Transmission of future prices of corn of the Chicago Board of Trade to the Mexican spot market

In Mexico, the use of the coverage program of the Bureau of Market Services and Agricultural Market Development (ASERCA for its acronym in Spanish) is a tool that has been used by corn producers (mainly for white corn) for the acquisition of derived products in the CBOT (Chicago Board of Trade), the underlying element of which is US#2 grade yellow corn. In a high volatility environment regarding the prices of corn, the prices of CBOT should be adjusted with the spot domestic prices to incentivize Mexican producers to participate in the program. However, through a multivariate stochastic volatility analysis during the period of 2007–2012, it was shown that the future price of corn is not strongly related to the prices registered in some states of the country, therefore, it can be inferred that the coverage through the ASERCA program does not properly comply with its objective of protecting the national farmers that grow white corn, despite the fact that its use has increased.     

On Optimal Instrumental Variables Generators, with an Application to Hedge Fund Returns

In this paper, we propose a new benchmarking procedure lying on cumulants for computing the factor loadings in financial models of returns. We apply this technique to the well-known augmented Fama and French (J Fin Econ 43(2):153–193, 1997) model and compare it with another technique of ours based on higher moments. Our new procedure confirms the fact that the alpha is supposed to decrease when we disaggregate HFR indices to the level of individual funds while correcting for specification errors. Our new technique is therefore useful for hedge funds selection or ranking based on the alpha of Jensen corrected for specification errors. This technique will also be useful for calibrating other financial models of returns like the simple market model or the conditional alpha and beta models.

Option-implied preferences adjustments, density forecasts, and the equity risk premium

The main objective of this paper is to analyse the value of information contained in prices of options on the IBEX 35 index at the Spanish Stock Exchange Market. The forward looking information is extracted using implied risk-neutral density functions estimated by a mixture of two-lognormals and several alternative risk adjustments. Our results show that, between October 1996 and March 2000, we can reject the hypothesis that the risk-neutral densities provide accurate predictions of the distributions of future realisations of the IBEX 35 index at 4- and 8-week horizons. When forecasting through risk-adjusted densities the performance of this period is statistically improved and we no longer reject that hypothesis. We show that risk adjustments based on a power specification for the stochastic discount factor—which is the approach used so far in the literature that derives the objective density function from option prices- generates an excessive volatility of risk premia. We use alternative risk adjustments and find that the forecasting performance of the distribution improves slightly in some cases when risk aversion is allowed to be time-varying. Finally, from October 1996 to December 2004, the ex-ante risk premium perceived by investors and that are embedded in option prices is between 12 and 18% higher than the premium required to compensate the same investors for the realised volatility in stock market returns.      

Gulf Arab E‐Business Environment: Localization Strategy Insights

The Gulf Arab region, particularly Qatar and the United Arab Emirates (UAE), took significant steps toward adopting e‐business and is poised to become a significant online marketplace. The region has a number of vital ingredients that could make it an e‐commerce powerhouse; however, e‐commerce has not reached its full potential. In this article, the authors explore the e‐business environment in the Gulf Arab region and shed light on some of the opportunities and challenges that are shaping and restricting e‐business infiltration. The article places greater emphasis on the idea of localization and how it may impact consumer behavior and expansion of e‐commerce. We argue that by increasing the focus on culturally customized online content by considering country‐level cultural, geopolitical, and linguistic factors, this region could be lucrative for companies looking to attract online consumers. © 2015 Wiley Periodicals, Inc.     

A Bayesian Approach to Double Bounded Contingent Valuation

In this paper we propose a Bayesian approach to model double bounded contingent valuation data. The double bounded elicitation method is interpreted as a two tier iterated process in which the subject is allowed to have a second thought about his/her valuation for the environmental good. Prior information is modelled from the answers to the first dichotomous choice question. The model is Quasi-Bayesian (Q-B) in that the prior distribution refers to mean willingness to pay while the likelihood function refers to the proportions of a multinomial distribution. This model is applied to empirical data from a contingent valuation survey involving the valuation expressed by European tourists for access to natural areas in the Canary Islands. Results show that point estimate of consumer surplus computed with the Q-B model does not differ substantially from single bounded model estimation. In addition, double bounded seems to be quite robust to the choice of the prior model of willingness to pay responses. Comparison with open ended suggests that the Q-B model might be useful to control for strategic response and starting point biases.     

“Showrooming” in Consumer Electronics Retailing: An Empirical Study

The present study focuses on multichannel retailing strategies and describes the state of consumer behavior regarding “showrooming” (the practice of examining merchandise or products in a retail store and then buying it online). Founded on the theory of planned behavior (TPB), the authors examine the antecedents of showrooming using data collected from a sample of 176 retail consumers. Based on their results, they define perceived control, website compatibility, and subjective norms as the main antecedents of consumer attitudes toward online purchases. Additionally, they state that previous experience and reasons against purchasing online are directly associated with consumers’ intention to purchase on the retailer’s website. Finally, some theoretical conclusions and practical implications for retailers are discussed.     

Online determinants of e-customer satisfaction: application to website purchases in tourism

This paper examines the influence of four variables on online tourism customer satisfaction: website image perceptions, online routine, online knowledge, and customer innovativeness, and their simultaneous effects. The analysis gauges the moderating role of three socio-demographic characteristics: gender, age group, and educational background. A sample of 3188 regular online consumers of the Portuguese leader in the tourism sector was analyzed using structural equation modeling. Results show that website image, routine, and knowledge significantly influence e-customer satisfaction. Only gender moderates the impact of website knowledge on e-satisfaction. These results entail a better understanding of customer specificities, with practical actions for addressing their real needs and expectations.     

Re‐Thinking Territorial Cohesion in the European Planning Context

The socio‐economic dimensions of cohesion have long been considered an integral part of Europeanization. However, recently a third dimension has been added to the Europe 2020 cohesion policy debate: territorial cohesion. Consequently this term is as yet undeveloped, resulting in a lack of consensus on how to define and interpret it. Such ambiguity represents a theoretical and empirical challenge to regional actors needing to respond to European Union (EU) directives while operationalizing the concept within their national and/or regional agendas. This article uses Portugal as a case study to examine how the concept of territorial cohesion is being interpreted and transposed from EU‐based to territorial‐based instruments and policy documents. First, we conducted a qualitative content analysis (QCA) of a selection of European and regional publications to compare their intrinsic discourses. This was followed by around 60 structured qualitative interviews, conducted with leading actors who had been instrumental in writing or implementing regional policy documents. On the basis of this dual analysis we conclude that, as a whole, the writers of the Portuguese strategic documents successfully transposed this concept, although perceptible differences exist between regions, as local actors have selectively redefined it to better suit their strategic priorities. These differences are debated with the aim of contributing to the design of effective public policies that facilitate inclusion, cohesion and Europeanization.     

Efficient entrepreneurial culture: a cross-country analysis of developed countries

Entrepreneurship, together with national cultural values, may improve a country’s GDP levels. Under this hypothesis, the aim of this paper is to analyse the relationships between the levels of entrepreneurship, cultural values, and of GDP per capita in a sample of 27 developed countries, by identifying an efficient combination of culture and entrepreneurship variables, under the concept of efficient entrepreneurial culture, that maximises GDP per capita. Through the application of Data Envelopment Analysis (DEA) methodology, nine countries have been identified as having an efficient entrepreneurial culture. The implications derived for policy-makers are substantial, since a better understanding of cultural effects on entrepreneurship can lead to improvements in the design of governmental programmes that foster cultural values related to high-quality entrepreneurship.     

Two-sided unobservable investment,bargaining, and efficiency

Asymmetric information can lead to inefficient outcomes in many bargaining contexts. It is sometimes natural to think of asymmetric information as emerging from imperfect observation of previously taken actions (e.g., obtaining compliments or substitutes for the item being bargained over). How do such strategic investment choices prior to bargaining interact with the strategic problem of bargaining under private information? We focus on bilateral bargaining when players can make unobserved investments in the value of the item prior to their interaction. With two-sided hidden investment, strategic uncertainty induces a post-investment problem analogous to that in Myerson and Satterthwaite (J Econ Theory 29(2):265–281, 1983), and inefficiencies might be expected to arise. But, there are strong incentives to avoid investment levels that do not lead to trade and this must be anticipated by the other trader. This effect is shown to drive a form of unraveling; as a result in every equilibrium to the larger game the good ends up in the hands of the agent with the higher valuation.