Sparse Signals in the Cross‐Section of Returns

This paper applies the Least Absolute Shrinkage and Selection Operator (LASSO) to make rolling one‐minute‐ahead return forecasts using the entire cross‐section of lagged returns as candidate predictors. The LASSO increases both out‐of‐sample fit and forecast‐implied Sharpe ratios. This out‐of‐sample success comes from identifying predictors that are unexpected, short‐lived, and sparse. Although the LASSO uses a statistical rule rather than economic intuition to identify predictors, the predictors it identifies are nevertheless associated with economically meaningful events: the LASSO tends to identify as predictors stocks with news about fundamentals.     

ECONOMIC TRANSITION AND LABOUR MARKET DYNAMICS IN CHINA: AN INTERPRETATIVE SURVEY OF THE ‘TURNING POINT’ DEBATE

Has the Chinese economy approached the ‘Lewisian turning point’ that marks the ending of the initial phase of industrial transformation fuelled by surplus labour? In this paper we undertake an interpretative survey of the literature on this issue, in the context of China's labour market conditions prior to the reforms and structural change of the past three decades. The available evidence is mixed, and our assessment makes a strong case for probing institutional constraints to labour mobility from an economy‐wide perspective, going beyond the confines of the rural economy.     

Ag econ angst crisis revisited

The present paper was inspired by and is a response to the Rola-Rubzen, Hardaker and Dillon paper 'Agricultural economists and world poverty: progress and prospects' (Rola-Rubzen et al. 2001). It is agreed that the position of agricultural economists in foreign aid and poverty programs has declined over recent decades. Such a feeling of guilt and remorse expressed by the above authors does indeed create considerable 'angst'. A major reason for this state of affairs lies in 'the flavour of the month' approach of the development agencies. These include women in development, gender-based farming systems research, household nutrition and food security, people participation, and targeting the poorest of the poor. These fads have driven disciplinary considerations to the wall and the more widely-defined objectives have reduced the drive for economic efficiency. We argue there is still a place for better designed and delivered assistance programs within the wider framework of assistance that has become fashionable. Greater application of institutional principles in both the political processes associated with assistance and the implementation agencies would improve the outcomes of many projects. Particular attention would need to be given to the interface between the development agencies and recipient governments. The present paper picks up on the market failure aspects of agriculture's rather poor contribution to development, and develops a wider perspective in terms of the new institutional economics and a continuing role for the agricultural economist.     

Recap of the Joint Symposium of the 13th Annual Conference on Financial Economics and Accounting and the 5th Maryland Finance Symposium,November 15–16, 2002

Review of Quantitative Finance and Accounting -     

Possibilities for remote participation in trade unions: mobilising women activists

This paper argues that trade union activism within the new era of information and communication technologies (ICTs) offers the potential for unions to become more inclusive of under‐represented groups. Traditional conceptions of activism, participation and democracy within trade unions require physical presence at meetings at times and in spaces incompatible with caring responsibilities and atypical hours of work. This restricts the participation of women and other ‘atypical’ workers in trade unions. The paper explores the complexities of electronic forms of union activism in practice, indicating that while some positive features are experienced, there are also a range of obstacles, barriers and possible negative consequences.     

Network Resources for Internationalization: The Case of Taiwan's Electronics Firms*

ABSTRACT This paper illustrates foreign direct investment (FDI) as the management of important network relations, using Taiwan's electronics firms as an example. Through FDI, seemingly small and weak firms propel the process of internationalization by making maximum use of external resources to which they have access. FDI often starts at a location close to the home base where support from the domestic networks can be drawn, subsequently moving on to more distant locations after investors have accumulated new network resources. The location chosen is usually an area rich in network resources or in close proximity to such rich networks. FDI enables the investors to construct a regional, or even global, sub‐network under their control to supply a set of wide‐ranging, differentiated and low‐cost products in a flexible fashion, and sometimes within close proximity to the markets. With this capacity for versatility, investors become valuable partners for multinational firms that offer global services.     

Negotiation support using the Graph Model for Conflict Resolution

The Graph Model for Conflict Resolution is a flexible methodology for systematically studying strategic conflicts in the real world, and is therefore a natural tool for negotiation support. The basic definitions underlying the graph model are reviewed, and the techniques for analysis and interpretation are discussed. The modeling and analysis of a case study, an international trade negotiation concerning the export of Canadian softwood lumber to the United States, are used to demonstrate the practical application of the Graph Model for Conflict Resolution as a negotiation support tool. The modeling and analysis is carried out using the GMCR software system. The ability of the Graph Model for Conflict Resolution to provide insights and advice to negotiators is emphasized.