Price dispersion in OTC markets: A new measure of liquidity

In this paper, we model price dispersion effects in over-the-counter (OTC) markets to show that, in the presence of inventory risk for dealers and search costs for investors, traded prices may deviate from the expected market valuation of an asset. We interpret this deviation as a liquidity effect and develop a new liquidity measure quantifying the price dispersion in the context of the US corporate bond market. This market offers a unique opportunity to study liquidity effects since, from October 2004 onwards, all OTC transactions in this market have to be reported to a common database known as the Trade Reporting and Compliance Engine (TRACE). Furthermore, market-wide average price quotes are available from Markit Group Limited, a financial information provider. Thus, it is possible, for the first time, to directly observe deviations between transaction prices and the expected market valuation of securities. We quantify and analyze our new liquidity measure for this market and find significant price dispersion effects that cannot be simply captured by bid-ask spreads. We show that our new measure is indeed related to liquidity by regressing it on commonly-used liquidity proxies and find a strong relation between our proposed liquidity measure and bond characteristics, as well as trading activity variables. Furthermore, we evaluate the reliability of end-of-day marks that traders use to value their positions. Our evidence suggests that the price deviations from expected market valuations are significantly larger and more volatile than previously assumed. Overall, the results presented here improve our understanding of the drivers of liquidity and are important for many applications in OTC markets, in general.     

The order flow of discount certificates and issuer pricing behavior

We analyze the order flow of discount certificates, its dependence on product age, and the implications for issuer pricing behavior. Based on a unique data set of exchange trades and issuer quotes, we find that for tax reasons investors prefer to buy products that mature in just over 1 year from the date of purchase. Furthermore, they tend to sell products back preferably close to maturity. These patterns in the trade direction allow us to separate the issuer pricing behavior from (i) the life cycle and (ii) the order flow. We find evidence that 7 out of 11 issuers anticipate the order flow and price in an additional margin in phases of positive expected net sales.     

Comparative analysis of global consumer behaviour in the context of different manual dishwashing methods

This laboratory study presents an overview of the global manual dishwashing behaviour. The focus of the investigation was to analyse individual attitudes towards manual dishwashing and to determine the amount of water and energy used, as well as the cleaning performance achieved. Additionally, manual dishwashing was compared with automatic dishwashers. Two hundred eighty-nine participants from 29 countries took part in this investigation. Each consumer had to wash up a complete soiled dishwasher load consisting of 12 place settings based on both international and local performance test standards for automatic dishwashers. Country-specific aspects such as tableware, food residues or washing up equipment were considered. In order to analyse individual consumer's behaviour, each participant was recorded on video and had to fill out a questionnaire. The resource consumption for washing up dishes was measured during the tests. At the end of each trial, the cleaning result of the washed up tableware was assessed. To compare manual with automatic dishwashing, country-specific dishwasher models were tested in parallel with three different programmes with the same soiled dish samples. The study provides comprehensive data about the average resource consumption for manual dishwashing for a specific load for each country. The average water consumption per country reached 34.7 l up to 160.1 l, and individual values ranged from 18.3 l to 472.8 l. The lowest used average heat quantity accounted for 0.9 kWh per country, while the highest amount was five times higher. The cleaning results did not differ much between the countries: the average test results were between 2.2 and 2.8 on a scale between 0 and 5. The automatic dishwasher tests showed differences between both the machines and the programmes. All machines achieved lower water consumption values than the average consumers with about 9.6 l to 26.7 l of water on average. The energy consumption ranged from 0.5 kWh on average up to 2.0 kWh. The cleaning results of the dishwasher tests varied highly ranging from 1.1 in a quick programme to 4.4 in an intensive programme. The study comes to the conclusion that automatic dishwashing is more superior as compared with manual dishwashing in terms of performance and resource consumption under the tested conditions. Furthermore, it points out that washing up dishes under running tap water is the most water-consuming manual dishwashing method of all investigated ones. A high lack of knowledge about the benefits of automatic dishwashing compared with manual dishwashing can still be identified among consumers.     

Institutional Co-Governance As a Mode of Co-Operation Between Various Social Service Carriers and Providers

A four-year study in Munich, Bavaria, examined a reorganization process (decentralization and regionalization) of social services. A main target of this programme was to improve the co-operation of various social service providers. On different levels of governance the reasons for co-operation or non-co-operation were considered. Dissimilar social time and space conceptualizations are an important source of exclusion or inclusion of providers in the network of services. Governance modes in the field of services are described. The study emphasizes the importance of an institutional basis for co-operation.     

Donor coordination and specialization: did the Paris Declaration make a difference?

We assess whether bilateral and multilateral donors of foreign aid specialized and coordinated their activities with other donors as agreed in the Paris Declaration of 2005. We account for donor heterogeneity, varying aid priorities and recipient characteristics in order to isolate changes in donor behaviour over time. Recent shifts in aid priorities, such as the rising importance of general budget support, have reduced the fragmentation of aid. Nevertheless, our results reveal that aid fragmentation persisted after the Paris Declaration and coordination among donors has even weakened.     

Consumer laundry practices in Germany

Sustainability is a guiding principle for a responsible, future‐oriented 21st century lifestyle and this already begins in private households with the daily household tasks. Approximately 25% of an average household's electricity consumption is required to do the laundry and dishwashing – 5% alone is for washing clothes with a corresponding energy consumption of 6 billion kilowatt hours. In addition, 600 000 tonnes of detergent and 330 million cubic metres of water are used for textile care in Germany. These figures provide the rationale for the scientific study of current practices of using washing machines and for a resulting estimate of the latent energy‐saving potential in German households. In the context of the in‐home study presented here, 236 private households throughout Germany were studied with respect to their washing practices and existing knowledge about topics on the sustainable, energy‐saving use of their washing machines. Overall, across all households 2867 wash cycles were individually recorded and subsequently analysed over a 4‐week period. The results of this study show that washing machines tend to be underloaded, and therefore maximum loading of the machines could lead to a reduction of wash cycles per household. With respect to detergent dosage, it was determined that the consumer does not adjust the dosage to the textile type, load size, soil level and/or water hardness, and this can lead to under‐ or overdosing depending on prevailing conditions. Finally, the selection of the wash temperature showed a 90°C/95°C programme was only chosen in 2.3% of all recorded wash cycles, however, every fourth cycle was completed at 60°C. Therefore, adjusting the load size and detergent dosage as well as selecting the right wash temperature are key themes to be taken into account in future consumer communication about energy‐saving households.     

Illiquidity or credit deterioration: A study of liquidity in the US corporate bond market during financial crises

We investigate whether liquidity is an important price factor in the US corporate bond market. In particular, we focus on whether liquidity effects are more pronounced in periods of financial crises, especially for bonds with high credit risk, using a unique data set covering more than 20,000 bonds, between October 2004 and December 2008. We employ a wide range of liquidity measures and find that liquidity effects account for approximately 14% of the explained market-wide corporate yield spread changes. We conclude that the economic impact of the liquidity measures is significantly larger in periods of crisis, and for speculative grade bonds.     

Nanotechnology and Ethics: The Role of Regulation Versus Self-Commitment in Shaping Researchers’ Behavior

The governance of nanotechnology seeks to limit its risks, without constraining opportunities. The literature on the effectiveness of approaches to governance has neglected approaches that impact directly on the behavior of a researcher. We analyze the effectiveness of legal regulations versus regulation via self-commitment. Then, we refine this model by analyzing competition and autonomy as key contingency factors. In the first step, qualitative interviews with nanotechnology researchers are conducted to reflect this model. In the second step, its empirical relevance is tested using a survey of 90 nanotech researchers. The results indicate that legal regulations, as well as self-commitment to an informal CoC reduce the scope of behavior. Finally, that competition and autonomy affect the relative strength of these governance factors.     

Indicator systems for the assessment of the external debt situation of developing countries

The foreign indebtedness of the Third World has been increasing rapidly over the past ten years. The volume of private and public borrowings expanded between the end of 1970 and the end of 1979 from $ 64 bn to $ 376 bn¹. This development has quickened the interest in methods for an assessment of the external debt situation of developing countries. Interested parties—commercial banks, international organizations, etc., and the borrowers themselves—are looking for criteria by reference to which they can monitor foreign indebtedness and ascertain in good time whether and when the foreign debt of a country is in danger of reaching “critical” dimensions. What view should be taken of the various criteria?