A three-regime model of speculative behaviour: modelling the evolution of the S&P 500 composite index

We examine whether a three-regime model that allows for dormant, explosive and collapsing speculative behaviour can explain the dynamics of the S&P 500. We extend existing models of speculative behaviour by including a third regime that allows a bubble to grow at a steady rate, and propose abnormal volume as an indicator of the probable time of bubble collapse. We also examine the financial usefulness of the three-regime model by studying a trading rule formed using inferences from it, whose use leads to higher Sharpe ratios and end of period wealth than from employing existing models or a buy-and-hold strategy.

Regime dependent changes in global precipitation

Assessment of changes in precipitation (P) as a function of percentiles of surface temperature (T) and 500 hPa vertical velocity (ω) are presented, considering present-day simulations and observational estimates from the Global Precipitation Climatology Project (GPCP) combined with the European Centre for Medium-range Weather Forecasts Interim reanalysis (ERA Interim). There is a tendency for models to overestimate P in the warm, subsiding regimes compared to GPCP, in some cases by more than 100%, while many models underestimate P in the moderate temperature regimes. Considering climate change projections between 1980–1999 and 2080–2099, responses in P are characterised by dP/dT ≥ 4%/K over the coldest 10–20% of land points and over warm, ascending ocean points while P declines over the warmest, descending regimes (dP/dT ∼ − 4%/K for model ensemble means). The reduced Walker circulation limits this contrasting dP/dT response in the tropical wet and dry regimes only marginally. Around 70% of the global surface area exhibits a consistent sign for dP/dT in at least 6 out of a 7-member model ensemble when considering P composites in terms of dynamic regime.

From apotheosis to damnation: Mussolini and the Fascist regime, 1936-45

This is an essay for a catalogue of the exhibition 'Against Mussolini: art and the fall of a dictator' held at the Estorick Collection, London, September - December 2010. The essay examines shifting attitudes towards Mussolini in the years immediately preceding his fall, and suggests that the development of 'anti-fascism' was less pronounced than often suggested.

Property company performance and real interest rates: a regime-switching approach

Linear models of property market performance may be misspecified if there exist distinct states where the market drivers behave in different ways. This paper examines the applicability of non-linear regime-based models. A Self Exciting Threshold Autoregressive (SETAR) model is applied to property company share data, using the real rate of interest to define regimes. Distinct regimes appear exhibiting markedly different market behaviour. The model both casts doubt on the specification of conventional linear models and offers the possibility of developing effective trading rules for real estate equities.

Internationalized regimes: a second dimension of regime hybridity

Traditional approaches have conceptualized political regimes almost exclusively with reference to domestic-level political factors. However, many current and historical political regimes have entailed a major role for international actors, and in some cases the external influence has been so great that regimes have become internationalized. This article explores the concept of internationalized regimes and argues that they should be seen as a distinct form of hybrid regime type that demonstrates a distinct dimension of hybridity. Until now, regime hybridity has been conceived of along a single dimension of domestic politics: the level of competitiveness. Yet, some regimes are characterised by a different type of hybridity, in which domestic and international authority are found together within a single political system. The article explores the dynamics of internationalized regimes within three settings, those of international occupation, international administration and informal empire.

Breaking the impasse: towards a new regime for international climate governance

The reality of the current international order makes it imperative that a just and effective climate regime balance the historical responsibility of developed countries with the increasing absolute emissions from many developing nations. In this short outlook article, key pillars are proposed for a new international climate architecture that envisions replacing the current annex system with two new annexes –Annex α, for countries with high current emissions and historically high emissions, and Annex β, for countries with high current emissions and historically low emissions. Countries in both annexes would implement legally binding targets under this framework. Additionally, this proposal includes tweaks and revisions to funding and technology transfer mechanisms to correct for weaknesses and inequities under the current Kyoto architecture. The proposed framework stems from a belief that a top-down, international approach to climate policy remains the most effective for ensuring environmental integrity. Given the slow rate of institutional learning, reforming and improving the current system is held as a more efficient course of action than abandoning the progress already achieved. It is argued that the proposed framework effectively accommodates key equity, environmental integrity and political feasibility concerns.

Increasing Autumn drought over Southern China associated with ENSO regime shift

In the two most recent decades, more frequent drought struck southern China during autumn, causing an unprecedented water crisis. We found that the increasing autumn drought is largely attributed to an ENSO regime shift. Compared to traditional eastern-Pacific (EP) El Niño, central-Pacific (CP) El Niño events have occurred more frequently, with maximum sea surface temperature anomalies located near the dateline. Southern China usually experiences precipitation surplus during the autumn of EP El Niño years, while the CP El Niño tends to produce precipitation deficits. Since the CP El Niño has occurred more frequently while EP El Niño has become less common after the early 1990s, there has been a significant increase in the frequency of autumn drought. This has implications for increasing precipitation shortages over southern China in a warming world, in which CP El Niño events have been suggested to become more common.