Seasonality Estimation in Thin Markets

The greater availability of daily data in the U.S. has led to a number of studies of the seasonality of daily stock (index) returns. While the studies recognized the potential impacts of nontrading and price-adjustment delays in general, no formal analyses of such impacts were presented; in this paper analytic results are presented for the articulation between these phenomena. The implications of the analysis are discussed and shown to be consistent with a sample of U.K. index data. A modified form of the negative weekend effect is found to be present in the U.K. data analyzed.     

Democratization of Brazilian Health Councils: The Paradox of Bringing the Other Side into the Tent

Contemporary discussions of ‘democratic innovation experiences’ have evolved into a heated debate about how effective these ‘new spaces’ are in including ordinary citizens, particularly those traditionally marginalized and excluded. This article focuses on the Brazilian experience with Health Councils and begins by discussing the conditions that have been pointed out by previous studies as favouring the inclusion of these groups in these ‘new spaces’. On the basis of these studies, one question that remains is about the democratic legitimacy of these experiences, as it seems that there is a bias towards the inclusion of those that already have political ties with the traditional political system. The local Health Councils in 31 subprefeituras(new administrative subdivisions) of the city of São Paulo were researched and a continuum was observed: ranging from a small number of one or two sectors that have historical ties with political parties included in the council to a far more diversified composition, including up to seven sectors with autonomous representatives and various types of association. Using these results as their starting‐point, the analyses conclude with a discussion of the relative significance of the factors previously identified as central in establishing the democratic legitimacy of these ‘new democratic spaces’.     

Employers' Online Search: An Empirical Analysis

Drawing on job postings at an online job board, we find that employers who have to fill their vacancies immediately specify fewer job requirements, provide more details about the job application process, and are quicker to withdraw their vacancies from the job board than employers with job openings that do not have to be filled immediately. These findings offer new insights into the role of vacancy costs in determining how employers search for workers online.     

THE EFFICIENCY‐STABILITY TRADE‐OFF: THE CASE OF HIGH INTEREST RATE SPREADS IN VENEZUELA

This paper examines the determinants of the high intermediation spread observed in the Venezuelan banking sector during the 1990s (by far the largest in the Latin American region throughout the 1990s). We trace the evolution of the spread and its connection with other bank‐specific variables. A reduced‐form equation is estimated on the basis of a simple behavioral model for the banking firm previously developed by Shaffer and extended by Barajas, Steiner, and Salazar. Using different types of estimators for aggregate and pooled data of the financial system, we found that high spreads can be attributed to market power, high operating costs, and expected portfolio risk. The empirical results also suggest a trade‐off between assuring bank solvency and lowering profitability.