Credit and liquidity components of corporate CDS spreads

This paper investigates the role of credit and liquidity factors in explaining corporate CDS price changes during normal and crisis periods. We find that liquidity risk is more important than firm-specific credit risk regardless of market conditions. Moreover, in the period prior to the recent “Great Recession” credit risk plays no role in explaining CDS price changes. The dominance of liquidity effects casts serious doubts on the relevance of CDS price changes as an indicator of default risk dynamics. Our results show how multiple liquidity factors including firm specific and aggregate liquidity proxies as well as an asymmetric information measure are critical determinants of CDS price variations. In particular, the impact of informed traders on the CDS price increases when markets are characterised by higher uncertainty, which supports concerns of insider trading during the crisis.

Prospettive economiche di mercato della produzione ortofrutticola biologica. Indagine sul gradimento dei consumatori

The aims of the present study are to explore the willingness to pay a tax for the abolition of the use of pesticides as well as a premium price per kilo for organically grown fruit. An investigation was carried out in the region of Emilia-Romagna both by means of face to face questionnaires administered randomly in large supermarkets and via the World Wide Web. The results of econometric estimates show that consumers in this region appear to be particularly sensitive to the ban of pesticides and willing to pay higher prices for such products.