Lunacy in the Stock Market—What is the Evidence?

Popular culture and folklore have long recognized the influence of the lunar cycle on plant, animal, and human behavior. Many of the effects have been validated in the physical and biological sciences. However, until recently such effects have been largely, if not completely ignored in the academic literature of financial economics. This study aims to contribute to answering whether there is, as some claim, a lunar influence on stock prices or volatility. The findings of this work support the Efficient Markets Hypothesis—no consistent, predictable lunar influence is found on either daily returns or daily price volatility in the Dow Jones Industrial Average, for either new or full moons. Some effects are found, but not consistent or predictable with lunar and calendar information alone.      

Making sense of nonbusiness accounting.

The nonbusiness world of municipalities, colleges and universities, hospitals, and other nonprofit organizations follows its own rules when it comes to financial statements, and these are often confusing to anyone who is accustomed to business accounting. According to this author, it was the concept of fund accounting that divided the two worlds of business and nonbusiness accounting and led to a situation where it is almost impossible to judge the financial performance of nonbusiness entities. He shows how financial statements of the business and nonbusiness worlds can use the same standards, with a few modifications for the unique features of nonbusiness organizations.     

Infrastructure, Geographical Disadvantage, Transport Costs, and Trade

The authors use different data sets to investigate the dependenceof transport costs on geography and infrastructure. Infrastructureis an important determinant of transport costs, especially forlandlocked countries. Analysis of bilateral trade data confirmsthe importance of infrastructure and gives an estimate of theelasticity of trade flows with respect to the trade cost factorof around –3. A deterioration of infrastructure from themedian to the 75th percentile raises transport costs by 12 percentagepoints and reduces trade volumes by 28 percent. Analysis ofAfrican trade flows indicates that their relatively low levelis largely due to poor infrastructure.     

Protected areas,conservation and tourism – financing the sustainable dream

Many commentators suggest that tourism could help fund the ever growing number of protected areas. The traditional reliance on government sources to support protected areas is increasingly untenable, in both the developed and developing world. This paper reviews the relationship between tourism and protected areas to assess opportunities for sustainable funding to assure effective stewardship. It explores a range of innovative and creative alternative funding mechanisms which could be consistent with a positive evolving relationship between tourism and protected areas. An outline classification of four protected area archetypes for management and funding purposes is suggested, based on a combination of visitation and biodiversity levels. To service the management of those four types, a series of non-government revenue streams are explored such as payments for ecosystem service (ES), environmental mortgages, intrinsic value funding, carbon abatement funding and research dividend funding. Issues discussed include: the willingness to pay on the part of potential visitors, the potential impact of fees on visitation, “quarantining” particularly valuable ecosystems from visitation and intrinsic value funding, the unpredictability of environmental mortgages and the potential stability of ES payments. Further research is required in data analysis and into the design of land tenure systems and regulatory mechanisms.