Stock market integration between new EU member states and the Euro-zone

This paper measures the degree in stock market integration between five Eastern European countries and the Euro-zone. A potentially gradual transition in correlations is accommodated by smooth transition conditional correlation models. We find that the correlation between stock markets has increased from 2001 to 2007. In particular, the Czech and Polish markets show a higher correlation to the Euro-zone. However, this is not a broad-based phenomenon across Eastern Europe. We also find that the increase in correlations is not a reflection of a world-wide phenomenon of financial integration but appears to be specific to the European market. JEL classifications: C32; C51; F36; G15 Keywords: Multivariate GARCH; Smooth Transition Conditional Correlation; Stock Return Comovement; New EU Members.

The Monetary policy rules in EU-15: before and after the euro

The objective of this paper is to identify empirically the logic behind short-term interest rates setting

Existence and uniqueness of viscosity solution for Hamilton-Jacobi equation with discontinuous coefficients dependent on time

The main result is a proof of the existence of a unique viscosity solution for Hamilton-Jacobi equation, where the hamiltonian is discontinuous with respect to variable, usually interpreted as the spatial one. Obtained generalized solution is continuous, but not necessarily differentiable.

An approximate solution method for boundary layer flow of a power law fluid over a flat plate

The work in this paper deals with the development of momentum and thermal boundary layers when a power law fluid flows over a flat plate. At the plate we impose either constant temperature, constant flux or a Newton cooling condition. The problem is analysed using similarity solutions, integral momentum and energy equations and an approximation technique which is a form of the Heat Balance Integral Method. The fluid properties are assumed to be independent of temperature, hence the momentum equation uncouples from the thermal problem. We first derive the similarity equations for the velocity and present exact solutions for the case where the power law index n = 2. The similarity solutions are used to validate the new approximation method. This new technique is then applied to the thermal boundary layer, where a similarity solution can only be obtained for the case n = 1.

An axiomatic characterization of the strong constrained egalitarian solution

In this paper we axiomatize the strong constrained egalitarian solution (Dutta and Ray, 1991) over the class of weak superadditive games using constrained egalitarianism, order-consistency, and converse order-consistency. JEL classification: C71, C78. Keywords: Cooperative TU-game, strong constrained egalitarian solution, axiomatization.

More than cheap talk? Euro-Mediterranean cooperation on human rights and democracy

Malgrat els esforços de la UE en la promoció de la democràcia i un compromís comú per la democràcia i els drets humans al EMP, no hi ha signes de convergència cap al model liberal democràtic propugnat per la UE. No obstant això, l'abast i la intensitat de la cooperació multilateral, transnacional i bilateral han augmentat constantment en tota la regió des de mitjans de 1990. La cooperació en el camp de la promoció de la democràcia es caracteritza per la forta dinàmica de normativa sectorial, i la diferenciació geogràfica, però està clarament situada en un marc regional i altament estandarditzat. Si bé la convergència política o la política sembla poc probable en el curt o mitjà termini, democràcia i drets humans estan fermament establerts en una agenda regional comú

Évaluation des Conférences ministérielles euro-méditerranéennes de Valence, Crète, Naples et Dublin

La Conférence inaugurale de Barcelone a marqué, en novembre 1995, le début d'un long processus de rapprochement et de solidarité entre 27 partenaires (35 pays depuis le 1er mai 2004 et 37 à moyen terme). Cette initiative est censée revêtir un caractère permanent et évolutif sous l'angle institutionnel. De par sa dimension stratégique, le Processus de Barcelone, ci-après Processus, constitue l'instrument le plus important et le plus concret pour le dialogue et la coopération entre l'Union européenne (UE), ses Etats membres et les partenaires méditerranéens2. Pour être efficace, et pas uniquement rhétorique ou virtuel, le Partenariat euro-méditerranéen, ci-après Partenariat, doit se bâtir sur des valeurs universelles, capables de garantir un minimum de cohérence et de crédibilité à un projet extrêmement complexe, fragile et, par sa propre nature, constamment menacé de paralysie. En effet, il n'est pas toujours aisé de faire prévaloir des actions à caractère centripète aux tentations et tendances centrifuges qui caractérisent la région. Les changements et les événements exceptionnels survenus récemment, tant dans le domaine international qu'au sein de l'Union, ont rendu nécessaires l'approfondissement et le renforcement institutionnel des relations euro-méditerranéennes. Le Processus est appelé à se consolider d'urgence, pour être compris et accepté par une opinion publique de plus en plus sceptique et déconcertée par l'actualité internationale. La récente création de l'Assemblée parlementaire euro-méditerranéenne (APEM) - qui sera dotée de trois commissions permanentes3 - et la constitution prochaine à Alexandrie de la Fondation Euromed pour le dialogue entre les cultures et les civilisations, représentent des réponses logiques et encourageantes à cet état d'esprit plus ou moins généralisé

Possible solution of some essential zero problems in compositional data analysis

One of the tantalising remaining problems in compositional data analysis lies in how to deal with data sets in which there are components which are essential zeros. By anessential zero we mean a component which is truly zero, not something recorded as zero simply because the experimental design or the measuring instrument has not been sufficiently sensitive to detect a trace of the part. Such essential zeros occur inmany compositional situations, such as household budget patterns, time budgets,palaeontological zonation studies, ecological abundance studies. Devices such as nonzero replacement and amalgamation are almost invariably ad hoc and unsuccessful insuch situations. From consideration of such examples it seems sensible to build up amodel in two stages, the first determining where the zeros will occur and the secondhow the unit available is distributed among the non-zero parts. In this paper we suggest two such models, an independent binomial conditional logistic normal model and a hierarchical dependent binomial conditional logistic normal model. The compositional data in such modelling consist of an incidence matrix and a conditional compositional matrix. Interesting statistical problems arise, such as the question of estimability of parameters, the nature of the computational process for the estimation of both the incidence and compositional parameters caused by the complexity of the subcompositional structure, the formation of meaningful hypotheses, and the devising of suitable testing methodology within a lattice of such essential zero-compositional hypotheses. The methodology is illustrated by application to both simulated and real compositional data

The Distant neighbors — EU, Middle East, North Africa and the Euro-Mediterranean Partnership

The Barcelona Euro-Mediterranean Conference (1995) was intended to be a launching pad" for creating a new, innovative relationship between the EU-Fifteen and a selected set of non-member Middle Eastern and North African countries. The Barcelona Process was to become the European Union´s first attempt, of several, to create postmodern inclusive policy spheres as a way to deal with the post-enlargement problems of ´ins´ and outs´ in its immediate periphery. Nevertheless, in spite of geographical proximity, common problems and stated interest in creating amorphous EU borders in different sectors, the Euro-Mediterranean Partnership is today all but abandoned. This paper will examine some of the factors behind the current degeneration of the EU´s post-bipolar foreign policy strategy in the Mediterranean, by exploring the dialectic between the Union´s desire to expand its geopolitical, economic and cultural boundaries and the need to secure its territorial area (from migration, proliferation, social instability etc.). In the final part of the paper some suggestions for how to revive the relationship across the Mare Nostrum will be forwarded.

Analysis and Design of a secure WLAN solution for Cobre Las Cruces

Cobre Las Cruces is a renowned copper mining company located in Sevilla, with unexpected problems in wireless communications that have a direct affectation in production. Therefore, the main goals are to improve the WiFi infrastructure, to secure it and to detect and prevent from attacks and from the installation of rogue (and non-authorized) APs. All of that integrated with the current ICT infrastructure.This project has been divided into four phases, although only two of them have been included into the TFC; they are the analysis of the current situation and the design of a WLAN solution.Once the analysis part was finished, some weaknesses were detected. Subjects such as lack of connectivity and control, ignorance about installed WiFi devices and their localization and state and, by and large, the use of weak security mechanisms were some of the problems found. Additionally, due to the fact that the working area became larger and new WiFi infrastructures were added, the first phase took more time than expected.As a result of the detailed analysis, some goals were defined to solve and it was designed a centralized approach able to cope with them. A solution based on 802.11i and 802.1x protocols, digital certificates, a probe system running as IDS/IPS and ligthweight APs in conjunction with a Wireless LAN Controller are the main features.

Intramolecular basis set superposition error effects on the planarity of benzene and other aromatic molecules: A solution to the problem

Recently, the surprising result that ab initio calculations on benzene and other planar arenes at correlated MP2, MP3, configuration interaction with singles and doubles (CISD), and coupled cluster with singles and doubles levels of theory using standard Pople’s basis sets yield nonplanar minima has been reported. The planar optimized structures turn out to be transition states presenting one or more large imaginary frequencies, whereas single-determinant-based methods lead to the expected planar minima and no imaginary frequencies. It has been suggested that such anomalous behavior can be originated by two-electron basis set incompleteness error. In this work, we show that the reported pitfalls can be interpreted in terms of intramolecular basis set superposition error (BSSE) effects, mostly between the C–H moieties constituting the arenes. We have carried out counterpoise-corrected optimizations and frequency calculations at the Hartree–Fock, B3LYP, MP2, and CISD levels of theory with several basis sets for a number of arenes. In all cases, correcting for intramolecular BSSE fixes the anomalous behavior of the correlated methods, whereas no significant differences are observed in the single-determinant case. Consequently, all systems studied are planar at all levels of theory. The effect of different intramolecular fragment definitions and the particular case of charged species, namely, cyclopentadienyl and indenyl anions, respectively, are also discussed

Has the Euro-Mediterranean partnership affected Mediterranean business cycles?

We date turning points of the reference cycle for 19 Mediterranean countries andanalyze their structure and interdependences. Fluctuations are volatile and not highlycorrelated across countries; recessions are deep but asynchronous making average outputlosses in the area limited. Heterogeneities across countries and regions are substantial.Mediterranean cycles are time varying but their evolution is not linked withthe Euro-Mediterranean partnership process. The concordance of cyclical fluctuationsis poorly related to trade and financial linkages and to their evolution over time.

Designing institutions for financial stability: Regulation and supervision by objective for the Euro area

In this paper, we discuss pros and cons ofdifferent models for financial market regulationand supervision and we present a proposal forthe re-organisation of regulatory and supervisoryagencies in the Euro Area. Our arguments areconsistent with both new theories and effectivebehaviour of financial intermediaries inindustrialized countries. Our proposed architecturefor financial market regulation is based on theassignment of different objectives or "finalities"to different authorities, both at the domesticand the European level. According to thisperspective, the three objectives of supervision- microeconomic stability, investor protectionand proper behaviour, efficiency and competition- should be assigned to three distinct Europeanauthorities, each one at the centre of a Europeansystem of financial regulators and supervisorsspecialized in overseeing the entire financialmarket with respect to a single regulatoryobjective and regardless of the subjective natureof the intermediaries. Each system should bestructured and organized similarly to the EuropeanSystem of Central Banks and work in connectionwith the central bank which would remain theinstitution responsible for price and macroeconomicstability. We suggest a plausible path to buildour 4-peak regulatory architecture in the Euro area.

Rate of convergence of a particle method to the solution of the Mc Kean-Vlasov's equation

This paper studies the rate of convergence of an appropriatediscretization scheme of the solution of the Mc Kean-Vlasovequation introduced by Bossy and Talay. More specifically,we consider approximations of the distribution and of thedensity of the solution of the stochastic differentialequation associated to the Mc Kean - Vlasov equation. Thescheme adopted here is a mixed one: Euler/weakly interactingparticle system. If $n$ is the number of weakly interactingparticles and $h$ is the uniform step in the timediscretization, we prove that the rate of convergence of thedistribution functions of the approximating sequence in the $L^1(\Omega\times \Bbb R)$ norm and in the sup norm is of theorder of $\frac 1{\sqrt n} + h $, while for the densities is ofthe order $ h +\frac 1 {\sqrt {nh}}$. This result is obtainedby carefully employing techniques of Malliavin Calculus.