Trade size and components of the bid-ask spread

The relation between theorized components of the bid-ask spreadand trade size for a sample of NYSE firms is examined. We findthat the adverse selection component increases uniformly withtrade size. Conversely, order processing costs decrease withincreased in trade size for all but the largest trades. We findthat order persistence decreases with trade size. The adverseselection component is highest at the beginning of the day andlowest at the end of the day for all but the largest trades.Trades of NYSE firms executed on regional exchanges or NASDAQcontain a large order processing cost component but no significantadverse information effect.     

Knee-deep and rising: America's recycling crisis

Every year, Americans generate 180 million tons of solid waste, 70% of which goes into landfills. Since 1979, the United States has exhausted more than two-thirds of its landfills; another one-fifth will close over the next five years. Solving the problem will require a new understanding between industry and government--an understanding that combines industry competence and government authority. But the two sides are mired in an unfortunate combination of good intentions and failed systems. A classic example that epitomizes the problem is the recycling of plastics. Two stories capture the sense of chaos that pervades the recycling of plastics. The first is a comedy of errors played out in Minneapolis, Minnesota, where the city council passed a measure that would have banned all plastic packaging from the city. In this case, the government acted without the competence of industry. The second story involves McDonald's decision to abandon its polystyrene packaging and switch to plastic-coated paper. In this case, a single business's approach to recycling proved fruitless because of the lack of government authority. According to the authors, five principles provide the underpinnings to a new solid-waste management infrastructure: business and government are partners; the infrastructure is a system and must operate in balance; economics and politics must act as partners; all levels of government have roles to play; and generating less trash and recycling more depends on a workable system. Setting up the system will require an infrastructure that balances supply and demand, an advisory committee to manage the infrastructure, and a management system that uses incentives and disincentives to balance the system.     

Embedding Regulatory Autonomy In Caribbean Telecommunications

This article considers the reform of telecommunications regulation in three Caribbean countries, Jamaica, Trinidad and Tobago, and Barbados, as they responded to changes in the international regulatory environment and specific domestic challenges. The three countries also adopted strategies to adjust their internal structures and to utilize international development aid. The article focuses on their efforts to establish embedded regulatory autonomy, considered along three dimensions: organizational capability, institutional design, and embeddedness within the regulatory space. Each country has taken a different approach to regulatory reform, which is reflected in the respective outcomes. While Jamaica has made tentative progress towards regulatory autonomy, in the other countries progress has been limited. In Trinidad and Tobago, political gridlock has forestalled attempts at regulatory reform, while in Barbados the regulatory reform process has been dominated by the incumbent. The conclusion considers the challenges of establishing regulatory autonomy, particularly the process of embedding regulatory relationships.