How Persistent is Stock Return Volatility? An Answer with Markov Regime Switching Stochastic Volatility Models

Abstract:  We propose generalised stochastic volatility models with Markov regime changing state equations (SVMRS) to investigate the important properties of volatility in stock returns, specifically high persistence and smoothness. The model suggests that volatility is far less persistent and smooth than the conventional GARCH or stochastic volatility. Persistent short regimes are more likely to occur when volatility is low, while far less persistence is likely to be observed in high volatility regimes. Comparison with different classes of volatility supports the SVMRS as an appropriate proxy volatility measure. Our results indicate that volatility could be far more difficult to estimate and forecast than is generally believed.     

The beach as a strategic element of governance for Spanish coastal towns

Governance models and future strategic visions for Spain's beach social–ecological systems are assessed using an online questionnaire. Beaches continue to represent the most valuable attraction for Spanish coastal towns, but their strategic vision regarding the beach consists more of it being a profitable attraction and of maintaining the traditional “sun and sand” model, rather than of planning strategically. There are three trends looking to 2020. First, beach resorts are becoming linked with culture and heritage, gastronomy, events and ecotourism to enhance their attraction capacity and competitiveness. Second, the coastal towns plan to reduce the strain on beaches by increasing the number of square metres of sand per user. Third, they plan to reduce the strain of the seasonal population compared to the year-round population. Two indices (Beach Quality and Governance Quality) and two factors (Beach Management Proximity and Tourist Resource Expectations) were developed to assess municipal beach governance frameworks, enabling us to construct a typology of four municipal governance models. The country follows a classical public hierarchical model of beach management. Other than at the local scale, beaches are not strategically managed. There is a lack of implementation of adaptive measures, collective actions, integrated management, or policy learning.     

Green Practices and Organizational Design as Sources of Strategic Flexibility and Performance

Green competences are dynamic capabilities based on practices (green practices), routines and structures that can be used to detect opportunities, make the most of them and use them to transform organizations. With this in mind, we explore the relationships between environmental management, organizational performance, and organizational processes and practices. We identify three key constructs related to green competences: (1) hybrid structures, (2) environmental best practices and (3) strategic flexibility, a key variable connecting structural design and green practices to organizational performance. We propose that the implementation of specific organizational structures characterized by the inclusion of market‐driven control practices within hierarchies (internal hybrids) could enhance firms' environmental responsiveness and deployment of green best practices. In addition, we suggest that green practices and structures are positively related to the development of strategic flexibility, driving above‐average returns in dynamic environments. To test these hypotheses, we use data from the European aviation industry. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

THE GRAPE PHYLLOXERA PLAGUE AS A NATURAL EXPERIMENT: THE UPKEEP OF VINEYARDS IN CATALONIA (SPAIN), 1858–1935

This paper analyses the impact in Catalonia of the grape Phylloxera plague in Europe (1865–90). A statistical model is used to analyse the economic resilience of 35 districts in Catalonia to this external ecological and economic shock, and to explain why districts in the provinces of Barcelona and Tarragona resumed growing wine grapes after the plague, in contrast to districts in Girona and Lleida provinces. The opportunity cost of labour, the demand pull of Barcelona's commercial growth, and the agro-climatic suitability of land for growing grapes are used to explain the differing capacities of districts to endure the Phylloxera plague in Catalonia.     

Attractiveness Analysis of European Tourist Cities

Starting from the field work in seven European countries, the paper identify Europeans’ attitudes towards and preferences for European cities. The purpose here is to show whether a city’s tourist attraction is linked solely with a given holiday format (city-break; 1-2 night stay; short holiday; 3-4 night stay; long holiday; 8-night stay or longer) or not.

The results helped in the interpretation of contemporary urban tourism flows in Europe, offering a broader vision of such flows and furnishing useful data for city strategic planning to boost competitiveness.