Collective mental accounting: an integrated behavioural portfolio selection model for multiple mental accounts

We propose a behavioural portfolio selection model called collective mental accounting (CMA), which integrates all mental sub-portfolios (mental accounts) in one mathematical model. Moreover, this study contributes to the literature of behavioural portfolio selection in three further ways: first, the CMA model can determine the proportions of wealth allocated to each mental sub-portfolio with and without input from the investor. Second, unlike other mental accounting models (MA), in CMA it is possible to define constraints on total asset holdings such as short-selling, and cardinality constraints. Third, in order to make CMA more tractable and mathematically elegant, we obtain a semi-definite programming representation of the model. We also present a numerical example to investigate the effects of short-selling constraints as well as to compare the portfolio recommendations, utility functions, feasibility, and optimality of the CMA and MA models. The results reveal that although both models’ solutions are mean-variance efficient, CMA outperforms MA in terms of behavioural efficient frontier and utility functions.     

The role of temperature for seasonal market integration: a case study of poultry in Iran*

Understanding market integration has greatly benefited from analysing and comparing variations in price transmissions. An important source of variation in agricultural markets is seasonal changes in production, consumption and transaction costs. A key factor driving seasonality in agricultural price is temperature, as supply and demand changes are triggered by seasonal temperature differences. In this paper, we study the seasonal variations in vertical price transmission focusing on the asymmetric price adjustment to analyse changes in the market interactions between the stages of the value chain. Our data reveal significant transitory effects of temperature on the price transmission process. Results of a panel threshold model suggest that the farm–wholesale price adjustments to deviations from the market equilibrium are more symmetric at higher temperatures. However, we do not find an effect of temperature on the wholesale–retail price relationship. Our findings can be rationalised with wholesalers making use of their market power to extend their margins in the upstream chain. Wholesaler market power is lower during warm periods, and price adjustment is more symmetric. Concerning the Iranian poultry value chain, our findings imply that temperature-related differences in market interactions should be considered in formulating policy interventions.     

Re-testing Prebisch–Singer hypothesis: new evidence using Fourier quantile unit root test

The Prebisch–Singer hypothesis in economics asserts that over time the relative price of primary goods relative to manufactured goods should experience a downward trend. To test the hypothesis, we must first establish the unit root properties of the relative price term and then regress the stationary series on a trend term. We use the quantile unit root test which allows for both smooth unknown numbers and the form of breaks in the trend function through a Fourier function to show that the relative price of 23 out of 24 primary goods is stationary. However, the Prebisch–Singer hypothesis is supported only in half of the primary commodities.     

Testing hysteresis effect in U.S. state unemployment: new evidence using a nonlinear quantile unit root test

We revisit hysteresis effect in the unemployment rate of each of the 52 states of the United States using nonlinear quantile unit root test over the period 1976M1–2016M7. Our results indicate that unemployment rate of the U.S. economy as a whole displays hysteresis effect over recessionary periods. Nineteen out of 52 states display hysteresis behaviour over the period 1976–2016. For the remaining 33 states, we find four types of behaviours. Some states display stationarity behaviour almost in all quantiles. Some display hysteresis over recessionary periods and in contrast some display hysteresis over expansion period.     

Residents’ perceptions of tourism development – implications for small economies business: the case study of Ali Sadr,Iran

Ali Sadr Cave is the world's largest water cave and is a protected national heritage of Iran. This paper examines the residents’ perceptions of tourism development. In total, 250 residents of Ali Sadr village were interviewed. To improve the economic outcomes of the exchange between individuals from various cultural backgrounds, it is important to resolve the conflicts between residents and international tourists. In the management of tourism in the region, the local people who strongly support tourism development are not involved much. This paper concludes with recommendations for tourism managers to improve the economic outcomes of local people through tourism development.     

The use of the Persian translation of the Learning Transfer System Inventory in the context of agricultural sustainability learning in Iran

The Learning Transfer System Inventory considers 16 factors likely to influence the transfer of training to the workplace. This study uses the Persian translation of the inventory and applies it to agricultural sustainability learning in Iran. The aim is to examine the internal structure and predictive ability of the inventory as translated into Persian. The agricultural context was chosen because of its importance to Iran and because agricultural human resource interventions have failed to give serious attention to connecting training to practice. A valid and reliable tool for evaluating the transfer of learning among farmers can be helpful. A sample of 159 participating farmers was surveyed. Exploratory factor analysis revealed an 11‐factor structure among specific scales and a five‐factor structure among the general scales. The regression results indicated that about 82 per cent of the variability in the farmers’ sustainability learning transfer is predicted by six inventory factors including motivation to transfer, performance self‐efficacy, supervisor support, performance‐outcomes expectations, opportunity to use and supervisor sanctions. The findings suggest that the Persian translation of the inventory has both internal and predictive validity and can be used either as a tool to diagnose training needs or as a means of evaluating existing learning programs.     

Income Convergence in African Countries: Evidence from a Stationary Test With Multiple Structural Breaks

This paper examines the catching‐up (stochastic convergence in real per capita income) hypothesis for 52 African countries with respect to the USA. over the 1969‐2011 period, using a highly flexible stationarity test. The empirical results show (i) that all African countries experienced at least one break, switching between catching‐up and divergence paths during the sample period; (ii) that structural breaks tend to coincide with political instability, trade liberalisation policies and terms of trade shocks; (iii) that among the 52 African countries studied, only five lie on the catching‐up path, while the remaining 47 diverge from the USA. Our results show that the economic performance of African countries fall far behind those of the USA and that the economic growth tragedy of Africa continues.     

Islamic tourism and managing tourism development in Islamic societies: the cases of Iran and Saudi Arabia

This paper is concerned with the effects of state religion on tourism development in Muslim countries with particular reference to Iran and Saudi Arabia. Aspects of the relationship between Islam and tourism are investigated overall and issues of tourism policies, management and marketing and community involvement within the context of the two cases are discussed. The distinctive circumstances prevailing in Iran and Saudi Arabia are suggested, but more general insights are also presented into the interactions between and management of tourism and Islam. Copyright © 2009 John Wiley & Sons, Ltd.     

An empirical analysis of the Carbon Financial Instrument

This study provides an empirical investigation of the price volatility—trading volume relationship for the Carbon Financial Instrument (CFI). A CFI is a financial contract that is traded on the Chicago Climate Exchange (CCX) and represents the right to emit 100 metric tons of CO₂ equivalent. CFI contracts differ from one another on the basis of their allocation year to CCX member firms, referred to as their respective Vintage year. We provide evidence indicating a positive contemporaneous relationship between price changes and trading volume for the different CFI Vintage contracts. Employing bivariate VAR models that adjust for trade duration, we find that CFI price volatility and trading volume are persistent across time. Furthermore, we provide evidence indicating that lagged volume increases price volatility, in addition to lagged price volatility increasing trading volume levels in the CCX market. Our results are in agreement with prior research documenting significant positive price volatility—volume relationships in traditional equity markets.