Sources of alpha and beta in property funds

This paper examines issues related to potential analytical performance systems for global property funds. These will include traditional attribution methods but will also cover the performance concepts of alpha and beta widely used in other asset classes. We look at issues including...what creates beta, and what drives alpha in real estate investment? How can it be measured and isolated? How do these concepts relate to traditional attribution systems? Can performance records and performance fees adequately distinguish between these drivers? In this paper we illustrate these issues by reference to a case study addressing the complete performance record of a single unlisted fund.

Pricing short leases and break clauses using simulation methodology

This paper examines the changes in the length of commercial property leases over the last decade and presents an analysis of the consequent investment and occupational pricing implications for commercial property investmentsIt is argued that the pricing implications of a short lease to an investor are contingent upon the expected costs of the letting termination to the investor, the probability that the letting will be terminated and the volatility of rental values.The paper examines the key factors influencing these variables and presents a framework for incorporating their effects into pricing models.Approaches to their valuation derived from option pricing are critically assessed. It is argued that such models also tend to neglect the price effects of specific risk factors such as tenant circumstances and the terms of break clause. Specific risk factors have a significant bearing on the probability of letting termination and on the level of the resultant financial losses. The merits of a simulation methododology are examined for rental and capital valuations of short leases and properties with break clauses.It is concluded that in addition to the rigour of its internal logic, the success of any methodology is predicated upon the accuracy of the inputs.The lack of reliable data on patterns in, and incidence of, lease termination and the lack of reliable time series of historic property performance limit the efficacy of financial models.

Social consensus, moral intensity and willingness to pay to address a farm animal welfare issue

An experimental contingent valuation (CV) survey of university students was undertaken to explore the impact of social consensus information on people's stated willingness to pay (wtp) to address a farm animal welfare issue. The survey found that additional information presented to respondents on social consensus concerning the moral dimensions of the issue led to a greater perception of social consensus by respondents. This greater perception of social consensus appeared to result in a higher level of moral intensity associated with the issue and a higher stated wtp by respondents for policy to address the issue. However, as for many CV studies of public goods, a question remains as to whether the estimated wtp is a true measure of people's preferences and relative values or merely a measure of attitudes on an arbitrary monetary scale.

Moral intensity and willingness to pay concerning farm animal welfare issues and the implications for agricultural policy

An experimental survey was undertaken to explore the links between the characteristics of a moral issue, the degree of moral intensity/moral imperative associated with the issue (Jones, 1991), and people's stated willingness to pay (wtp) for policy to address the issue. Two farm animal welfare issues were chosen for comparison and the contingent valuation method was used to elicit people's wtp. The findings of the survey suggest that increases in moral characteristics do appear to result in an increase in moral intensity and the degree of moral imperative associated with an issue. Moreover, there was a positive link between moral intensity/moral imperative associated with an issue and people's stated wtp for policy to address the issue. The paper discusses the relevance of the findings of the survey in the context of the debate concerning the relationship between moral and economic values and the use of the contingent valuation method to estimate people's wtp of policy options with moral dimensions.

A framework for graphic description in book design

This project is concerned with the way that illustrations, photographs, diagrams and graphs, and typographic elements interact to convey ideas on the book page. A framework for graphic description is proposed to elucidate this graphic language of ‘complex texts’. The model is built up from three main areas of study, with reference to a corpus of contemporary children’s science books. First, a historical survey puts the subjects for study in context. Then a multidisciplinary discussion of graphic communication provides a theoretical underpinning for the model; this leads to various proposals, such as the central importance of ratios and relationships among parts in creating meaning in graphic communication. Lastly a series of trials in description contribute to the structure of the model itself. At the heart of the framework is an organising principle that integrates descriptive models from fields of design, literary criticism, art history, and linguistics, among others, as well as novel categories designed specifically for book design. Broadly, design features are described in terms of elemental component parts (micro-level), larger groupings of these (macro-level), and finally in terms of overarching, ‘whole book’ qualities (meta-level). Various features of book design emerge at different levels; for instance, the presence of nested discursive structures, a form of graphic recursion in editorial design, is proposed at the macro-level. Across these three levels are the intersecting categories of ‘rule’ and ‘context’, offering different perspectives with which to describe graphic characteristics. Contextbased features are contingent on social and cultural environment, the reader’s previous knowledge, and the actual conditions of reading; rule-based features relate to the systematic or codified aspects of graphic language. The model aims to be a frame of reference for graphic description, of use in different forms of qualitative or quantitative research and as a heuristic tool in practice and teaching.

Measuring the consumer benefits of improving farm animal welfare to inform welfare labelling

Policy makers in the European Union are envisioning the introduction of a community farm animal welfare label which would allow consumers to align their consumption habits with their farm animal welfare preferences. For welfare labelling to be viable the market for livestock products produced to higher welfare standards has to be sufficiently segmented with consumers having sufficiently distinct and behaviourally consistent preferences. The present study investigates consumers’ preferences for meat produced to different welfare standards using a hypothetical welfare score. Data is obtained from a contingent valuation study carried out in Britain. The ordered probit model was estimated using Bayesian inference to obtain mean willingness to pay. We find decreasing marginal WTP as animal welfare levels increase and that people’s preferences for different levels of farm animal welfare are sufficiently differentiated making the introduction of a labelling scheme in the form of a certified rating system appear feasible.

Contested institutions? Traditional leaders and land access and control in communal areas of Eastern Cape Province, South Africa

The South African government has endeavoured to strengthen property rights in communal areas and develop civil society institutions for community-led development and natural resource management. However, the effectiveness of this remains unclear as the emergence and operation of civil society institutions in these areas is potentially constrained by the persistence of traditional authorities. Focusing on the former Transkei region of Eastern Cape Province, three case study communities are used examine the extent to which local institutions overlap in issues of land access and control. Within these communities, traditional leaders (chiefs and headmen) continue to exercise complete and sole authority over land allocation and use this to entrench their own positions. However, in the absence of effective state support, traditional authorities have only limited power over how land is used and in enforcing land rights, particularly over communal resources such as rangeland. This diminishes their local legitimacy and encourages some groups to contest their authority by cutting fences, ignoring collective grazing decisions and refusing to pay ‘fees’ levied on them. They are encouraged in such activities by the presence of democratically elected local civil society institutions such as ward councillors and farmers’ organisations, which have broad appeal and are increasingly responsible for much of the agrarian development that takes place, despite having no direct mandate over land. Where it occurs at all, interaction between these different institutions is generally restricted to approval being required from traditional leaders for land allocated to development projects. On this basis it is argued that a more radical approach to land reform in communal areas is required, which transfers all powers over land to elected and accountable local institutions and integrates land allocation, land management and agrarian development more effectively.

The effects of word exposure frequency and elaboration of word processing on incidental L2 vocabulary acquisition through reading

Research on incidental second language (L2) vocabulary acquisition through reading has claimed that repeated encounters with unfamiliar words and the relative elaboration of processing these words facilitate word learning. However, so far both variables have been investigated in isolation. To help close this research gap, the current study investigates the differential effects of the variables ‘word exposure frequency’ and ‘elaboration of word processing’ on the initial word learning and subsequent word retention of advanced learners of L2 English. Whereas results showed equal effects for both variables on initial word learning, subsequent word retention was more contingent on elaborate processing of form–meaning relationships than on word frequency. These results, together with those of the studies reviewed, suggest that processing words again after reading (input–output cycles) is superior to reading-only tasks. The findings have significant implications for adaptation and development of teaching materials that enhance L2 vocabulary learning.

The future of bioscience fieldwork in UK higher education

Fieldwork is an important and often enjoyable part of learning in Bioscience degree courses, however it is unclear how the recent reforms to Higher Education (HE) may impact the future funding of outdoor learning. This paper reports on the findings from a recent survey of 30 HE Bioscience practitioners from across the UK. Their current level of fieldwork provision and factors affecting this provision in the future were explored. The data showed that the level of fieldwork had remained similar over the past five years and this was set to remain so over the next academic year and also into the next five years (when it may even increase). Funding of fieldwork was under review in most institutions due to the increase in student tuition fees and it was found that in some cases the cost of compulsory fieldwork will be subsumed within the overall course fee. Many influencing factors were discussed, but the most frequently raised topics were that of the development of employability skills during fieldwork and its importance in attracting and retaining students. Both topics are high on the agenda of HE institutions going forward into the new funding model, suggesting that fieldwork will remain a central part of the Bioscience curriculum.

Non-pain goal pursuit inhibits attentional bias to pain

Although dealing with pain is a vital goal to pursue, most individuals are also engaged in the pursuit of other goals. The aim of the present experiment was to investigate whether attentional bias to pain signals is inhibited when one is pursuing a concurrent salient but nonpain task goal. Attentional bias to pain signals was measured in pain-free volunteers (n=63) using a spatial cueing task with pain cues and neutral cues. The pursuit of a concurrent goal was manipulated by including additional trials in which a digit appeared at the middle of the screen. Half of the participants (goal group) were instructed to name these additional stimuli aloud. In order to increase the affective-motivational value of this non-pain-related goal, monetary reward and punishment were made contingent upon the performance of this task. Participants of the control group did not perform the additional task. As predicted, the results show attentional bias to pain signals in the control group, but not in the goal group. This indicates that attentional bias to signals of impending pain is inhibited when one is engaged in the pursuit of another salient but nonpain goal. The results of this study underscore a motivational view on attention to pain, in which the pursuit of multiple goals, including nonpain goals, is taken into account.

Government policy under price uncertainty: a source of volatility in illegal immigration

In this paper we provide an alternative explanation for why illegal immigration can exhibit substantial fluctuation. We develop a model economy in which migrants make decisions in the face of uncertain border enforcement and lump-sum transfers from the host country. The uncertainty is extrinsic in nature, a sunspot, and arises as a result of ambiguity regarding the commodity price of money. Migrants are restricted from participating in state-contingent insurance markets in the host country, whereas host country natives are not. Volatility in migration flows stems from two distinct sources: the tension between transfers inducing migration and enforcement discouraging it and secondly the existence of a sunspot. Finally, we examine the impact of a change in tax/transfer policies by the government on migration.

Anticipatory objects and uncertain imminence: cattle grids, landscape and the presencing of climate change on the Lizard Peninsula, UK

In this paper we show how a seemingly unremarkable object – a cattle grid – has come to presence climate change in partial and contingent ways on the Lizard Peninsula, Cornwall, UK. We identify the cattle grid as an ‘anticipatory object’ through which conservation organisations seek to manage the future and adapt to climate change, but which at the same time presences that unthought-of future for others in the landscape. We explore the ways in which the cattle grid acts to presence something that is not only absent – climate change – but has uncertain imminence. We investigate the ways in which the cattle grid make climate relevant as an embodied and experiential process, a physical and intellectual artefact, and the means to imagine climate and the ways it might change. Drawing upon interpretative approaches informed by theorisations of materiality, presence and absence to understand climate change as a social phenomenon, we go beyond a consideration of this ordinary object defined by its function to consider how the object is experienced, the processes and practices through which people relate to it, and the ways in which social meaning accumulates around it. The empirical basis for this argument is provided by in-depth interviews with local representatives of Natural England, residents and farmers.

Best practice in the training, appointment and remuneration of members of dispute boards for large infrastructure projects

This paper reports part of a qualitative study into evolving practice in the implementation of the Dispute Adjudication Board (DAB) construction dispute resolution technique, a variant of the Dispute Review Board (DRB) concept used in the US and Canada. Data was collected through a focus group interview of 20 highly experienced dispute resolution practitioners from engineering and the law. The group was assembled from members of FIDIC-NET with direct experience of project DABs. The part reported here concerns practice and procedure for establishing DABs. The main findings are that: constitution of the DABs is often delayed because of either project owners' ignorance of the DAB process or deterrence by the cost of the DABs; such owners also tend to insist on appointing DAB members from local engineers and lawyers without sufficient understanding of the DAB process; rates of remuneration of DAB members vary widely; the training provision for DAB membership and advocacy skills is inadequate; the process of selecting candidates for DAB membership and negotiating the tripartite agreement between each member and the contractual parties needs to be navigated with great care to avoid raising ethical problems. The research contribution is threefold. First, it highlights the importance of realistic fees for DAB members within a standard framework in achieving timely establishment of a board that works well as a team. Second, it illustrates the use of qualitative focus group interview to study the impact of new contract terms from multiple stakeholder perspectives. Finally, it identifies areas where further research is needed.

Dropout: MOOC participants’perspective

Massive Open Online Courses (MOOCs) open up learning opportunities to a large number of people. A small percentage (around 10%) of the large numbers of participants enrolling in MOOCs manage to finish the course by completing all parts. The term ‘dropout’ is commonly used to refer to ‘all who failed to complete’ a course, and is used in relation to MOOCs. Due to the nature of MOOCs, with students not paying enrolment and tuition fees, there is no direct financial cost incurred by a student. Therefore it is debatable whether the traditional definition of dropout in higher education could be directly applied to MOOCs. This paper reports ongoing exploratory work on MOOC participants’ perspectives based on six qualitative interviews. The findings show that MOOC participants are challenging the widely held view of dropout, suggesting that it is more about failing to achieve their personal aims.

Fairness quality: the role of fairness in a social and ethically oriented marketing landscape

Research into the dark side of customer management and marketing is progressively growing. The marketing landscape today is dominated with suspicion and distrust as a result of practices that include hidden fees, deception and information mishandling. In such a pessimistic economy, marketers must reconceptualise the notion of fairness in marketing and customer management, so that the progress of sophisticated customisation schemes and advancements in marketing can flourish, avoiding further control and imposed regulation. In this article, emerging research is drawn to suggest that existing quality measures of marketing activities, including service, relationships and experiences may not be comprehensive in measuring the relevant things in the social and ethically oriented marketing landscape, and on that basis does not measure the fairness which truly is important in such an economy. The paper puts forward the concept of Fairness Quality (FAIRQUAL), which includes as well as extends on existing thinking behind relationship building, experience creation and other types of customer management practices that are believed to predict consumer intentions. It is proposed that a fairness quality measure will aid marketers in this challenging landscape and economy.