scholarly journals Operational and Financial Hedging: Evidence from Export and Import Behavior

2017 ◽  
Author(s):  
Olga Kuzmina ◽  
Olga Kuznetsova
Keyword(s):  
Financial Hedging ◽  
Import Behavior

Is operational hedging a substitute for or a complement to financial hedging?

2006 ◽  
Vol 12 (4) ◽  
pp. 834-853 ◽  
Author(s):  
Young Sang Kim ◽  
Ike Mathur ◽  
Jouahn Nam
Keyword(s):  
Operational Hedging ◽  
Financial Hedging

scholarly journals Persistence as an optimal hedging strategy

2019 ◽  
Author(s):  
Alexander P Browning ◽  
Jesse A Sharp ◽  
Tarunendu Mapder ◽  
Christopher M Baker ◽  
Kevin Burrage ◽  
...  
Keyword(s):  
Financial Risk ◽  
Theoretical Foundation ◽  
Investment Portfolio ◽  
Hedging Strategy ◽  
Cellular Decision Making ◽  
Biological Population ◽  
Financial Hedging ◽  
The Face ◽  
Slow Growing

AbstractBacteria invest in a slow-growing subpopulation, called persisters, to ensure survival in the face of uncertainty. This hedging strategy is remarkably similar to financial hedging, where diversifying an investment portfolio protects against economic uncertainty. We provide a new theoretical foundation for understanding cellular hedging by unifying the study of biological population dynamics and the mathematics of financial risk management through optimal control theory. Motivated by the widely accepted role of volatility in the emergence of persistence, we consider several novel models of environmental volatility described by continuous-time stochastic processes. This allows us to study an emergent cellular hedging strategy that maximizes the expected per-capita growth rate of the population. Analytical and simulation results probe the optimal persister strategy, revealing results that are consistent with experimental observations and suggest at new opportunities for experimental investigation and design. Overall, we provide a new way of conceptualising and modelling cellular decision-making in volatile environments by explicitly unifying theory from mathematical biology and finance.

scholarly journals Corruption, Trade Costs, and Gains from Tariff Liberalization: Evidence from Southern Africa

2016 ◽  
Vol 106 (10) ◽  
pp. 3029-3063 ◽  
Author(s):  
Sandra Sequeira
Keyword(s):  
Southern Africa ◽  
Firm Behavior ◽  
Trade Flow ◽  
Primary Data ◽  
Public Officials ◽  
Trade Elasticities ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Tariff Liberalization ◽  
Import Behavior

This paper exploits quasi-experimental variation in tariffs in southern Africa to estimate trade elasticities. Traded quantities respond only weakly to a 30 percent reduction in the average nominal tariff rate. Trade flow data combined with primary data on firm behavior and bribe payments suggest that corruption is a potential explanation for the observed low elasticities. In contexts of pervasive corruption, even small bribes can significantly reduce tariffs, making tariff liberalization schemes less likely to affect the extensive and the intensive margins of firms' import behavior. The tariff liberalization scheme is, however, still associated with improved incentives to accurately report quantities of imported goods, and with a significant reduction in bribe transfers from importers to public officials. (JEL D22, D73, F13, H83, O17, O19, O24)

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