Sampling Returns for Realized Variance Calculations: Tick Time or Transaction Time?

This article introduces a new model for transaction prices in the presence of market microstructure noise in order to study the properties of the price process on two different time scales, namely, transaction time where prices are sampled with every transaction and tick time where prices are sampled with every price change. Both sampling schemes have been used in the literature on realized variance, but a formal investigation into their properties has been lacking. Our empirical and theoretical results indicate that the return dynamics in transaction time are very different from those in tick time and the choice of sampling scheme can therefore have an important impact on the properties of realized variance. For RV we find that tick time sampling is superior to transaction time sampling in terms of mean-squared-error, especially when the level of noise, number of ticks, or the arrival frequency of efficient price moves is low. Importantly, we show that while the microstructure noise may appear close to IID in transaction time, in tick time it is highly dependent. As a result, bias correction procedures that rely on the noise being independent, can fail in tick time and are better implemented in transaction time.     

Building a Values‐Informed Mental Model for New Orleans Climate Risk Management

Individuals use values to frame their beliefs and simplify their understanding when confronted with complex and uncertain situations. The high complexity and deep uncertainty involved in climate risk management (CRM) lead to individuals’ values likely being coupled to and contributing to their understanding of specific climate risk factors and management strategies. Most mental model approaches, however, which are commonly used to inform our understanding of people's beliefs, ignore values. In response, we developed a “Values‐informed Mental Model” research approach, or ViMM, to elicit individuals’ values alongside their beliefs and determine which values people use to understand and assess specific climate risk factors and CRM strategies. Our results show that participants consistently used one of three values to frame their understanding of risk factors and CRM strategies in New Orleans: (1) fostering a healthy economy, wealth, and job creation, (2) protecting and promoting healthy ecosystems and biodiversity, and (3) preserving New Orleans’ unique culture, traditions, and historically significant neighborhoods. While the first value frame is common in analyses of CRM strategies, the latter two are often ignored, despite their mirroring commonly accepted pillars of sustainability. Other values like distributive justice and fairness were prioritized differently depending on the risk factor or strategy being discussed. These results suggest that the ViMM method could be a critical first step in CRM decision‐support processes and may encourage adoption of CRM strategies more in line with stakeholders’ values.     

Lung Cancer Risk from Radon in Marcellus Shale Gas in Northeast U.S. Homes

The amount of radon in natural gas varies with its source. Little has been published about the radon from shale gas to date, making estimates of its impact on radon‐induced lung cancer speculative. We measured radon in natural gas pipelines carrying gas from the Marcellus Shale in Pennsylvania and West Virginia. Radon concentrations ranged from 1,520 to 2,750 Bq/m³ (41–74 pCi/L), and the throughput‐weighted average was 1,983 Bq/m³ (54 pCi/L). Potential radon exposure due to the use of Marcellus Shale gas for cooking and space heating using vent‐free heaters or gas ranges in northeastern U.S. homes and apartments was assessed. Though the measured radon concentrations are higher than what has been previously reported, it is unlikely that exposure from natural gas cooking would exceed 1.2 Bq/m³ (<1% of the U.S. Environmental Protection Agency's action level). Using worst‐case assumptions, we estimate the excess lifetime (70 years) lung cancer risk associated with cooking to be 1.8×10^?4 (interval spanning 95% of simulation results: 8.5×10^?5, 3.4×10^?4). The risk profile for supplemental heating with unvented gas appliances is similar. Individuals using unvented gas appliances to provide primary heating may face lifetime risks as high as 3.9×10^?3. Under current housing stock and gas consumption assumptions, expected levels of residential radon exposure due to unvented combustion of Marcellus Shale natural gas in the Northeast United States do not result in a detectable change in the lung cancer death rates.     

Discussion of “Nonparametric Bayesian Inference in Applications”: Bayesian nonparametric methods in econometrics

The use of Bayesian nonparametrics models has increased rapidly over the last few decades driven by increasing computational power and the development of efficient Markov chain Monte Carlo algorithms. We review some applications of these models in economic applications including: volatility modelling (using both stochastic volatility models and GARCH-type models) with Dirichlet process mixture models, uses in portfolio allocation problems, long memory models with flexible forms of time-dependence, flexible extension of the dynamic Nelson-Siegel model for interest rate yields and multivariate time series models used in macroeconometrics.     

Staying safe while consuming alcohol: a qualitative study of the protective strategies and informational needs of college freshmen

OBJECTIVE: In this qualitative study, the authors examined how students attempt to minimize harm to themselves and others when drinking. PARTICIPANTS: The authors recruited freshmen at a large, mid-Atlantic US public university during the fall semester of 2005 to participate in 8 focus groups. METHODS: The moderator's guide was developed through an iterative process that included input from experts and pilot testing. The researchers audiotaped focus group conversations, transcribed them, and subjected them to an interrater reliability check. Analysis was based on the framework of Information-Motivation-Behavioral Skills Model and a phenomenological approach. RESULTS: College students have a repertoire of coping strategies they use in an attempt to safeguard themselves and their friends from harm when drinking. Strategies encompass planning a safe context for drinking, using safety measures to minimize harm when drinking, and taking care of someone who has consumed too much alcohol. CONCLUSIONS: A harm-reduction focus that acknowledges and builds on existing protective strategies may be a promising avenue for alcohol interventions.     

THE RUSH TO REGULATE: THE SHIFT IN AUSTRALIA FROM THE RULE OF MARKETS TO THE RULE OF CAPITAL

There has been a significant shift in the momentum of national economic policy in Australia, from the market as an end in itself, towards a regulated policy agenda that asserts the social, cultural and economic rule of capital. This ‘new’ policy is what neo‐liberalism really involves. Arguments about ‘free markets’ and ‘economic rationalism’ fail to recognise the shift and are thus not germane to current policy analysis.     

Legal pluralism and the Shari'a: a comparison of Greece and Turkey

The creation of a national and unified legal system was an important aspect of the rise of the modern state and national citizenship. However, this interpretation of legal rationalization has been challenged by sociologists of law such as Eugene Ehrlich (1862–1922) who claimed that this juridical theory of state‐centred law masked the presence of customary laws outside this formal system. In critical theories of the law, legal pluralism is proposed against the idea of legal sovereignty or legal centralism. In this article we explore the implications of the growth of the Shari'a as an example of legal pluralism. We take Turkey and Greece as two interesting but different examples of legal pluralism and consider the implications of these case studies for debates about liberalism, multiculturalism and citizenship in multi‐faith societies.     

Teaching culture beyond nationalist boundaries: national identities,stereotyping, and culture in language education

The authors take a critical language pedagogy approach to examining a 2011 controversy over disparaging comments towards Mexicans made by commentators of the British Broadcasting Corporation’s automotive show Top Gear. In particular, they focus on the characterization of groups and individuals according to their nationality and examine the ubiquity of nationalism and its ability to shape our conception of culture and in turn our understandings of others as members of ‘X national culture.’ The fact that humor is often a justification for national stereotyping and that these stereotypes are also connected to racist discourse are also explored. In the second part of the article, the implications of the stereotyping debate for language classrooms are considered. The authors argue that the controversy itself can be used as a tool for critical engagement that helps students deconstruct the underlying nationalist paradigm in L2 classrooms and build greater intercultural awareness.

Español: Los autores examinan, desde una perspectiva de la pedagogía crítica del lenguaje, la controversia que surgió en el 2011 debido a los comentarios nocivos hechos hacia los mexicanos por los locutores del show automotriz del BBC, Top Gear. En particular, se enfocan en la caracterización de los grupos e individuos de acuerdo a su nacionalidad, y examinan la ubiquidad del nacionalismo y su capacidad para darle forma a nuestra conceptualización de la cultura y, a su vez, nuestra forma de ver a otros como miembros de una ‘cultural nacional X’. Los autores también exploran el hecho de que a menudo se utiliza el humor como una justificación para los estereotipos nacionales, y que estos estereotipos también están conectados al discurso racista. En la segunda parte del artículo, se consideran las implicaciones para la enseñanza de idiomas del debate sobre los estereotipos. Argumentan los autores que la controversia en sí se puede utilizar como una herramienta para promover una postura crítica que ayude a los alumnos a deconstruir el paradigma subyacente del nacionalismo en el salón de lenguas extranjeras y fomente la conciencia intercultural.