Rao’s quadratic entropy and maximum diversification indexation

This paper proposes a new formulation of the maximum diversification indexation strategy based on Rao’s Quadratic Entropy. It clarifies the investment problem underlying this diversification strategy, identifies the source of its out-of-sample performance, and suggests new dimensions along which this performance can be improved. We show that these potential improvements are quantitatively important and are robust to portfolio turnover, portfolio risk, estimation window, and covariance matrix estimation.     

Home Capital Group—The High Cost of Dishonesty

This instructional case presents the problems that began in the summer of 2015 when Home Capital Group (HCG) announced it had cut ties with 45 mortgage brokers for falsifying figures on mortgage applications regarding the earnings of prospective home purchasers in Canada. The case details the subsequent investigation by the Ontario Securities Commission in 2017 that resulted in a run on the bank and consequent efforts by HCG to stay afloat. While emphasizing the importance of strong corporate governance and corporate social responsibility initiatives, this case also stresses the influence of various stakeholders including short‐sellers, regulators, shareholders, management, depositors, and customers in the evolution of subsequent events. As a whole, this case provides an interesting context for the discussion of stock market efficiency.     

A Resource-Centred Interpretation of Export Performance

Consistent with Mahoney and Pandian's (1992) vision of the resource-based view as the emergent language for conversations within strategic management, this paper has employed a resource-based framework in integrating and interpreting identified influences on export performance. Aggregate evidence suggests the critical importance of several resource-related factors, including having top management staff with relevant experiential, orientational and attitudinal resources; ‘co-locating’ within resource-supporting clusters; possessing organisational-wide capabilities in export-related knowledge development and planning, product innovation, and quality service delivery; and leveraging strategically-relevant resources embodied in external partners. The theoretical, managerial, policy, and future research implications of these findings are discussed.     

Use of work–nonwork supports and employee well-being: the mediating roles of job demands,job control,supportive management and work–nonwork conflict

Abstract

This paper examines the impact of the use of work–nonwork supports on well-being. It first develops hypotheses regarding how a reduction in job demands, and an increase in both job control and supportive management may explain this relationship. We then test these hypotheses using data from Britain’s Workplace Employee Relations Survey of 2011. The research reveals that the use of work–nonwork supports has a positive association with job control and supportive supervision. These in turn mediate a relationship between the use of supports and three dimensions of employee well-being, job satisfaction, anxiety-contentment and depression-enthusiasm, some of the effect being through their reducing work–to–nonwork conflict. Use of work–nonwork supports is, however, positively associated with job demands, but this effect of use on job demands does not affect well-being. Since job autonomy and supportive supervision are major mediators, and have a direct influence on work–nonwork conflict and well-being, policy should focus on integrating job quality and work–life balance issues.     

Semiotic emergent framework to address the reality of cyberterrorism

The following paper examines concepts associated with cyberterrorism. Most of the current attention given terrorism involves both probability and consequences related to the physical world. Focuses in “what-if” scenarios involve threats to the economy and the population from an enemy that has all the discretion in selecting the battlefield. But what if the target of terrorism activity is a virtual world? The economic and communications infrastructure of many countries depend on cyber thoroughfares at least as much as they do those of concrete or steel. Yet little attention is given to the notion of attacks that can occur in cyberspace. This discussion examines what cyberterrorism means, the forms it may take and how it may occur, and safeguards that should be considered in preparation for cyber warfare. To this end, we draw from current theories involving semiotics, emergence, and complexity to ground our work.     

The tale of the tails: Canadian income inequality in the 1980s and 1990s

Abstract.  We present new evidence on levels and trends in after-tax income inequality in Canada between 1980 and 2000. We argue that existing data sources may miss changes in the tails of the income distribution, and that many of the changes in the income distribution have been in the tails. For this reason, we turn to an alternative source. In particular, we construct data on after-tax and transfer income using Census files augmented with predicted taxes based on information available from administrative tax data. Using these data, we find that Canadian after-tax inequality levels are substantially higher than has been previously recognized, primarily because income levels are lower at the bottom of the distribution than in commonly used survey data. We also find larger long-term increases in after-tax income inequality and far more variability over the economic cycle. This raises interesting questions about the role of the tax and transfer system in mitigating both trends and fluctuations in market income inequality.     

Australian Monetary Policy: Recent Experience and Some Current Issues

This article surveys Australia's recent monetary experience highlighting current problems in interpreting the stance of monetary policy. It then examines changes in the techniques of monetary policy stemming from deregulation and changing views of the authorities. Finally, money supply control, deregulation and broad money growth, and commercial bill financing are analysed so as to help to shed light on the current problems of interpreting monetary condition.     

How do contribution limits affect contributions to tax-preferred savings accounts?

Contributions to tax-preferred savings accounts are typically constrained by a contribution limit. These limits influence contributions not only for taxpayers currently constrained by the limit, but also for those contributing less than the limit. I develop a simple life-cycle model in which taxpayers exhibit ‘use it or lose it’ contribution behavior. This connects current contributions to future contribution limits, and implies that an increase in contribution limits can decrease contributions. Empirical evidence from microdata provides support for the model. Using variation from Canadian limit reforms I find that larger future contribution room is associated with smaller contributions.     

The determinants of individual attitudes towards immigration

The paper formulates hypotheses and reports on individual attitudes towards immigration based on data for 24 countries on socioeconomic position, sociodemographic characteristics and political attitudes. The results are consistent with the predictions of factor proportions trade theory, but also suggest that a range of other economic and cultural factors influence attitudes towards immigration.     

A simple model of coalitional bidding

Summary. We analyze a model of coalitional bidding in which coalitions form endogenously and compete with each other. Since the nature of this competition influences the way in which agents organize themselves into coalitions, our main aim is to characterize the equilibrium coalition structure and the resulting bids. We do so in a simple model in which the seller may have good reason to allow joint bidding. In particular, we study a model in which the agents are budget constrained, and are allowed to form coalitions to pool their finances before engaging in the first price auction. We show that if the budget constraint is very severe, the equilibrium coalition structure consists of two coalitions, one slightly larger than the other; interestingly, it is not the grand coalition. This equilibrium coalition structure is one which yields (approximately) the maximum expected revenue. Thus the seller can induce the optimal (revenue maximizing) degree of cooperation among budget constrained buyers simply by permitting them to collude. Received: June 25, 1999; revised version: November 13, 2000