Spillover across Eurozone credit market sectors and determinants

We examine spillover and its determinants among Eurozone sector level credit markets using time and frequency domain spillover approaches. Based on network theory and connectedness analysis, we identify the sectors that are major transmitters and receivers of spillover during normal and crisis periods. The rolling window analysis shows that short-run spillover among credit market sectors intensifies during global and Eurozone crisis periods. Further, using Bayesian model averaging, we find that overall financial conditions and stock market volatility are the main drivers of total and sector-level spillover. Our findings have important implications for policymakers and investors interested in Euro-area credit risk at the sector level.     

Sovereign bond market dependencies and crisis transmission around the eurozone debt crisis: a dynamic copula approach

We examine the dependency between the European government bond markets around the recent sovereign debt crisis. A dynamic copula approach is used to model the time-varying dependence structure of those government bond markets, evaluate the nature and strength of their dependencies over time, and gauge the transmission of the crisis shocks. Our results can be summarized as follows: i) the eurozone sovereign bond markets under consideration have a significant and positive dependence with the Greek and the EMU benchmark sovereign bond markets; ii) the dynamic-BB7 copula function best describes the dependence structure between these sovereign bond markets and provides evidence of asymmetric tail dependence; iii) the conditional probability of crisis transmission from Greece to other eurozone countries is higher than the other way around; and iv) Greece is the most vulnerable country when the eurozone entered into the sovereign debt crisis.     

On the construction of <Emphasis Type="Italic">E</Emphasis>(<Emphasis Type="Italic">s</Emphasis><Superscript>2</Superscript>)-optimal supersaturated designs

Supersaturated designs are an important class of factorial designs in which the number of factors is larger than the number of runs. These designs supply an economical method to perform and analyze industrial experiments. In this paper, we consider generalized Legendre pairs and their corresponding matrices to construct E(s ²)-optimal two-level supersaturated designs suitable for screening experiments. Also, we provide some general theorems which supply several infinite families of E(s ²)-optimal two-level supersaturated designs of various sizes.      

Initial Environmental Conditions and Technological Change

This paper provides a theoretical link between the initial environmental conditions surrounding a firm's birth and first few years of operations and its process of technological change. The main argument is that initial environmental conditions influence the technological trajectories of business firms. Four mechanisms through which this influence is carried out are technological paradigm, dominant logic, organizational structure, and configuration. These mechanisms act as carriers of initial influences and constrain the future technological developments, restricting thus the possible technological trajectories a firm can follow. This paper discusses the above mechanisms and a number of propositions concerning the kind of influence different initial environmental conditions have on technological change. The paper concludes with implications for further research.     

Economic value and cost-effectiveness of biventricular versus right ventricular pacing: results from the BLOCK-HF study

Abstract

Aims: The Biventricular vs Right Ventricular Pacing in Heart Failure Patients with Atrioventricular Block (BLOCK-HF) demonstrated that biventricular (BiV) pacing resulted in better clinical and structural outcomes compared to right ventricular (RV) pacing in patients with atrioventricular (AV) block and reduced left ventricular ejection fraction (LVEF; ≤50%). This study investigated the cost-effectiveness of BiV vs RV pacing in the patient population enrolled in the BLOCK-HF trial.

Methods: All-cause mortality, New York Heart Association (NYHA) Class distribution over time, and NYHA-specific heart failure (HF)-related healthcare utilization rates were predicted using statistical models based on BLOCK-HF patient data. A proportion-in-state model calculated cost-effectiveness from the Medicare payer perspective.

Results: The predicted patient survival was 6.78?years with RV and 7.52?years with BiV pacing, a 10.9% increase over lifetime. BiV pacing resulted in 0.41 more quality-adjusted life years (QALYs) compared to RV pacing, at an additional cost of $12,537. The “base-case” incremental cost-effectiveness ratio (ICER) was $30,860/QALY gained. Within the clinical sub-groups, the highest observed ICER was $43,687 (NYHA Class I). Patients receiving combined BiV pacing and defibrillation (BiV-D) devices were projected to benefit more (0.84?years gained) than BiV pacemaker (BiV-P) recipients (0.49?years gained), compared to dual-chamber pacemakers.

Conclusions: BiV pacing in AV block patients improves survival and attenuates HF progression compared to RV pacing. ICERs were consistently below the US acceptability threshold ($50,000/QALY). From a US Medicare perspective, the additional up-front cost associated with offering BiV pacing to the BLOCK-HF patient population appears justified.     

Discrimination and job search theories for black British young men

The paper examines empirically the relationship between government revenues and expenditures in four European countries: Greece, Spain, Ireland, and Portugal. In relative terms all four may be considered as the poorest members of the European Union. Yet, they present a fairly diverse picture as far as their macroeconomic performance and fiscal position is concerned. The empirical findings from cointegration and causality tests that are reported here indicate that in the case of Greece and Ireland tax and spending decisions are taken simultaneously by the fiscal authority, the tax-and-spend hypothesis is supported in the case of Spain, while absence of any causal ordering between government expenditure and tax revenues has been established for Portugal.     

The Social and Environmental Responsibilities of Multinationals: Evidence from the Brent Spar Case

This paper argues that multinational corporations face levels of environmental and social responsibility higher than their national counterparts. Drawing on the literatures of stakeholder salience, corporate reputation management, and evidence from the confrontation between Shell and Greenpeace over the Brent Spar, in 1995, two mechanisms – international reputation side effects, and foreign stakeholder salience – are identified and their contribution in creating an environment more restrictive, in terms of environmental and social responsibility, is elaborated on. The paper concludes with discussing the links of the work presented here with a number of ongoing debates within the filed of international business ethics, and the managerial implications of the two mechanisms identified.     

Symmetric or Asymmetric Interest Rate Adjustments? Evidence from Southeastern Europe

The purpose of this paper is to examine how effectively the wholesale interest rates are transmitted to the retail rates and whether the interest rate passthrough is symmetric or asymmetric in Greece, Bulgaria, and Slovenia. The disaggregated general‐to‐specific methodology is applied for testing the symmetry hypothesis in these economies. It is evident from our results that variations exist across the countries examined regarding the monetary transmission process and the symmetry hypothesis alike. This can be interpreted as an indication of a different level of competition, development, and liberalization among the banking systems in these Southeastern European economies.     

Particle swarm optimization for optimal product line design

Designing optimal products is one of the most critical activities for a firm to stay competitive. Except for genetic algorithms, previous approaches that solve the optimal product line design problem provide the decision maker with a single best solution. Furthermore, they assume a static market, in which the incumbent firms will not respond to the entrance of a new player. In this paper we apply a new population-based algorithm called particle swarm optimization to the problem and employ a Monte Carlo simulation to compare its performance to that of genetic algorithms. The results indicate that the proposed particle swarm optimization algorithm constitutes an attractive alternative for solving the optimal product line design problem because its performance is comparable to that of genetic algorithms concerning the best solution found while it outperforms genetic algorithms regarding the diversity of the final set of provided solutions. Furthermore, we use concepts from game theory to illustrate how the algorithm can be extended to incorporate retaliatory actions from competitors. The dynamic approach is illustrated through a real-world case in which a firm intends to enter the Greek retail milk market. While employing highly simplifying assumptions, the incorporation of the Nash equilibrium concept provides useful insights, such as the attribute levels that may be resistant to competitive reactions and the incumbent firms that will benefit most in the long term.