Parametric & nonparametric approaches to event studies: an application to a hotel’s market value

The main objective of this paper is twofold: on the one hand, to analyse the impact that the announcement of the opening of a new hotel has on the performance of its chain by carrying out an event study, and on the other hand, to compare the results of two different approaches to this method: a parametric specification based on the autoregressive conditional heteroskedasticity models to estimate the market model, and a nonparametric approach, which implies employing Theil’s nonparametric regression technique, which in turn, leads to the so-called complete nonparametric approach to event studies. The results that the empirical application arrives at are noteworthy as, on average, the reaction to such news releases is highly positive, both approaches reaching the same level of significance. However, a word of caution must be said when one is not only interested in detecting whether the market reacts, but also in obtaining an exhaustive calculation of the abnormal returns to further examine its determining factors.

Delineating zones to increase geographical detail in individual response data files: An application to the Spanish 2011 Census of population

Due to confidentiality considerations, the microdata available from the 2011 Spanish Census have been codified at a provincial (NUTS 3) level except when the municipal (LAU 2) population exceeds 20,000 inhabitants (a requirement that is met by less than 5% of all municipalities). For the remainder of the municipalities within a given province, information is only provided for their classification in wide population intervals. These limitations, hampering territorially-focused socio-economic analyses, and more specifically, those related to the labour market, are observed in many other countries. This article proposes and demonstrates an automatic procedure aimed at delineating a set of areas that meet such population requirements and that may be used to re-codify the geographic reference in these cases, thereby increasing the territorial detail at which individual information is available. The method aggregates municipalities into clusters based on the optimisation of a relevant objective function subject to a number of statistical constraints, and is implemented using evolutionary computation techniques. Clusters are defined to fit outer boundaries at the level of labour market areas.