possible to determine the long-run relationship—but not the one-to-one basis—between nominal interest rates and inflation. Our findings suggest that full FH does not hold but there is a very powerfull Fisher effect in the case of Turkey from 1990 to 2003.     

Wage inequality in Turkey, 2002–10

This paper studies the evolution of wage inequality in Turkey using household labour force survey data from 2002 to 2010. Between 2002 and 2004, the relative supply of more‐educated workers to less‐educated workers remained constant while their relative wages decreased in favour of less‐educated workers. However, between 2004 and 2010, the relative supply of more‐educated workers to less‐educated workers rose, while their relative wages remained constant or kept increasing in favour of more‐educated workers. This suggests factors other than those implied by a simple supply‐demand model are involved, such as skill‐biased technical change or minimum wage variations. The decomposition of wage inequality reveals that the price (wage) effect dominates the composition effect particularly in the first period. Our results show that the real minimum wage hike in 2004 corresponds to a major institutional change, which proved to be welfare‐increasing in terms of wage inequality. The upper‐tail (90/50) wage inequality decreased between 2002 and 2004 and stayed constant thereafter, whereas the lower‐tail (50/10) wage inequality decreased throughout the period. Our findings thus provide evidence supporting the institutional argument for explaining wage inequality.     

Public participation in forestry in Turkey

Recently public participation in forestry has been seriously considered in Turkey. Participation is however quite a challenge for a country with a long tradition of top-down management and a strong bottom-up dependence on public provisioning. In such a setting, it may not be surprising that the experiences with public participation in forestry in Turkey are mixed. There are some positive initiatives like the creation of farmer's cooperatives and NGOs, but their role is quite limited and small of scale. This paper is bringing together different views based on existing studies in Turkish related to Turkey's experience with implementing public participation in forestry.