The Concept of Trust and the Political Economy of John Maynard Keynes,Illustrated Using Central Bank Forward Guidance and the Democratic Dilemma in Europe

Trust is an issue to which Keynesians and post-Keynesians have paid relatively little attention. However, properly understood it is an aspect of almost all activity, including key elements of socio-economic reality. Without trust, market exchange is at the very least problematic, if not impossible. Moreover, trust is intrinsic to a variety of issues with which Keynes, and subsequent Keynesianism have been concerned. In this paper we provide a general social theory conceptualisation of trust and then set out some of the areas where this concept resonates with the work of Keynes in terms of the role of conventions. Conventions quintessentially involve trust and that trust can be unstable, can be withdrawn and can require rebuilding. We illustrate this with reference to central bank policy and the Bank of England's introduction of Forward Guidance. Exploring the problem of trust in the context of banking also highlights a challenge for the continued relevance of Keynes' work. We now live in a neoliberal world and this provides a quite different context for state intervention than was previously the case. Keynes' work is now an argument for the alternative, and as such it requires more than a technical economic argument, it must also address the problem of trust in state policy-makers. We briefly illustrate the challenge this poses with reference to Europe.     

Manipulation in U.S. REIT Investment Performance Evaluation: Empirical Evidence

We investigate whether Real Estate Investment Trust (REIT) managers actively manipulate performance measures in spite of the strict regulation under the REIT regime. We provide empirical evidence that is consistent with this hypothesis. Specifically, manipulation strategies may rely on the opportunistic use of leverage. However, manipulation does not appear to be uniform across REIT sectors and seems to become more common as the level of competition in the underlying property sector increases. We employ a set of commonly used traditional performance measures and a recently developed manipulation-proof measure (MPPM, Goetzmann et al., Rev Finan Stud 20(5):1503–1546, 2007) to evaluate the performance of 147 REITs from seven different property sectors over the period 1991–2009. Our findings suggest that the existing REIT regulation may fail to mitigate a substantial agency conflict and that investors can benefit from evaluating return information carefully in order to avoid potentially manipulative funds.     

Categorical and continuous non-discretionary variables in data envelopment analysis: a comparison of two single-stage models

Non-discretionary or environmental variables are regarded as important in the evaluation of efficiency in Data Envelopment Analysis (DEA), but there is no consensus on the correct treatment of these variables. This paper compares the performance of the standard BCC model as a base case with two single-stage models: the Banker and Morey (1986a) model, which incorporates continuous environmental variables and the Banker and Morey (1986b) model, which incorporates categorical environmental variables. Simulation analyses are conducted using a shifted Cobb-Douglas function, with one output, one non-discretionary input, and two discretionary inputs. The production function is constructed to separate environmental impact from managerial inefficiency, while providing measures of both for comparative purposes. Tests are performed to evaluate the accuracy of each model. The distribution of the inputs, the sample size and the number of categories for the categorical model are varied in the simulations to determine their impact on the performance of each model. The results show that the Banker and Morey models should be used in preference to the standard BCC model when the environmental impact is moderate to high. Both the continuous and categorical models perform equally well but the latter may be better suited to some applications with larger sample sizes. Even when the environmental impact is slight, the use of a simple two-way split of the sample data can produce significantly better results under the Categorical model in comparison to the BCC model.     

Economic Rationality Meets Celebrity Urbanology: Exploring Edward Glaeser's City

This article presents a critique of the popular and public‐policy work of Harvard economist Edward Glaeser, which has been constructed at the nexus of neoclassical economic rationality and celebrity urbanology. Widely recognized as one of the world's leading urbanists, Glaeser has combined a high‐flying academic career with public‐policy engagement and extensive work as a newspaper columnist and media commentator, enabled by a longstanding affiliation with the Manhattan Institute, a leading conservative think tank. The critique is pointed, but seeks to exceed argumentum ad hominem by calling attention to sociopolitical and institutional factors that have facilitated the accelerated diffusion and enlarged dominion of this model (and mode) of microeconomically rationalized urbanism, including the production of new forms of intellectual marketing, the construction of colonizing variants of urban‐economic expertise, and the ongoing rearticulation and creeping consolidation of market‐centric policy norms. The article argues that a distinctive form of urban‐economic orthodoxy is under construction, based on a potent fusion of scientific reasoning and pop presentation, combining ideologically disciplined applications of neoclassical economics with dissemination in the register of the ‘freakonomics' franchise. Edward Glaeser's intellectual accomplishments have been significant, but the ‘Glaeser effect' is more than a story of individual scholarly endeavor, calling for more than a merely ‘internal' critique. Its conformity to Manhattan Institute principles testifies to a telling consistency of ideological purpose, contributing as it does to a sustained effort to rationalize and normalize lean and limited modes of neoliberal urban governance, fortified by microeconomic reason.     

Neoliberal Urbanism Redux?

Neoliberalization processes have been reshaping the landscapes of urban development for more than three decades, but their forms and consequences continue to evolve through an eclectic blend of failure and crisis, regulatory experimentation, and policy transfer across places, territories and scales. The proliferation of familiar neoliberal discourses and policy formulations in the aftermath of the 2007‐09 world financial crisis masks evidence of more deeply rooted transformations of policies, institutions and spaces that continue to combatively remake terrains of urban development. Accordingly, the critical intellectual project of deciphering the problematic of neoliberal urbanism must continue to evolve. This essay outlines some of the methodological and political challenges associated with (re)constructing a ′moving map′ of post‐crisis neoliberalization processes. We affirm a form of critical urban theory that adopts a restlessly antagonistic stance towards orthodox urban formations and their dominant ideologies, institutional arrangements and societal effects, tracking their endemic policy failures and crisis tendencies while at the same time demarcating potential terrains for heterodox, radical and/or insurgent theories and practices of emancipatory social change.     

Captivate Network and Elevator Telematics

Captivate Network, a US internet start-up, is the leading provider of elevator telematics: flat-screen panels displaying news and other content plus advertisements to people travelling in elevators. Telematics also has safety and operational applications. Growing fast in North America, the technology is now poised to expand to other technologically-advanced countries. It is a successful niche application of wireless internet technology and a new advertising medium in an industry which has changed little and is dominated by long-established big companies.     

Comparing the Impact of News: A Tale of Three Health Care Sectors

Abstract:   This paper examines the impact of news on the volatility of equity returns in three sectors of the health care industry – health care service providers, producers of drugs and supplies, and third‐party payors. The news impact is found to be asymmetric in that bad news (i.e., a negative shock) has a significantly greater effect on volatility than good news. Intra‐industry differences in health care equity market performance are documented and are consistent with the fundamental attributes of these sectors including the degree of price and cost pressures facing firms, the physical capital requirements of firms, the search behavior of health care customers, and the presence of alternative market opportunities.     

Internet Grows Grassroots Stars in China

<正>Singing sensation,Ren Yueli,became famous after a video of her singing was posted on the Internet.This 22 year old girl came to Beijing alone 4 years ago fro...     

Travel behavior within Canada’s older population: a cohort analysis

The unprecedented demographic change of the aging Canadian society has raised numerous questions, including the provision of health care and the national pension plan to an increasingly large older population. Surprisingly, however, there is little Canadian literature regarding the travel behavior of its older population, an oversight that this paper addresses. Using the 1986, 1992, and 1998 General Social Surveys and pseudo-cohort methods, this paper addresses changing driving behavior among older Canadians, and compares the ‘old’ and ‘transitional old’ to younger-aged cohorts. Results indicate that while older Canadians undertake fewer trips, and travel for different reasons than those in the labor force, their reliance upon the private automobile for transportation is no less significant. Specifically, we demonstrate that the number of trips by car with older drivers increase over the study period as the population ages.     

Portfolio construction incorporating asymmetric dependence structures: a user's guide

We outline a method of portfolio selection incorporating asymmetric dependency structures using copula functions. Assuming normally distributed marginal returns, we illustrate how asymmetric return correlations affect the efficient frontier and subsequent portfolio performance under a dynamic rebalancing framework. Implementing this methodology within the context of tactically allocating a small set of market indices, we demonstrate several key findings. First, we establish the manner by which the efficient frontier constructed under asymmetric dependence differs from a mean‐variance frontier. By establishing a paper portfolio based on these differences, we find that asymmetric correlation structures do have real economic value. The primary source of this economic value is the ability to better protect portfolio value and reduce the size of any erosion in return relative to the normal portfolio when asymmetric return correlations are accounted for.