Schooling Resources, Educational Institutions and Student Performance: the International Evidence

This paper estimates the effects of family background, resources and institutions on mathematics and science performance using an international database of more than 260,000 students from 39 countries which includes extensive background information at the student, teacher, school and system level. The student-level estimations show that international differences in student performance cannot be attributed to resource differences but are considerably related to institutional differences. Among the many institutions which combine to yield major positive effects on student performance are centralized examinations and control mechanisms, school autonomy in personnel and process decisions, individual teacher influence over teaching methods, limits to teacher unions' influence on curriculum scope, scrutiny of students' achievement and competition from private schools.     

Comparison of Option Prices in Semimartingale Models

In this paper we generalize the recent comparison results of El Karoui et al. (Math Finance 8:93–126, 1998), Bellamy and Jeanblanc (Finance Stoch 4:209–222, 2000) and Gushchin and Mordecki (Proc Steklov Inst Math 237:73–113, 2002) to d-dimensional exponential semimartingales. Our main result gives sufficient conditions for the comparison of European options with respect to martingale pricing measures. The comparison is with respect to convex and also with respect to directionally convex functions. Sufficient conditions for these orderings are formulated in terms of the predictable characteristics of the stochastic logarithm of the stock price processes. As examples we discuss the comparison of exponential semimartingales to multivariate diffusion processes, to stochastic volatility models, to Lévy processes, and to diffusions with jumps. We obtain extensions of several recent results on nontrivial price intervals. A crucial property in this approach is the propagation of convexity property. We develop a new approach to establish this property for several further examples of univariate and multivariate processes.     

Families,schools and primary-school learning: evidence for Argentina and Colombia in an international perspective

This article presents evidence on the associations between family background, school characteristics and student performance in primary school in Argentina, Colombia and several comparison countries. As a general pattern, educational performance is strongly related to family background, weakly to some institutional school features and hardly to schools’ resource endowments. In an international perspective, family-background effects are relatively large in Argentina, and relatively small in Colombia. A specific Argentine feature is the lack of performance differences between rural and urban areas. A specific Colombian feature is the lack of significant between-gender performance differences. Nonnative students and students not speaking Spanish at home perform particularly weak in both countries. In Argentina, students perform better in schools with a centralized curriculum and ability-based class formation.     

Worst case portfolio vectors and diversification effects

We consider the problem of identifying the worst case dependence structure of a portfolio X ₁,…,X _n of d-dimensional risks, which yields the largest risk of the joint portfolio. Based on a recent characterization result of law invariant convex risk measures, the worst case portfolio structure is identified as a μ-comonotone risk vector for some worst case scenario measure μ. It turns out that typically there will be a diversification effect even in worst case situations. The only exceptions arise when risks are measured by translated max correlation risk measures. We determine the worst case portfolio structure and the worst case diversification effect in several classes of examples as, e.g. in elliptical, Euclidean spherical, and Archimedean type distribution classes.     

DEBT NONNEUTRALITY,POLICY INTERACTIONS,AND MACROECONOMIC STABILITY*

We study the consequences of nonneutrality of government debt for macroeconomic stabilization policy in a sticky‐price model. Ricardian equivalence fails because debt has a negative impact on its rate of return and on private savings, which is induced by assuming transaction services of bonds. Under aggressive monetary policy regimes, macroeconomic fluctuations tend to be stabilized if nominal budget deficits are low. A smooth debt path limits inflation expectations, such that inflation variances can be reduced. Under a balanced budget policy, the central bank's output gap–inflation volatility trade‐off is improved relative to an environment where debt is neutral.     

PRODUCTIVE GOVERNMENT EXPENDITURE IN MONETARY BUSINESS CYCLE MODELS

This paper assesses the transmission of fiscal policy shocks in a New Keynesian framework where government expenditures contribute to aggregate production. It is shown that even if the impact of government expenditures on production is small, this assumption helps to reconcile the models' predictions about fiscal policy effects with recent empirical evidence. In particular, it is shown that government expenditures can lead to a rise in private consumption, real wages, and employment if the government share is not too large and public finance does not solely rely on distortionary taxation. When government expenditures are partially financed by public debt, unit labor costs fall in response to a fiscal expansion, such that inflation tends to decline. Households are willing to raise consumption if monetary policy is active, i.e. ensures that the real interest rate rises with inflation. Otherwise, private consumption can also be crowded out, as in the conventional case where government expenditures are not productive.     

怎样恢复良好的收益?——投资银行面临全球衰退的挑战

近年来,许多投资银行采取了基于建立全球覆盖的商业模式.这一方法在收入不断增加时是合理的.但在今天更为严酷的商业环境中,同样的策略被过多地运用,除最大的竞争者外,其它竞争者几乎都处于劣势.     

Optimal payoffs under state-dependent preferences

Most decision theories, including expected utility theory, rank-dependent utility theory and cumulative prospect theory, assume that investors are only interested in the distribution of returns and not in the states of the economy in which income is received. Optimal payoffs have their lowest outcomes when the economy is in a downturn, and this feature is often at odds with the needs of many investors. We introduce a framework for portfolio selection within which state-dependent preferences can be accommodated. Specifically, we assume that investors care about the distribution of final wealth and its interaction with some benchmark. In this context, we are able to characterize optimal payoffs in explicit form. Furthermore, we extend the classical expected utility optimization problem of Merton to the state-dependent situation. Some applications in security design are discussed in detail and we also solve some stochastic extensions of the target probability optimization problem.