Effects of limit order book information level on market stability metrics

Using an agent-based model of the limit order book, we explore how the levels of information available to participants, exchanges, and regulators can be used to improve our understanding of the stability and resiliency of a market. Ultimately, we want to know if electronic market data contains previously undetected information that could allow us to better assess market stability. Using data produced in the controlled environment of an agent-based model’s limit order book, we examine various resiliency indicators to determine their predictive capabilities. Most of the types of data created have traditionally been available either publicly or on a restricted basis to regulators and exchanges, but other types have never been collected. We confirmed our findings using actual order flow data with user identifications included from the CME (Chicago Mercantile Exchange) and New York Mercantile Exchange. Our findings strongly suggest that high-fidelity microstructure data in combination with price data can be used to define stability indicators capable of reliably signaling a high likelihood for an imminent flash crash event about one minute before it occurs.     

The compliance model of employment standards enforcement: an evidence‐based assessment of its efficacy in instances of wage theft

This article critically assesses the compliance model of employment standards enforcement through a study of monetary employment standards violations in Ontario, Canada. The findings suggest that, in contexts where changes to the organisation of work deepen insecurity for employees, models of enforcement that emphasise compliance over deterrence are unlikely to effectively prevent or remedy employment standards violations.     

Methods for delivering complex social services: exploring adaptive management and regulation in the Australian National Disability Insurance Scheme

In the wake of new public management, and with the emergence of new public governance, a number of challenges remain unsolved in the field of public service governance and management. In this paper, we use the example of the Australian National Disability Insurance Scheme to show how we might deal with the design and implementation of a public service reform within the context of new public governance. We argue that governments need to develop greater openness to risk and policy experimentation during implementation. We therefore propose an adaptive system architecture that could support such risk taking.     

Vested interests: how American and Chinese venture capitalists view essential management skills

This paper used semi-structured interviews with 11 highly successful venture capitalists from both the United States and China to examine perceptions of the essential nature of management skills for successful technology-based small-to-medium sized venture exits. Findings suggest American VCs appear to maintain a more global management perspective, whereas Chinese VCs appear to maintain a perspective that is more China-centric, or market specific, in nature. This divergence in perceptions of essential managerial skills offers an opportunity for the convergence of understanding of universal best practices. Implications for theory and research are discussed. Such an understanding may provide critical implications for successful exits from cross border ventures.     

Experience-based learning in innovation and production

How can we model and document the impact of experience in product innovation? We use data on the innovation and production histories of 294 product platforms to explore experience‐based learning. We extend learning curve concepts from their traditional domain – the production process – into the product innovation process to build and test a richer, quantitative model of learning. The results suggest that learning occurs differently in the innovation process than in production. They also suggest that how and where a firm learns depend in part on the complexity of product components and sub‐systems. Finally, we discuss the competitive implications for product innovation.     

Topology of economic systems

An economic topology can have many uses to the academician, student and practitioner. Refining a topology of economic systems helps to bring together seemingly disparate characteristics and to point out potential long run trends. The progression of economic systems over time and also brief explanations of each system are given. We argue that most modem economic systems have some remnants of earlier forms, that is, most economies today are some mixture of what might be considered pure systems. Measurable characteristics to identify a particular system are developed that allows progress to or from a particular classification to be charted for individual countries.     

Convergence to perfect competition of a dynamic matching and bargaining market with two-sided incomplete information and exogenous exit rate

Consider a decentralized, dynamic market with an infinite horizon and incomplete information in which buyers and sellers' values for the traded good are private and independently drawn. Time is discrete, each period has length δ, and each unit of time a large number of new buyers and sellers enter the market. Within a period each buyer is matched with a seller and each seller is matched with zero, one, or more buyers. Every seller runs a first price auction with a reservation price and, if trade occurs, the seller and winning buyer exit with their realized utility. Traders who fail to trade either continue in the market to be rematched or exit at an exogenous rate. We show that in all steady state, perfect Bayesian equilibria, as δ approaches zero, equilibrium prices converge to the Walrasian price and realized allocations converge to the competitive allocation.     

Towards Trade Equalisation: A Network Perspective on Trade and Income Convergence Across the Twentieth Century

An enduring dynamic of the twentieth century is the dramatic expansion of global trade with increased partners, goods, frequency and volumes. Most trade explanations such as the Heckscher–Ohlin, new trade theory, gravity models, and Ricardo and Sraffa focus on how bilateral import and export volumes and intermediate input goods are driven by decreased financial and information transaction costs. Extending work on trade flows and economic development, we derive several network measures of degree, betweenness and eigenvector centrality from dyadic trade flows from 1960 to 2009. We then empirically explore the interactive effects of trade connectivity, economic production and stages of development on income convergence and trade equalisation. We empirically find clear patterns towards a new phenomenon, both sigma levels and beta rates trade convergence and equalisation for our entire sample. Visualising sigma and beta convergence for seven major trading nations from 1920 to 2010, we believe offers new insights into economic development theory if only beginning to loosen the knot of trade, growth and globalisation.