Price–volume relations of DAX companies

This study provides empirical evidence of the joint dynamics between stock returns and trading volume using stock data of DAX companies. Contemporaneous as well as dynamic interactions are investigated for a period from January 1994 to December 2005 on a daily basis. Our results suggest that there is almost no relationship between stock return levels and trading volume in either direction. We find that trading volume is contemporaneously positively related to return volatility. In addition, we establish that lagged return volatility induces trading volume movements. Finally, we examine dependencies in the tails and find no significant support for the hypothesis of the independence of the maximal values of absolute returns and trading volume.

Critical success factors for risk management systems

Despite the existence of extensive literature regarding risk management, there still seems to be lack of knowledge in the identification of critical success factors (CSFs) in this area. In this research, grounded theory is implemented to identify CSFs in risk management systems (RMS). Factor analysis and one‐sample t‐tests are then used to refine and rank the CSFs on the basis of the results of a survey which has been conducted among risk management practitioners in various types of Swedish corporations. CSFs are defined from three different perspectives: (1) the factors that have influence on the inclination and readiness of a corporation for implementing RMS; (2) The factors that are important during the design and implementation of RMS in a corporation and can significantly affect the success of RMS design and implementation; and (3) the factors that are crucially important to successfully run, maintain, and administrate RMS after the closure of the project of RMS design and implementation. A case study of a largely successful RMS is presented and discussed in terms of these key factors. This systematic approach toward understanding the taxonomy of the success dimension in RMS is important for re‐enforcing effective risk management practices.     

From risk to vulnerability: the role of perceived adaptive capacity for the acceptance of contested infrastructure

Infrastructure projects such as repositories for nuclear waste or hazardous waste sites impose risks (in the form of potential burdens or losses) over extensive timescales. These risks change dynamically over time and so, potentially, does their management. Societies and key actors go through learning processes and subsequently may be better able to deal with related challenges. However, social scientific research on the acceptance of such projects is mainly concerned with (static) risk perception issues and does not include dynamic aspects. Adaptive capacity, which is part of the concept of vulnerability, therefore represents a promising complementing facet for this line of research. The aim of this paper is to examine the role of perceived adaptive capacity (PAC) for the acceptance of contested long-term infrastructure for the two issues of nuclear and hazardous waste. In an online experimental survey (N?=?300) examining either the acceptance of a nuclear waste repository or of a hazardous waste site, we demonstrate that (i) PAC can be separated empirically as a psychological construct from risk and benefit perception, and (ii) PAC explains a significant additional share of variance in the acceptance of both waste types beyond risk and benefit perception. Furthermore, we report what adaptation mechanisms of PAC participants expect to occur in the future. We conclude that such a dynamic perspective yields important insights in understanding individual decision-making regarding long-term infrastructure projects.     

Spatial Linkages in Returns and Volatilities among U.S. Regional Housing Markets

This article investigates spatial linkages in returns, idiosyncratic risks and volatilities across 19 U.S. regional housing markets. Using Case & Shiller housing price indices from 1995 through 2009, we find that interconnections across markets can be “wider” and “stronger” than would normally be expected. They are “wider” because, in addition to geographic closeness, economic proximity is also an important source of influence; they are “stronger” because of the significant contagion effects during the 2007–2009 subprime and financial crises. The increased comovement and interdependence, especially among more geographically diverse regions with similar economic conditions, may help explain the failure of geographic portfolio diversification strategies.     

Long- versus medium-run identification in fractionally integrated VAR models

We state that long-run restrictions that identify structural shocks in VAR models with unit roots lose their original interpretation if the fractional integration order of the affected variable is below one. For such fractionally integrated models we consider a medium-run approach that employs restrictions on variance contributions over finite horizons. We show for alternative identification schemes that letting the horizon tend to infinity is equivalent to imposing the restriction of Blanchard and Quah (1989) introduced for the unit-root case.     

Aufschwung bleibt moderat — Wirtschaftspolitik wenig wachstumsorientiert

The German economy is experiencing a moderate upturn. Gross domestic product is expected to increase by 1.6 per cent this year and by 1.5 per cent in 2017. The upturn will be driven by private consumption, which will benefit from continued employment growth, sizeable increases in wage and transfer income, and also purchasing power gains thanks to lower energy prices. Fiscal policy will also be expansively oriented, partly due to rising costs related to refugee immigration. Public budgets will still post significant surpluses in the forecasting period, however. Failing to use this room for manoeuvre to promote growth, as seen in recent years, is not a sustainable path. In view of the continuous slack in the euro area economy, the monetary policy stance is considered to be appropriate. Should it become obvious in the course of this year that production does not return to normal capacity and that the inflation rate does not move towards two per cent, further measures to stimulate growth might become necessary. The scope for further monetary policy measures has been widely exhausted, though. A further economic stabilization could only be achieved through a combination of expansionary fiscal and monetary policy. This could severely damage the credibility of monetary policy, however.     

Broadening the picture: Negotiating payment schemes for water-related environmental services in the Netherlands

This paper explores how the development of payment schemes for water-related environmental services can be understood and supported. Currently, the development of such payment schemes is perceived mainly through theoretical lenses offered by economists and hydrologists. Notwithstanding the usefulness and appropriateness of these theoretical lenses, they have difficulties to accommodate certain aspects of the development of payment schemes for water-related environmental services. Specifically, the discussion of negotiation aspects remains relatively isolated and superficial, even though it is generally acknowledged that the development of payment schemes is often significantly influenced by political negotiations. This paper addresses this limitation. It shows how the main elements of negotiation analysis can provide a theoretical underpinning for important drivers behind the development of specific payment schemes, which are beyond the scope of hydrological or economic rationality. Four cases of water-related payment schemes in the Netherlands are studied, employing one of the key insights offered by negotiation analysis: the importance of the underlying interests and values of the parties involved. The findings of these four cases show the potential of negotiation analysis as a useful complement for understanding and supporting the development of payment schemes for environmental services.     

Enforcing Competition Among Governments: Theory and Application to the European Union

Horizontal competition among governments has to be enforced by a higher-level institution, but this institution must not be the federal or union government, parliament or court, because these have a vested interest in intergovernmental collusion and ultimately in monopolization. The European Union institutions have been interested in removing national protection, regulations and subsidies because, by doing so, they could induce the interest groups, politicians, and bureaucrats of the member-states to demand more European protectionist measures, regulations, and subsidies. The establishment of a directly elected European Senate is proposed which would have no other powers than to enforce competition among governments on the basis of qualified minority decisions.     

THE MILK MARKETING BOARD'S AWARD SCHEME FOR STUDY IN AGRICULTURAL ECONOMICS

This article sets out the background and general record of operation of the Milk Marketing Board Awards Scheme in Agricultural Economics since its inception in 1955. Over 100 awards have been given and holders were selected from nearly 1,300 applications. The process of selection is analysed in some detail. It is suggested that the work of award holders is a reflection of the general directions of interest in postgraduate studies in the subject and that the analysis of subsequent careers provides an indicator of the demand for the services of those trained in Agricultural Economics.