Savings bonds,retractable bonds and callable bonds

Savings bonds, retractable bonds and callable bonds are each equivalent to a straight bond with an option. Neglecting default risk the value of these contingent claims depends upon the riskless interest rate. This paper employs the option pricing framework to value these bonds, under the assumptions that the interest rate follows a Gauss-Wiener process and that the pure expectations hypothesis holds.     

Is the Debt Crisis History? Recent Private Capital Inflows to Developing Countries

The outlook for economic development for an important groupof middle-income countries has once again been buoyed by substantialprivate capital inflows in the 1990s. As in the 1970s, thisdevelopment has been met with cautious optimism. This empiricalstudy finds that although debt reduction and policy reformsin debtor countries have been important determinants of renewedaccess to international capital markets, changes in internationalinterest rates have been the dominant factor. We calculate theeffects of changes in international interest rates for a "typical"debtor country. We conclude that increases in interest ratesassociated with a business cycle upturn in industrial countriescould depress the secondary market prices of existing debt tolevels inconsistent with continued capital inflows.     

Pets at ecotourism destinations: cute mascot or trojan horse?

Alien species are threatening native fauna worldwide and cats and dogs have well-documented deleterious impacts on wildlife. Ecotourism operators often live and raise their pets in natural reserves. Here we discuss how pets add to the list of potential negative impacts of ecotourism and provide recommendations to control or attenuate such impacts.     

The number of banking relationships and the business cycle: New evidence from Colombia

We study the determinants of multiple bank–firm relationships using a uniquely rich data set comprised of information on individual loans of a large number of firms in Colombia. We control for firm-specific variables and find that the business cycle exerts important influence on the number of bank relationships sustained by firms. Our evidence suggests that the number of bank relationships is counter-cyclical, decreasing during macroeconomic expansions and increasing during contractions. However, this effect is stronger for large firms which have more access to alternative sources of funding.     

Understanding and Improving Teamwork in Organizations: A Scientifically Based Practical Guide

Teams are pervasive in today's world, and rightfully so as we need them. Drawing upon the existing extensive body of research surrounding the topic of teamwork, we delineate nine “critical considerations” that serve as a practical heuristic by which HR leaders can determine what is needed when they face situations involving teamwork. Our heuristic is not intended to be the definitive set of all considerations for teamwork, but instead consolidates key findings from a vast literature to provide an integrated understanding of the underpinnings of teamwork—specifically, what should be considered when selecting, developing, and maintaining teams. This heuristic is designed to help those in practice diagnose team‐based problems by providing a clear focus on relevant aspects of teamwork. To this end, we first define teamwork and its related elements. Second, we offer a high‐level conceptualization of and justification for the nine selected considerations underlying the heuristic, which is followed by a more in‐depth synthesis of related literature as well as empirically‐driven practical guidance. Third, we conclude with a discussion regarding how this heuristic may best be used from a practical standpoint, as well as offer areas for future research regarding both teamwork and its critical considerations. © 2014 Wiley Periodicals, Inc.     

Viasystems Group,inc.

Viasystems Group, Inc. (Viasystems) is an international supplier of electromechanical assemblies and components. It specializes in manufacturing printed circuits and assembling electric cables and industrial metal cabinets. The case concerns the Printed Circuit Division at Viasystems and its need to adapt its costing system to the relocation of its manufacturing activities to China under its strategic planning, begun in 2001. Planning and controlling operating costs and the presentation of the financial statements have therefore become major issues. The case is set in 2006, six years after the start of progressive offshoring of manufacturing to China. It describes: 1) how external environmental pressures and the need for profitability have led to a critical strategic decision; and 2) how this new business model has changed upper management's informational needs, leading them to rethink their costing system, particularly at the Chinese plants. Setting the case in 2006, when all the plants have been relocated to China, enables discussions of the challenges that management will have to cope with in the future, after the operations transfer has been completed and the consequences on the management control system.     

Mitigation potential and costs for global agricultural greenhouse gas emissions1

Agricultural activities are a substantial contributor to global greenhouse gas (GHG) emissions, accounting for about 58% of the world's anthropogenic non‐carbon dioxide GHG emissions and 14% of all anthropogenic GHG emissions, and agriculture is often viewed as a potential source of relatively low‐cost emissions reductions. We estimate the costs of GHG mitigation for 36 world agricultural regions for the 2000–2020 period, taking into account net GHG reductions, yield effects, livestock productivity effects, commodity prices, labor requirements, and capital costs where appropriate. For croplands and rice cultivation, we use biophysical, process‐based models (DAYCENT and DNDC) to capture the net GHG and yield effects of baseline and mitigation scenarios for different world regions. For the livestock sector, we use information from the literature on key mitigation options and apply the mitigation options to emission baselines compiled by EPA.     

Mortgage Prepayment and Default Decisions: A Poisson Regression Approach

This paper uses an extensive and geographically dispersed sample of single-family fixed rate mortgages to assess the prepayment and default behavior of individual homeowners. We make use of Poisson regression to efficiently estimate the parameters of a proportional hazards model for prepayment and default decisions. Poisson regression for grouped survival data has several advantages over partial likelihood methods. First, when dealing with time-dependent covar-iates, it is considerably more efficient in terms of computations. Second, it is possible to estimate full-hazard models which include, for example, functions of time as well as multiple time scales (i.e., age of the loan and calendar time), in a much more straightforward manner than partial likelihood methods for un-grouped data. Third, Poisson regression can be used to estimate non-proportional hazards models such as additive excess risk specifications. Taken together, our data and estimation methodology allow us to obtain a better understanding of the economic factors underlying prepayment and default decisions.     

Privatizing Highways in the United States

We review the experience of both private toll-roads built in the United States during the 1990s, and argue that the problems they encountered could have been avoided if the length of the franchise contract would adapt to demand realizations. We also argue in favor of adjudicating private toll-roads via BOT-type contracts in competitive (Demsetz) auctions. The lessons of this paper are relevant since growing congestion and troubled government finances have made private toll-roads increasingly attractive in the United States.