The Co‐initial Swap Market Model

In this paper, we introduce a novel approach to the pricing and the risk management of generic European style interest‐rate derivatives. This new model has great flexibility and has the advantage of avoiding complex model calibration techniques typical of standard short‐rate models. Dynamics is assigned on a set of co‐initial forward swap rates, and arbitrage‐free restrictions are determined in a normal and lognormal setup. Model implementation and calibration are discussed, and details of two example applications are also presented.
(J.E.L.: G12, G13).     

Hiring an innovative workforce: A necessary yet uniquely challenging endeavor

To increase innovative performance in work settings, most scholars agree that organizations need both an environment that is supportive of creativity as well as employees with high levels of creative potential. Substantial research effort has been aimed at understanding work contexts that facilitate creative thinking, yet less is known regarding how to most effectively recruit and hire creative talent. To fill this knowledge gap and guide future research efforts, we discuss the KSAOs most predictive of creative potential as well as the means and methods for assessing this potential. In addition, we explore the challenges to quantifying successful innovation, proposing that creative achievement represents a unique and specialized form of organizational performance. Supplementing this discussion we provide recommendations for obtaining high-quality, substantive criterion data. We conclude with a brief discussion on recruitment and long-term selection strategies for innovation.     

Modeling structural change using early Soviet data

This paper describes a multi-sector, multi-period, economy-wide model constructed by applying linear programming techniques to an input-output system. The model is designed to provide a flexible, cost-effective tool for testing the impact of alternative development policies on consumption levels, capital stocks, output growth rates, and rate of technological change. Early Soviet data are used to show how the model can generate a problem-free expansion path as a reference. The model and reference solution are then used to decompose historical experience, measuring the intersectoral and intertemporal impact of major historical events on the economy's performance.     

Cross arbitrage and specification in exchange rate models

Triangular arbitrage between currencies imposes strong restrictions on the specification of exchange rate equations, which do not seem to have been noted in the literature. The form of these restrictions and the ways in which they can be allowed for are examined.