Big Data Algorithmic Trading Systems Based on Investors’ Mood

Traditional automated trading systems use rules and filters based on Chartism to send orders to the market, aiming to beat the market and obtain positive returns in bullish or bearish contexts. However, these systems do not consider the investors’ mood that many studies have demonstrated its effects over the evolution of financial markets. The authors describe 2 "big data" algorithmic trading systems over Ibex 35 future. These systems send orders to the market to open long or short positions, based on an artificial intelligence model that uses investors’ mood. To measure the investors' mood, the authors use semantic analysis algorithms that qualify as good, bad, or neutral any communication related to Ibex 35 made on social media (Twitter) or news media. After 1.5 years of research, conclusions are: First, the authors observe positive returns, demonstrating that investors’ mood has predictive capacity on the evolution of the Ibex 35. Second, these systems have beaten the Ibex 35 index, showing the imperfect efficiency of the financial markets. Third, big data algorithmic trading systems numbers are better in Sharpe ratio, success rate, and profit factor than traditional trading systems on the Ibex 35, listed in the Trading Motion platform.     

Co-evolution in tourism: the case of Albergo Diffuso

An important aspect of competitiveness between destinations concerns the way in which historical and cultural heritage is used. Thus, the relationship between territories and firms grows stronger, shifting the focus on the innovation processes within and across destinations. To increase our understanding of how these processes take place in a tourism destination, more theoretical and empirical research is required. This paper aims to respond to this call by examining the central role played by the Italian phenomenon of Albergo Diffuso (AD) through a co-evolutionary approach, fertilized by the evolutionary economic geography literature. The study focuses on the dynamics of the relationship between this new hospitality model, territories and tourists, by analysing 14 case studies of ADs rooted in historical villages. Findings show that AD can be considered as a new sustainability-oriented hospitality model which, by creating synergies with its territory, positively affects the competitiveness of the destinations where ADs are located. The theoretical implications suggest that the creation and development of these innovative firms are the result of effective multi-level co-evolutionary adaptations, adding new elements to the existing literature on innovation in tourism. Moreover, implications for both entrepreneurs and policy-makers emerge, together with suggestions for future research.     

On the political economics of tax reforms: survey and empirical assessment

Political constraints and incentives are the true driver of tax reforms. This paper reviews the political economics literature on personal income tax systems and reforms to see how political mechanisms help explain tax reforms. We take some of the implications of these theories to the data using LABREF, a database that identifies labor tax reforms in the European Union for the period 2000–2007, and control for economic and labor market factors. We find that political variables carry more weight than economic variables, and we show empirical regularities that support political economy theories. We also find that governments tended to reform more in better economic times, engaging in pro-cyclical behavior.     

The effect of multi-scenario policies on empty container repositioning

This paper addresses a container maritime-repositioning problem where several parameters are uncertain and historical data are useless for decision-making processes. To address this problem, we propose a time-extended multi-scenario optimization model in which scenarios can be generated taking into account shipping company opinions. We then show that multi-scenario policies put shipping companies in the position of satisfying empty-container demands for different values that may be taken by uncertain parameters.     

Task assignment,incentives and technological factors

In this paper, we examine the allocation of tasks between a principal and an agent considering their incentives to provide effort, their different abilities in handling tasks, and transmission costs. We focus our attention on two tasks: the first may be handled by the principal or by the agent, whereas the second is necessarily carried out by the agent. Under a fully decentralised organisation, the agent performs both tasks, whereas, under partial delegation, the principal handles the first task and transfers the outcome to the agent who handles the second task. Assuming technological complementarities, from our analysis it emerges that, if there is imperfect observability of effort, full delegation is better at eliciting effort by the agent in the second task, whereas, in comparison with partial delegation, it lowers effort in the first task. Although with contractible effort, the choice between the two organisational forms depends only on transmission costs and on the relative ability of its members, when moral hazard problems are taken into account, the organisational choice is related to the relative importance played by the two tasks in production. If the agent's task is relatively important in production, full delegation, encouraging a higher level of effort in this task, may be optimal, even if technological factors favour partial delegation. Copyright © 2008 John Wiley & Sons, Ltd.     

An empirical analysis of organized crime,corruption and economic growth

In a companion study, Blackburn et al. (Econ Theory Bull, 2017), we have developed a theoretical framework for studying interactions between organized crime and corruption, with the view of examining the combined effects of these phenomena on economic growth. The analysis therein illustrates that organized crime has a negative effect on growth, but that the magnitude of the effect may be either enhanced or mitigated in the presence of corruption. In this paper we tackle the ambiguity produced by the coexistence of the two illicit activities with an empirical investigation using a panel of Italian regions for the period 1983–2009. We find that organized crime distorts growth less when it coexists with corruption and show our results to be robust to different specifications, measures of organized crime, and estimation techniques.     

The Stock Market and Corporate Investment: A Test of Catering Theory

We test a catering theory describing how stock market mispricingmight influence individual firms' investment decisions. We usediscretionary accruals as our proxy for mispricing. We finda positive relation between abnormal investment and discretionaryaccruals; that abnormal investment is more sensitive to discretionaryaccruals for firms with higher R&D intensity (opaque firms)or share turnover (firms with shorter shareholder horizons);that firms with high abnormal investment subsequently have lowstock returns; and that the larger the relative price premium,the stronger the abnormal return predictability. We show thatpatterns in abnormal returns are stronger for firms with higherR&D intensity or share turnover.     

Landowner net benefit from Stone pine (Pinus pinea L.) afforestation of dry-land cereal fields in Valladolid,Spain

This analysis measures the net benefit that a landowner could obtain from changing current dry-land cereal fields into Stone pine plantations in Portillo and Viana (Valladolid, Spain). We apply cost–benefit analysis techniques to estimate the present value of Stone pine afforestation net benefit by considering an infinite series of forestry rotations. We simulate three Stone pine silviculture models at each of the two sites. In addition, we estimate landowner extended net benefits from Stone pine afforestation when we consider a hypothetical payment for the carbon sequestration service. Results show that, when government subsidies are included, Stone pine afforestation only offers positive landowner net benefit in Portillo when both medium and high-stocking silviculture models are applied. Taking into account carbon prices up to €45 tC^?1 (€12.3 tCO₂^?1), Stone pine afforestation gives landowner positive extended net benefits for the three silviculture models simulated at the Portillo and Viana sites.     

Emerging models of public–private interplay for European broadband access: Evidence from the Netherlands and Italy

The paper examines the role and function of public–private interplay in the development of municipal initiatives in the broadband sector. The analysis of initiatives in the Netherlands and Italy shows how the interaction between public and private stakeholders can facilitate local broadband initiatives. This interaction has been vital in aligning the interests of different private and (semi-)public parties, in designing the network and in aggregating sufficient demand for broadband services. The comparative analysis examines the steps involved in these initiatives and the strengths and weaknesses of joint public–private activities. The paper shows that the challenge for cooperating stakeholders has been to foster further investment in the upgrading of the network and in the provision of advanced broadband services.     

Do credible domestic institutions promote credible international agreements?

We examine the relationship between international policy coordination and domestic policy reputation when both are self-sustaining. We show that domestic policy commitment does not necessarily facilitate international cooperation; rather, efficient policies may be most easily sustained when governments are unable to pre-commit to policy domestically. Moreover, the lack of domestic commitment is more likely to facilitate international cooperation the larger the international spillovers of domestic policies are.