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Main Insights (main + insight)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting75%

Selected Abstracts

AN EQUILIBRIUM GUIDE TO DESIGNING AFFINE PRICING MODELS

MATHEMATICAL FINANCE, Issue 4 2008
Bjørn Eraker
The paper examines equilibrium models based on Epstein,Zin preferences in a framework in which exogenous state variables follow affine jump diffusion processes. A main insight is that the equilibrium asset prices can be computed using a standard machinery of affine asset pricing theory by imposing parametric restrictions on market prices of risk, determined inside the model by preference and model parameters. An appealing characteristic of the general equilibrium setup is that the state variables have an intuitive and testable interpretation as driving the consumption and dividend dynamics. We present a detailed example where large shocks (jumps) in consumption volatility translate into negative jumps in equilibrium prices of the assets as agents demand a higher premium to compensate for higher risks. This endogenous "leverage effect," which is purely an equilibrium outcome in the economy, leads to significant premiums for out-of-the-money put options. Our model is thus able to produce an equilibrium "volatility smirk," which realistically mimics that observed for index options. [source]

THE ECONOMICS OF FISCAL DECENTRALIZATION

JOURNAL OF ECONOMIC SURVEYS, Issue 4 2010
Duc Hong Vo
Abstract There is no complete overview or discussion of the literature of the economics of federalism and fiscal decentralization, even though scholarly interest in the topic has been increasing significantly over recent years. This paper provides a general, brief but comprehensive overview of the main insights from the literature on fiscal federalism and decentralization. In doing so, literature on fiscal federalism and decentralization is grouped into two main approaches: ,first generation approach' and ,an emerging second generation approach'. The discussion generally covers the two notions of fiscal decentralization: ,fiscal autonomy' and ,fiscal importance' of subnational governments as the background of the most recently developed index of fiscal decentralization in Vo. The relevance of this discussion to any further development of a fiscal decentralization index is briefly noted. [source]

A sigmoidal transcriptional response: cooperativity, synergy and dosage effects

BIOLOGICAL REVIEWS, Issue 1 2003
REINER A. VEITIA
ABSTRACT A sigmoidal transcriptional response (STR) is thought to act as amolecular switch to control gene expression. This nonlinear behaviour arises as a result of the cooperative recognition of a promoter/enhancer by transcription factors (TFs) and/or their synergy to attract the basal transcriptional machinery (BTM). Although this cooperation between TFs is additive in terms of energy, it leads to an exponential increase in affinity between the BTM and the pre-initiation complexes. This exponential increase in the strength of interactions is the principle that governs synergistic systems. Here, I propose a minimalist quasi-equilibrium model to explore qualitatively the STR taking into account cooperative recognition of the promoter/enhancer and synergy. Although the focus is on the effect of activators, a similar treatment can be applied to inhibitors. One of the main insights obtained from the model is that generation of a sigmoidal threshold is possible even in the absence of cooperative DNA binding provided the TFs synergistically interact with the BTM. On the contrary, when there is cooperative binding, the impact of synergy diminishes. It will also be shown that a sigmoidal response to a morphogenetic gradient can be used to generate a nested gradient of another morphogen. Previously, I had proposed that halving the amounts of TFs involved in sigmoidal transcriptional switches could account for the abnormal dominant phenotypes associated with some of these genes. This phenomenon, called haploinsufficiency (HI), has been recognised as the basis of many human diseases. Although a formal proof linking HI and a sigmoidal response is lacking, it is tempting to explore the model from the perspective of dosage effects. [source]

Making the Business School More ,Critical': Reflexive Critique Based on Phronesis as a Foundation for Impact

BRITISH JOURNAL OF MANAGEMENT, Issue 2010
Elena P. Antonacopoulou
This paper explores how the business school can become more critical by advancing the notion of reflexive critique. Drawing on diverse literatures propounding a critical perspective, this paper integrates the various interpretations of ,what it is to be critical' and proposes phronesis as a foundation for responding to and extending the relevance and rigour debate by articulating what it means for business schools to have a critical impact on management practice. A phronetic analysis of management education provides an innovative lens for understanding the power of critique in engaging academics and business practitioners in the co-creation of knowledge. This is illustrated by distilling the main insights from the experience of introducing an innovative course entitled ,Critical Thinking' offered to MBA students over a five-year period. The paper discusses the importance of critique in the business curriculum and explains the rationale for introducing the course and its objectives, as well as the learning and teaching techniques employed. The analysis considers how reflexive critique can be a platform for integrating a critical analysis of management informed by management research and academic thinking in relation to business practitioners' practical experiences of managing. The paper concludes with a review of the main lessons learned and the implications for future initiatives intended to foster engagement of theory and practice and the collaboration of academics and business practitioners. [source]