An application of padé approximation to volatility modeling

This paper studies the dynamic relationship between future volatility and implied and historical volatility using data from Alegría and Rodríguez [1997]. The methodological approach forms part of the theoretical research being carried out in numerical analysis and especially from the rational Padé approximation. This tool helps to characterize simple computational methods in order to study questions about dynamic modelization of doubly infinite series. Considering noncausal series, where the expectations provided by economic theory or empirical evidence are included in available sample data, leads to dynamic specifications suitable not only from the perspective of fitting available data, but also from their predictive performance when compared to traditionally used formulae based merely on data analysis.     

Explaining the US–EU productivity growth gap: Structural change vs. intra-sectoral effect

This paper proposes a decomposition of labour productivity growth in the EU15 and the the US since the mid 1990s. The results suggest that the EU's relative slowdown is due to modest “pure” gains of productivity within sectors.     

Sources of crime in the state of Veracruz: The role of female labor force participation and wage inequality

Abstract

In recent years, crime has become a serious concern in Mexico as its increase has detrimentally affected government institutions and economic growth. There is considerable speculation among policy analysts about the causes of the increase in crime. Whereas some analysts attribute the increase to a rise in income inequality, others believe internal migration and a loss of morals are the roots of criminal behavior. This research shows that at least for the Mexican state of Veracruz, wage inequality and labor force participation have an important impact on crime. When gender is considered, however, the impact is more complicated than it seems. An increase in women's labor force participation decreases the overall number of alleged violent offenders. However, the number of alleged rapists and grievous bodily harm offenders increases as women's wage distribution improves. The results shed light on the gender dimensions of the economics of crime.     

A within-trial cost-effectiveness analysis of panitumumab compared with bevacizumab in the first-line treatment of patients with wild-type RAS metastatic colorectal cancer in the US

Abstract

Aims: This analysis investigated the cost-effectiveness of panitumumab plus mFOLFOX6 (oxaliplatin, 5-fluorouracil, and leucovorin) compared with bevacizumab plus mFOLFOX6 in the first-line treatment of patients with wild-type RAS metastatic colorectal cancer (mCRC).

Materials and methods: The cost-effectiveness analysis was developed from a third-party payer perspective in the US and was implemented using a partitioned survival model with health states for first-line treatment (progression-free), disease progression with and without subsequent active treatment, and death. Survival analyses of patients with wild-type RAS mCRC from the PEAK head-to-head clinical trial of panitumumab vs bevacizumab were performed to estimate time in the model health states. Additional data from PEAK informed the amount of each drug consumed, duration of therapy, subsequent therapy use, and toxicities related to mCRC treatment. Literature and US public data sources were used to estimate unit costs associated with treatment and duration of subsequent active therapies. Utility weights were calculated from patient-level data from panitumumab trials in the first-, second-, and third-line settings. A life-time perspective was taken with future costs and outcomes discounted at 3% per annum. Scenario, one-way, and probabilistic sensitivity analyses were performed.

Results: Compared with bevacizumab, the use of panitumumab resulted in an incremental cost of US $60,286, and an incremental quality-adjusted life-year (QALY) of 0.445, translating into a cost per QALY gained of US $135,391 in favor of panitumumab. Results were sensitive to wastage and dose rounding assumptions modeled.

Limitations: Progression-free and overall survival were extrapolated beyond the follow-up of the primary analysis using fitted parametric curves. Costs and quality of life were estimated from multiple and different data sources.

Conclusions: The efficacy of panitumumab in extending progression-free and overall survival and improving quality of life makes it a cost-effective option for first-line treatment of patients with wild-type RAS mCRC compared with bevacizumab.     

Hours worked in selected OECD countries: an empirical assessment

In this paper, we empirically assess the evolution of the aggregate hours worked, with a particular emphasis on their age structure, in a sample of OECD countries, along the period 1970–2007. We show that the age composition of the workforce has a large and statistically significant effect on hours worked volatility. To exploit the multilevel structure of our data, we use a Mixed Linear Model to investigate the consequences of (i) demographic change, (ii) sector-specific, and (iii) country-specific factors on hours worked by ‘young’ (aged 15–29) and ‘prime-aged’ (29+) individuals. We show that changes in workforce demographics, captured by the ratio between population older than 29 and population younger than 29, are strongly and significantly correlated with the amount of hours worked by ‘young’ individuals. We also document the impact of sectoral capital intensity and profitability on the dynamics of (aggregate) hours worked. Finally, we show that productive public expenditure, here proxied by the public investment in ICT, is beneficial for the hours worked both by young and prime-aged individuals.     

Should HR managers allow employees to use social media at work? Behavioral and motivational outcomes of employee blogging

Abstract

There is a dilemma for HR executives concerning social media policies: Should HR managers allow employees to use social media while at work? The question has no easy answer because there are conflicting views on the matter. However, the conflicting views can be resolved if we focus on the individuals with whom an employee interacts through social media. Building on data on the blogging activity of 269 employees working for a Canadian health-care provider, the paper reveals a new problem: The extent to which employees engage in personal blogging with outsiders – individuals who do not work for the organization – is negatively related to intrinsic work motivation and to proactive behavior. After having introduced the problem, the paper shows a solution. If employees engage in blogging with coworkers, the negative effects turn positive: Blogging with coworkers positively affects intrinsic work motivation and proactive behavior. Finally, the paper offers a recommendation for HR managers to leverage the solution. Through social job design and increasing formal interaction requirements, HR executives can reinforce the association between social media use and blogging with coworkers. Overall, the paper helps HR executives to clarify the outcomes of social media, find a problem, suggest a solution, and recommend how to achieve it.     

Domesticating the Euro

Intereconomics - „We find the litmus test is whether governments gain access to a safe source of funding in a ‘domestic’ currency. Of the list of solutions considered, both Purple...     

Destination Online Communication: Why Less is Sometimes More. A Study of Online Communications of English Destinations

This research investigates the relationship between Web site design and the Web site end-user experience of a vast number of English tourism destinations, both local and regional ones. Following recent research in the field, this paper evaluates destinations’ online communication based on the implemented Web site features and on the effectiveness of the communication itself, borrowing its research methodology from different domains. After content and functionality analysis, a user-experience, scenario-based investigation has been carried out, which demonstrated that complex Web sites do not always serve end-users’ needs properly; in other words, Web site complexity is not directly related with good user experience. This research may help destination managers to foster their online communication if they have fewer content and functionalities but are better focused and clearly user-oriented.     

Lévy CARMA models for shocks in mortality

Decisions in Economics and Finance - Recent literature on mortality modeling suggests to include in the dynamics of mortality rates the effects of time, age, the interaction of these two and a term...