Microstructure of the Euro-area government bond market

This chapter highlights similarities and differences of equity and fixed- income markets and provides an overview of the characteristics of European government bond market trading and liquidity. Most existing studies focus on the U.S. market. This chapter presents the institutional details of the MTS market, which is the largest European electronic platform for trading government, quasi-government, asset- backed, and corporate fixed- income securities. It reviews the main features of high- frequency fixed- income data and the methods for measuring market liquidity. Finally, the chapter shows how liquidity differs across European countries, how liquidity varies with the structure of the market, and how liquidity has changed during the recent liquidity and sovereign crises.

Analysis of the regional pattern of sea level change due to ocean dynamics and density changes for 1993-2099 in observations and CMIP5 AOGCMs

Predictions of twenty-first century sea level change show strong regional variation. Regional sea level change observed by satellite altimetry since 1993 is also not spatially homogenous. By comparison with historical and pre-industrial control simulations using the atmosphere–ocean general circulation models (AOGCMs) of the CMIP5 project, we conclude that the observed pattern is generally dominated by unforced (internal generated) variability, although some regions, especially in the Southern Ocean, may already show an externally forced response. Simulated unforced variability cannot explain the observed trends in the tropical Pacific, but we suggest that this is due to inadequate simulation of variability by CMIP5 AOGCMs, rather than evidence of anthropogenic change. We apply the method of pattern scaling to projections of sea level change and show that it gives accurate estimates of future local sea level change in response to anthropogenic forcing as simulated by the AOGCMs under RCP scenarios, implying that the pattern will remain stable in future decades. We note, however, that use of a single integration to evaluate the performance of the pattern-scaling method tends to exaggerate its accuracy. We find that ocean volume mean temperature is generally a better predictor than global mean surface temperature of the magnitude of sea level change, and that the pattern is very similar under the different RCPs for a given model. We determine that the forced signal will be detectable above the noise of unforced internal variability within the next decade globally and may already be detectable in the tropical Atlantic.

Sensitivity of simulated regional Arctic climate to the choice of coupled model domain

The climate over the Arctic has undergone changes in recent decades. In order to evaluate the coupled response of the Arctic system to external and internal forcing, our study focuses on the estimation of regional climate variability and its dependence on large-scale atmospheric and regional ocean circulations. A global ocean–sea ice model with regionally high horizontal resolution is coupled to an atmospheric regional model and global terrestrial hydrology model. This way of coupling divides the global ocean model setup into two different domains: one coupled, where the ocean and the atmosphere are interacting, and one uncoupled, where the ocean model is driven by prescribed atmospheric forcing and runs in a so-called stand-alone mode. Therefore, selecting a specific area for the regional atmosphere implies that the ocean–atmosphere system can develop ‘freely’ in that area, whereas for the rest of the global ocean, the circulation is driven by prescribed atmospheric forcing without any feedbacks. Five different coupled setups are chosen for ensemble simulations. The choice of the coupled domains was done to estimate the influences of the Subtropical Atlantic, Eurasian and North Pacific regions on northern North Atlantic and Arctic climate. Our simulations show that the regional coupled ocean–atmosphere model is sensitive to the choice of the modelled area. The different model configurations reproduce differently both the mean climate and its variability. Only two out of five model setups were able to reproduce the Arctic climate as observed under recent climate conditions (ERA-40 Reanalysis). Evidence is found that the main source of uncertainty for Arctic climate variability and its predictability is the North Pacific. The prescription of North Pacific conditions in the regional model leads to significant correlation with observations, even if the whole North Atlantic is within the coupled model domain. However, the inclusion of the North Pacific area into the coupled system drastically changes the Arctic climate variability to a point where the Arctic Oscillation becomes an ‘internal mode’ of variability and correlations of year-to-year variability with observational data vanish. In line with previous studies, our simulations provide evidence that Arctic sea ice export is mainly due to ‘internal variability’ within the Arctic region. We conclude that the choice of model domains should be based on physical knowledge of the atmospheric and oceanic processes and not on ‘geographic’ reasons. This is particularly the case for areas like the Arctic, which has very complex feedbacks between components of the regional climate system.

Mapping the spatial distribution of geomorphological processes in the Okstindan area of northern Norway, using Geomorphic Process Units as derived from remote sensing and ground survey

The delineation of Geomorphic Process Units (GPUs) aims to quantify past, current and future geomorphological processes and the sediment flux associated with them. Five GPUs have been identified for the Okstindan area of northern Norway and these were derived from the combination of Landsat satellite imagery (TM and ETM+) with stereo aerial photographs (used to construct a Digital Elevation Model) and ground survey. The Okstindan study area is sub-arctic and mountainous and is dominated by glacial and periglacial processes. The GPUs exclude the glacial system (some 37% of the study area) and hence they are focussed upon periglacial and colluvial processes. The identified GPUs are: 1. solifluction and rill erosion; 2. talus creep, slope wash and rill erosion; 3. accumulation of debris by rock and boulder fall; 4. rockwalls; and 5. stable ground with dissolved transport. The GPUs have been applied to a ‘test site’ within the study area in order to illustrate their potential for mapping the spatial distribution of geomorphological processes. The test site within the study area is a catchment which is representative of the range of geomorphological processes identified.

A multimodel assessment of the influence of regional anthropogenic emission reductions on aerosol direct radiative forcing and the role of intercontinental transport

In this study, we assess changes of aerosol optical depth (AOD) and direct radiative forcing (DRF) in response to the reduction of anthropogenic emissions in four major pollution regions in the Northern Hemisphere by using results from nine global models in the framework of the Hemispheric Transport of Air Pollution (HTAP). DRF at top of atmosphere (TOA) and surface is estimated based on AOD results from the HTAP models and AOD-normalized DRF (NDRF) from a chemical transport model. The multimodel results show that, on average, a 20% reduction of anthropogenic emissions in North America, Europe, East Asia, and South Asia lowers the global mean AOD (all-sky TOA DRF) by 9.2% (9.0%), 3.5% (3.0%), and 9.4% (10.0%) for sulfate, particulate organic matter (POM), and black carbon (BC), respectively. Global annual average TOA all-sky forcing efficiency relative to particle or gaseous precursor emissions from the four regions (expressed as multimodel mean ± one standard deviation) is  ±3.5 ±0.8,  ±4.0 ±1.7, and 29.5 ±18.1mWm ±2 per Tg for sulfate (relative to SO2), POM, and BC, respectively. The impacts of the regional emission reductions on AOD and DRF extend well beyond the source regions because of intercontinental transport (ICT). On an annual basis, ICT accounts for 11 ±5% to 31 ±9% of AOD and DRF in a receptor region at continental or subcontinental scale, with domestic emissions accounting for the remainder, depending on regions and species. For sulfate AOD, the largest ICT contribution of 31 ±9% occurs in South Asia, which is dominated by the emissions from Europe. For BC AOD, the largest ICT contribution of 28 ±18% occurs in North America, which is dominated by the emissions from East Asia. The large spreads among models highlight the need to improve aerosol processes in models, and evaluate and constrain models with observations.

An ichnofabric approach to the depositional interpretation of the intensely burrowed Bateig Limestone, Miocene, SE Spain

The foraminiferal-rich pelagic Bateig Limestone forms several varieties of the important building stones quarried at Bateig Hill in southeastern Spain. Three principal ichnofabrics (Bichordites, mottled-Palaeophycus and mottled-Ophiomorpha) are recognized, which are present in at least two (possibly up to four) repeated successions (cycles). Each succession begins with an erosional event. The Bichordites ichnofabric represents a new type of facies, formed as thin turbidity/grain flow, stratiform units derived from sediment slips off a fault into deep water. Each slipped unit became almost completely bioturbated by infaunal echinoids, colonizing by lateral migration. Because of the thinness of the units, successive colonizations tended to truncate the underlying burrows giving rise to a pseudo-stratification. As the Bichordites ichnofabric accumulated on the fault apron, thus reducing the effective height of the fault scarp, the substrate gradually came under the influence of currents traversing the shelf. This led to a change in hydraulic regime, and to the mottled-Palaeophycus and mottled-Ophiomorpha ichnofabrics in sediment deposited under bed load transport, and associated with laminar and cross-stratified beds and local muddy intervals. Reactivation of the fault triggered erosion and channeling and a return to grain flow sedimentation, and to the Bichordites ichnofabric of the succeeding cycle. The highest unit of the Bateig Limestone is formed entirely of cross-stratified calcarenites with occasional Ophiomorpha (Ophiomorpha-primary lamination ichnofabric) and is similar to many shallow marine facies but they still bear a significant content of pelagic foraminifera. The sedimentary setting bears resemblance with that described for the Pleistocene Monte Torre Paleostrait and the modem Strait of Messina (Italy), where the narrow morphology of the depositional area enhanced tidal currents and allowed for high-energy sandy deposition in relatively deep areas. More data on the Miocene paleogeography of the Bateig area should provide further testing for this hypothesis. The ichnofacies and stacking of the Bateig Limestone differ from the classic Seilacherian model in that they reflect changes in hydraulic process and are associated with faulting and subsidence and changes in sediment supply. Recognition of the unusual ichnofabrics and their relationships provides a clear indication of the overall dynamic setting. (c) 2006 Elsevier B.V. All rights reserved.

Isolating the 'farmer' effect as a component of the advantage of growing genetically modified varieties in developing countries: a Bt cotton case study from Jalgaon, India

The present paper explores the 'farmer' effect in economic advantages often claimed for Bt cotton varieties (those with the endotoxin gene from Bacillus thuringiensis conferring resistance to some insect pests) compared to non-Bt varieties. Critics claim that much of the yield advantage of Bt cotton could be due to the fact that farmers adopting the technology are in a better position to provide inputs and management and so much of any claimed Bt advantage is an artefact rather than reflecting a real advantage of the variety per se. The present paper provides an in-depth analysis of 63 non-adopting and 94 adopting households of Bt cotton in Jalgaon, Maharashtra State, India, spanning the seasons 2002 and 2003. Results suggest that Bt adopters are indeed different from non-adopters in a number of ways. Adopters appear to specialize more on cotton (at least in terms of the land area they devote to the crop), spend more money on irrigation and grow well-performing non-Bt varieties of cotton (Bunny). Taking gross margin as the basis for comparison, Bt plots had 2.5 times the gross margin of non-Bt plots in both seasons. If only adopters are considered then the gross margin advantage of Bt plots reduces to 1.6 times that of non-Bt plots. This is still a significant advantage and could well explain the popularity of Bt in Maharashtra. However, it is clear that great care needs to be taken with such comparative studies.

Isolating the 'farmer' effect as a component of the advantage of growing genetically modified varieties in developing countries: a Bt cotton case study from Jalgaon, India

The present paper explores the 'farmer' effect in economic advantages often claimed for Bt cotton varieties (those with the endotoxin gene from Bacillus thuringiensis conferring resistance to some insect pests) compared to non-Bt varieties. Critics claim that much of the yield advantage of Bt cotton could be due to the fact that farmers adopting the technology are in a better position to provide inputs and management and so much of any claimed Bt advantage is an artefact rather than reflecting a real advantage of the variety per se. The present paper provides an in-depth analysis of 63 non-adopting and 94 adopting households of Bt cotton in Jalgaon, Maharashtra State, India, spanning the seasons 2002 and 2003. Results suggest that Bt adopters are indeed different from non-adopters in a number of ways. Adopters appear to specialize more on cotton (at least in terms of the land area they devote to the crop), spend more money on irrigation and grow well-performing non-Bt varieties of cotton (Bunny). Taking gross margin as the basis for comparison, Bt plots had 2.5 times the gross margin of non-Bt plots in both seasons. If only adopters are considered then the gross margin advantage of Bt plots reduces to 1.6 times that of non-Bt plots. This is still a significant advantage and could well explain the popularity of Bt in Maharashtra. However, it is clear that great care needs to be taken with such comparative studies.

Improving climate change detection through optimal seasonal averaging: the case of the North Atlantic jet and European precipitation

The detection of anthropogenic climate change can be improved by recognising the seasonality in the climate change response. This is demonstrated for the North Atlantic jet (zonal wind at 850 hPa, U850) and European precipitation responses projected by the CMIP5 climate models. The U850 future response is characterised by a marked seasonality: an eastward extension of the North Atlantic jet into Europe in November-April, and a poleward shift in May-October. Under the RCP8.5 scenario, the multi-model mean response in U850 in these two extended seasonal means emerges by 2035-2040 for the lower--latitude features and by 2050-2070 for the higher--latitude features, relative to the 1960-1990 climate. This is 5-15 years earlier than when evaluated in the traditional meteorological seasons (December--February, June--August), and it results from an increase in the signal to noise ratio associated with the spatial coherence of the response within the extended seasons. The annual mean response lacks important information on the seasonality of the response without improving the signal to noise ratio. The same two extended seasons are demonstrated to capture the seasonality of the European precipitation response to climate change and to anticipate its emergence by 10-20 years. Furthermore, some of the regional responses, such as the Mediterranean precipitation decline and the U850 response in North Africa in the extended winter, are projected to emerge by 2020-2025, according to the models with a strong response. Therefore, observations might soon be useful to test aspects of the atmospheric circulation response predicted by some of the CMIP5 models.

Status and distribution of the Grey-headed Fish-Eagle (Ichthyophaga ichthyaetus) in the Prek Toal Core Area of Tonle Sap Lake, Cambodia

The regional population of the Grey-headed Fish-Eagle (Ichthyophaga ichthyaetus) in Southeast Asia is thought to be in recent decline and its conservation status Linder threat. We undertook a systematic survey in a flooded swamp forest at the Tonle Sap Lake in Cambodia and recorded 32 pairs of eagles in an area of approximately 80 km(2). Three species of water snakes were identified as eagle prey items, previously unrecorded for this species. We suggest that this eagle population has significant regional importance and discuss potential anthropogenic threats to population stability, such as water snake harvesting and construction Of upstream hydropower dams.

Evaluation of modelled regional water balance using lake status data: a comparison of 6ka simulations with the NCAR CCM

Variations in lake area and depth reflect climatically induced changes in the water balance of overflowing as well as closed lakes. A new global data base of lake status has been assembled, and is used to compare two simulations for 6 ka (6000 yr ago) made with successive R15 versions of the NCAR Community Climate Model (CCM). Simulated water balance was expressed as anomalies of annual precipitation minus evaporation (P-E); observed water balance as anomalies of lake status. Comparisons were made visually, by comparing regional averages, and by a statistic that compares the signs of simulated P-E anomalies (smoothly interpolated to the lake sites) with the status anomalies. Both CCM0 and CCM1 showed enhanced Northern-Hemisphere monsoons at 6 ka. Both underestimated the effect, but CCM1 fitted the spatial patterns better. In the northern mid- and high-latitudes the two versions differed more, and fitted the data less satisfactorily. CCM1 performed better than CCM0 in North America and central Eurasia, but not in Europe. Both models (especially CCM0) simulated excessive aridity in interior Eurasia. The models were systematically wrong in the southern mid-latitudes. Problems may have been caused by inadequate treatment of changes in sea-surface conditions in both models. Palaeolake status data will continue to provide a benchmark for the evaluation of modelling improvements.

Variation on the effects of the 2003 CAP reform and regional differences in the Italian olive oil sector

This paper analyses the impacts of the 2003 CAP reform on the production of Italian olive oil controlling for the regional differences in olive oil production as well as for the differences between years. Italian olive oil production time series data from the Farm Accountancy Data Network for the 2000-2010 period at regional level is used to examine the effect of the 2003 Fischler reform on the production of olive oil. Production costs and payments received by farmers to support their income are considered. The data were collected at micro level based on a sample of farms representative of the production systems in the country. In order to consider the differences in production among the regions, eight representative regions in terms of surveyed farms are considered: Liguria, Toscana, Umbria, Lazio, Campania, Calabria, Puglia and Sicilia. We found that the most important factors affecting the production of olive oil are the area under olive groves and labour productivity. Results also show no evidence that the level of payments have an impact to the level of production, however, the type of payments has. Future work should explore the impact of the 2003 reform into the technical and production efficiency of the Italian olive oil farmers. It would be interesting to link the measures introduced by the cross compliance and the management practices of the different farms to have a more complete picture of the various parameters influencing the production of olive oil.

How many facets are needed to represent the surface energy balance of an urban area?

We investigate the question of how many facets are needed to represent the energy balance of an urban area by developing simplified 3-, 2- and 1-facet versions of a 4-facet energy balance model of two-dimensional streets and buildings. The 3-facet model simplifies the 4-facet model by averaging over the canyon orientation, which results in similar net shortwave and longwave balances for both wall facets, but maintains the asymmetry in the heat fluxes within the street canyon. For the 2-facet model, on the assumption that the wall and road temperatures are equal, the road and wall facets can be combined mathematically into a single street-canyon facet with effective values of the heat transfer coefficient, albedo, emissivity and thermodynamic properties, without further approximation. The 1-facet model requires the additional assumption that the roof temperature is also equal to the road and wall temperatures. Idealised simulations show that the geometry and material properties of the walls and road lead to a large heat capacity of the combined street canyon, whereas the roof behaves like a flat surface with low heat capacity. This means that the magnitude of the diurnal temperature variation of the street-canyon facets are broadly similar and much smaller than the diurnal temperature variation of the roof facets. Consequently, the approximation that the street-canyon facets have similar temperatures is sound, and the road and walls can be combined into a single facet. The roof behaves very differently and a separate roof facet is required. Consequently, the 2-facet model performs similarly to the 4-facet model, while the 1-facet model does not. The models are compared with previously published observations collected in Mexico City. Although the 3- and 2-facet models perform better than the 1-facet model, the present models are unable to represent the phase of the sensible heat flux. This result is consistent with previous model comparisons, and we argue that this feature of the data cannot be produced by a single column model. We conclude that a 2-facet model is necessary, and for numerical weather prediction sufficient, to model an urban surface, and that this conclusion is robust and therefore applicable to more general geometries.