Are property prices non-linear? An investigation of the behaviour of US REITs and UK property company shares

Linear models of market performance may be misspecified if the market is subdivided into distinct regimes exhibiting different behaviour. Price movements in the US Real Estate Investment Trusts and UK Property Companies Markets are explored using a Threshold Autoregressive (TAR) model with regimes defined by the real rate of interest. In both US and UK markets, distinctive behaviour emerges, with the TAR model offering better predictive power than a more conventional linear autoregressive model. The research points to the possibility of developing trading rules to exploit the systematically different behaviour across regimes.

Feasibility of using eye tracking to increase resolution for visual telepresence

Visual telepresence seeks to extend existing teleoperative capability by supplying the operator with a 3D interactive view of the remote environment. This is achieved through the use of a stereo camera platform which, through appropriate 3D display devices, provides a distinct image to each eye of the operator, and which is slaved directly from the operator's head and eye movements. However, the resolution within current head mounted displays remains poor, thereby reducing the operator's visual acuity. This paper reports on the feasibility of incorporation of eye tracking to increase resolution and investigates the stability and control issues for such a system. Continuous domain and discrete simulations are presented which indicates that eye tracking provides a stable feedback loop for tracking applications, though some empirical testing (currently being initiated) of such a system will be required to overcome indicated stability problems associated with micro saccades of the human operator.

Modelling predicts that heat stress, not drought, will increase vulnerability of wheat in Europe

New crop cultivars will be required for a changing climate characterised by increased summer drought and heat stress in Europe. However, the uncertainty in climate predictions poses a challenge to crop scientists and breeders who have limited time and resources and must select the most appropriate traits for improvement. Modelling is a powerful tool to quantify future threats to crops and hence identify targets for improvement. We have used a wheat simulation model combined with local-scale climate scenarios to predict impacts of heat stress and drought on winter wheat in Europe. Despite the lower summer precipitation projected for 2050s across Europe, relative yield losses from drought is predicted to be smaller in the future, because wheat will mature earlier avoiding severe drought. By contrast, the risk of heat stress around flowering will increase, potentially resulting in substantial yield losses for heat sensitive cultivars commonly grown in northern Europe.

A framework for agricultural adaptation to climate change in Southern Nigeria

The agricultural sector which contributes between 20-50% of gross domestic product in Africa and employs about 60% of the population is greatly affected by climate change impacts. Agricultural productivity and food prices are expected to rise due to this impact thereby worsening the food insecurity and poor nutritional health conditions in the continent. Incidentally, the capacity in the continent to adapt is very low. Addressing these challenges will therefore require a holistic and integrated adaptation framework hence this study. A total of 360 respondents selected through a multi-stage random sampling technique participated in the study that took place in Southern Nigeria from 2008-2011. Results showed that majority of respondents (84%) were aware that some climate change characteristics such as uncertainties at the onset of farming season, extreme weather events including flooding and droughts, pests, diseases, weed infestation, and land degradation have all been on the increase. The most significant effects of climate change that manifested in the area were declining soil fertility and weed infestation. Some of the adaptation strategies adopted by farmers include increased weeding, changing the timing of farm operations, and processing of crops to reduce post-harvest losses. Although majority of respondents were aware of government policies aimed at protecting the environment, most of them agreed that these policies were not being effectively implemented. A mutually inclusive framework comprising of both indigenous and modern techniques, processes, practices and technologies was then developed from the study in order to guide farmers in adapting to climate change effects/impacts.

Urban Growth Boundaries and their impact on land prices

Investigation of the effects of Urban Growth Boundaries (UGB) on land prices are restricted by a lack of good land market data. However, undeveloped land transactions at the urban fringe of the Melbourne metropolitan area in Australia are recorded in a data set that enables exploration of the impact of its UGB. Estimation can take account of endogeneity issues, while controlling for policy anticipation effects and other potential influences on land prices. OLS and instrumental variable estimates indicate that land prices rose substantially inside the UGB after its enactment in 2003 but did not rise much outside of it.

Dietary quebracho tannins are not absorbed, but increase the antioxidant capacity of liver and plasma in sheep

A total of sixteen lambs were divided into two groups and fed two different diets. Of these, eight lambs were fed a control diet (C) and eight lambs were fed the C diet supplemented with quebracho tannins (C+T). The objective of the present study was to assess whether dietary quebracho tannins can improve the antioxidant capacity of lamb liver and plasma and if such improvement is due to a direct transfer of phenolic compounds or their metabolites, to the animal tissues. Feed, liver and plasma samples were purified by solid-phase extraction (SPE) and analysed by liquid chromatography–MS for phenolic compounds. Profisitinidin compounds were identified in the C+T diet. However, no phenolic compounds were found in lamb tissues. The liver and the plasma from lambs fed the C+T diet displayed a greater antioxidant capacity than tissues from lambs fed the C diet, but only when samples were not purified with SPE. Profisetinidin tannins from quebracho seem not to be degraded or absorbed in the gastrointestinal tract. However, they induced antioxidant effects in animal tissues.

Combinations of parabens at concentrations measured in human breast tissue can increase proliferation of MCF-7 human breast cancer cells

The alkyl esters of p-hydroxybenzoic acid (parabens), which are used as preservatives in consumer products, possess oestrogenic activity and have been measured in human breast tissue. This has raised concerns for a potential involvement in the development of human breast cancer. In this paper, we have investigated the extent to which proliferation of MCF-7 human breast cancer cells can be increased by exposure to the five parabens either alone or in combination at concentrations as recently measured in 160 human breast tissue samples. Determination of no-observed-effect concentrations (NOEC), lowest-observed-effect concentrations (LOEC), EC50 and EC100 values for stimulation of proliferation of MCF-7 cells by five parabens revealed that 43/160 (27%) of the human breast tissue samples contained at least one paraben at a concentration ≥ LOEC and 64/160 (40%) > NOEC. Proliferation of MCF-7 cells could be increased by combining all five parabens at concentrations down to the 50th percentile (median) values measured in the tissues. For the 22 tissue samples taken at the site of ER + PR + primary cancers, 12 contained a sufficient concentration of one or more paraben to stimulate proliferation of MCF-7 cells. This demonstrates that parabens, either alone or in combination, are present in human breast tissue at concentrations sufficient to stimulate the proliferation of MCF-7 cells in vitro, and that functional consequences of the presence of paraben in human breast tissue should be assessed on the basis of all five parabens and not single parabens individually.

The distribution of London residential property prices and the role of spatial lock-in

Much of mainstream economic analysis assumes that markets adjust smoothly, through prices, to changes in economic conditions. However, this is not necessarily the case for local housing markets, whose spatial structures may exhibit persistence, so that conditions may not be those most suited to the requirements of modern-day living. Persistence can arise from the existence of transaction costs. The paper tests the proposition that housing markets in Inner London exhibit a degree of path dependence, through the construction of a three-equation model, and examines the impact of variables constructed for the 19th and early 20th centuries on modern house prices. These include 19th-century social structures, slum clearance programmes and the 1908 underground network. Each is found to be significant. The tests require the construction of novel historical datasets, which are also described in the paper.

Cultivating C4 crops in a changing climate: sugarcane in Ghana

Over the next few decades, it is expected that increasing fossil fuel prices will lead to a proliferation of energy crop cultivation initiatives. The environmental sustainability of these activities is thus a pressing issue—particularly when they take place in vulnerable regions, such as West Africa. In more general terms, the effect of increased CO2 concentrations and higher temperatures on biomass production and evapotranspiration affects the evolution of the global hydrological and carbon cycles. Investigating these processes for a C4 crop, such as sugarcane, thus provides an opportunity both to extend our understanding of the impact of climate change, and to assess our capacity to model the underpinning processes. This paper applies a process-based crop model to sugarcane in Ghana (where cultivation is planned), and the São Paulo region of Brazil (which has a well-established sugarcane industry). We show that, in the Daka River region of Ghana, provided there is sufficient irrigation, it is possible to generate approximately 75% of the yield achieved in the São Paulo region. In the final part of the study, the production of sugarcane under an idealized temperature increase climate change scenario is explored. It is shown that doubling CO2 mitigates the degree of water stress associated with a 4 °C increase in temperature.

Commodity futures prices: more evidence on forecast power, risk premia and the theory of storage

In this paper, we examine the temporal stability of the evidence for two commodity futures pricing theories. We investigate whether the forecast power of commodity futures can be attributed to the extent to which they exhibit seasonality and we also consider whether there are time varying parameters or structural breaks in these pricing relationships. Compared to previous studies, we find stronger evidence of seasonality in the basis, which supports the theory of storage. The power of the basis to forecast subsequent price changes is also strengthened, while results on the presence of a risk premium are inconclusive. In addition, we show that the forecasting power of commodity futures cannot be attributed to the extent to which they exhibit seasonality. We find that in most cases where structural breaks occur, only changes in the intercepts and not the slopes are detected, illustrating that the forecast power of the basis is stable over different economic environments.

The dynamics of commodity prices

In this paper we study the stochastic behavior of the prices and volatilities of a sample of six of the most important commodity markets and we compare these properties with those of the equity market. we observe a substantial degree of heterogeneity in the behavior of the series. Our findings show that it is inappropriate to treat different kinds of commodities as a single asset class as is frequently the case in the academic literature and in the industry. We demonstrate that commodities can be a useful diversifier of equity volatility as well as equity returns. Options pricing and hedging applications exemplify the economic impacts of the differences across commodities and between model specifications.