Conditional risk-neutral density from option prices by local polynomial kernel smoothing with no-arbitrage constraints

Review of Derivatives Research - A new approach is considered to estimate risk-neutral densities (RND) within a kernel regression framework, through local cubic polynomial estimation using intraday...     

INFINITE HORIZON INCOMPLETE MARKETS WITH A CONTINUUM OF STATES

In this paper we address existence of equilibria in an incomplete markets economy with countably many periods and a continuum of states at each node of the infinite tree. We consider two models: one where agents have to honor their commitments and another where default is allowed. In both models, marginal utility of income, at each node, is shown to be bounded, and we prove existence by taking finite-dimensional approximations and applying Fatou's lemma sequentially.     

Unequal jobs or unequal pay?

This article draws on new data to consider whether women would benefit most from upgrading the skill levels of their jobs or from achieving equal pay for work of equal value. It looks in detail at skill, gender, and whether work is full-time or part-time, concluding that reassessment of the value of women's jobs would be of greater immediate financial benefit to women than upgrading the skill level of their jobs unless this upgrading gave them access to men's jobs at men's pay and benefit rates.     

Investigating explanatory theories on laypeople’s risk perception of personal economic collapse in a bank crisis – the Cyprus case

We investigate the explanatory power of decision, psychometric, and trust theory to describe laypeople’s risk perception of personal economic collapse in a bank crisis. The aim of this investigation is to improve the understanding of the effects of national initiatives for crisis fighting taken to prevent systemic risk. Using a stratified sample of 738 Cypriote citizens, we conducted an investigation in Cyprus in the spring of 2013 when the country was facing a bank crisis. At that point in time, the Cypriote Government had imposed capital controls to prevent a bank run. We find that decision theory variables alone have low explanatory value on laypeople’s risk perception, and that laypeople’s risk perception in this situation is affected primarily by psychometric variables. Further, confidence in one’s own bank also explains risk perception. Our findings contribute novel knowledge about risk perceptions in a financial crisis, with practical crisis management implications for regulators.     

Transaction costs and foreign direct investment in developing countries

Foreign Direct Investment (FDI) has been used by a number of developing countries to build a national competitive advantage in a global economy. Most of the literature on FDI in developing countries has focused on low-cost factors in these countries. But in a global economy where low cost factors are available at various locations around the globe, transaction costs related to the assumptions of "bounded rationality" and "opportunism" are becoming increasingly important in FDI decisions. These assumptions have been applied by researchers over the years to explain major changes in the organizational structure of corporations. This paper incorporates the assumptions of bounded rationality and opportunism to discuss factors that a firm considers in its decision to undertake FDI. A statistical analysis was carried out to test the validity of the arguments presented in the paper.     

Mission or money? Competitive challenges facing public sector nonprofit organisations in an institutionalised environment

• This paper exposes the impact of competitive grant funding on public sector nonprofit volunteer organisations, using institutional theory to explain developments within this sector. A conceptual model is developed from which five propositions are derived. Bushcare units, in experiencing institutional pressures, respond in ways that affect their culture, structure and routines, resulting in the possibility that their mission will be compromised. In the process of targeting competitive grants, preparing grant applications, managing increased reporting requirements and recruiting volunteers, Bushcare units should apply a mission ‘filter’ to ensure their mission is not compromised in the pursuit of money. Bushcare New South Wales (NSW), an Australian environmental organisation, provides an empirical illustration of the proposed conceptual model.

Copyright © 2007 John Wiley & Sons, Ltd.     

Solidarity in Climate/Immigrant Justice Direct Action: Lessons from Movements in the US South

In October of 2012, youth organizers from the immigrant justice and climate change resistance movements in the southeastern US metropolitan region of Atlanta, Georgia, coordinated a direct action tactic framed by a unified narrative justifying collaboration between immigrant and climate justice activists on equal terms. In a continuing collaborative relationship, these organizers embraced mutually strategic narratives rooted in local civil rights history, but rejected common ‘global climate justice’ narratives used to frame social and environmental collaborative organizing. We examine the departure from ‘global climate justice’ narratives, which was exemplified by coalition building in Georgia, to argue that scholarship articulating ‘global climate justice’ as a new context for integrating social and environmental movements must anticipate barriers to these solidarities, especially historical, regional and racialized dynamics of power among organizations engaged in these developing alliances. Based on an investigation of strategic alliances between anti‐racist, immigrant justice organizers and climate change activists in the metropolitan areas of Atlanta and Athens, Georgia, we argue that climate justice narratives in both activism and scholarship would benefit from more attention to the particular political and cultural geographies in which diverse forms of climate justice organizing can take hold.