Benefits of Induced Host Responses against an Ectoparasite

As a consequence of the deleterious effects of parasites on host fitness, hosts have evolved responses to minimize the negative impact of parasite infection. Facultative parasite-induced responses are favoured when the risk of infection is unpredictable and host responses are costly. In vertebrates, induced responses are generally viewed as being adaptive, although evidence for fitness benefits arising from these responses in natural host populations is lacking. Here we provide experimental evidence for direct reproductive benefits in flea-infested great tit nests arising from exposure during egg production to fleas. In the experiment we exposed a group of birds to fleas during egg laying (the exposed group), thereby allowing for induced responses, and kept another group free of parasites (the unexposed group) over the same time period. At the start of incubation, we killed the parasites in both groups and all nests were reinfested with fleas. If induced responses occur and are adaptive, we expect that birds of the exposed group mount earlier responses and achieve higher current reproductive success than birds in the unexposed group. In agreement with this prediction, our results show that birds with nests infested during egg-laying have (i) fewer breeding failures and raise a higher proportion of hatchlings to hedging age; () offspring that reach greater body mass, grow longer feathers, and hedge earlier, and (iii) a higher number of recruits and first-year grandchildren than unexposed birds. Flea reproduction and survival did not differ significantly between the two treatments. These results provide the first evidence for the occurrence and the adaptiveness of induced responses against a common ectoparasite in a wild population of vertebrates. [References: 50]

Firms, do you know your currency risk exposure? Survey results

This paper surveys the currency risk management practices of Swiss industrial corporations. We find tha industrials do not quantify their currency risk exposure and investigate possible reasons. One possibility is that firms do not think they need to know because they use on-balance-sheet instruments to protect themselves before and after currency rates reach troublesome levels. This is puzzling because a rough estimate of at least cash flow exposure is not a prohibitive task and could be helpful. It is also puzzling that firms use currency derivatives to hedge/insure individual short-term transactions, without apparently trying to estimate aggregate transaction exposure.

Static replications with traffic light options

It is well known that sufficiently regular, one-dimensional payoff functions have an explicit static hedge by bonds, forward contracts, and options in a continuum of strikes. An easy and natural extension of the corresponding representation leads to static hedges based on the same instruments along with traffic light options, which have recently been introduced in the market. It is well known that the second strike derivative of non-discounted prices of vanilla options is related to the risk-neutral density of the underlying asset price in the corresponding absolutely continuous settings. Similar statements hold for traffic light options in sufficiently regular, bivariate settings.

Jatropha mahafalensis for rural energy supply in south-western Madagascar?

In many parts of the eastern African region wood-based fuels will remain dominant sources of energy in coming decades. Pressure on forests, especially in semi-arid areas will therefore continue increasing. In this context, the role of liquid biofuels as substitutes for firewood and charcoal, to help reducing pressure on woody biomass and contributing to a better energy security of rural communities, has remained controversial among researchers and practitioners. At household level, the economic and technical feasibility of straight vegetable oil (SVO) was assessed mainly on Jatropha curcas, with unpersuasive results. So far nothing is known about the suitability as an energy carrier of Jatropha mahafalensis Jum. & H. Perrier, the only endemic representative of the Jatropha genus in Madagascar. This paper explores the potential of this plant as a biofuel feedstock in the agro-pastoral area of Soalara, in the semi-arid south-western part of Madagascar. Only hedge-based production was considered to rule out competition over land with food crops. Yield data, the length of currently existing hedges and energy consumption patterns of households were used to assess the quantitative potential and economic viability of J. mahafalensis SVO for lighting and cooking. Tests were conducted with cooking and lighting devices to assess their technical suitability at household level. The paper concludes that J. mahafalensis hedges have some potential to replace paraffin for lighting (though without much economic benefit for the concerned households), but not to replace charcoal or firewood for cooking. The paper recommends that rural energy strategies in similar contexts do not focus only on substituting current fuels with SVO, but should also take into consideration other alternatives. In the case of cooking, there seems to be substantially more potential in increasing the efficiency of current fuel production and consumption technologies (kilns and stoves); and in the case of lighting, solutions based on SVO need to be compared against other options such as portable solar devices.