Optimal dividend policies with transaction costs for a class of jump-diffusion processes

This paper addresses the problem of finding an optimal dividend policy for a class of jump-diffusion processes. The jump component is a compound Poisson process with negative jumps, and the drift and diffusion components are assumed to satisfy some regularity and growth restrictions. Each dividend payment is changed by a fixed and a proportional cost, meaning that if ?? is paid out by the company, the shareholders receive k???K, where k and K are positive. The aim is to maximize expected discounted dividends until ruin. It is proved that when the jumps belong to a certain class of light-tailed distributions, the optimal policy is a simple lump sum policy, that is, when assets are equal to or larger than an upper barrier $\bar{u}^{*}$ , they are immediately reduced to a lower barrier $\underline{u}^{*}$ through a dividend payment. The case with K=0 is also investigated briefly, and the optimal policy is shown to be a reflecting barrier policy for the same light-tailed class. Methods to numerically verify whether a simple lump sum barrier strategy is optimal for any jump distribution are provided at the end of the paper, and some numerical examples are given.     

The maize frontier in rural South India: Exploring the everyday dynamics of the contemporary food regime

This contribution explores how new regions and crops are integrated in the contemporary food regime through a fieldwork‐based approach to maize cultivation in rural Karnataka, South India. As an intrinsic part of the industrial grain–oilseed–livestock complex, maize is an important component of the contemporary food regime. I argue that the expansion of maize at the village level follows commodity frontier dynamics, located at the conjuncture of processes “from above” pushing the industrial grain–oilseed–complex forward and processes “from below” that integrate maize in everyday livelihoods. Focusing on how villagers make use of maize in ways that cross, but simultaneously are differentiated along, lines of class and caste, this article seeks to contribute to our understanding of the everyday dynamics of contemporary food regime.     

The dark side of leisure: obsessive passion and its covariates and outcomes

The present paper challenges the notion that engagement in leisure activities is exclusively conducive to well‐being. By applying the Dualistic Model of Passion in a leisure context on 467 participants, the measurement of obsessive passion for a leisure activity was related to indicators of ill‐being and unrelated to general well‐being. In Study 1, obsessive passion for a leisure activity was associated with activity addiction, escapism engagement, and intrapersonal conflicts. In Study 2, obsessive passion was negatively related to basic need satisfaction in activity engagement as well as positively related to negative affective outcomes from activity engagement. We argue that the present findings may lead towards a broader understanding of motivation and outcomes in leisure activities.     

Industrial policy in the era of global value chains: Towards a developmentalist framework drawing on the industrialisation experiences of South Korea and Taiwan

In this paper, I present a framework for GVC-oriented industrial policy that merges the so-called GVC perspective and the so-called developmentalist perspective—the latter of which is a perspective that industrial policy is most often analysed through, but has been somewhat neglected by the GVC perspective. I argue that the GVC perspective too quickly dismisses the relevance of industrial policy in the East Asian development experience, particularly those in South Korea and Taiwan between roughly 1960 and 1990. By drawing on the industrialisation experiences of these two countries, my framework for industrial policy suggests that the GVC perspective's ideas for industrial policy would be strengthened by more clearly acknowledging the continued importance of three observations by the developmentalist perspective: (a) the need for governments in developing countries to bargain with foreign investors for the purpose of domestic industrialisation; (b) policy design should not only focus on increasing exports, but also focus on replacing some imports with domestic production; and (c) linking up to the value chains of transnational corporations based in high-income countries can bring about some benefits, but ultimately, successful industrialisation necessitates a degree of competing with transnational corporations. State-owned enterprises have historically played an important role in this respect.     

Documenting for whom? A symbolic interactionist analysis of technologically induced changes of nursing handovers

This article employs a symbolic interactionist perspective to analyse the act of 'taking others into account' as a premise for nurses' face-to-face reporting and documenting in patient record systems. Two case studies indicate that replacing face-to-face communication with extended employment of patient record systems may hinder the practical accomplishment of nursing handovers.     

Electricity Production in a Hydro System with a Reservoir Constraint*

In this paper, our purpose is to analyze how market power might affect the allocation of production between seasons (summer and winter) in a hydropower system with reservoir constraints and inflow uncertainty. We find that, even without market power, the price in the summer season might be lower than the expected price in the winter season. In some situations, market power can lead to higher sales and a lower price in summer than would be observed in the competitive outcome; in other situations, it can lead to the opposite result. Furthermore, market power can lead to a smaller price difference between summer and winter.     

Optimal dividend policies for a class of growth-restricted diffusion processes under transaction costs and solvency constraints

In this paper, we consider a company whose surplus follows a rather general diffusion process and whose objective is to maximize expected discounted dividend payments. With each dividend payment, there are transaction costs and taxes, and it is shown in Paulsen (Adv. Appl. Probab. 39:669?C689, 2007) that under some reasonable assumptions, optimality is achieved by using a lump sum dividend barrier strategy, i.e., there is an upper barrier $\bar{u}^{*}$ and a lower barrier $\underline{u}^{*}$ so that whenever the surplus reaches $\bar{u}^{*}$ , it is reduced to $\underline{u}^{*}$ through a dividend payment. However, these optimal barriers may be unacceptably low from a solvency point of view. It is argued that, in that case, one should still look for a barrier strategy, but with barriers that satisfy a given constraint. We propose a solvency constraint similar to that in Paulsen (Finance Stoch. 4:457?C474, 2003); whenever dividends are paid out, the probability of ruin within a fixed time T and with the same strategy in the future should not exceed a predetermined level ??. It is shown how optimality can be achieved under this constraint, and numerical examples are given.     

Diversification and the Entrepreneurial Motivations of Farmers in Norway*

A series of significant pressures but also new opportunities face the agricultural sector in developed economies. Farm diversification is presented as a political solution and a viable business strategy and highlights the entrepreneurial side of farmers. This paper is a unique attempt to address the question of motivation for farm diversification using Norwegian data. The results demonstrate that social motivations are as important as economic motivations, that is, there are substantial differences in which motivations underpin different types of diversification. This suggests, first, that the literature could gain from engaging more in the variation of motivational drivers than general trends, and second, that farmers need different forms of support to develop their entrepreneurial skills. With a data set derived from a large survey (N = 1607) of Norwegian farm holdings, we use a multinomial logistic regression model to analyze how six farm diversification categories are differently influenced by different types of motivations and other background variables.     

Temporary Bottlenecks,Hydropower and Acquisitions*

We apply a model with four markets, two regions and two time periods, to study the effects of an acquisition in a hydropower system with temporary bottlenecks. The effect on welfare is found to be ambiguous. In some instances an acquisition leads to larger differences in prices between markets, which gives rise to an increase in deadweight loss. In other instances it leads to a reduction in price differences between markets, particularly if the dominant firm acquires a firm which was active in the market where the dominant firm used to dump its production before the acquisition.