Robust portfolio estimation under skew-normal return processes

In this paper, we study issues related to the optimal portfolio estimators and the local asymptotic normality (LAN) of the return process under the assumption that the return process has an infinite moving average (MA) (∞) representation with skew-normal innovations. The paper consists of two parts. In the first part, we discuss the influence of the skewness parameter δ of the skew-normal distribution on the optimal portfolio estimators. Based on the asymptotic distribution of the portfolio estimator ? for a non-Gaussian dependent return process, we evaluate the influence of δ on the asymptotic variance V(δ) of ?. We also investigate the robustness of the estimators of a standard optimal portfolio via numerical computations. In the second part of the paper, we assume that the MA coefficients and the mean vector of the return process depend on a lower-dimensional set of parameters. Based on this assumption, we discuss the LAN property of the return's distribution when the innovations follow a skew-normal law. The influence of δ on the central sequence of LAN is evaluated both theoretically and numerically.     

Uniqueness of stationary equilibria in bargaining one-dimensional policies under (super) majority rules

We consider negotiations selecting one-dimensional policies. Individuals have instantaneous preferences represented by continuous, concave and single-peaked utility functions, and they are impatient. Decisions arise from a bargaining game with random proposers and (super) majority approval, ranging from the simple majority up to unanimity. We provide sufficient conditions that guarantee the existence of a unique stationary subgame perfect equilibrium, and we provide its explicit characterization. The uniqueness of the equilibrium permits an analysis of the set of Pareto optimal voting rules. For symmetric distributions of peaks and uniform recognition probabilities unanimity is the unanimously preferred majority rule.     

Who gets the carrot and who gets the stick? Evidence of gender disparities in executive remuneration

This paper offers a new explanation of the gender pay gap in leadership positions by examining the relationship between managerial bonuses and company performance. Drawing on findings of gender studies, agency theory, and the leadership literature, we argue that the gender pay gap is a context‐specific phenomenon that results partly from the fact that company performance has a moderating impact on pay inequalities. Employing a matched sample of 192 female and male executive directors of U.K.‐listed firms, we corroborate the existence of the gender pay disparities in corporate boardrooms. In line with our theoretical predictions, we find that bonuses awarded to men are not only larger than those allocated to women, but also that managerial compensation of male executive directors is much more performance‐sensitive than that of female executives. The contribution of attributional and expectancy‐related dynamics to these patterns is highlighted in line with previous work on gender stereotypes and implicit leadership theories such as the romance of leadership. Gender differences in risk taking and confidence are also considered as potential explanations for the observed pay disparities. The implications of organizations' indifference to women's performance are examined in relation to issues surrounding the recognition and retention of female talent. Copyright © 2010 John Wiley & Sons, Ltd.     

Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers

A growing number of Local Public Transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy and assess the presence and the magnitude of scope economies. We split the whole sample of firms according to their diversification strategy: private firms, mainly diversifying in competitive transport related services and public firms providing nontransport services in regulated markets. Scope economies appear sizeable for both groups but higher for firms pursuing a transport related strategy, suggesting caution in the multiutility development pursued by public LPT firms in Italy.     

Book review

Smallholder farmers who grow diverse landraces in centres of crop diversity contribute to sustaining the capacity of agricultural and food systems to adapt to change by maintaining crop evolution in their fields today, thus enabling humanity to continue to have the broad genetic variation needed to adapt crops to changes tomorrow. Given this fact, the last 20 years have witnessed an ever-growing interest in on-farm conservation of crop infra-specific diversity. While numerous projects to support it have been, and continue to be, implemented worldwide, there has been very little systematic assessment of the extent to which these projects have been effective at contributing to the maintenance of crop diversity on-farm and the creation of associated benefits for the farmers involved. The factors and relationships implicated in attaining conservation and livelihood results are complex, so that a conceptual scheme that brings them together in a simplified but coherent fashion can be extremely useful for the scientists, donors, policy-makers and practitioners concerned. This paper presents a conceptual framework for analysing on-farm projects, the trade-offs involved and assesses their success in a more systematic way.     

Sensory characteristics of fufu prepared with cassava roots (Manihot esculenta Crantz) stored in polyethylene sacks

This study was carried out to assess the effect of storage of cassava roots in polyethylene sacks for periods of 2, 4, 6 and 8 weeks on the sensory characteristics of cassava fufu, a popular Ghanaian dish. Freshly harvested cassava roots were dipped in tap water and packed into polyethylene sacks in 2‐kg batches and stored at room temperature (25°C ± 1°C). Samples of fresh cassava fufu were evaluated and then at two weekly intervals for a period of 8 weeks. Attributes evaluated were colour, smell, elasticity, smoothness and taste. A structured six‐point ranking scale ranging from 6 (excellent) to 1 (very poor) was used for the evaluation. The data were analysed using analysis of variance, and the least significance difference test at P < 0.05 was used to determine differences between means. The results showed that storage of cassava roots for up to 8 weeks did not significantly affect the colour, smell, elasticity and taste of cassava fufu. However, smoothness of fufu prepared with cassava stored for 6 and 8 weeks was significantly different from the samples of the fresh cassava, and those stored for 2 and 4 weeks. It was concluded that cassava roots stored for periods up to 8 weeks in polyethylene sacks produced fufu of similar characteristics as fresh cassava fufu. This method is therefore recommended for use by homemakers, food service operators, cassava retailers and processors to save them time, energy and money used for the frequent trips for purchases. The method would also reduce post‐harvest losses to a large extent.     

Economic Diplomacy

We study bilateral conflicts that affect the welfare of third parties, the stakeholders. The conflict takes the form of a war of attrition and intervention is modeled as the possibility that the stakeholder “aids” the agreement with transfers to the contenders. We characterize the optimal policy when the stakeholder limits its intervention to a unilateral commitment to compensate the contenders if the conflict is resolved, and show that if contenders must be treated equally after agreement, then the optimal policy cannot eliminate the delay in resolving the conflict, and intervention is only advisable when the stakes are high enough. Economic diplomacy is modeled as a three‐player game where the stakeholder is actively involved in the negotiation where transfers are discussed simultaneously with a settlement for the conflict. We prove that, provided that none of the parties involved is too impatient, diplomacy benefits the third party in all conflicts.     

“Our Lands are Our Lives”: Gendered Experiences of Resistance to Land Grabbing in Rural Cambodia

ABSTRACT

Cambodia is known as a hotspot for land grabbing in Southeast Asia. Land dispossession due to elite capture, natural resources exploitation, and agribusiness development has catalyzed international attention following outbreaks of violence, mass protests, and retaliations. Agrarian economies, as well as social and gender relations and thus power dynamics at different levels, are being transformed and reshaped, facilitated by policies that promote capital penetration in rural areas and individualization of land access. Focusing on cases of rural dispossession and political resistance in Ratanakiri and Kampong Speu provinces, and drawing on reports, government documents, focus group discussions, and interviews, this study analyzes the gendered implications of land grabbing in contemporary Cambodia and argues that gender shapes and informs women’s responses and politics, as well as the spaces in which these are played out.     

Is EU Cross-border Cooperation Ethical? Reading Cross-border Cooperation Through the ‘Needs for Roots’ by Simone Weil

This article applies Simone Weil’s philosophical concept of ‘uprootedness’ and the ‘14 needs of the soul’, set out in her 1943 book ‘The Need for Roots’, to the empirical case study of the border ‘Italy-Slovenia’ considered within Programme 2007–2013. A multi-dimensional qualitative approach that relies on an extensive literature, consultation of primary sources and semi-structured interviews carried out between October 2013 and February 2014 has been adopted.

The article questions why does cross-border-cooperation often fail to develop an ‘integrated’ border territory and a cohesive ‘moral’ community? Conversely, why does social fragmentation emerge from cross-border-cooperation? It is argued that while the EU (Commission) has focused on initiatives and projects in order to achieve regional, economic border integration, it has instead failed to develop an ‘ethical framework’ for promoting a ‘rooted’ integrated borderland and a cohesive moral community.