Efficiency characteristics of a market for state contingent claims

This paper concludes that a market for state-contingent claims (UK horserace betting) displays evidence of pervasive but heterogeneous forms of inefficiency, in significant contrast to earlier investigations. Using hitherto unavailable data, comparison of notional returns implicit in parallel sets of bookmaker and parimutuel odds identifies inefficiency in terms of zones of distinct but contrasting forms of cross-;market returns differential. The inefficiency is rationalized in terms of both buyer and supplier behaviour; its durability is explained in terms of limited arbitrage opportunities.     

Soil Fertility Management and Compost Use in Senegal's Peanut Basin

The Jóór (Dior) soils of Senegal's Peanut Basin are inherently low in organic matter, limiting yields of millet and other crops and threatening the food security of smallholders. Focus groups and interviews were conducted in eight villages to characterise the site-specific fertility management by farmers in the Peanut Basin. Results of the qualitative survey revealed that farmers base management decisions on a series of fertility indicators that include type, colour, and texture of soil, presence of vegetation, and productivity in previous years. In an effort to equalise fertility across the field, farmers amend areas they classify as less fertile with decomposed manure and household waste from the family sëntaare (traditional pile) orwith compost from managed piles. On-site measurements of soil in areas of fields amended with compost or sëntaare material revealed significant increases in peanut and millet growth over unamended areas, but little difference between the effects of compost and manure. Similarly, chemical analysis revealed increased effective cation exchange capacity (ECEC) and nutrient concentrations (K, Mg and Al) in soils amended with compost or manure. Similarities in the chemical characteristics of compost and sëntaare material suggest that development workers could emphasise improved pile management rather than promoting more labour-intensive composting.     

Diversification evidence from international equity markets using extreme values and stochastic copulas

Tail dependence plays an important role in financial risk management and determination of whether two markets crash or boom together. However, the linear correlation is unable to capture the dependence structure among financial data. Moreover, given the reality of fat-tail or skewed distribution of financial data, normality assumption for risk measure may be misleading in portfolio development. This paper proposes the use of conditional extreme value theory and time-varying copula to capture the tail dependence between the Australian financial market and other selected international stock markets. Conditional extreme value theory enables the model adequacy and the tail behavior of individual financial variable, while the time-varying copula can fully disclose the changes of dependence structure over time. The combination of both proved to be useful in determining the tail dependence. The empirical results show an outperformance of the model in the analysis of tail dependence, which has an important implication in cross-market diversification and asset pricing allocation.     

Developing sustainable tourism through adaptive resource management: a case study of Machu Picchu,Peru

Machu Picchu, Peru, is recognized as a top international travel destination. Pressure from the approximately 900,000 tourists who annually visit the ancient Inca city threatens the ecological integrity, physical substance and cultural authenticity of the World Heritage Site and surrounding area, including the Inca Trail. Multiple organizations and agencies currently involved in the management of Machu Picchu have distinct agendas for the conservation and development of the city, and conflicts regarding public access, economic growth and cultural preservation are rampant. Attempts to establish carrying capacities have failed, with proposed daily visitor levels ranging from 800 to 4000. This paper explores the complex issues surrounding tourism at Machu Picchu and presents a potential solution: an adaptive management approach based on the UN World Tourism Organization's (UNWTO) sustainable tourism framework. This integrative strategy accounts for multiple perspectives and synthesizes disparate goals embraced by diverse stakeholders, including the Peruvian government, international conservation organizations, foreign tourists, private tour operators, regional authorities and indigenous communities. The focus on Machu Picchu as an adaptive management case study site outlines key steps leading to implementation, offering planning and policy implications for sustainability initiatives at numerous developing-world tourism destinations facing similar political and socio-economic challenges.     

International transfer pricing and income shifting: evidence from the UK

The potential use of international transfer pricing (ITP) as an income-shifting mechanism by multinational enterprises (MNEs) has long been recognized. However, there is relatively little evidence to substantiate or discount this claim in relation to UK-based foreign-controlled enterprises (FCEs). This paper examines the possible use of ITP as an income-shifting mechanism by FCEs operating in the UK. The methodological approach involves the comparison of the profitability (performance) and dividend (post-performance) distributions of a sample of FCEs with those of UK-controlled enterprises (UKCEs) over a two-year period. The two samples are matched on the basis of their total assets (capability). Results reveal significant differences in the profitability and dividend distributions of the two groups. FCEs underperform UKCEs, but their level of dividend distribution outstrips those of UKCEs. Based on this sample of seventy-two companies, a firm is more likely to be an FCE, rather than a UKCE, if it reports a combination of lower performance and higher post-performance distribution. Evidence of significant income shifting by FCEs is confirmed and the claim that ITP is the key mechanism for such shifts cannot be dismissed.