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Volatile Markets (volatile + market)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	50%

Selected Abstracts

Who Blinks in Volatile Markets, Individuals or Institutions?

THE JOURNAL OF FINANCE, Issue 5 2002
Patrick J. Dennis
We investigate the relationship between the ownership structure and returns of firms on days when the absolute value of the market's return is two percent or more. We find that a firm's abnormal return on these days is related to the percentage of institutional ownership, that there is abnormally high turnover in the firm's shares on these days, and that this abnormal turnover is significantly related to the percentage of institutional ownership in the firm. Taken together, these results are consistent with positive feedback herding behavior on the part of some institutions, particularly mutual and pension funds. [source]

Export market correlation and strategic trade policy

CANADIAN JOURNAL OF ECONOMICS, Issue 1 2000
Mahmudul Anam
In the traditional models of strategic trade policy pioneered by Brander and Spencer, exports of the domestic firm, engaged in a Cournot-Nash competition with the foreign firm in a neutral market, must be subsidized to maximize national welfare. We demonstrate that when the firms play the Cournot-Nash game in two stochastic and positively correlated markets, it may be optimal to tax exports to the more volatile market while subsidizing it in the other. The policy combination reduces the amplitude of aggregate profit and raises the utility of the risk-averse firm in a manner similar to the theory of portfolio choice. JEL Classification: F12, D18 Marchés d'exportation co-reliés et politique commerciale stratégique. Dans les modèles traditionnels de politique commerciale stratégique proposés par Brander et Spencer, les exportations de la firme nationale, qui est engagée dans une concurrence à la Cournot-Nash avec une firme étrangère dans un marché neutre, doit être subventionnée si l'on veut maximiser le niveau national de bien-être. On montre que, quand les entreprises jouent un jeu à la Cournot-Nash dans deux marchés d'exportation stochastiques et positivement co-reliés, il peut être optimal de taxer les exportations vers le marché le plus volatile et de subventionner les exportations vers l'autre marché. Cette combinaison de politiques réduit l'amplitude de variation des profits agrégés et augmente l'utilité de l'entreprise qui a une aversion au risque d'une manière qui ressemble à ce qui se passe dans la théorie des choix de portefeuilles. [source]

Alternative technologies for biotechnological fuel ethanol manufacturing

JOURNAL OF CHEMICAL TECHNOLOGY & BIOTECHNOLOGY, Issue 8 2007
Alain A Vertès
Abstract The challenges of implementing biorefineries on a global scale include socioeconomic, financial, and technological constraints. In particular, the development of biorefineries is tightly linked to the continued availability of fermentation raw materials. These constraints can be relaxed by the use of diverse raw materials, while advances that confer higher flexibility would enable biotechnological plant managers to swiftly react to volatile markets. In conventional processes, Saccharomyces cerevisiae grows on a relatively limited range of substrates, and produces only a single product,ethanol. Given the observed maturity of the S. cerevisiae fermentation technology, alternatives to baker's yeast may be needed to tip the economic balance in favour of biotechnological ethanol. These alternative fermentation technologies may allow a greater diversity of substrates to be used to produce an individually tailored mix of ethanol and other chemicals. Copyright © 2007 Society of Chemical Industry [source]

Natural resources and ,gradual' reform in Uzbekistan and Turkmenistan

NATURAL RESOURCES FORUM, Issue 4 2003
Richard Auty
Abstract Among low-income transition reformers, natural resource rents are an important initial condition that helps explain choice of reform strategy. Resource-rich Uzbekistan and Turkmenistan and resource-poor China and Vietnam all claim to pursue gradual reform, but their strategies differ. In China and Vietnam, low resource rents have nurtured developmental political conditions and encouraged efficient resource use, which initially promoted agriculture as a dynamic market sector, capable of absorbing labour from the lagging state sector. In contrast, the scale and ease of natural resource rent extraction in the Central Asian countries has consolidated authoritarian governments that postpone reform. Despite high energy rents, Uzbekistan and Turkmenistan still extract agricultural rents in ways that repress farm incentives, perpetuate environmental degradation and liquidate irrigation assets. Uzbekistan uses its rents to subsidize a manufacturing sector, that is neither dynamic nor competitive. As its dynamic sector, Turkmenistan promotes natural gas exports that depend on volatile markets. Resource-driven development models suggest that reform is required in both countries to avert a growth collapse. Turkmenistan's large energy rent-stream may postpone a collapse for some years, but Uzbekistan's position is already precarious: it has run down its rural infrastructure and accumulated sizeable foreign debts and will require external assistance to recover from a growth collapse. Such assistance should be made conditional on accelerated economic and political reform. [source]