Citizen involvement in promoting sustainable mobility

This article proposes a methodology for promoting public involvement in the planning process for the promotion of sustainable mobility. The concept of the focus group (FG) is widened and a method based on holding larger groups defined as mega focus groups (MFG) is proposed. These MFG allow all sections of society to be represented in the participation process, thereby involving the population at a strategic level in subjects of general interest to society and later, holding smaller FGs on more specific subject matters (tactical level).The advantage of the larger MFG over the smaller FG is that they can obtain more information (between 40 and 60 people take part) from easily run meetings (similar to the FG). The MFG also provide a territorial representation of peoples’ opinions and serve as a mechanism for selecting the participants in the smaller focus groups. The information extracted from both the MFG and FG about people’s perceptions of sustainable mobility provides the background to the design of pilot surveys on urban mobility. For a better understanding of the development of this method and its possible applications in any town or city the article includes its practical application in the medium sized city of Santander (Northern Spain).     

The quality of service desired by public transport users

This article describes the methodology used to study the quality of service desired by users of a public transport system. The desired quality is different from the perceived quality because it does not represent the daily experiences of the users, but rather what they desire, hope for or expect from their public transport system. This is why it is important to study the desired quality, knowledge of which gives local authorities the background information for personalised marketing policies based on the user’s requirements rather than their daily perceptions. The methodology goes through several stages, such as the use of focus groups to choose the most important variables for the users, the design and use of unlabelled stated preferences surveys and the calibration of discrete choice models. All of these help determine the weight of the most relevant variables. The analysis is carried out with different categories of users and potential users (those people not currently using public transport).Waiting time, cleanliness and comfort are shown to be the public transport variables that users most valued, but the degree to which they are valued varies according to the category of user. Variables such as driver kindness, bus occupancy and journey time are generally given less weight. The first two vary little by user category, but some variability appears for journey time.For potential users the more important variables when defining expected quality from public transport are waiting time, journey time and above all, level of occupancy. They consider the other variables to be of little importance when defining an efficient public transport service.In order to improve service quality and attract more passengers to public transport in general, the application of this methodology provides the authorities and operating companies with useful information to plan personalised marketing policies specifically directed at different categories of users and potential users of public transport.     

Expropriation risk and housing prices: Evidence from an emerging market

This paper examines the microeconomic determinants of residential real estate prices in Caracas, Venezuela, using a private database containing 17,526 transactions from 2008 to 2009. The particular institutional characteristics of many countries in Latin America, and Venezuela in particular, where land invasions and expropriations (with only partial compensation) have been common threats to property owners, provide us with an opportunity to test the effects of these risks on housing prices using a unique database. The effect of these risks on property prices is negative and significant. To our knowledge, this is the first attempt to quantify these impacts in the Hedonic pricing literature applied to real estate. Size, the number of parking spaces, the age of the property, the incidence of crime, and the average income in the neighborhood are significant determinants of prices. Finally, this paper analyzes the microeconomic determinants of housing prices at the municipal level.     

How wide is the gap? An investigation of gender wage differences using quantile regression

In this paper we re-examine the link between subjective perceptions and objective measures of wage discrimination by estimating the mean and several quantiles in the conditional wage distribution of men and women in order to decompose the gender wage gap into the part attributed to different characteristics and the part attributable to differential returns to these characteristics at points other than the conditional expectation. In the process we take into account the endogeneity of educational choice and the participation decision of women. The results suggest that the absolute wage gap and the component of the latter that can be attributed to different returns to characteristics increase over the wage scale.     

Asian development pathways and sustainable socio-technical regimes

Rapid industrialisation in Asia is generating a significant new demand for raw materials and pressure on local, regional and global environments. In the future these demands and pressures are expected to increase markedly. These concerns are models of development that assume that economic growth follows a pattern leading to a convergence between the structure, growth and productivity of economies over the long run. In these models, the structure of industries and sectors, technological capabilities and consumer preferences are regarded as converging towards patterns established in more advanced economies. By extension, convergence is also assumed to hold for the resource intensity and environmental pressure associated with growth in industrialising countries. This paper argues for greater attention to the resource and environmental quality of development. It argues that by applying ideas from an emerging literature on ‘systems innovation’ it becomes possible to envisage the emergence of new, more resource-efficient socio-technical systems as the basis of more sustainable development pathways in developing Asia. Such sustainable socio-technical systems will emerge in the context of interaction between domestic and globalised markets, knowledge flows and governance. Key issues for a research agenda are set out.     

Product Innovation Management in Spain

In line with the latest studies of product innovation management, Angel Martinez Sanchez and Luis Navarro Elola report results from their study of 56 industrial firms in Spain. The results reveal a systematic process of new products development with little consideration given to innovation, but with a contrasting preoccupation with market activities.     

USING EXCHANGE-TRADED EQUITY FLEX PUT OPTIONS IN CORPORATE STOCK REPURCHASE PROGRAMS

Casual evidence suggests that as many as 10% of the companies repurchasing their stock over the past decade have used the sale of puts on the company's stock as part of the repurchase program. This article describes a new instrument for such corporate stock buybacks recently introduced by the American Stock Exchange: Equity Flex puts on the issuer's stock. When and if the puts are exercised, the company's shares are retired—often on better terms and with better cash flow timing than the company could achieve with a conventional stock repurchase program.
To date, such stock repurchase programs have been conducted primarily using over-the-counter put options. The new Equity Flex puts promise to eliminate the relative advantages of OTC transactions and offer stock repurchasers better pricing and increased liquidity. Use of exchange markets can also help overcome any reluctance a financial officer might have to rely on prices offered by a single dealer.     

Do neighboring municipalities matter in industrial location decisions? Empirical evidence from Spain

This paper focuses on industrial location, assuming that entrepreneurs not only consider the advantages associated with a certain municipality, but also those coming from nearby areas. Exploratory analysis reflects the existence of spatial patterns in the creation of manufacturing establishments and sheds light on the geographical scope on which agglomeration economies operate in industrial location. Spatial Probit models and standard Probit models with spatially lagged explanatory variables are estimated to test whether neighboring municipalities’ location decisions and characteristics, including agglomeration economies, matter in industrial location choices. Results show that neighboring municipalities location decisions and characteristics help to explain location decisions of new establishments for 11 manufacturing industries in Spanish municipalities (NUTS V) over the period 1991–1995.     

American GARCH employee stock option valuation

We implement a flexible simulation-based approach for the fair value of employee stock option (ESO) that accounts for the vesting period, departure risk and voluntary suboptimal early exercise. We introduce GARCH effects on the underlying asset and we analyze the price bias with respect to the constant volatility case. We also perform a sensitivity analysis with respect to changes in several ESO characteristics. We compare this valuation with FAS 123 method revealing a FAS overvaluation. Finally, we value a real ESO plan providing the confidence intervals for the estimated ESO prices.     

On the hidden side of liquidity

This article deals with the informativeness of iceberg orders, also known as hidden limit orders (HLOs). Namely, we analyze how the market reacts when the presence of hidden volume in the limit order book is revealed by the trading process. We use high-frequency book and transaction data from the Spanish Stock Exchange, including a large sample of executed HLOs. We show that just when hidden volume is detected, traders on the opposite side of the market become more aggressive, exploiting the opportunity to consume more than expected at the best quotes. However, neither illiquidity nor volatility increases in the short term. Furthermore, the detection of hidden volume has no relevant price impact. Overall, our results suggest that market participants do not attribute any relevant information content to the hidden side of liquidity.