bluuebunny/crossref_metadata_2025 huggingface dataset:
De–gendering female violence: Merovingian female honour as an ‘exchange of violence’
Authors: Gradowicz–Pancer Nira
Published: March 2003

The phenomenon of female violence in the Early Middle Ages has notbeen properly explored, largely because of a feminist ethic which correctlyfocuses on women as the victims, rather than as the perpetrators, ofviolence. The traditional gendered dividing line is transcended whenfemale violence, like male violence, is regarded as a class characteristic orstrategy, and when female practice can be explained by a code of behav–iour shared by both sexes. Several case studies from the early Merovingianperiod, drawn from the work of Gregory of Tours, are here analysed inorder to demonstrate how royal Merovingian women could preservehonour through the pursuit of violence. How far Gregory of Tours’saccount may be taken to depict social reality is a further issue discussedin relation to the case studies. These involve Clothild and Fredegund,and show female violence as a normal feature of Merovingian society,especially where single women had no immediate male protectors, but didhave a great deal of personal honour to defend. In the case of Fredegund,violence was the result of premeditated revenge which publicly restoredher honour and maintained her precedence in the social hierarchy. Itseems clear that Merovingian women, unlike women of later times, couldparticipate in the cycle of violence.
Viking and native: re–thinking identity in the Danelaw
Authors: Hadley D.M.
Published: March 2003

This paper addresses the impact of the Scandinavian settlements in England in the ninth and tenth centuries, and the role that ethnic identity and affiliation played in the society of the so–called Danelaw. It is argued that ethnic identity was not a constant factor, but one that only became relevant, at least in the evidence available to us, at certain times. It is suggested that the key to understanding expressions of ethnicity lies in the absorption of new ruling elites in northern and eastern England, and in subsequent political manoeuvring, rather than in the scale of the Scandinavian settlement. Indeed, the scale of the settlement does not easily explain most of our evidence, with the exception of some of the linguistic data. This paper stresses the importance of discussing the Scandinavian settlements not simply by reference to ethnic factors, but within the social and political context of early medieval society.
The economics of defence industry mergers and J c divestitures
Authors: Markusen Ann
Published: March 2003

High profile mergers in the 1990s have reduced major defence competitors to three in the USA and may evoke corresponding European consolidation and international mergers. The mergers may reduce capacity and help achieve economies of scale, but pose cost, quality and innovation concerns and have undermined diversification, conversion and civil/military integration. Expectations of enhanced political influence and short‐term financial returns as well as new, perverse government incentives help to explain why the mergers have occurred. Greater international cooperation, specialisation and trade and better analysis of the defence industrial base are recommended as antidotes for the negative impacts of the mergers.
After the windfall: the New Deal at work
Authors: Philpott John
Published: March 2003

The New Deal for Young People – the government's flagship welfare to work initiative – was launched over a year ago. This article assesses the New Deal in terms of its long‐run objectives, its short‐term effects and how well it is operating on the ground. The conclusion is that although the New Deal has made an excellent start and helped cut youth employment, a gap exists between what some young people and some employers expect from the New Deal and what they experience.
RIP – SME
Authors: Franklin David
Published: March 2003

The government says it wants to encourage the growth of small business. But it is regulating small companies to such an extent that it risks putting many out of business. Small and medium sized companies should be exempted from further regulation.
The CAP: History and attempts at reform
Authors: Howarth Richard
Published: March 2003

This article outlines the economic consequences of the CAP, including the high level of protection, the burdens on consumers, taxpayers and the EU budget, environmental damage, the harm to international trading relations, and the failure to raise farmers’ incomes. The numerous unsuccessful attempts at reform from 1968 to 1999 are described. Finally, some of the lessons of the reform attempts are drawn, including the apparent political impossibility of reducing farm support and bureaucratic intervention once it is in place.
Neo‐Keynesian Macroeconomic Policy is Throttling Britain
Authors: Sherman Sir Alfred
Published: March 2003

British policy‐makers are crippled by a fixation with interest rates as the main economic regulator. High interest rates produce numerous distortions, including an over‐valued pound. The only way to reduce inflation is to cut government spending.
The Mercantile Laws Commission of 1854 and the Political Economy of Limited Liability
Authors: Bryer R.A.
Published: March 2003

It is widely agreed that the coming of limited liability in the Joint‐Stock Companies Act of 1855 marked a revolutionary change. However, this change is hard to explain because it appeared to serve no particular interest. This article supports the lone alternative view of Jeffreys that limited liability was introduced in the interests of wealthy potential investors. It argues that the commission’s report was introduced in the interests of wealthy potential investors. It argues that the commission’s report presented parliament with competing analyses of limited liability from the perspectives of two very different theories of political economy: one which followed Adam Smith in arguing that unlimited liability was necessary to sustain a world fit for individual capitalists; and another which, anticipating Marx’s critique of Adam Smith, argued for limited liability to create a world fit for social capital.
Sterling and the Euro
Authors: Britton Erik , Livermore Scott
Published: March 2003

The question of whether and when sterling should join Economic and Monetary Union is likely to be one of the key battlegrounds in the next election campaign. In this article, Erik Britton and Scott Livermore argue that there is no clear economic case in favour of sterling's entry to EMU. However, if as the government asserts – the political will to join exists, steps could be taken now, adjusting the mix of macroeconomic policy, to ensure that convergence was likely shortly after the next election.
Japan: Is there any way out?
Authors: Knapp Simon
Published: March 2003

Of the G‐7 economies Japan is expected to experience the most severe recession during 2001/02, suffering from the interaction of the dramatic cyclical factors affecting the global economy and its own severe, structural weaknesses. In this article, OEF’s Simon Knapp examines how and why these weaknesses, first created in the bubble‐bust period of the late 1980s / early 1990s, are continuing to affect the Japanese economy today, and discusses what options are available to the government to break free from the malaise of stagnating growth and falling prices.
Durable‐Goods Monopoly, Increasing Marginal Cost and Depreciation
Authors: Driskill Robert
Published: March 2003

This paper combines increasing marginal cost and depreciation in a continuous‐time model of a durable‐goods monopolist. In contrast to the case of increasing marginal cost but no depreciation (analysed by Kahn) and the case of depreciation with constant marginal cost (analysed by Bond and Samuelson), steady‐state output in this model is less than in the competitive case. A turnpike result shows that choice of a long enough time horizon can make the equilibrium path of output in a finite‐horizon game arbitrarily close to the path of the infinite‐horizon game.
The Dynamic Demand for Part‐time and Full‐time Labour
Authors: Friesen Jane
Published: March 2003

This paper explores the hypothesis that part‐time work plays a distinct role in the adjustment strategies of firms in the face of economic shocks. Dynamic labour demand equations for part‐time and full‐time labour estimated from monthly data from the US Current Population Survey indicate that part‐time labour is adjusted more rapidly in a number of industries. Furthermore, the adjustment of the two types of labour is not independent: disequilibrium in one slows the rate of adjustment of the other. These results lend support to the notion that part‐time labour provides an important source of dynamic flexibility in some industries. Policies that reduce the relative costs of adjusting part‐time labour, and changes in the economic environment that make flexibility more important to firms, may explain some of the growth in part‐time employment that has taken place over the last several decades.
Why Have Some Indian States Done Better than Others at Reducing Rural Poverty?
Authors: Datt Gaurav , Ravallion Martin
Published: March 2003

Rural poverty rankings of Indian states in 1990 were very different from those of 1960. This unevenness in progress allows us to study the causes of poverty in a developing rural economy. We model the evolution of various poverty measures using pooled state‐level data for the period 1957–91. Differences in trend rates of poverty reduction are attributed to differing growth rates of farm yield per acre and differing initial conditions; states starting with better infrastructure and human resources saw significantly higher long‐term rates of poverty reduction. Deviations from trend are attributed to inflation (which hurt the poor in the short term) and shocks to farm and non‐farm output.
Employment and Output Adjustment in the OECD: A Disaggregate Analysis of the Role of Job Security Provisions
Authors: Burgess Simon , Knetter Michael , Michelacci Claudio
Published: March 2003

Job security provisions are frequently cited as inhibiting the functioningof labour markets in Europe. However, as with many forms of non‐priceregulation, it is difficult to assess how tightly these regulations bindand influence labour market outcomes. We use an industry–country panelof OECD countries over 20 years to estimate adjustment paths for employmentand output conditional on wages, the capital stock and exchange rates. Wefind that job security provisions are correlated with the speed ofadjustment of employment and output (restrictive legislation slowingadjustment down), and that controlling for industry effects is importantin isolating this effect.
Mind the Gap, Please: The Changing Nature of Entry Jobs in Britain
Authors: Gregg Paul , Wadsworth Jonathan
Published: March 2003

We examine wages in jobs taken by those out of work—entry jobs—and the characteristics of the individuals who fill them. There are large entry wage gaps relative to other jobs. More importantly, real entry wages have fallen by around 20 log points relative to all other jobs since 1979. One‐quarter of this decline is accounted for by differences in individual and job characteristics and around 40% from an unexplained fall in the position of entry jobs in the wage distribution. That entry wages differ from the stock of all wages should be incorporated into labour supply modelling.
Non‐transitive Choice: Event‐Splitting Effects or Framing Effects?
Authors: Humphrey Steven
Published: March 2003

Recent studies have examined possible causes of the robust empirical failure of the transitivity axiom of expected utility theory by pitting regret aversion against alternative explanations such as event‐splitting effects. These tests show that cycles replicate when the latter are controlled, but are sensitive to changes in problem representation. The control for event‐splitting effects, however, does not rule out their contribution to cyclical choices in some circumstances. An experiment is reported which investigates this possibility. Cyclical choices are observed that cannot be due to event‐splitting effects, but appear attributable to within‐event and between‐act evaluations of decision problems plus framing effects.
The Impact of Language Ability on Employment and Earnings of Britain’s Ethnic Communities
Authors: Leslie Derek , Lindley Joanne
Published: March 2003

The Fourth National Survey of Ethnic Minorities contains useful information about the language ability of Britain’s non–whites as well as a wealth of comparative information for whites. The paper attempts to establish how much of the lower unemployment and higher earnings enjoyed by whites is the result of a comparative advantage in language. Language is shown to contribute to a part of the non–white disadvantage, but after language effects are removed non–whites males still have higher unemployment rates and lower earnings. Language disadvantage among non–white females leads to higher inactivity rates rather than more unemployment.
The Return on Post–Compulsory School Mathematics Study
Authors: Dolton P. J. , Vignoles A.
Published: March 2003

What are the essential skills learned at school that are required for the labour market? The issue is particularly policy relevant in the UK, where the 16–19 secondary school curriculum (A levels) is undergoing major reform. This paper uses data from the UK to investigate the impact of different academic subjects in secondary school on pupils’ subsequent earning, particularly the impact of studying advanced mathematical curricula. We find that individuals with an advanced (A–level) mathematics qualification earn 7%–10% more than similarly educated workers without this qualification, even after controlling for the initial ability of these individuals.
Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession
Authors: Shields Michael A. , Price Stephen Wheatley
Published: March 2003

We investigate the determinants of perceived racial harassment at the workplace, and its impact on job satisfaction and quitting behaviour among ethnic minority nurses, using data from a unique large–scale survey of British NHS nurses. Nearly 40% of ethnic minority nurses report experiencing racial harassment from work colleagues, while more than 64% report suffering racial harassment from patients. Such racial harassment is found to lead to a significant reduction in job satisfaction, which, in turn, increases nurses’ intentions to quit their job. These results are found to be robust to endogeneity concerns, and have important policy implications for retaining qualified nursing staff in the NHS.
Gender Differences in Educational Attainment: The Case of University Students in England and Wales
Authors: McNabb Robert , Pal Sarmistha , Sloane Peter
Published: March 2003

This paper examines the determinants of gender differences in educational attainment using data for all university graduates. We find that, although women students perform better on average than their male counterparts, they are significantly less likely to obtain a first class degree. There is no evidence that this is because of differences in the types of subject male and female students study or in the institutions they attend, nor does it reflect differences in personal attributes, such as academic ability. Rather, it is differences in the way these factors affect academic achievement that give rise to gender differences in performance.
Activist Macroeconomic Policy, Election Effects and the Formation of Expectations: Evidence from OECD Economies
Authors: Kiefer David
Published: March 2003

We examine the explanatory power of a political—business cycle theory in which governments practice short‐run policy to lessen the impact of exogenous shocks. Governments have ideological objectives with respect to macroeconomic performance, but are constrained by an augmented Phillips curve. The most prominent version, the rational partisan model, incorporates forward‐looking expectations. This model can be compared to a competing model based on backward‐looking expectations. Alesina and Roubini's recent advocacy of the rational model uses OECD data. Our reconsideration of the same data, updated to 1995, suggests that the adaptive expectations version offers a better explanation than the rational one.
Ethnicity, Politics and Economic Performance
Authors: Collier Paul
Published: March 2003

The paper investigates the effects of ethnic diversity on economic performance. Previous studies have found that diversity has various detrimental microeconomic effects, tending to reduce public sector performance, and has large detrimental effects on the overall growth rate. I develop a simple model of the effect of ethnic diversity on a government decision problem in which there is a tradeoff between growth and distribution, in the contexts of democracy and dictatorship. I find that in democracy ethnic diversity has no effect upon the decision, whereas in dictatorship ethnic diversity leads to a government choice which reduces the growth rate. I then test these propositions on two data sets. The first is for 94 countries over the period 1960–1990. I find that whether diversity adversely affects overall economic growth depends upon the political environment. Diversity is highly damaging to growth in the context of limited political rights, but is not damaging in democracies. The second is for World Bank projects in 89 countries. I find that the same relationship between diversity and democracy affects the proportion of projects which are successful.
The Impact of Demographics on Policy Outcomes Under Varying Institutional Frameworks
Authors: Hoover Gary A.
Published: March 2003

This paper examines the impact that demographics have on policy outcomes. The impact that aldermanic ward‐level demographics have on the number of liquor licenses is measured in two US cities. In one city there is a great deal of direct resident involvement in the issuance process, while in the other city, issuance decisions are handled by elected representatives. This research does find that demographics have a significant impact on policy outcomes. However, the paper does not find a significant difference in outcomes between decisions made by elected representatives and those made by the community.
Transition and the output fall
Authors: Roland Gérard , Verdier Thierry
Published: March 2003

We present a model to explain why in the transition economies of Central andEastern Europe an important output fall has been associated with price liberalization. Its key ingredients are search frictions and Williamsonian relation‐specific investment, implying that new investments are made only after having found a new long‐term partner. When all firms search for new partners, output may fall because of three effects: a) disruption of previous production links, b) a fall in investment, and c) capital depreciation due to the absence of replacement investment. We show that forms of gradual liberalization like the Chinese ‘dual‐track’ price liberalization may avoid the transitory output fall.

JEL classification: D21, D50, E30, E61, P41, P51.
Education, inequality and transition
Authors: Micklewright John
Published: March 2003

I consider evidence on differences in access to education and in learning achievement within the countries of Central and Eastern Europe and the former Soviet Union. The situation inherited from the communist period is first summarized: there were some significant disparities with, for example, family background having a strong association with tertiary enrolments, as in Western countries. Analysis of the transition period focuses on differences in access and achievement associated with household income and geographic location. Disparities are not the same across the region; in some countries, such as Russia, there are clear grounds for serious concern, but it is unlikely that any country has cause for complacency.
Channels of redistribution: Inequality and poverty in the Russian transition
Authors: Commander Simon , Tolstopiatenko Andrei , Yemtsov Ruslan
Published: March 2003

Contrary to popular perception, Russia entered the transition with significant inequality. Using the large Russian Longitudinal Monitoring Survey dataset, we demonstrate that inequality has subsequently risen yet further and by end‐1996 was roughly comparable to inequality in Mexico, Colombia or Malaysia. Driving this increase has been not only wealth transfers through privatization but also changes in government expenditure and a sharp growth in earnings dispersion. There has been a large, associated shift in the structure of income. The paper also looks at the incidence and depth of poverty over the period 1992‐96. At the start of transition, roughly half the population of households fell below the poverty line. While this has subsequently declined, at end‐1996 nearly 40 per cent of households were below the poverty line and a substantial stratum of households were locked in chronic poverty.
The Relationship Between Economic Factors and Equity Markets in Central Europe
Authors: Hanousek Jan , Filer Randall K.
Published: March 2003

This paper investigates the possibility that newly‐emerging equity markets in Central Europe exhibit semi‐strong form efficiency such that no relationship exists between lagged values of changes in economic variables and changes in equity prices. We find that while there are connections between the real economy and equity market returns in Poland and Hungary, these links occur with lags, suggesting the possibility of profitable trading strategies based on public information and rejecting semi‐strong efficiency. For the Czech Republic the situation is more complex. In recent periods, little connection exists between lagged economic variables and equity market returns. Although this finding might be viewed as consistent with semi‐strong efficiency, in fact there is also little connection between current economic values and stock prices in the Czech Republic. Thus, instead of processing information efficiently, the Czech market appears to be entirely divorced from the real world. It is suggested that the difference in the current status of these markets may be due to the different methods by which they were created.
How does foreign direct investment affect economic growth in China?
Authors: Zhang Kevin Honglin
Published: March 2003

How does inward foreign direct investment (FDI) affect a transitional economy? This study attempts to analyze the role of FDI in China’s income growth and market‐oriented transition. We first identify possible channels through which FDI may have positive or negative effects on the Chinese economy. Using a growth model and cross‐section and panel data for the period 1984‐98, we provide an empirical assessment, which suggests that FDI seems to help China’s transition and promote income growth, and that this positive growth effect seems to rise over time and to be stronger in the coastal than the inland regions.

JEL classification: F21, F23, O53.
Implications of reform and WTO accession for China’ agricultural policies
Authors: Martin Will
Published: March 2003

While China’s trade policies in most areas have been transformed in the reform era, trade in many agricultural goods remains under relatively non‐transparent state trading arrangements. Accession to the WTO will be a critical turning point, increasing transparency and introducing disciplines on protection even for the commodities remaining under state trading. While China’s tariff bindings for the most sensitive products seem unlikely to require substantial short‐term reductions in protection, they rule out substantial increases in the future, provide the opportunity to develop an efficient agricultural sector, and highlight the need for effective policies to reduce rural poverty. WTO membership provides an opportunity for China to improve market access opportunities for its agricultural exports, which face much higher barriers than its exports of industrial products.

JEL classification: D58, F13, O13, O56, P33, Q17.
On the determinants of inequality in Bosnia and Herzegovina
Authors: Bisogno Marcelo , Chong Alberto
Published: March 2003

We provide empirical evidence on the determinants of income inequality in Bosnia and Herzegovina after the civil war. To do this, we use a an ordered probit approach and take advantage of the first post‐war household survey for the country which sheds some light on the influence of regional differences as well as household characteristics on income quintile determination. With respect to the former, we find large income differences between the two entities in the country, the Federation and Republika Srpska. Such income differences are also noticeable inside entities. On the latter, there are some signs that education, experience, and employment, among others, may help reduce the probability of income decline. Our results are robust to changes of specification as shown by applying a formal sensitivity analysis.

JEL classification: O15, O10, I30.
Large Shareholdings and Corporate Control: An Analysis of Stake Purchases by French Holding Companies
Authors: Banerjee Saugata , Leleux Benoit , Vermaelen Theo
Published: March 2003

The paper analyses the value creation benefits of the holding form of organisation in France by empirically examining the effects of non‐controlling stake purchases on target shareholder wealth, operational performance and bidder shareholder returns for a sample of 122 stake purchases in French listed companies. The evidence puts into question the ability of holding companies to create value for the firms they purchase stakes in or their own shareholders, adding to the current debate on the relative role played by large shareholders and the external market for corporate control as ultimate disciplining devices.
Optimal Hedging and the Partial Loss Offset Provision
Authors: Briys Eric , De Varenne François
Published: March 2003

In this paper, we examine how taxation affects the optimal hedging behaviour of an investor exposed to price risk under partial loss offset provision. In this regime, only part of the loss is refunded through the tax. As such, it implies a non‐linearity in the taxation schedule. More specifically, we look at an individual endowed with some fixed quantity of a commodity and facing a price risk. The optimal hedging policy is derived. The comparative statics of a tightening of the PLO provision and a changing risk aversion are analysed. We show that the response of the optimal hedging policy to a change in the tax rate can be signed by a preference free or a preference related sufficient condition, involving the notions of cost‐of‐carry and partial risk aversion.
Accounting for the Accuracy of Beta Estimates in CAPM Tests on Assets with Time‐varying Risks
Authors: Berglund Tom , Knif Johan
Published: March 2003

This paper advocates two ways to make more efficient use of available information in reducing the bias of the risk premium estimate in two‐pass tests of the CAPM. First, explicit modelling of the time‐variability of betas can improve the accuracy of the beta forecasts. Second, the cross‐sectional information available can be exploited more efficiently using individual stocks instead of portfolios provided that noisy beta predictions are given a smaller weight than more accurate ones. This paper proposes an adjustment of the cross‐sectional regressions of excess returns against betas to give larger weights to more reliable beta forecasts. A significant positive relationship between returns and the beta forecast is obtained when the proposed approach is applied to data from the Helsinki Stock Exchange, while the traditional Fama–MacBeth approach as such finds no relationship at all.
A one‐factor volatility smile model with closed‐form solutions for European options
Authors: Li Anlong
Published: March 2003

The common practice of using different volatilities for options of different strikes in the Black‐Scholes (1973) model imposes inconsistent assumptions on underlying securities. The phenomenon is referred to as the volatility smile. This paper addresses this problem by replacing the Brownian motion or, alternatively, the Geometric Brownian motion in the Black‐Scholes model with a two‐piece quadratic or linear function of the Brownian motion. By selecting appropriate parameters of this function we obtain a wide range of shapes of implied volatility curves with respect to option strikes. The model has closed‐form solutions for European options, which enables fast calibration of the model to market option prices. The model can also be efficiently implemented in discrete time for pricing complex options.

G1
A multi‐factor model for the risk management of portfolios
Authors: Peterson Sandra , Stapleton Richard C.
Published: March 2003

We propose a methodology for modelling the value at risk of a complex portfolio, based on an extension of the Ho, Stapleton and Subrahmanyam technique. We model the variance‐covariance structure of up to seven variables. These could represent four country indices and three exchange rates, for example. In addition, the effect of an arbitrary number of orthogonal factors can be analysed. The system is illustrated by estimating the value at risk for a portfolio of international stocks where the factors are stock market indices and exchange rates, a portfolio of international bonds where the factors are interest rates as well as exchange rates, and a portfolio of interest rate derivatives in different currencies. In this last case, we model a two‐factor term structure of interest rates in each of the currencies, valuing the derivatives at a future date using these term structures and the Black model. The model is applied for different fineness of the binomial density and computational accuracy and efficiency are estimated.

G13, G15, G21
Is there Value‐Added Information in Liquidity and Risk Premiums?
Authors: Hamon Jacques , Jacquillat Bertrand
Published: March 2003

Size has become a significant factor in explaining returns. According to the size effect, smaller capitalization stocks on average outperform larger capitalization stocks over long periods of time. This paper first documents the traditional size effect on the French market for the 1986–1998 period. It introduces a new proxy for size, free float, which is argued to be the appropriate measure of size and liquidity for most non‐US markets. Evidence is presented of a negative link between historical returns and free float. The link is significant even outside of the month of January, a notable divergence from results obtained on the NYSE. The rest of the paper is an attempt to take advantage of this ‘ex‐post’ phenomenon on an ‘ex‐ante’ basis, with an empirical study of the link between expected return, risk, and liquidity in a sample consisting of the main 150 stocks quoted on the Paris Bourse between January 1986 and January 1998. Liquidity premiums are estimated for portfolios from both a univariate and a multivariate perspective. The paper shows how risk and liquidity premiums can be used separately or in tandem for market timing and asset allocation. In all cases, the use of both premiums together leads to superior performance. Results confirm our measurements of liquidity and liquidity premiums and supply evidence that liquidity premiums together with risk premiums are useful in active asset management.
Similarly traded securities: Greek common vs. preferred stock
Authors: Milonas Nikolaos T.
Published: March 2003

This paper examines the price spread between voting (common) and non‐voting (preferred) stocks during the period 1990–95 for a sample of 55 Greek companies. Because in Greece preferred stocks are not essentially different from common stocks, a number of hypotheses were tested to explain the observed differences. The data reveal an average spread of 27.5% for the entire period which, however, varies across years considerably. In cross‐sectional regressions it was found that the volatility of common stock returns, the liquidity of common shares relative to preferred shares, the ownership concentration, and the minimum dividend yield guaranteed to preferred stockholders explain a significant portion of the spread.
The Optimal Construction of Internationally Diversified Equity Portfolios Hedged Against Exchange Rate Uncertainty
Authors: Larsen, Jr. Glen A. , Resnick Bruce G.
Published: March 2003

Much of the empirical work on hedging exchange rate exposure in portfolios of financial assets has used a unitary hedge ratio, or a currency overlay. Alternatively, the currencies themselves can be treated as assets and the position in them optimized. This study empirically tests whether the ex post results of recent studies, which conclude that currencies should themselves be optimized, stand up under parameter uncertainty. It may very well be that ex ante, when parameter inputs must be estimated from historical data, the attempt to determine the optimal currency weights results in inferior performance in comparison to using a simple unitary hedging strategy, or even unhedged international investment. The results suggest that a local currency return unitary hedging strategy works best in the presence of parameter uncertainty.
Diversification, Ownership and Control of Swedish Corporations
Authors: Doukas John A. , Holmen Martin , Travlos Nickolaos G.
Published: March 2003

We study the short‐ and long‐term valuation effects of Swedish takeovers. Using a sample of 93 bidding firms that acquired 101 targets between 1980 and 1995, we find that diversifying acquisitions lead to a negative market reaction and deterioration of the operating performance of the bidder. Announcement and performance gains in each of the three years following the acquisition occur only when bidders expand their core rather than their peripheral lines of business. Our findings suggest that focused acquisitions lead to greater synergies and operating efficiencies than diversifying acquisitions. Intra‐group acquisitions, however, show that bidders do not realise significant gains whether they adopt diversifying or focusing investment strategies by purchasing firms controlled by the Wallenberg and SHB conglomerate groups. Intra‐group targets realize significant gains regardless bidder’s investment strategy. Finally, the evidence does not support the view that intra‐conglomerate acquisitions are associated with expropriation of minority shareholders. However, they appear to enhance the control rights of large shareholders of the bidding firm.
The True Judge of Beauty and the Paradox of Taste
Authors: Gaiger Jason
Published: March 2003

This paper addresses two key works in the eighteenth‐century debate on the problem of taste: the Abbé Du Bos's Réflexions critiques sur la poésie et sur la peinture (1719) and David Hume's ‘Of the Standard of Taste’ (1757). A successful solution to the ‘paradox of taste’ should sustain the democratising impulse behind Du Bos's appeal to the judgment of the ‘public’ whilst, at the same time, acknowledging the role of learning and discovery which underpins Hume's recourse to the opinion of the best qualified critics. This can be achieved, it is argued, by taking up a standpoint which is internal to our actual arguments or disputes about art, drawing upon and recommending a set of practices which allow for the development and revision of our judgments about works of art.
Law's Polyarchy: A Comment on Cohen and Sabel
Authors: Gerstenberg Oliver
Published: March 2003

This comment links Cohen/Sabels' idea of a ‘directly‐deliberative polyarchy’ to the contemporary debate on the deficit in democratic legitimation of the European Union. Within this constitutional‐legal debate the conventional options are either to defend a vision of the EU which separates global economic law from national sovereignty, and thus relies on the legitimising powers of free markets, or to regard the legitimation problem (at least under present conditions) as beyond solution: that is to say that any further progress towards an ‘ever closer union’ would inevitably increase the legitimation deficit, and to suggest that the capacity for political action of the nation state should be protected or restored. This comment seeks to show that the concept of a ‘directly‐deliberative polyarchy’ offers an attractive alternative to these traditional positions because it breaks the stranglehold of the false dichotomy ‘global market vs national democracy’ and thus permits an extension of the idea of radical democracy to European Supranationalism.
A Constitution for Antidiscrimination: Exploring the Vanguard Moment of Community Law
Authors: Somek Alexander
Published: March 2003

It is a commonplace that ‘non‐discrimination’ is a fundamental principle of Community Law. If the principle is taken to express a broader commitment to equality, however, there appears to be something quite unusual about it. When compared with the standards set by modern constitutional law, the commitment to equality is, at least with respect to Member State action, less extensive; in the context of indirect gender discrimination, however, the principle acquires remarkable scope. Although this ‘vanguard moment’ of Community Law is tacitly acknowledged in the practice of the ECJ, it is, at the same time, subdued; the resources of the principle might be tapped, however, by moving toward a constitution for antidiscrimination. The article explores both the philosophical presuppositions and the institutional context of what could become a constitutionalisation of antidiscrimination at the level of Community Law.
The Institutionalised Participation of Management and Labour in the Legislative Activities of the European Community: A Challenge to the Principle of Democracy under Community Law
Authors: Britz Gabriele , Schmidt Marlene
Published: March 2003

The legislative procedure established by Articles 138‐139 of the Amsterdam Treaty is sensitive with regard to democratic prerequisites, but does not, in the final analysis, breach the formal principle of democracy established under Community law. Although the establishment of a parliamentary right of consultation is desirable, sufficient democratic legitimation is nonetheless supplied by virtue of Council and Commission participation within the legislative procedure and by their unlimited right to examine and reject substantive provisions designed by management and labour. By the same measure, the participation of management and labour in the Articles 138‐139 legislative process is not of itself sufficient to create democratic legitimation. However, although management and labour organisations might never claim to represent the public of Europe as a whole, they can contribute to the ‘substantive’ legitimacy of European social law‐making where they are adequately representative of persons and groups affected by EC legislative acts and take positive steps to ensure that the interests of such persons are reflected in secondary EC law. Accordingly, the Commission and the Council should review the representative nature of organisations engaged in European social law‐making, paying particular attention to under‐represented interests and, if necessary, should also make use of their right of rejection where privately negotiated agreements neglect these interests.
Exceptions to Article 226: Alternative Administrative Procedures and the Pursuit of Member States
Authors: Ibáñez Alberto J. Gil
Published: March 2003

This article considers the procedures used in EC law to prosecute infringements committed by Member States, in addition to the well‐known Article 226 (ex Article 169) EC. It has three purposes. The first is to systematise the main categories of these, to examine the reasons for the creation of these procedures and the interaction among them, using Article 226 as the main point of reference. The basic criterion is the distinction between procedures established by the EC Treaty and procedures established by secondary legislation but without a clear legal basis in the Treaty. The second purpose is to explain why Member States have accepted the development of new procedures, even though they serve to reinforce the Commission's powers. The article argues that this acceptance can be explained, first, by the active participation of Member States, through committees, in the establishment of these procedures; and, secondly, a deliberate strategy to convince Member States, on both a sectoral basis, and a case‐by‐case basis, by the Commission. The article concludes, however, that the current procedures should be improved and that it is time for them to be realigned and rationalised.
New Regulatory Approaches in ‘Greening’ EU Policies
Authors: Lenschow Andrea
Published: March 2003

European environmental policy has been long characterised by traditional regulatory policy approaches. In recent years, however, the EU has begun experimenting with new forms of governance. In particular, the task of environmental policy integration (EPI) into sectoral policies has invited more flexible and participatory regulatory forms, emphasising at the same time the role of procedural guidance. This article traces the history of the EPI principle and links its effectiveness to specific governance characteristics. It argues that effective EPI is dependent on a combination of political leadership and public participation. While both terms appear in the EU’s vocabulary on sustainable development and new governance, the EU is only slowly finding the appropriate forms to put them into practice. Coming from a tradition of governance by political élites, EU policy‐makers are still relying too naïvely on the mobilisation capabilities of societal groups and on the power of ‘good ideas’.
A New Framework on Equal Treatment of Persons in EC Law?
Authors: Schiek Dagmar
Published: March 2003

In June and November 2000, the European Parliament and the Council adopted two Directives referring to ‘the principle of equal treatment irrespective of’ in their title, one relating to racial and ethnic origin, the other to disability, age, religion and belief or sexual orientation. A thorough reform of Directive 76/207/EEC on the principle of equal treatment for women and men in employment matters is pending between the European Parliament's second reading and adoption while this is written. Community secondary legislation on equal treatment of persons has thus expanded in scope and number of reasons which must not serve as starting points for differentiation. Does this signify progress in legal protection against personal discrimination? While not providing a ready answer, this article proposes an analytical framework to answer this question, concentrating on conceptions of equality in general and in particular on the problems multi‐dimensional discrimination might pose for the law.
Knowledge representation in an activated sludge plant diagnosis system
Authors: Vouros George A. , Pantelakis Ioannis S. , Lekkas Themistoklis D.
Published: March 2003

This paper focuses on the knowledge representation framework utilized by an integrated wastewater treatment expert system for diagnosing operational problems of an activated sludge plant. The system deals with events that may occur in all the units of an activated sludge plant and exploits on‐line measurements, observations formed from data provided by laboratory analyses and empirical observations in an integrated manner. The system provides assistance to human experts to control the activated sludge process. It has been tested and evaluated in the pilot activated sludge plant of the Water and Air Quality Laboratory in the University of the Aegean.
A metagenetic algorithm for information filtering and collection from the World Wide Web
Authors: Zacharis Z.N. , Panayiotopoulos T.
Published: March 2003

This paper describes the implementation of evolutionary techniques for information filtering and collection from the World Wide Web. We consider the problem of building intelligent agents to facilitate a person's search for information on the Web. An intelligent agent has been developed that uses a metagenetic algorithm in order to collect and recommend Web pages that will be interesting to the user. The user's feedback on the agent's recommendations drives the learning process to adapt the user's profile with his/her interests. The software agent utilizes the metagenetic algorithm to explore the search space of user interests. Experimental results are presented in order to demonstrate the suitability of the metagenetic algorithm's approach on the Web.
Fuzzy torque distribution control for a parallel hybrid vehicle
Authors: Won Jong‐Seob , Langari Reza
Published: March 2003

A fuzzy torque distribution controller for energy management (and emission control) of a parallel hybrid electric vehicle is proposed. The proposed controller is implemented in terms of a hierarchical architecture which incorporates the mode of operation of the vehicle as well as empirical knowledge of energy flow in each mode. Moreover, the rule set for each mode of operation of the vehicle is designed in view of an overall energy management strategy that ranges from maximal emphasis on battery charge sustenance to complete reliance on the electrical power source. The proposed control system is evaluated via computational simulations under the FTP75 urban drive cycle. Simulation results reveal that the proposed fuzzy torque distribution strategy is effective over the entire operating range of the vehicle in terms of performance, fuel economy and emissions.
Fuzzy predictive PI control for processes with large time delays
Authors: Ranganathan Rayanallur S. , Malki Heidar A. , Chen Guanrong
Published: March 2003

This paper presents the design, tuning and performance analysis of a new predictive fuzzy controller structure for higher order plants with large time delays. The designed controller consists of a fuzzy proportional‐integral (PI) part and a fuzzy predictor. The fuzzy predictive PI controller combines the advantages of fuzzy control while maintaining the simplicity and robustness of a conventional PI controller. The dynamics of the prediction term are adaptive to the system’s time delay. The prediction term has two parts: a fuzzy predictor that uses the system time delay as an input for calculating the prediction horizon and an exponential term that uses the prediction horizon as its positive power. The prediction term also introduces phase lead into the system which compensates for the phase lag due to the time delay in the plant, thereby stabilizing the closed‐loop configuration. The performance of the proposed controller is compared with the responses of the conventional predictive PI controller, showing many advantages of the new design over its conventional counterpart.
Size and Administration Costs in the Voluntary Sector: A Note
Authors: Wise David E.
Published: March 2003

Despite the recent major changes to regulation of the voluntary sector as a result of the Charities Acts 1992 and 1993 the independent Commission on the Future of the Voluntary Sector has now suggested further major changes in the definition and control of the sector. This paper looks at the growth of registered charities during this decade compared with the decline in the number of registered companies and examines evidence on economies of scale in the charities. Possibly charities should be encouraged to promote mergers and acquisitions as a means to greater efficiencies in charitable activity.
Debating Developments in New Public Financial Management: The Limits of Global Theorising and Some New Ways Forward
Authors: Guthrie James , Olson Olov , Humphrey Christopher
Published: March 2003

This article provides an overview of the key findings and reflections of a detailed, two year comparative study examining experiences with, and without, New Public Financial Management (NPFM) reforms in eleven different countries. The study highlights the problems of trying to explain such developments through simplistic explanatory variables and emphasises the need for alternative modes of analysis more closely rooted in the different national traditions and values associated with the provision of public services.