Valuation of GNMA Mortgage-Backed Securities

GNMA mortgage-backed pass-through securities are supported by pools of amortizing, callable loans. Additionally, mortgagors often prepay their loans when the market interest rate is above the coupon rate of their loans. This paper develops a model for pricing GNMA securities and uses it to examine the impact of the amortization, call, and prepayment features on the prices, risks and expected returns of GNMA's. The amortization and prepayment features each have a positive effect on price, while the call feature has a negative impact. All three features reduce a GNMA security's interest rate risk and, consequently, its expected return.     

FOREIGN THREATS,TECHNOLOGICAL PROGRESS AND THE RISE AND DECLINE OF IMPERIAL CHINA

This paper addresses why technological progress occurred off‐and‐on in Imperial China but came to a standstill at around the time of the European Renaissance, leading to the decline of Imperial China. We suggest that the threat of war could have induced innovative activities as well as the accumulation of public capital, which led to the development of a modern sector in Imperial China. Using numerical simulation, we find a stagnated equilibrium in an agrarian economy under low threats of war and another with a high level of technological knowledge, public capital and a vibrant modern sector under strong threats. Long periods of peace would have the opposite effect. Some supportive historical evidence from urbanization is provided.     

Systems Model of the Performance Appraisal Interview Process

A model of the performance appraisal interview, adapted from open systems theory, is proposed. The linkages within the model are examined and examples of hypotheses regarding the patterns of relationships which can be generated from this systems perspective are provided. The open systems framework is useful for examining the performance appraisal interview process because it integrates past models and research, generates issues and ideas for future research, and provides a multivariate perspective.     

Time-Series Variation in Dividend Pricing

Ex-dividend day returns vary over time. The ex-day returns of high-yield stocks are persistently positive for some time periods and negative for others; in contrast, ex-day returns of low-yield stocks are always positive and less variable. We are unable to explain the variation with changes in the tax code, but we do find a strong effect for the introduction of negotiated commissions. We find evidence that corporate dividend capturing is affecting ex-day returns and confirm the findings of Gordon and Bradford (1980) that the price of dividends is countercyclical.     

AVIATION DEREGULATION IN THE EUROPEAN UNION: DO ACTORS LEARN IN THE REGULATION GAME?

The United States has led the market liberalisation that has occurred over the past 15 years. Changes in the United States have not been trouble free. However, according to most impartial academic studies, changes in sectors such as aviation have generated net welfare gains. Other countries and industries liable to regulatory reform can learn from the United States. Governments have the scope to develop policies with fewer pitfalls, and industry can adopt strategies for retaining their market power. This paper looks specifically at how the aviation policymakers of the European Union have learned from the U.S. experience and how European airlines have equally adjusted their game.     

A flammability hazard rating and index for women's apparel

Women's garments and the fabrics therein were analysed and characterized. Garments were grouped into garment assemblies, 60 of which were burned on Minnesota Woman, a thermally-instrumented mannequin. Second and third degree burn injuries were calculated using Henriques' tissue damage factor. From 0 to 90% of the mannequin surface area equipped with sensors received second or third degree burn injury. A hazard index was developed based on degree of injury and the speed with which the injury occurred. Fabric and garment parameters found to be of importance in determining the hazard deduced from the mannequin tests were fabric weight, fibre content, and garment type and fit. A hazard rating was developed based on these parameters. Comparison of the hazard rating and the hazard index values indicated that this must be considered to be an exploratory, first stage attempt to develop a relatively simple method for rating the flammability hazard of apparel.