scholarly journals Hedging and Evaluating Tail Risks via Two Novel Options Based on Type II Extreme Value Distribution

Symmetry ◽  
2021 ◽  
Vol 13 (9) ◽  
pp. 1630
Author(s):  
Hang Lin ◽  
Lixin Liu ◽  
Zhengjun Zhang
Keyword(s):  
Implied Volatility ◽  
Ad Hoc ◽  
Extreme Value Distribution ◽  
Tail Index ◽  
Tail Risk ◽  
Policy Makers ◽  
Economic Implications ◽  
Market Sentiment ◽  
Asymmetric Pricing ◽  
Portfolio Managers

Tail risk is an important financial issue today, but directly hedging tail risks with an ad hoc option is still an unresolved problem since it is not easy to specify a suitable and asymmetric pricing kernel. By defining two ad hoc underlying “assets”, this paper designs two novel tail risk options (TROs) for hedging and evaluating short-term tail risks. Under the Fréchet distribution assumption for maximum losses, the closed-form TRO pricing formulas are obtained. Simulation examples demonstrate the accuracy of the pricing formulas. Furthermore, they show that, no matter whether at scale level (symmetric “normal” risk, with greater volatility) or shape level (asymmetric tail risk, with a smaller value in tail index), the greater the risk, the more expensive the TRO calls, and the cheaper the TRO puts. Using calibration, one can obtain the TRO-implied volatility and the TRO-implied tail index. The former is analogous to the Black-Scholes implied volatility, which can measure the overall symmetric market volatility. The latter measures the asymmetry in underlying losses, mirrors market sentiment, and provides financial crisis warnings. Regarding the newly proposed TRO and its implied tail index, economic implications can be offered to investors, portfolio managers, and policy-makers.

Firm-Level Determinants of Foreign Investment and M&A Activity

2020 ◽  
pp. 1676-1705
Author(s):  
Mine Uğurlu
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Economies Of Scale ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Firm Level ◽  
Policy Makers ◽  
Economic Implications ◽  
Cross Border ◽  
Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

The Iranian Revolution: Its Impact on Economic Relations with the United States

1980 ◽  
Vol 12 (3) ◽  
pp. 303-317 ◽  
Author(s):  
Khosrow Fatemi
Keyword(s):  
United States ◽  
American Foreign Policy ◽  
The United States ◽  
Iranian Revolution ◽  
Policy Makers ◽  
Economic Implications ◽  
Economic Relations ◽  
Trade Relations ◽  
Political Implications ◽  
To Come

The international political implications of the Iranian revolution will not be known for many years to come, and American foreign policy makers and pundits will debate the question of “who lost Iran” long after that. Even the international economic implications of the revolution will not be fully realized, or recognized, in the near future. It is, however, already amply clear that the fall of the Shah has had profound consequences on Iran's economic and trade relations with other countries, in general, and with the United States in particular. It is to the latter issue that this essay addresses itself.

Arab-uprising: an analysis from political economy perspective

Humanomics ◽  
2014 ◽  
Vol 30 (1) ◽  
pp. 59-75 ◽  
Author(s):  
Ataul Huq Pramanik
Keyword(s):  
Ad Hoc ◽  
Arab World ◽  
General Reader ◽  
Policy Makers ◽  
Content Type ◽  
The Past ◽  
The Social ◽  
Policy Frameworks ◽  
Cultural Components

Purpose – This paper aims at examining the past as well as the current issues responsible for the most recent Arab-uprising. Design/methodology/approach – The empirical evidence based on regression and correlation together with tabular presentations suggests that the issue of Arab-uprising can be examined from both theoretical and factual evidence. Both theoretical and empirical findings testify the extremely high interrelationships existing among the determinants and co-determinants of Arab-uprising. Based on the three most fundamental pre-requisites for living a life with satisfaction based on personal honour, dignity, voice, peace, justice and equality of opportunity, the economic, political and socio-cultural components are found to be neglected in the Arab World. The constraint of data limited the scope to use systematically available and reliable independent variables, in particular, warranted by any sophisticated empirical model. Findings – The findings will have policy directions for the policy-makers/politicians to address the serious issues involving empowerments. It is argued that the ad hoc solution based on buying the dissent of the critics using handouts is not a long-term sustainable solution to the problems. The findings are also expected to create social consciousness among those who are most concerned to see the changes in the society for betterment where every citizen can stand for his honour, dignity and voice, justice and equality. Originality/value – It is expected that the general reader can understand the issues raised in this paper, internalize the ideas and create an overall environment to redirect the policy frameworks for resolving the social problems without conflict.

scholarly journals Global Portfolio Diversification and Equity Market: Evidence from Trading Partners of Pakistan

2018 ◽  
Vol 6 (1) ◽  
pp. 20-34
Author(s):  
Muhammad Husnain ◽  
◽  
Ume Habiba ◽  
Shahnaz Arifullah ◽  
Izhar Muhammad ◽  
...  
Keyword(s):  
Portfolio Management ◽  
Equity Markets ◽  
Equity Market ◽  
Portfolio Diversification ◽  
Weekly Basis ◽  
Policy Makers ◽  
Trading Partners ◽  
Portfolio Managers ◽  
Asset Classes

The influential work of Markowitz (1952, 1959) provides foundation to modern investment philosophy. Investors can reap the potential benefit of portfolio diversification only if the involved asset classes in investment basket are not perfectly correlated. Objective of this study is to empirically investigate the cointegration among equity market of Pakistan and its major trading partners (China, France, Germany, Hong Kong, Japan, Korea, Malaysia, UK and USA). Sample period of study starts from 2004 to 2015, on weekly basis. Bivariate cointegration (Johansen, 1991, 1995) analysis reveals that equity market of Pakistan has no long term relationship with any of the equity markets of its major trading partners. Therefore, we recommend to potential investors, portfolio managers, and policy makers that prospective benefit of portfolio diversification can be achieved by investing in the equity markets of major trading partners of Pakistan. Further, they should be vigilant regarding the co-movement among equity markets during portfolio management decisions.

scholarly journals Countries Embracing Maternal Employment Have Opened Schools Sooner after COVID-19 Lockdowns

2020 ◽  
Author(s):  
Ansgar Hudde ◽  
Natalie Nitsche
Keyword(s):  
Decision Making ◽  
Maternal Employment ◽  
Ad Hoc ◽  
Time Pressure ◽  
Gender Ideology ◽  
Policy Decision ◽  
School Closure ◽  
Policy Makers ◽  
Policy Measures

During and after the first wave of COVID-19 lockdowns, the timing and the intensity of school reopenings have varied across countries. We show that societal gender ideology likely has affected school closure and opening policies. Societies that are more supportive of maternal employment have reopened schools significantly sooner than societies less supportive of maternal employment, relative to other opening measures and net of infection rates. Our study contributes novel evidence on the role of attitudes on policy-decision making, and unveils the presence of a potential gender ideology bias in policy-makers’ ad-hoc decision-making under time pressure. The epidemic threat remains high and questions about the operation of schools continue to be a pressing matter. Considering this bias in decision-making can improve further policy-measures during the remainder of the pandemic, and beyond.

scholarly journals Economic Implications of Marketing Structure of Banana and Plantain Fruits for the Development of Rural Communities in Enugu State, Nigeria

2018 ◽  
Vol 7 (1) ◽  
Author(s):  
Obetta Angela Ebere ◽  
Obetta K Chukwuemeka ◽  
Achike Anthonia Ifeyinwa
Keyword(s):  
Rural Communities ◽  
Survey Design ◽  
Marketing Channel ◽  
Policy Makers ◽  
Economic Implications ◽  
International Donor ◽  
Enugu State ◽  
Low Levels ◽  
Descriptive Survey ◽  
Distribution Of Income

There is increase in the level of purchase and consumption of banana and plantain due to their nutritional requirements. This led to increase in the number of market dealers on banana and plantain. Therefore, the study assessed the marketing channel and structure of banana and plantain in Enugu State, Nigeria. Adopting a descriptive survey design, copies of the instrument were administered to 160 banana and plantain sellers. Collected data were analyzed using descriptive statistics and Gini co-efficient. The results showed that majority of the respondents were married females who attained primary education. Majority of the wholesalers obtained their products directly from farmers while 71.80% of the retailers obtained from the wholesalers. The results of the Gini co-efficient for banana and plantain sellers showed low levels of inequitable distribution of income among them. However, inequalities existed more at retail level than at the wholesale level. Recommendations included that international donor should provide links between prospective banana and plantain farmers, policy makers and researchers to identify and analyze new ways of encouraging the market for mutual co-operation and structure for an effective banana and plantain marketing system.

scholarly journals Work and disability during the Covid-19 outbreak: from the current scenario to possible future perspectives

2021 ◽  
Vol 21 (3) ◽  
pp. 373-383
Author(s):  
Amelia Lecce ◽  
Diana Carmela Di Gennaro ◽  
Maurizio Sibilio
Keyword(s):  
Ad Hoc ◽  
People With Disabilities ◽  
Future Perspectives ◽  
Important Goal ◽  
Policy Makers ◽  
Fertile Ground ◽  
Legislative Framework ◽  
Current Scenario ◽  
Placement Services ◽  
Inclusive Processes

Ensuring work for people with disabilities today represents an important goal for democratic states and a continuous challenge for policy makers who should always aim to improve targeted placement services. Unfortunately, this goal, although regulated by specific laws, does not always find fertile ground in its applicability, sometimes increasing marginalization and discrimination. In this regard, the Covid-19 outbreak has brought out new forms of exclusion and new needs, increasing, in some cases, inequalities within workplaces. Therefore, starting from the scenario outlined by the pandemic, the paper aims to propose a reflection on the importance of work for people with disabilities, as a tool of self-empowerment that promotes inclusive processes, analyzing the legislative framework regarding access to work for vulnerable people and outlining possible future perspectives to promote inclusion within work places.   Lavoro e disabilità ai tempi del Covid-19: dallo scenario attuale a possibili prospettive future.   Garantire una occupazione lavorativa alle persone con disabilità rappresenta oggi una conquista per gli Stati democratici e una continua sfida per i policy makers che dovrebbero sempre puntare a migliorare i servizi di collocamento mirato. Purtroppo, tale conquista, sebbene normata da leggi ad hoc, non sempre trova terreno fertile nella sua applicabilità, alimentando, talvolta, i fenomeni di emarginazione e i meccanismi di discriminazione. A tal proposito, l’emergenza sanitaria da Covid-19 ha fatto emergere nuove forme di esclusione e nuovi bisogni incrementando, in alcuni casi, le disparità in ambiente lavorativo. Dunque, partendo dallo scenario delineato dalla situazione pandemica, il contributo intende proporre una riflessione circa l’importanza del lavoro per le persone con disabilità, in quanto strumento di self-empowerment che favorisce i processi inclusivi, analizzando il quadro normativo in materia di diritto e di accesso al lavoro per i soggetti più fragili e tratteggiando possibili prospettive future per promuovere percorsi lavorativi inclusivi.

scholarly journals Social Networking on Climate Change

2011 ◽  
Vol 3 (1) ◽  
pp. 118-135 ◽  
Author(s):  
Francesco Molinari
Keyword(s):  
Climate Change ◽  
Social Networks ◽  
Social Networking ◽  
Public Administration ◽  
Policy Making ◽  
Ad Hoc ◽  
Policy Makers ◽  
The Us ◽  
Mission Critical ◽  
Preparatory Action

This paper reports on the deployment of a multilingual Social Networking Platform in three Regions of Europe (Catalonia, Poitou-Charentes and Tuscany), in the context of an EU-funded Preparatory Action on eParticipation dealing with the issue of climate change and energy policy making at the level of the European Parliament. The US (“Obama”) approach and a novel (“European”) usage of social networks in political online discourses are compared. A recommendation to policy makers is that social networking can be useful whenever the topics under discussion are limited in scope, but also wide in implications, so that they require moving forward from “one-off” and “ad-hoc” participation experiments, towards the permanent coverage of “mission critical” Public Administration functions.

Firm-Level Determinants of Foreign Investment and M&A Activity

2016 ◽  
pp. 265-292
Author(s):  
Mine Uğurlu
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Economies Of Scale ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Firm Level ◽  
Policy Makers ◽  
Economic Implications ◽  
Cross Border ◽  
Greenfield Investments

The last decade is marked with acceleration of mergers, corporate restructuring and governance activities. M&A activity has been driven by factors such as technological change, globalization, free trade, deregulation, attempts to attain economies of scale, rise in entrepreneurship, and economic growth. Corporations need to adjust to the change in the environment and expand their markets to achieve growth and protection against volatile economic conditions. Firms can achieve international expansion through foreign direct investments (FDIs) which can take the form of cross-border acquisitions (brownfield investments) and Greenfield investments. This chapter covers an overview of the literature on the determinants of FDI forms of entry, and M&A activity followed with an empirical investigation of the firm-level determinants of foreign investment in Turkey with emphasis on cross-border acquisitions and Greenfield investments. Summary of the findings is followed with the economic implications of forms of FDI entry. The concluding remarks cover the implications of the results for policy makers.

Three Long and Costly Wars

2019 ◽  
pp. 181-192
Author(s):  
James H. Lebovic
Keyword(s):  
Decision Making ◽  
Policy Evaluation ◽  
Ad Hoc ◽  
Continuous Assessment ◽  
Policy Makers ◽  
Mission Success ◽  
The Us ◽  
Contingency Plans ◽  
Military Preparedness

The US wars in Vietnam, Iraq, and Afghanistan display a biased decisional pattern rooted in the non-rational tendencies of a “means-driven” process. Critical lessons from these three long wars emerge from examining decision-making in the four stages of these conflicts. Policy makers must recognize benefits in contingency plans, continuous assessment, and comprehensive policy evaluation. At the same time, they must acknowledge potential dangers in precipitous intervention; illusionary consensus; ad hoc argumentation, temporizing, and non-decisions; a lack of military preparedness; overconfidence about likely mission success; deference to costs in policymaking; and plans that can assume a life of their own.

Sign in / Sign up

Export Citation Format

Share Document