The economic significance of CDS price discovery

© 2015 Springer Science+Business Media New York Between 2005 and 2009, we document evident time-varying credit risk price discovery between the equity and credit default swap (CDS) markets for 174 US non-financial investment-grade firms. We test the economic significance of a simple portfolio strategy that utilizes fluctuation in CDS spreads as a trading signal to set stock positions, conditional on the CDS price discovery status of the reference entities. We show that a conditional portfolio strategy which updates the list of CDS-influenced firms over time, yields a substantively larger realized return net of transaction cost over the unconditional strategy. Furthermore, the conditional strategy’s Sharpe ratio outperforms a series of benchmark portfolios over the same trading period, including buy-and-hold, momentum and dividend yield strategies.

Examining health literacy disparities in the United States: a third look at the National Assessment of Adult Literacy (NAAL)

BACKGROUND: In the United States, disparities in health literacy parallel disparities in health outcomes. Our research contributes to how diverse indicators of social inequalities (i.e., objective social class, relational social class, and social resources) contribute to understanding disparities in health literacy.

METHODS: We analyze data on respondents 18 years of age and older (N = 14,592) from the 2003 National Assessment of Adult Literacy (NAAL) restricted access data set. A series of weighted Ordinary Least Squares (OLS) regression models estimate the association between respondent's demographic characteristics, socioeconomic status (SES), relational social class, social resources and an Item Response Theory (IRT) based health literacy measure.

RESULTS: Our findings are consistent with previous research on the social and SES determinants of health literacy. However, our findings reveal the importance of relational social status for understanding health literacy disparities in the United States. Objective indicators of social status are persistent and robust indicators of health literacy. Measures of relational social status such as civic engagement (i.e., voting, volunteering, and library use) are associated with higher health literacy levels net of objective resources. Social resources including speaking English and marital status are associated with higher health literacy levels.

CONCLUSIONS: Relational indicators of social class are related to health literacy independent of objective social class indicators. Civic literacy (e.g., voting and volunteering) are predictors of health literacy and offer opportunities for health intervention. Our findings support the notion that health literacy is a social construct and suggest the need to develop a theoretically driven conceptual definition of health literacy that includes a civic literacy component.

Dispositional resistance to change : measurement equivalence and the link to personal values across 17 nations

The concept of dispositional resistance to change has been introduced in a series of exploratory and confirmatory analyses through which the validity of the Resistance to Change (RTC) Scale has been established (S. Oreg, 2003). However, the vast majority of participants with whom the scale was validated were from the United States. The purpose of the present work was to examine the meaningfulness of the construct and the validity of the scale across nations. Measurement equivalence analyses of data from 17 countries, representing 13 languages and 4 continents, confirmed the cross-national validity of the scale. Equivalent patterns of relationships between personal values and RTC across samples extend the nomological net of the construct and provide further evidence that dispositional resistance to change holds equivalent meanings across nations.

Comparing different economic linkages among commodity futures

Gasoline (GA) and kerosene (KO) are extracted from crude oil (CO), such that the three fuel commodities share a chemical link. On the other hand, GA also shares an industrial link with natural rubber (NR) and palladium (PA) as complementary commodities that are heavily consumed by the automobile industry. We contrast the information content embedded in the two economic linkages. Focusing on TOCOM futures contracts written on the five commodities and centering on GA, we confirm that incremental information provided by either CO, KO or NR, PA over a buy-and-hold strategy and a naive forecast, are both statistically and economically significant. While the chemical link forecast is more profitable, a double-link forecast generated from a VECM with two cointegrating vectors (KO-GA and GANR prices) outperforms both single-link forecasts based on risk-adjusted profit net of transaction costs. Further comparisons against the profitability of commodity-based momentum strategies documented in Erb and Harvey (2006) and Miffre and Rallis (2007) show that the double-link forecast holds its own against the most profitable of the 75 momentum strategies considered. This strongly suggests that not only are there incremental profits to be gained from harnessing and combining economic links among commodity futures, the resultant incremental profits are economically significant against other proven commodity-based trading strategies in the existing literature.

‘The Snowtown we know and love’ : small newspapers and heinous crimes

This paper examines the role of small newspapers in Australia when bizarre and shocking crimes are committed locally. These crimes often attract intense media attention that casts a net of shame across entire townships through their representation as places of fascination and fear in the public imagination. We take a practice approach in the tradition of Pierre Bourdieu to explore the complex editorial considerations, news judgements and community responsibilities small newspapers must negotiate when covering these stories for local audiences. This study focuses on three towns in regional Australia that have been represented in metropolitan and international news media as ‘dead zones' after shocking crimes: Bowral in NSW, Snowtown in South Australia and Moe in Victoria.

Net Energy Analysis of Double Glazing for Residential Buildings in Temperate Climates

Energy used in buildings is a major contributor to Australia’s energy consumption and associated environmental impacts. The advent of complex glazing systems such as double glazing, particularly in northern America and Europe, has partially closed a weak thermal link in the building envelope. In milder climates, however, building envelope features may not be as effective in life cycle energy terms, i.e. including the embodied energy of their manufacture. A net energy analysis compares the savings in operational energy to the additional requirements for embodied energy, in terms of the energy payback period and energy return on investment. The effectiveness of double glazing is determined for an Australian residential building. A wide range of building operation regimes was simulated. These results support the principle of installing double glazing in residential buildings in Melbourne, Australia, at least in terms of net primary energy savings.

Net energy analysis of solar and conventional domestic hot water systems in Melbourne, Australia

It is commonly assumed that solar hot water systems save energy and reduce greenhouse gas emissions. The net energy requirement of solar hot water systems has rarely been analysed, including their embodied energy. The extent to which solar hot water systems save energy compared to conventional systems in Melbourne, Australia, is shown through a comparative net energy analysis. It was shown that the embodied energy component of the net energy requirement of solar and conventional hot water systems was insignificant. The solar hot water systems provided a net energy saving compared to the conventional systems after 0.5–2 years, for electric- and gas-boosted systems respectively.

Net energy analysis of solar and conventional domestic hot water systems in Melbourne, Australia

It is commonly assumed that solar hot water systems save energy and reduce greenhouse gas emissions. Very rarely has the life-cycle energy requirements of solar hot water systems been analysed, including their embodied energy. The extent to which solar hot water systems save energy compared to conventional systems in Melbourne, Australia, is shown through a comparative net energy analysis. The solar systems provided a net energy saving compared to the conventional systems after 0.5 to 2 years, for electricity and gas systems respectively.

Solar versus fossil fuels : A net energy analysis of domestic solar hot water systems in Australia

It is commonly assumed that solar hot water systems save energy and reduce greenhouse gas emissions compared to conventional electric and gas hot water systems. Very rarely has the life-cycle energy requirements (including the embodied energy of manufacture) of solar hot water systems been analysed. The extent to which solar hot water systems can save energy compared to conventional electric or gas hot water systems can be shown through a comparative net energy analysis. This method determines the ‘energy payback period’, including consideration of the difference in operational energy savings and energy embodied in the devices relative to a base case. Dr Robert Crawford, Deakin University, Australia presents the results of a net energy analysis that compared solar and conventional hot water systems for a southern (Melbourne) and a northern (Brisbane) Australian climate.

Design of electrical infrastructure at container terminal and 'net metering'

Net metering is generally a consumer-based incentive for renewable sources such as wind or solar power systems also referred to as dasiacogenerationdasia. It is still a grey area for container terminals with large electric machines, such as quay cranes, automatic stacking cranes, that can operate in the regenerative mode and export electric energy to the grid. With actual measured electrical data presented for discussion, this paper provides information for the readers to provide a better understanding of their access to net metering, ultilizing their electrical equipment capabilities and be informed for their next negotiation with the power supply company.

Building nature’s safety net 2011 : the state of protected areas for Australia’s ecosystems and wildlife.

This report is the third in a series with the two previous reports published in 2006 and 2008. This report details major conservation initiatives that have occurred in Australia since the last report, in which data was current to 2006, and highlights emerging issues. A major enhancement on previous reports is the inclusion of ecosystem and threatened species gap analyses, and the reporting on Australia's protected area systems on both land and sea. We define a minimum standard for an adequate, representative, and comprehensive reserve system by sampling ecosystem and species level diversity. Using the latest protected area and national species and ecosystem spatial data, we quantify the gaps: those areas needing to move from the current reserve system to one which meets the minimum standard. We also use data provided by various parks agencies, from responses to a questionnaire or as published by the agencies, to detail financial investments in protected areas, and estimate the investment levels needed to fill the documented gaps. We also identify critical policy changes needed to more effectively fill the identified gaps.

The CDM-Net project : the development, implementation and evaluation of a broadband-based network for managing chronic disease

Background. In Australia most chronic disease management is funded by Medicare Australia through General Practitioner Management Plans (GPMPs) and Team Care Arrangements (TCAs). Identified barriers may be reduced effectively using a broadband-based network known as the Chronic Disease Management Service (CDMS).

Aims. To measure the uptake and adherence to CDMS, test CDMS, and assess the adherence of health providers and patients to GPMPs and TCAs generated through CDMS.

Methods. A single cohort before and after study.

Results. GPMPs and TCAs increased. There was no change to prescribed medicines or psychological quality of life. Attendance at allied health professionals increased, but decreased at pharmacies. Overall satisfaction with CDMS was high among GPs, allied health professionals, and patients.

Conclusion. This study demonstrates proof of concept, but replication or continuation of the study is desirable to enable the impact of CDMS on diabetes outcomes to be determined.