Modeling volatility and changes in the swap spread

We investigate the determinants of changes in U.S. interest rate swap spreads using a model that explicitly allows for volatility interactions between swaps of different terms to maturity. Changes in the swap spread are found to be positively related to interest rate volatility, to changes in the default risk premium in the corporate bond market, and to changes in the liquidity premium for government securities. Swap spread changes are negatively related to changes in the level of interest rates and changes in the slope of the term structure. We also find that there is a strong and significant volatility interaction among spreads for swaps of different maturities and that the process for the conditional variance of the spread is highly persistent across all maturities.

Food security: one of a number of ‘securities’ we need for a full life: an Australian perspective

Although agriculture in Australia is very productive, the current food supply systems in Australia fail to deliver healthy diets to all Australians and fail to protect the natural resources on which they depend. The operation of the food systems creates ‘collateral damage’ to the natural environment including biodiversity loss. In coming decades, Australia’s food supply systems will be increasingly challenged by resource price inflation and climate change. Australia exports more than half of its current agricultural production. Government and business are aiming to substantially increase production to bolster exports. This will increase pressure on agricultural resources and exacerbate ‘collateral’ damage to the environment. The Australian public have a deep and ongoing interest in a very wide range of issues associated with the food systems including the environment, health and sustainability. Food is something we require in order to live and a good diet is something we have to have to be healthy. For health over a life-time we need food security. However, we also require a range of other material goods and social arrangements in order to develop and flourish as human beings. And we need these other things to be secure over a life-time. Food is therefore one security among a range of other securities we need in order to flourish. The paper outlines a number of approaches, as examples, that help to identify what these other goods and arrangements might be. The approaches mentioned in this paper include human rights, national securities, human needs, authentic happiness, capabilities, sustainability and environmental ethics. The different approaches provide a way of evaluating the current situation and indicating a direction for change within the food systems that will address the problems. However, changing large systems such as those involved in food supply is difficult because inertias and vested interests make the current food supply systems resilient to change. The paper suggests that one of the first and ongoing tasks is to develop an understanding of the situation from a comprehensive social–ecological systems perspective. The paper also suggests that a practical leverage point for system change is restructuring the flow of information on the health, natural resources and biodiversity loss issues related to the food supply systems.

Providing information for business: government strategy for the online world

Governments assume a major role in providing information resources for business as a way of promoting national development. This has proven to be a much more demanding task than one might suppose, given the diversity and complexity of business needs and the limitation of government resources for undertaking the task. This chapter will: (1) identify the challenges posed for government online business information strategies, (2) discuss research relating to the information strategy of one Australian government agency to support export development among small business, and (3) set out a framework for government online information provision in a diverse industry context. Coordination of the many government information services remains a challenge, especially among different levels of government. Well-designed strategies can improve the usability of online information and the efficiency of government information services.

Self-reported health beliefs of government housing tenants

Our aim was to provide a description of the self-reported health beliefs of a sample of Victorian public housing tenants, and to identify how gender, age and geographic location relate to these beliefs. Telephone interviews were conducted with a stratified random sample of 360 tenants, asking questions such as what they believe are the major health problems for men and women, what they do to keep healthy, and what makes it difficult to keep healthy. There were many differences in the beliefs held by older participants compared with those of younger participants. By asking about health in general, rather than specific aspects of health, this research identified the views about health which are most salient to participants, rather than those prompted by a survey on a particular disease or health behaviour. The health promotion implications of these findings are discussed.

Mustering consent: government-sponsored virtual communities and the incentives for buy-in

The global trend to electronic service delivery (ESD) by governments can include the sponsorship of virtual communities that create value and become places where people, content, and communication come together around a need, enabling government agencies to extend their traditional service-provision role. Implementation is sometimes problematic, however, and understanding the implementation process is crucial to the success of such virtual communities. This paper reports a case study of a virtual community (an on-line export-documentation system) that links government and business. The study employs Bijker's framework to conceptualize the process of defining the technical standard and implementing the documentation system. Diffusion effects shaped the implementation and influenced participant responses, illustrating Bijker's argument that an artifact or product demonstrates interpretive flexibility before it stabilizes.

Regulation and autonomy in teacher education: government, community or democracy?

Current attempts in industrialised countries to regulate teacher education in increasingly prescriptive ways raise profound social, ethical and pedagogical issues. This paper looks at the challenge such prescriptions pose and suggests that such regulation serves the democratic state less well than a more autonomous form of education. The implications of this alternative for teacher education are explored.

The trouble with income trusts

This paper sketches broadly the efficiency and equity effects of income trusts that make their use as a substitute for the direct holding of shares of a corporation problematic for tax policy purposes. The paper also considers the potential effectiveness of an equity recharacterization rule applicable to the high-yield junk debt that is the common feature of the basic income trust structure. The author suggests that this type of narrowly focused rule would be more target-efficient than other possible responses to income trusts, such as fundamental reform of the corporate income tax or the restrictions on the holding of trust units proposed in the 2004 budget. However, a principal difficulty in designing an equity recharacterization rule is ensuring that it applies equally to structures that realize the same effect as the basic income trust structure but do not use high-yield junk debt.
The author argues that income trusts are examples of tax-driven financial innovation in the sense that they replicate an existing set of securities and therefore have no nontax rationale. These securities are essentially redundant, and the innovative process of which they are a product does not constitute “genuine” financial innovation. This essential characteristic of income trusts distinguishes them from real estate investment trusts, which arguably do not present a tax policy problem (or at least not the same one). More particularly, income trust transactions are redundant in the sense that they do not complete capital markets by providing investors with a risk and return payoff profile that is otherwise unavailable. In the absence of any efficiency gains or desirable distributional effects associated with income trusts, the available tax benefit is the subject of a defensible government response intended to eliminate it. But without any clear evidence that income trusts are substituted generally for the corporate form, any response can defensibly be limited to a narrowly targeted one that introduces a “taxlaw friction” by shifting the debt-equity boundary that is the focus of the basic income trust structure. Because the precise dividing points along this boundary lack any obvious normative content, the suggested policy focus should be the development of a legislative response that redraws the debt-equity boundary in a manner that minimizes perceived efficiency losses otherwise associated with the use of income trusts.

Elections and representations in local government: A Victorian case study

This article examines the application of different views of representation in the electoral systems at local government level: interest, corporate and mirror representation. The electoral framework underpins the process of representation, influencing both who are eligible to become voters and how their votes are collected and counted. The paper examines the  interrelationship between representation and the electoral framework in local government in Victoria. We use a historical analysis, and identify a long period of interest representation; a short, relatively recent period of corporate representation; and an attempt to introduce some elements of mirror representation. We conclude by arguing that local electoral reform needs to take into account the multiple meanings of representation.

Changing communities: international students in local government schools

Although fewer than 10% of international students are in the primary and secondary educational sectors, recent figures show the number of these students to have increased exponentially making Australia a leading player in school education provision along with Britain and the United States. The impact of these changes on local schools and the correspondent negotiation of globalising trends on secondary schools alter the ways that identity and difference are understood and played out and the ways that policy and practice in participating schools can be understood At the same time the terms and conditions that define these demands - particularly as they characterize them as marketable commodities. English language and as global and western education need to spelt out and interrogated. In this paper 1 interrogate the ways that community members within local government schools speak about the impact of fee-paying international students on their school. 1 suggest that these discussions are defined by the material and conceptual relations of identity and difference crisscrossed by the politics of consumption and production.

Work characteristics and employee outcomes in local government

The overall objective of this study was to examine the work characteristics that make significant contributions to extra-role performance (as measured by the helping dimension of citizenship behaviour) and employee wellbeing (measured by job satisfaction and psychological health) in a local government. The work characteristics examined were based on the demand-control-support (DCS) model, augmented by organization-specific characteristics. The results indicate that characteristics described in the core DCS are just as relevant to extra-role performance as they are to more traditional indicators of job stress. Although the more situation-specific conditions were not predictive of citizenship behaviour, they made unique contributions to job satisfaction

Ensuring quality during monitoring of the learning environment of government primary schools achieved through EUI-PDP for teachers and head teachers

A positive change in the learning environment in schools is visible through ongoing professional development of teachers and administrators. Monitoring the professional development program and providing support to teachers and administrators to transfer their learnings into the school environment ensures some measures of quality. Quality issues led to the launching of the Professional Development Program (PDP) for Primary School Teachers (PSTs) of Sindh by the United Educational Initiative (UEI), a consortium of five Governmental and Non-Governmental Organizations, working under the supervision of Education Sector Reform Assistance (ESRA). Implementation of the UEI-PDP in four districts of Sindh, is ensured by a team of professionals in each district. Recognising that capacity building of district education employees would improve the educational system in the country, 130 Master Trainers were selected, on merit, from the District Education Office for the training of 17,000 teachers and 3000 Head teachers/administrators over a period of two years. This paper developed the design of a Monitoring Process for a Professional Development Program for Primary School Teachers and Administrators. Data was collected through Pre/Post observations, Interviews, Questionnaires and Reports. Such tools make it possible for the monitoring teams to observe, to inquire further, and, along with the Managers, Master Trainers and School Support Team, seek to explain the progress of the program and take corrective action where indicated. Both formative evaluations as well as summative  evaluation techniques are utilized for evaluating the program. The monitoring process that assisted in formative evaluations is described. In order to assist in summative evaluation, data collected through the monitoring process was further developed to categorize the schools where teachers and head teachers are trained. It is hoped that the categorization of the schools may lead to further improvements in those schools which fall in the group for need improvement. It may also initiate further research as to reasons behind why some schools are in the good category and why others fall in the average category.