Applying fuzzy logic to comparative distribution modelling: a case study with two sympatric amphibians.

We modelled the distributions of two toads (Bufo bufo and Epidalea calamita) in the Iberian Peninsula using the favourability function, which makes predictions directly comparable for different species and allows fuzzy logic operations to relate different models. The fuzzy intersection between individual models, representing favourability for the presence of both species simultaneously, was compared with another favourability model built on the presences shared by both species. The fuzzy union between individual models, representing favourability for the presence of any of the two species, was compared with another favourabilitymodel based on the presences of either or both of them. The fuzzy intersections between favourability for each species and the complementary of favourability for the other (corresponding to the logical operation “A and not B”) were compared with models of exclusive presence of one species versus the exclusive presence of the other. The results of modelling combined species data were highly similar to those of fuzzy logic operations between individual models, proving fuzzy logic and the favourability function valuable for comparative distribution modelling. We highlight several advantages of fuzzy logic over other forms of combining distribution models, including the possibility to combine multiple species models for management and conservation planning.

The EU ban on uncovered sovereign credit default swaps: assessing impacts on liquidity, volatility and price discovery

This article addresses the effects of the prohibition against naked CDS buying implemented by the European Union in November 2012. Three aspects of market quality are analyzed: liquidity, volatility, and price informativeness. Overall, our results suggest that the ban produced negative effects on liquidity and price informativeness. First, we find that in territories within the scope of the EU regulation, the bid–ask spreads on sovereign CDS contracts rose after the ban, but fell for countries outside its bounds. Open interest declined for both groups of CDS reference entities in our sample, but significantly more in the constraint group. Price delay increased more prominently for countries affected by the ban, whereas price precision decreased for these countries while increasing for CDSs written on other sovereign reference entities. Most notably, our findings indicate that hese negative effects were more pronounced amid reference entities exhibiting lower credit risk. With respect to volatility, the evidence suggests that the ban was successful in stabilizing the CDS market in that volatility decreased, particularly for contracts written on riskier CDS entities.