Rebuilding the limit order book: sequential Bayesian inference on hidden states

The limit order book of an exchange represents an information store of market participants’ future aims and for many traders the information held in this store is of interest. However, information loss occurs between orders being entered into the exchange and limit order book data being sent out. We present an online algorithm which carries out Bayesian inference to replace information lost at the level of the exchange server and apply our proof of concept algorithm to real historical data from some of the world’s most liquid futures contracts as traded on CME GLOBEX, EUREX and NYSE Liffe exchanges.     

The Financial Reporting Practices of British Municipal Corporations 1835–1933: A Study in Accounting Innovation

This paper uses archival sources and contemporary literature to examine the development of the financial reporting practices of British municipal corporations. The paper explores the relationship between accounting theory, as embraced by the literature, and observed accounting practices, and examines both the environmental factors responsible for accounting change and the specific influences that proved crucial at particular points in time. The paper also shows that private-sector based explanations for accounting change do not apply to municipal corporations, and an alternative characterisation is presented.     

A Comparison Between the Conventional Stated Preference Technique and an Inferred Valuation Approach

Contrary to conventional stated preference valuation techniques that employ a direct questioning approach, the inferred valuation method utilises indirect questioning where respondents are asked for their belief regarding others’ values for a good or service. In this study, using choice experiments, we compare the results obtained through the two valuation techniques for environmental features of the Burren landscape in western Ireland. Consistent with previous studies, stated values using the conventional approach are found to be significantly higher than those obtained through the inferred valuation approach. In particular, this study highlights the dissimilarities in relative preferences observed between the two landscape attributes (rocky limestone pavements and orchid‐rich grasslands) from the two questioning formats. While respondents were indifferent between the two habitats, they believed the ‘average other’ to be significantly more concerned about the conservation of the rocky limestone pavements. We attribute this divergence in preferences to be a consequence of additional normative motives perceived by respondents with regard to the conservation of orchid‐rich grasslands.     

The ethical imperative: Myth or reality?

As a result of recent legislative developments and greater ease of accessibility, the Human Resources Manager (HRM) faces the challenge of not only maintaining records but also that of protecting employees from misuse of personal information contained in their individual personnel files. The widespread use of computers for maintaining employee records has resulted in new ethical dimensions and/or challenges for the HRM. Serious questions regarding accessibility to and dissemination of such personal information now confront the HRM. Unless policies are developed by organizations for dealing with such questions, eventually government will mandate such policies in order to protect employee rights.     

Shadow prices in intertemporal plans under constant returns to scale

It has been shown, in connection with Tobin's ‘q’ theory of investment, that, under constant returns to scale and for interior solutions, the market value of a firm is its capital valued at the shadow price of capital. This result is here generalized to cover many fixed (and variable) factors and non-interior solutions.     

CAPITAL ACCOUNTING IN MUNICIPAL CORPORATIONS 1884-1914: THEORY AND PRACTICE

Municipal corporations wielded a vast amount of economic power throughout the period covered by this paper and, as a result, they were the subject of envy, suspicion and criticism. The question of whether depreciation should be charged could not be dismissed as a mere matter of book-keeping. The inclusion of a charge involved the earmarking of an equivalent amount of money for future use, and the matter was therefore regarded as of fundamental importance for current levels of local taxation and long term financial stability. Public and private sector based accountants, municipal officers, town councillors, ratepayers and academics engaged in a debate which, although stirring strong emotions, was thoughtful, wide ranging and constructive. This paper examines the discourse and its outcomes.     

Individual and Small Group Accuracy in Judging Truthful and Deceptive Communication

We examined accuracy in detecting the truths and lies of 10 videotaped students who offered their opinions on the death penalty or smoking in public. Student lie detectors were randomly assigned to either the individual condition, where they reported their veracity judgments and confidence independently, or the small group condition, where they recorded their judgments privately and then deliberated with 5 other students before making a consensus judgment of lie, truth, or hung. Results indicated that small group judgments were more accurate than individual judgments when judging deceptive but not truthful communication. Small group individuals also reported greater confidence in their abilities after the task. Finally, groups with a greater number of hung judgments were more accurate, likely due to their employing hung judgments for the most difficult to judge stimulus communicators. These results raise implications for real life group judgments, particularly in light of the increasing availability of technology.     

Integrated regional development planning: Linking urban centres and rural areas in Bolivia

Highly polarized settlement systems in developing countries reflect and tend to reinforce strong disparities in levels of development between the largest city and other regions and between urban centres and their hinterlands in rural regions. Integrated regional development planning seeks to create a more diffuse and articulated system of settlements in order to diversify the services and facilities available to rural residents, increase their access to town-based markets, new sources of agricultural inputs and non-agricultural employment opportunities, and to provide guidelines for sectoral investment and location decisions. One approach to integrated regional development planning — ‘Urban Functions in Rural Development’ - was tested in the Department of Potosi, Bolivia, and its results provide insights not only into the methodology of analysis but also into the complex relationships among rural development, patterns of human settlement and processes of spatial interaction.