FINANCIAL MARKETS' SHUTDOWN AND REACCESS

We employ a discrete‐time parametric duration model on a group of 121 countries over the period 1970–2011 and find that the probability of the end of financial markets' shutdown and reaccess falls as these events become longer. We also show that: (1) shutdown episodes are longer when economic prospects are poor and the degree of financial openness falls, the chief executive has been in office for long periods, and the country has a default history and (2) spells of reaccess tend to be longer when economic growth improves and financial openness increases, there are neither government crises nor government instability, and the country did not default in the past. (JEL C41, G15)     

Central Bank Autonomy without Monetary Policy

The autonomy of a country’s central bank from political authorities has been advocated both as a remedy against the inflationary bias that would otherwise be present in the conduct of the government’s monetary policy and, more recently, on the basis of empirical evidence. However, both theoretical arguments and empirical findings have associated central bank autonomy with the conduct of monetary policy, while often failing to pay attention to those institutional cases where a central bank is in place but is not responsible for the conduct of monetary policy. These cases are particularly relevant for those countries which do not possess their own currency, or where extreme monetary regimes such as dollarization, currency boards, or monetary unions are present. These institutional settings, where a central bank exists, but there is no monetary policy to be conducted, raise the issue of central bank autonomy in a framework where the inflation bias is no longer pertinent. In other words: Is central bank autonomy still a relevant objective when a country does not run its own monetary policy? The present paper addresses this question, discusses dimensions of autonomy and accountability and maintains that central bank autonomy still does matter, particularly if the central bank is responsible for bank supervision and financial regulation.     

Uncertainty and Risk in Financial Markets

This paper considers a general equilibrium model in which the distinction between uncertainty and risk is formalized by assuming agents have incomplete preferences over state‐contingent consumption bundles, as in Bewley (1986). Without completeness, individual decision making depends on a set of probability distributions over the state space. A bundle is preferred to another if and only if it has larger expected utility for all probabilities in this set. When preferences are complete this set is a singleton, and the model reduces to standard expected utility. In this setting, we characterize Pareto optima and equilibria, and show that the presence of uncertainty generates robust indeterminacies in equilibrium prices and allocations for any specification of initial endowments. We derive comparative statics results linking the degree of uncertainty with changes in equilibria. Despite the presence of robust indeterminacies, we show that equilibrium prices and allocations vary continuously with underlying fundamentals. Equilibria in a standard risk economy are thus robust to adding small degrees of uncertainty. Finally, we give conditions under which some assets are not traded due to uncertainty aversion.     

Evaluation of Attitudes Toward Same-Sex Parenting in the Italian Context: Adaptation of a French Questionnaire

ABSTRACT

This study investigated the psychometric properties of the Italian version of a French scale to detect attitudes toward same-sex parenting. The Italian sample was split into two subsamples. On one, exploratory factor analysis (EFA) was conducted to detect the factor structure of the Italian scale, and on the other, confirmatory factor analysis (CFA) was run to find the data’s best fit model. The scales’ internal consistency was evaluated using Cronbach’s alpha. The questionnaire’s convergent validity was also evaluated. EFA extracted a four-factor solution, in accordance with the original French scale’s validation study. CFA showed that the translated scale had good consistency, similar to that of the original version, showing satisfactory internal consistency for three of four subscales. There will be benefits to further validation studies of the translated scale on the Italian population and it may possibly be innovative and useful in both research and social fields.     

Exploring the absolutist vs relativist perception of poverty using a cross-country questionnaire survey

Questionnaires eliciting the absolutist vs relativist perception of poverty are administered to 1941 undergraduate students in eight countries - Bolivia, Brazil, Italy, Kenya, Laos, Sweden, Switzerland and the UK. We find that the perception of poverty expressed by a large fraction of respondents exhibits both absolutist and relativist concerns, with the former components prevailing over the latter. High-income countries exhibit a significantly more pronounced relativist attitude. Personal characteristics such as past experience of material hardship and relative standard of living play a germane role in shaping respondents’ views.     

‘Moi aussi,alors, je serai grand-mère’. La construction de la parenté dans les familles homosexuelles

Using the gift as epistemological category, the article explores the social processes of kinship formation in homosexual families. Analysing the stories of lesbian families, the article tries to explain the reason why the mothers want to have kinship networks and kinship bonds. Through kinship connections, all the members are and want to be (or don't want to be) publicly recognised as reciprocal parents of the new-born.     

Measuring the Behavioural Component of the S&P 500 and its Relationship to Financial Stress and Aggregated Earnings Surprises

Scholars in management and economics have shown increasing interest in isolating the behavioural dimension of market evolution. Indeed, by improving forecast accuracy and precision, this exercise would certainly help firms to anticipate economic fluctuations, thus leading to more profitable business and investment strategies. Yet, how to extract the behavioural component from real market data remains an open question. By using monthly data on the returns of the constituents of the S&P 500 index, we propose a Bayesian methodology to measure the extent to which market data conform to what is predicted by prospect theory (the behavioural perspective), relative to the (standard) subjective expected utility theory baseline. We document a significant behavioural component that reaches its peaks during recession periods and is correlated to measures of financial volatility, market sentiment and financial stress with expected sign. Moreover, the behavioural component decreases around macroeconomic corporate earnings news, while it reacts positively to the number of surprising announcements.     

Strategic choices and strategic management accounting in large manufacturing firms

Journal of Management and Governance - This study examines the relationship between strategic choices and the use of strategic management accounting (SMA) techniques in large manufacturing...     

Modelling Corruption Perceptions: Evidence from Eastern Europe and Central Asian Countries

Social Indicators Research - This work proposes a multidimensional framework that is based on a latent class model to identify various types of corruption and to outline their importance. A dataset...