Yield Spread and Term to Maturity: Default vs. Liquidity

The aim of this paper is the analysis of the yield spreads between Treasury and non–Treasury Spanish fixed income assets and its relationship with the term to maturity. We find a downward sloping term structure of yield spreads for investment–grade bonds that seems to be contrary to the 'crisis at maturity' theory. However, we claim that this outcome is caused mainly by the effect of liquidity on yield spreads. Once the effect of liquidity and other factors are removed we find that there is a positive relationship between default premiums and term to maturity. That result is now consistent with the existing literature.     

Proprietà analitiche delle soluzioni di un'equazione intergrale della teoria collettiva del rischio

Si studiano alcune proprietà analitiche (positività, monotonia, limitatezza, regolarità, ecc.) delle soluzioni dell'equazione integrale di Volterra (1) che si presenta nella teoria collettiva del rischio.

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Summary We study some analytic properties (positiveness, monotonicity, boundedness, smoothness, etc.) of the solutions of the Volterra integral equation (1) arising in the collective theory of risk.

     

THE 'TEXTURE' OF ORGANIZING IN AN ITALIAN UNIVERSITY DEPARTMENT*

The texture of organizing is an elusive concept, one that embraces the intangible quality of the activities of an organization's members. In this article we use examples taken from an empirical study of a department of mathematics in an Italian university to illustrate the social processes that underlie the construction of texture. We define ‘texture’ as that imaginative domain of organizational actors where processes such as the creation of a sense of togetherness and of ownership, mutual understanding and misunderstanding of organizational life, shifting memberships and audiences link and interweave. Some methodological issues concerning the concept of texture are also examined.     

Understanding the determinants of sovereign debt ratings: Evidence for the two leading agencies

An analysis of the possible determinants of sovereign credit ratings assigned by the two leading credit rating agencies, Moody's and Standard and Poor's, is conducted in this paper by using linear, logistic, and exponential transformations of the rating scales. Of the large number of variables that can be used, the set of explanatory variables selected in this study is significant in explaining the credit ratings. Namely, six variables appear to be the most relevant to determining a country's credit rating: GDP per capita, external debt, level of economic development, default history, real growth rate, and inflation rate.     

PRIVATE INVESTMENT AND MACROECONOMIC ADJUSTMENT:A Survey

This article reviews theories of investment behavior and examinesempirical studies of investment in developing countries. Theemphasis is on understanding the interactions among macroeconomicpolicies, structural adjustment, and private investment. Thearticle deals with the effect of exchange rate policy on investment,the relationship between public and private investment, theimportance of market imperfections and financial constraintson capital formation, and the effect of economic instabilityon irreversible investment decisions.      

The New Economy: Ethical Issues

The new economy is a technological revolution involving the information and communication technologies and which affects almost all aspects of the economy, business, and our personal lives. The problems it raises for businesses are not radically new, and even less so from an ethical viewpoint. However, they deserve particular attention, especially now, in the first years of the 21st century, when we are feeling the full impact of the changes brought about by this technological revolution. In this article, I will try to draw a "map" of the main, positive and negative ethical challenges raised by the new economy, concentrating on its three basic features: (1) a knowledge- and information-based technological change, (2) which is taking place in real time on a planetary scale (globalization), and (3) which entails a new, flexible, network-based business organization.     

An Impact Evaluation of Education, Health, and Water Supply Investments by the Bolivian Social Investment Fund

This article reviews the results of an impact evaluation ofsmall-scale rural infrastructure projects in health, water,and education financed by the Bolivian Social Investment Fund.The impact evaluation used panel data on project beneficiariesand control or comparison groups and applied several evaluationmethodologies. An experimental design based on randomizationof the offer to participate in a social fund project was successfulin estimating impact when combined with bounds estimates toaddress noncompliance issues. Propensity score matching wasapplied to baseline data to reduce observable preprogram differencesbetween treatment and comparison groups. Results for educationprojects suggest that although they improved school infrastructure,they had little impact on education outcomes. In contrast, interventionsin health clinics, perhaps because they went beyond simply improvinginfrastructure, raised utilization rates and were associatedwith substantial declines in under-age-five mortality. Investmentsin small community water systems had no major impact on waterquality until combined with community-level training, thoughthey did increase the access to and the quantity of water. Thisincrease in quantity appears to have been sufficient to generatedeclines in under-age-five mortality similar in size to thoseassociated with the health interventions.     

Preference profiles sustaining Arrow's theorem

Summary. Arrow's theorem is proved on a domain consisting of two types of preference profiles. Those in the first type are “almost unanimous": for every profile some alternative x is such that the preferences of any two individuals merely differ in the ranking of x, which is in one of the first three positions. Profiles of the second type are “appropriately heterogeneous”, with preferences similar to those generating the “paradox of voting”. Received: March 9, 2000; revised version: June 7, 2001     

Rethinking the development agenda

This paper calls for a development agenda based on five majorpremises: (1) a more balanced form of globalisation based ona genuine respect for diversity; (2) a broad view of macroeconomicstability, which provides an adequate role for counter-cyclicalpolicies; (3) the need to complement macroeconomic stabilitywith active productive development policies; (4) strong socialpolicies and the mainstreaming of social objectives into economicpolicies to guarantee adequate linkages between economic andsocial development; and (5) the recognition that developmentinvolves broader human development goals.