Multi-tranche securitisation structures: more than just a zero-sum game?

This paper explains multi-tranche structuring and the yield that securitisation bonds offer by incorporating several factors into a comprehensive model. Results indicate that the degree of complexity of multi-tranche securitisation structures is related to market completeness and solving information asymmetry problems. We also find that the complexity of multi-tranche structure enables the yield offered by triple-A bonds to be reduced but not the average yield, concluding that tranching is a zero-sum game. This research uses a database comprising of all the MBS and ABS issues (1993–2011) in Spain, one of the world’s main securitisation markets. Analysing this long period has allowed us, for the first time, to contrast the Great Financial Crisis (GFC) disruptive effect on the analysed relationships in the securitisation market.     

Ecological risk assessment of pesticides in the EU: what factors and groups influence policy changes?

For the last couple of years, European environmental risk assessment (ERA) regulations have undergone significant changes. The new 1107/2009 directive which came into effect in 2011 has triggered an on-going debate on defining specific protection goals for ERA. During this period, we conducted a study on policy change among the most influential ERA stakeholders from Europe. We interviewed 43, purposively sampled, participants from the European safety authorities, plant protection product industry and academia. Transcribed interviews underwent thematic analysis conducted separately by two coders. As we followed the advocacy coalition framework, our findings focus on stakeholders’ processes, interrelations and values behind the ERA policy change. The main challenges emerging from our analysis turned out to be the slow uptake of scientific developments into ERA and very broadly defined protection goals. The use of safety factors and cut-off criteria left risk assessors with many uncertainties. With ERA in its current form it turned out to be impossible to determine whether the current scheme is over- or under-protective. Still, the study shows that the problem of over- or under-protectiveness lies deep in the perception of stakeholders and depends greatly on their priorities. Academics strive for better ecological relevance as a priority. They have concerns that ERA is oversimplified. Regulators worry that ERA relies too much on risk mitigation and is possibly not protective enough, but at the same time, the majority believes that the assessment is well established and straightforward to follow. Industry representatives would like to see ERA based more on probabilistic risk assessment. Recent changes, according to risk assessment and management practitioners have led to an inevitable increase in complexity, which is not perceived as a positive thing, and does not necessarily translate into better risk assessment.     

An assessment of another decade of capital controls in Colombia: 1998–2008

We explore the effectiveness of capital controls in Colombia. We analyze the impact of administrative restrictions to capital flows on aggregate capital flows, the composition of capital flows, the real exchange rate, and economic activity using restricted versions of vector error correction models (VEC) that control for exogenous global financial conditions. The models are estimated using monthly data ranging from August of 1998 to May of 2008. In addition we estimate GARCH models to identify if capital controls have had relevant impacts on the volatility of the nominal exchange rate and of other relevant asset prices. These models are estimated using weekly data covering the same time period. Results suggest that the capital controls used since 1998 have been ineffective in reducing capital flows and the trend of the Colombian peso to appreciate. In addition there is no evidence suggesting a change in the composition of capital flows induced by capital controls. We find some evidence in favor of capital controls reducing nominal exchange rate volatility at high frequencies.     

On maximum likelihood prediction based on Type II doubly censored exponential data

In this paper, the maximum likelihood predictor (MLP) of the kth ordered observation, t _k, in a sample of size n from a two-parameter exponential distribution as well as the predictive maximum likelihood estimators (PMLE's) of the location and scale parameters, θ and β, based on the observed values t _r, …, t _s (1≤r≤s<k≤n), are obtained in closed forms, contrary to the belief they cannot be so expressed. When θ is known, however, the PMLE of β and MLP of t _k do not admit explicit expressions. It is shown here that they exist and are unique; sharp lower and upper bounds are also provided. The derived predictors and estimators are reasonable and also have good asymptotic properties. As applications, the total duration time in a life test and the failure time of a k-out-of-n system may be predicted. Finally, an illustrative example is included. Received: August 1999     

Is there income mobility in the Philippines?

Despite a more robust economic performance over the past decade compared with the 1980s and 1990s, growth in average household income is still far below what might be expected given the pace of economic expansion in the Philippines. Inequality of household income has also remained high, which leads to the question: is there income mobility in the Philippines? Using longitudinal data from three years of the redesigned Philippine Family Income and Expenditure Survey (2003, 2006, and 2009) and a variety of analytical tools, we examine the mobility of Filipino household income and show that it is less stagnant than is conventionally perceived. Empirical evidence suggests that significant positive and negative mobility exists; albeit, the two tend to offset each other, contributing to slow household income growth at the aggregate level. In addition, there is some evidence that transitory fluctuations contribute significantly to the observed level of income mobility. Overall, the findings are robust across different analytical tools used in measuring income mobility.     

Service-Dominant Logic in tourism: the way to loyalty

Many tourist destinations have focused heavily on attracting a growing number of new visitors each year. However, recent changes in the tourism market have led to the need for new strategies oriented towards retaining already existing visitors. Service-Dominant Logic (S-D Logic) is a new orientation that allows greater competitive advantage by recognising the active role of tourists in the creation of their own experiences. The main purpose of this paper is therefore to develop a theoretical model based on S-D Logic in order to increase levels of tourist loyalty. An in-depth analysis of foundational premises has allowed us to identify the key aspects of this process. The proposed model was empirically tested, using a structural equation model with partial least-squares technique, on a sample of 763 tourists visiting Spanish tourism destinations. Research findings have evidenced that tourist loyalty is achieved through the development of relationship quality in the co-creation of tourist experiences. These results will help destination managers to achieve a greater competitive advantage through the development of customer-centric strategies. The relevance of this article also lies in its being one of the first attempts to develop practical measures for S-D Logic by applying them to tourism.     

Model of associativity in the production chain in Agroindustrial SMEs

This research aims to propose a model of associativity in the productive chain of the micro, small and medium-sized enterprises (MIPYMES) of citrus agroindustrial in the north of the state of Veracruz, Mexico; With the purpose of explaining the extent to which direct actors, support services, environment, relations and government policies determine the associativity in the production chain. The problem that originates this investigation is the lack of knowledge about the operation of the agro-industrial citrus MIPYMES in this area of the country. The result of this research is a model that represents the operation of these companies in associativity with the productive chain considering the elements that form it, proposing alternatives to generate a greater cooperation or coalition of the companies that interact to obtain mutual benefits.     

Modelo de asociatividad en la cadena productiva en las Mipymes agroindustriales

This research aims to propose an associativity model in the production chain of citrus agro industrial micro, small and medium enterprises in the northern part of the state of Veracruz, Mexico. The goal is to explain to what degree direct actors, support services, environment, government relations and policies determine associativity in the production chain. The problem frame which gives rise to this study is the lack of knowledge about citrus agro industrial micro and SME's in this region of the country. The outcome of the research is a model which represents functioning of these businesses in associativity with the production chain considering elements which make it up, and the proposal of alternatives to generate a greater cooperation or coalition of interacting industries in order to obtain mutual benefits.     

Service quality in blood donation: satisfaction,trust and loyalty

Service Business - This study proposes and validates a service quality scale for the blood donation process. It also analyses the impact that service quality has on donor satisfaction with the...