On economics and business ethics

Economics has an impoverished view of virtuous human behaviour in general, and corporate social responsibility in particular. We claim that this is due to a particular, albeit currently dominant approach to economics. This approach focuses on the pursuit of wealth through efficient allocation of scarce resources by 'rational' utility-maximizing economic agents and institutions, such as markets, firms and states, in the exclusive pursuit of 'efficiency'. This results in an ethic-free and often inimical approach to virtuous behaviour. However, a different approach to economics, which focuses on sustainable global resource creation and allocation, asserts virtuous responsible behaviour to be part and parcel of economic analysis and performance.     

Estimation of the Water Resources Potential in the Island System of the Aegean Archipelago,Greece

Abstract

The present paper tries to estimate the surface water resources potential in some of the major Aegean islands in an effort to provide a means for the continuous development of the region, and, by extension, for similar areas around the world. The islands have to confront the challenge of surviving in a semiarid environment under the constraints of uneven water resources distribution both in space and time. In addition to these, tourism development, industrialization and highly water consumptive life styles have exacerbated perennial problems in water resources and water resources management. The framework of the present effort has a two-prong emphasis. In the first part, a simulation model is presented, which tries to estimate the potential surface runoff under physical, structural organizational, and institutional constraints. The methodology and the premises of the simulation process are delineated. In the second part, the results of the model's application in distinct cases are demarcated. The final product, namely the model and the resulting runoff coefficients, are presented in the form of a standard, which may provide practitioners in the field as well as decisionmakers the means for an initial reference in pertinent developmental efforts. Finally, the conclusions and recommendations raise the question of ecosystem resilience and point towards the urgent and continuous need for the application of integrated water resources management principles.     

The Two Faces of Analyst Coverage

We find that positive excess (strong) analyst coverage is associated with overvaluation and low future returns. This finding is consistent with the view that excessive analyst coverage, driven by investment banking incentives and analyst self-interests, raises investor optimism causing share prices to trade above fundamental value. However, weak analyst coverage causes stocks to trade below fundamental values. This finding indicates that investors tend to believe that these firms are more likely to be plagued by information asymmetries and agency problems. The results remain robust after controlling for the possible endogenous nature of analyst coverage and analysts' self-selection bias.     

Military spending,economic growth and investment: a disaggregated analysis by income group

Empirical Economics - Employing a panel vector autoregression (PVAR) methodology, the paper addresses the nexus between military expenditures and two key macroeconomic variables, namely growth...     

Consumer Trends and Attitudes to Functional Foods

Abstract

Consumers' needs have grown to such an extent that they are sought out of nutritious and pleasant organoleptic foods, as well as functional foods. This study explores consumer attitudes towards health nutrition products and particularly functional foods, using data from a survey to 325 consumers. The results designate that consumers recognize different kinds of functional foods, willing to pay a premium for their purchase. They perceive that functional foods may contribute to easily follow a healthy and balanced diet and reduce the risk of health problems but appeared anxious about the health benefits these foods communicate in their labelling.     

Turbulent flow field comparison and related suitability for fish passage of a standard and a simplified low‐gradient vertical slot fishway

Fishways are hydraulic structures that allow passage of fish across obstructions in rivers. Vertical slot fishways—VSFs—are considered the most efficient and least selective type of technical fishway solutions, especially due to their ability to remain effective even when significant upstream and/or downstream water level fluctuations occur. The scope of the present study is to perform numerical simulations in order to investigate and compare the hydraulic turbulent flow field in a standard and a simplified version of the most common VSF design. Implications in relation to fish swimming behaviour and fish passage performance are discussed. Different water depths (as well as discharges) were investigated, using a bed slope of 5%, as a reference for low‐gradient VSFs with a very limited selectivity that can be used in multispecies rivers in grayling‐barbel regions. Results show that maximum values of velocity, turbulent kinetic energy, and Reynolds stresses are higher in the standard design. However, corresponding to slot geometry and orientation, the direction of the main jet in the simplified design is more inclined towards the left side of the pool. This causes the eddy to split into 2 smaller ones; the minimum eddy dimension is reduced from 0.4–0.5 to 0.2–0.3 m. These dimensions are detrimental for fish passage efficiency, being more comparable with fish length (0.15–0.40 m), thus affecting migrating fish stability and orientation. Furthermore, the standard design provides a more straightforward upstream path and wider areas of low flow velocities and turbulence, useful for fish resting. Therefore, it is recommended that the standard design should be preferred over its simplified version, even if its construction costs are around 10–15% higher than the simplified one.     

Testing for Regime Changes in Greek Sovereign Debt Crisis

This paper examines whether the efficiency market hypothesis for the Greek sovereign debt holds. As in Blanco et al. (2005) we test the theoretical equivalence of credit default swap (CDS) and spreads that dictates a CI relationship between the two. The main innovation of the present analysis is the use of a threshold vector error-correction (TVECM) model, thus allowing thresholds within the sample covering the period 1990 to 2010. Moreover, by employing this methodology we are able to evaluate the degree and dynamics of transaction costs resulting from various events due to external market imperfections but also domestic factors. The main hypothesis we test is to what extent spreads and CDS are indeed integrated that may result in an efficient and integrated segniorage capital market. Our findings support the gradual integration hypothesis. We find that spreads and CDS are cointegrated, though threshold effects are also revealed in terms of events that have impacted on markets.     

Habit Formation in an Overlapping Generations Model with Borrowing Constraints

We introduce habit‐formation in the three‐period OLG borrowing‐constrained framework of Constantinides et al. (2002) by allowing the utility of the middle‐aged (old) to depend on consumption when young (middle‐aged). This specification enables us to separate the effect of the two habit parameters (middle‐aged and old) since each representative age‐group can face different levels of habit persistence. The two‐habit setup underlines some important issues with regards to savings and security returns which do not always conform to the standard findings in the literature. In addition, the model produces equity premium consistent with US data for relatively small levels of risk aversion.