Oil Market Modelling: A Comparative Analysis of Fundamental and Latent Factor Approaches

We formally compare fundamental factor and latent factor approaches to oil price modelling. Fundamental modelling has a long history in seeking to understand oil price movements, while latent factor modelling has a more recent and limited history, but has gained popularity in other financial markets. The two approaches, though competing, have not formally been compared as to effectiveness. For a range of short- medium- and long-dated WTI oil futures we test a recently proposed five-factor fundamental model and a Principal Component Analysis latent factor model. Our findings demonstrate that there is no discernible difference between the two techniques in a dynamic setting. We conclude that this infers some advantages in adopting the latent factor approach due to the difficulty in determining a well specified fundamental model.

Semantic feature-based visual attention model for pedestrian detection

Objective
Pedestrian detection under video surveillance systems has always been a hot topic in computer vision research. These systems are widely used in train stations, airports, large commercial plazas, and other public places. However, pedestrian detection remains difficult because of complex backgrounds. Given its development in recent years, the visual attention mechanism has attracted increasing attention in object detection and tracking research, and previous studies have achieved substantial progress and breakthroughs. We propose a novel pedestrian detection method based on the semantic features under the visual attention mechanism.
Method
The proposed semantic feature-based visual attention model is a spatial-temporal model that consists of two parts: the static visual attention model and the motion visual attention model. The static visual attention model in the spatial domain is constructed by combining bottom-up with top-down attention guidance. Based on the characteristics of pedestrians, the bottom-up visual attention model of Itti is improved by intensifying the orientation vectors of elementary visual features to make the visual saliency map suitable for pedestrian detection. In terms of pedestrian attributes, skin color is selected as a semantic feature for pedestrian detection. The regional and Gaussian models are adopted to construct the skin color model. Skin feature-based visual attention guidance is then proposed to complete the top-down process. The bottom-up and top-down visual attentions are linearly combined using the proper weights obtained from experiments to construct the static visual attention model in the spatial domain. The spatial-temporal visual attention model is then constructed via the motion features in the temporal domain. Based on the static visual attention model in the spatial domain, the frame difference method is combined with optical flowing to detect motion vectors. Filtering is applied to process the field of motion vectors. The saliency of motion vectors can be evaluated via motion entropy to make the selected motion feature more suitable for the spatial-temporal visual attention model.
Result
Standard datasets and practical videos are selected for the experiments. The experiments are performed on a MATLAB R2012a platform. The experimental results show that our spatial-temporal visual attention model demonstrates favorable robustness under various scenes, including indoor train station surveillance videos and outdoor scenes with swaying leaves. Our proposed model outperforms the visual attention model of Itti, the graph-based visual saliency model, the phase spectrum of quaternion Fourier transform model, and the motion channel model of Liu in terms of pedestrian detection. The proposed model achieves a 93% accuracy rate on the test video.
Conclusion
This paper proposes a novel pedestrian method based on the visual attention mechanism. A spatial-temporal visual attention model that uses low-level and semantic features is proposed to calculate the saliency map. Based on this model, the pedestrian targets can be detected through focus of attention shifts. The experimental results verify the effectiveness of the proposed attention model for detecting pedestrians.

Irish Credit Unions: Differential Regulation based on Business Model Complexity

This study examines the business model complexity of Irish credit unions using a latent class approach to measure structural performance over the period 2002 to 2013. The latent class approach allows the endogenous identification of a multi-class framework for business models based on credit union specific characteristics. The analysis finds a three class system to be appropriate with the multi-class model dependent on three financial viability characteristics. This finding is consistent with the deliberations of the Irish Commission on Credit Unions (2012) which identified complexity and diversity in the business models of Irish credit unions and recommended that such complexity and diversity could not be accommodated within a one size fits all regulatory framework. The analysis also highlights that two of the classes are subject to diseconomies of scale. This may suggest credit unions would benefit from a reduction in scale or perhaps that there is an imbalance in the present change process. Finally, relative performance differences are identified for each class in terms of technical efficiency. This suggests that there is an opportunity for credit unions to improve their performance by using within-class best practice or alternatively by switching to another class.