Why the hand motion proceeds the target in tracking experiment?

In the present study, to shed light on a role of positional error correction mechanism and prediction mechanism in the proactive control discovered earlier, we carried out a visual tracking experiment, in which the region where target was shown, was regulated in a circular orbit. Main results found in this research were following. Recognition of a time step, obtained from the environmental stimuli, is required for the predictive function. The period of the rhythm in the brain obtained from environmental stimuli is shortened about 10%, when the visual information is cut-off. The shortening of the period of the rhythm in the brain accelerates the motion as soon as the visual information is cut-off, and lets the hand motion precedes the target motion. Although the precedence of the hand in the blind region is reset by the environmental information when the target enters the visible region, the hand precedes in average the target when the predictive mechanism dominates the error-corrective mechanism.

When bookkeepers become beekeepers: why bee accountability

Accounting for biodiversity has received increasing attention from the academic accounting community in recent years. Despite a stream of research investigating the quality and quantity of biodiversity reporting in general, no academic research has focused on reporting related to one specific species. This paper explores the quality and quantity of corporate disclosures relating to bees. Society is becoming increasingly concerned about the accelerating fall in bee populations around the world. Colony Collapse Disorder has been spreading through global bee populations since 2006, decimating commercial hives. Concerns are fuelled by fears that pollinators may become extinct which would have dire consequences for the majority of world food production, leaving human pollination, at immense cost, the only alternative. On the basis of these fears, companies as well as other organisations, have started to establish programmes aimed at rejuvenating global bee populations. In this paper we explore the bee-related disclosures provided by a large selection of UK listed companies. We assess the extent to which companies believe they have a role to play in enhancing and protecting bee populations. Further we consider whether corporate accountability in this area derives solely from a business case or whether there is a deeper societal connection with bees as a species which is encouraging companies to protect their survival. The paper investigates the historical and philosophical connection between bees and human beings, for example the ways industrial production has been likened to honey production. We draw parallels between bees and human industrial organisation as well as between the role and responsibilities of the bookkeeper and the beekeeper.

Why compatibilist intuitions are not mistaken: a reply to Feltz and Millan

In the past decade, a number of empirical researchers have suggested that laypeople have compatibilist intuitions. In a recent paper, Feltz and Millan (2015) have challenged this conclusion by claiming that most laypeople are only compatibilists in appearance and are in fact willing to attribute free will to people no matter what. As evidence for this claim, they have shown that an important proportion of laypeople still attribute free will to agents in fatalistic universes. In this paper, we first argue that Feltz and Millan’s error-theory rests on a conceptual confusion: it is perfectly acceptable for a certain brand of compatibilist to judge free will and fatalism to be compatible, as long as fatalism does not prevent agents from being the source of their actions. We then present the results of two studies showing that laypeople’s intuitions are best understood as following a certain brand of source compatibilism rather than a “free-will-no-matter-what” strategy.

Sources of stakeholder salience in the responsible investment movement: why do investors sign the Principles for Responsible Investment?

Since its inception in 2006, the United Nations-backed Principles for Responsible Investment (PRI) have grown to over 1300 signatories representing over $45 trillion. This growth is not slowing down. In this paper, we argue that there is a set of attributes which make the PRI salient as a stakeholder and its claim to sign the six PRI important to institutional investors. We use Mitchell et al.’s (Acad Manag Rev 22:853–886, 1997) theoretical framework of stakeholder salience, as extended by Gifford (J Bus Eth 92:79–97, 2010). We use as evidence confidential data from the annual survey of signatories carried out by the PRI in a 5-year period between 2007 and 2011. The findings highlight pragmatic and organizational legitimacy, normative and utilitarian power, and management values as the attributes that contribute most to the salience of the PRI as a stakeholder.

Terminology matters! Why difference is not incompleteness and how early child bilinguals are heritage speakers

This paper integrates research on child simultaneous bilingual (2L1) acquisition more directly into the heritage language (HL) acquisition literature. The 2L1 literature mostly focuses on development in childhood, whereas heritage speakers (HSs) are often tested at an endstate in adulthood. However, insights from child 2L1 acquisition must be considered in HL acquisition theorizing precisely because many HSs are the adult outcomes of child 2L1 acquisition. Data from 2L1 acquisition raises serious questions for the construct of incomplete acquisition, a term broadly used in HL acquisition studies to describe almost any difference HSs display from baseline controls (usually monolinguals). We offer an epistemological discussion related to incomplete acquisition, highlighting the descriptive and theoretical inaccuracy of the term. We focus our discussion on two of several possible causal factors that contribute to variable competence outcomes in adult HSs, input (e.g., Sorace, 2004; Rothman, 2007; Pascual y Cabo & Rothman, 2012) and formal instruction (e.g., Kupisch, 2013; Kupisch et al., 2014) in the HL. We conclude by offering alternative terminology for HS outcomes.

Unbounded exchange economies with satiation: how far can we go?

We unify and generalize the existence results in Werner (1987), Dana, Le Van and Magnien (1999), Allouch, Le Van and Page (2006) and Allouch and Le Van (2008). We also show that, in terms of weakening the set of assumptions, we cannot go too far.

Why do bidders drop out from a sequential auction

In actual sequential auctions, 1) bidders typically incur a cost in continuing from one sale to the next, and 2) bidders decide whether or not to continue. To investigate the question "why do bidders drop out," we define a sequential auction model with continuation costs and an endogenously determined number of bidders at each sale, and we characterize the equilibria in this model. Simple examples illustrate the effect of several possible changes to this model.

Testing the optimality of aggregate consumption decisions: is there rule-of-thumb behavior?

Consumption is an important macroeconomic aggregate, being about 70% of GNP. Finding sub-optimal behavior in consumption decisions casts a serious doubt on whether optimizing behavior is applicable on an economy-wide scale, which, in turn, challenge whether it is applicable at all. This paper has several contributions to the literature on consumption optimality. First, we provide a new result on the basic rule-of-thumb regression, showing that it is observational equivalent to the one obtained in a well known optimizing real-business-cycle model. Second, for rule-of-thumb tests based on the Asset-Pricing Equation, we show that the omission of the higher-order term in the log-linear approximation yields inconsistent estimates when lagged observables are used as instruments. However, these are exactly the instruments that have been traditionally used in this literature. Third, we show that nonlinear estimation of a system of N Asset-Pricing Equations can be done efficiently even if the number of asset returns (N) is high vis-a-vis the number of time-series observations (T). We argue that efficiency can be restored by aggregating returns into a single measure that fully captures intertemporal substitution. Indeed, we show that there is no reason why return aggregation cannot be performed in the nonlinear setting of the Pricing Equation, since the latter is a linear function of individual returns. This forms the basis of a new test of rule-of-thumb behavior, which can be viewed as testing for the importance of rule-of-thumb consumers when the optimizing agent holds an equally-weighted portfolio or a weighted portfolio of traded assets. Using our setup, we find no signs of either rule-of-thumb behavior for U.S. consumers or of habit-formation in consumption decisions in econometric tests. Indeed, we show that the simple representative agent model with a CRRA utility is able to explain the time series data on consumption and aggregate returns. There, the intertemporal discount factor is significant and ranges from 0.956 to 0.969 while the relative risk-aversion coefficient is precisely estimated ranging from 0.829 to 1.126. There is no evidence of rejection in over-identifying-restriction tests.

Testing production functions used in empirical growth studies

We estimate and test two alternative functional forms representing the aggregate production function for a panel of countries: the extended neoclassical growth model, and a mincerian formulation of schooling-returns to skills. Estimation is performed using instrumentalvariable techniques, and both functional forms are confronted using a Box-Cox test, since human capital inputs enter in levels in the mincerian specification and in logs in the extended neoclassical growth model. Our evidence rejects the extended neoclassical growth model in favor of the mincerian specification, with an estimated capital share of about 42%, a marginal return to education of about 7.5% per year, and an estimated productivity growth of about 1.4% per year. Differences in productivity cannot be disregarded as an explanation of why output per worker varies so much across countries: a variance decomposition exercise shows that productivity alone explains 54% of the variation in output per worker across countries.

Essays on infrastructure in Brazil

A presente tese engloba cinco trabalhos sobre dois setores brasileiros de infraestrutura: setor de energia e de transportes. No primeiro trabalho, modela-se o lance dos leilões de linhas de transmissão de energia, buscando compreender porque os lances ganhadores têm se situado em níveis abaixo do que se espera. No segundo paper, estima-se a demanda de energia do Brasil e as elasticidades preço e renda que os consumidores apresentem em relação a essa demanda, usando uma técnica ainda não aplicada na literatura e incluindo o período da Crise do Racionamento – a qual pode ter mudado o padrão de consumo dos agentes. No terceiro trabalho, estuda-se a evolução do mercado de gás natural liquefeito (GNL) ao redor do mundo. O GNL pode ser o link que faltava entre os mercados de gás natural e essa hipótese é testada por meio de análises de séries de tempo e de cópulas. O quarto paper discute a entrada do GNL no sistema energético brasileiro e suas eventuais consequências. Por fim, o quinto paper analisa a experiência de leilões de rodovias no Brasil. O trabalho levanta relevantes insights a respeito do modelo de leilão utilizado e dos detalhes contratuais dessas licitações.

What kind of judiciary do we want?: the access to justice in Brazil

The goal of this paper is to discuss a key issue in the Democratic Rule of Law State: what are the role and main functions of the Judiciary in Brazil? Is the Judiciary mainly a public service provider, adjudicating disputes and guaranteeing individual rights? Or also as a state power, it should mainly control and guide the moral values of the society, changing the status quo and reducing social conflicts? In this sense, what are the conflicts that must be examined by the Judiciary? We will seek to answer these questions based on a discussion subsidized by courts official statistics and the results of surveys conducted with the Brazilian general population. The surveys measured how do citizens feel about their judicial system and what are the circumstances and the facts that determine the judicialization of conflicts. We work with the perceptions and attitudes of citizens relating to the Judiciary as it is today and discuss the Judiciary they want. Then, we compare how attitudes and perceptions relate to actual behavior and use of courts.

Forecasting Multivariate Time Series under Present-Value-Model Short- and Long-run Co-movement Restrictions

This paper has two original contributions. First, we show that the present value model (PVM hereafter), which has a wide application in macroeconomics and fi nance, entails common cyclical feature restrictions in the dynamics of the vector error-correction representation (Vahid and Engle, 1993); something that has been already investigated in that VECM context by Johansen and Swensen (1999, 2011) but has not been discussed before with this new emphasis. We also provide the present value reduced rank constraints to be tested within the log-linear model. Our second contribution relates to forecasting time series that are subject to those long and short-run reduced rank restrictions. The reason why appropriate common cyclical feature restrictions might improve forecasting is because it finds natural exclusion restrictions preventing the estimation of useless parameters, which would otherwise contribute to the increase of forecast variance with no expected reduction in bias. We applied the techniques discussed in this paper to data known to be subject to present value restrictions, i.e. the online series maintained and up-dated by Shiller. We focus on three different data sets. The fi rst includes the levels of interest rates with long and short maturities, the second includes the level of real price and dividend for the S&P composite index, and the third includes the logarithmic transformation of prices and dividends. Our exhaustive investigation of several different multivariate models reveals that better forecasts can be achieved when restrictions are applied to them. Moreover, imposing short-run restrictions produce forecast winners 70% of the time for target variables of PVMs and 63.33% of the time when all variables in the system are considered.

Testing consumption optimality using aggregate data

The objective of this paper is to test for optimality of consumption decisions at the aggregate level (representative consumer) taking into account popular deviations from the canonical CRRA utility model rule of thumb and habit. First, we show that rule-of-thumb behavior in consumption is observational equivalent to behavior obtained by the optimizing model of King, Plosser and Rebelo (Journal of Monetary Economics, 1988), casting doubt on how reliable standard rule-of-thumb tests are. Second, although Carroll (2001) and Weber (2002) have criticized the linearization and testing of euler equations for consumption, we provide a deeper critique directly applicable to current rule-of-thumb tests. Third, we show that there is no reason why return aggregation cannot be performed in the nonlinear setting of the Asset-Pricing Equation, since the latter is a linear function of individual returns. Fourth, aggregation of the nonlinear euler equation forms the basis of a novel test of deviations from the canonical CRRA model of consumption in the presence of rule-of-thumb and habit behavior. We estimated 48 euler equations using GMM, with encouraging results vis-a-vis the optimality of consumption decisions. At the 5% level, we only rejected optimality twice out of 48 times. Empirical-test results show that we can still rely on the canonical CRRA model so prevalent in macroeconomics: out of 24 regressions, we found the rule-of-thumb parameter to be statistically signi cant at the 5% level only twice, and the habit ƴ parameter to be statistically signi cant on four occasions. The main message of this paper is that proper return aggregation is critical to study intertemporal substitution in a representative-agent framework. In this case, we fi nd little evidence of lack of optimality in consumption decisions, and deviations of the CRRA utility model along the lines of rule-of-thumb behavior and habit in preferences represent the exception, not the rule.

Why designate market makers? affirmative obligations and market quality

We study why most financiaI markets designate one or more agents who precommit to provide more liquidity than they would endogenously choose, and identify two reasons that such affirmative obligations can improve welfare. The first relies on the insight that the informational component of the competi tive bid-ask spread represents a transfer across traders, not a social cost to completing trades. As such, this trading cost dissuades efficient trading, while a restriction on spread widths encourages efficient trading. Secondly, a restriction on spread widths encourages traders to become informed, which speeds the rate at which market prices move toward true asset values in the wake of information events. We consider the setting where competition ensures that affirmative obligations impose net trading losses on designated market makers that must be compensated by side payments, as observed on the Euronext limit order market, and also the setting where the designated market maker is allowed some advantages relative to limit order traders so that profits can be eamed during tranquil periods to offset losses incurred when affirmative obligations are binding, as observed on the NYSE.

Why banks want to be complex

We investigate whether and how bank complexity affects performance and systemic risk. We base the analysis on a complexity measure that captures diversification and diversity, controlling for size and other bank characteristics. We find that more complex banks exhibit a higher profitability, lower risk, and higher market share. Moreover, we show an inversely U-shaped relation between bank complexity and banks’ sensitivity to systemic shocks. The evidence challenges the view that higher bank complexity is per se bad and is consistent with theoretical models that show that diversity in the banking system is critical for financial stability.