Market versus limit orders in an imperfectly competitive security

This paper analyzes the choice between limit and market orders in animperfectly competitive noisy rational expectations economy. There is a uniqueinsider, who takes into account the effect their trading has on prices. If theinsider behaves as a price taker, she will choose market orders if her privateinformation is very precise and she will choose limit orders otherwise. On thecontrary, if the insider recognizes and exploits her ability to affect themarket price, her optimal choice is to place limit orders whatever the precisionof her private information.

On the cultural transmission of corruption

We provide a cultural explanation to the phenomenon of corruption in the framework of an overlapping generations model with intergenerational transmissionof values. We show that the economy has two steady states with different levels of corruption. The driving force in the equilibrium selection process is the education effort exerted by parents which depends on the distribution of ethics in the population and on expectations about future policies. We propose some policy interventions which via parents' efforts have long-lasting effects on corruption and show the success of intensive education campaigns. Educating the young is a key element in reducing corruption successfully.

Geometric and long run aspects of Granger causality

This paper extends multivariate Granger causality to take into account the subspacesalong which Granger causality occurs as well as long run Granger causality. The propertiesof these new notions of Granger causality, along with the requisite restrictions, are derivedand extensively studied for a wide variety of time series processes including linear invertibleprocess and VARMA. Using the proposed extensions, the paper demonstrates that: (i) meanreversion in L2 is an instance of long run Granger non-causality, (ii) cointegration is a specialcase of long run Granger non-causality along a subspace, (iii) controllability is a special caseof Granger causality, and finally (iv) linear rational expectations entail (possibly testable)Granger causality restriction along subspaces.

The equity premium and the risk free rate: A cross country, cross maturity examination

This paper examines the relationship between the equity premium and the risk free rate at three different maturities using post 1973 data fora panel of 7 OECD countries. We show the existence of subsample instabilities,of some cross country differences and of inconsistencies with the expectations theory of the term structure. We perform simulations using a standard consumptionbased CAPM model and demonstrate that the basic features of Mehra and Prescott's(1985) puzzle remain, regardless of the time period, the investment maturity and the country considered. Modifications of the basic setup are also considered.

Speed of convergence of recursive least squares learning with ARMA perceptions

This paper fills a gap in the existing literature on least squareslearning in linear rational expectations models by studying a setup inwhich agents learn by fitting ARMA models to a subset of the statevariables. This is a natural specification in models with privateinformation because in the presence of hidden state variables, agentshave an incentive to condition forecasts on the infinite past recordsof observables. We study a particular setting in which it sufficesfor agents to fit a first order ARMA process, which preserves thetractability of a finite dimensional parameterization, while permittingconditioning on the infinite past record. We describe how previousresults (Marcet and Sargent [1989a, 1989b] can be adapted to handlethe convergence of estimators of an ARMA process in our self--referentialenvironment. We also study ``rates'' of convergence analytically and viacomputer simulation.

Noise and aggregation of information in large markets

We study a novel class of noisy rational expectations equilibria in markets with largenumber of agents. We show that, as long as noise increases with the number of agents inthe economy, the limiting competitive equilibrium is well-defined and leads to non-trivialinformation acquisition, perfect information aggregation, and partially revealing prices,even if per capita noise tends to zero. We find that in such equilibrium risk sharing and price revelation play dierent roles than in the standard limiting economy in which per capita noise is not negligible. We apply our model to study information sales by a monopolist, information acquisition in multi-asset markets, and derivatives trading. Thelimiting equilibria are shown to be perfectly competitive, even when a strategic solutionconcept is used.

Earnings management and audit adjustments: An empirical study of IBEX 35 constituents

Doubts about the reliability of a company's qualitative financial disclosure increase market participant expectations from the auditor's report. The auditing process is supposed to serve as a monitoring device that reduces management incentives to manipulate reported earnings. Empirical research confirms that it could be an efficient device under some circumstancesand recognizes that our estimates of the informativeness of audit reports are unavoidably biased (e.g., because of a client's anticipation of the auditing process). This empirical study supports the significant role of auditors in the financial market, in particular in the prevention of earnings management practice. We focus on earnings misstatements, which auditors correct with anadjustment, using a sample of past and current constituents of the benchmark market index in Spain, IBEX 35, and manually collected audit adjustments reported over the 1997-2004 period (42 companies, 336 annual reports, 75 earnings misstatements). Our findings confirm that companies more often overstate than understate their earnings. An investor may foresee earningsmisreporting, as manipulators have a similar profile (e.g., more leveraged and with lower sales). However, he may receive valuable information from the audit adjustment on the size of earnings misstatement, which can be significantly large (i.e., material in almost all cases). We suggest that the magnitude of an audit adjustment depends, other things constant, on annual revenues and free cash levels. We also examine how the audit adjustment relates to the observed market price, trading volume and stock returns. Our findings are that earnings manipulators have a lower price and larger trading volume compared to their rivals. Their returns are positively associated with the magnitude of earnings misreporting, which is not consistent with the possible pricing of audit information.

Convergences and divergences of diabetic patients' and healthcare professionals' opinions of care : a qualitative study

OBJECTIVES: To investigate opinions' convergences and divergences of diabetic patients and health-care professionals on diabetes care and the development of a regional diabetes programme. BACKGROUND: Development and implementation of a regional diabetes programme. RESEARCH DESIGN: Qualitative study using focus groups to elicit diabetic patients' and health-care professionals' opinions, followed by content analysis. SETTING AND PARTICIPANTS: Eight focus groups: four focus groups with diabetic patients (n = 39) and four focus groups with various health-care professionals (n = 34) residing or practicing in the canton of Vaud, Switzerland, respectively. RESULTS: Perceived quality of diabetes care varied between individuals and types of participants. To improve quality, patients favoured a comprehensive follow-up while professionals suggested considering existing structures and trained professionals. All participants mentioned communication difficulties between professionals and were favouring teamwork. In addition, they described the role that patients should have in care and self-management. Financial difficulties were also mentioned by both groups of participants. Finally, they were in favour of the development of a regional diabetes programme adapted to actors' needs. For patients indeed, such a programme would represent an opportunity to improve information and to have access to comprehensive care. For professionals, it would help the development of local networks and the reinforcement of existing tools and structures. DISCUSSION AND CONCLUSIONS: Acknowledging convergences and divergences of opinions of both diabetic patients and health-care professionals should help the further development of a programme adapted to users' needs, taking all stakeholders interests and priorities into consideration.

How political parties, rather than member-states, are building the European Union

Political party formation and coalition building in the European Parliament is being a driving force for making governance of the highly pluralistic European Union relatively effective and consensual. In spite of successive enlargements and the very high number of electoral partiesobtaining representation in the European Union institutions, the number of effective European Political Groups in the European Parliament has decreased from the first direct election in 1979 to the fifth in 1999. The formal analysis of national party¹s voting power in different Europeanparty configurations can explain the incentives for national parties to join large European Political Groups instead of forming smaller nationalistic groupings. Empirical evidence shows increasing cohesion of European Political Groups and an increasing role of the European Parliament in EU inter-institutional decision making. As a consequence of this evolution, intergovernmentalism is being replaced with federalizing relations. The analysis can support positive expectations regarding the governability of the European Union after further enlargements provided that new member states have party systems fitting the European PoliticalGroups.

Alfabetização de crianças caboverdianas em língua portuguesa como língua não materna : o ensino da leitura

abstract: Cape Verde is a country of bilingual characteristics, where coexist two languages: the mother tongue – the Creole of Cape Verde (CCV) or the Capeverdian Language (LCV) and the Non Maternal language – the Portuguese that is the official language and, therefore, the language used in the process of education and learning. This situation generates conflicts so much to linguistic level as to cultural level. The two languages presents some lexical resemblances, what drives, many times, to misconceptions and linguistics errors that complicate children in the learning, in particular, of reading that constitute the base for the learning of others knowledge. The learning of reading, in the Non Maternal language, requires a development of the oral language in Portuguese Language, which stimulates the reasoning of the child through playful exercises and cognitivists and construtivists approaches. In this way, the competences of phonological processing in the acquisition of the competences of reading are important for the discrimination of written text and favor the learning and the development of reading. The child, through the discovery, begins to elaborate concepts in the way to obtain a relation with the written language, by functional form. Adopting a methodology of case study and through questionnaires, direct observation and collect of documentary information, this dissertation presents and analyzes connected aspects to the literacy of capeverdian children in the beginning of the schooling and to the learning of reading as basic support for the learning of Non Maternal language. The subsidies collected by the study, presented in this dissertation will contribute for the education progress of reading and, also, for implement successfully the learning of reading of the students, developing to practical of reading and the expectations in uncover the multiplicity of the dimensions of experience in that domain and contribute for a relative comprehension of written and reading modes.

O turismo e a percepção dos seus impactes pela comunidade local : o caso da Ilha do Sal, Cabo Verde

The traditional analysis of tourism, having in mind only its economic impacts has been shown to be reductive and insufficient to explain the numerous and versatile modifications these can and will stimulate in a society at many levels, e.g. socially, culturally, politically and in the environment. The complexity of touristic activities and the insufficient measuring instruments that can provide exact data about these, gives terrain to the emergence of myths and value judgments around the effects in countries where tourism is a reality. This study aims at understanding how the impacts of tourism are grasped by the local community in Sal island – Cape Verde – convinced as we are that a quality and sustainable touristic offer can only be done by trialing the population, and involving them in the planning, managing and monitoring processes. The analysis of the perception of the impacts of touristic activities by the population tells us a lot about the levels of satisfaction of such communities towards the way in which the touristic development has been carried out in their surroundings. This study has been made through the inquiry of 231 locals, by means of a questionnaire, that showed that the population in this island has a very clear conscience of the impacts of tourism in their day-to-day lives. Conclusions drawn are that the negative economic and social impacts are greater than the positive; the cultural and environmental impacts are not so significant, and that the people feel that their voice has not been heard in what planning touristic activities is concerned. Nevertheless, they have high expectations regarding tourism as a way of ameliorating their life conditions. The inexistence of a linear behavior of impacts of touristic activities in the receptive countries and a perfect and adjustable model for tourism development make these countries delineate new politics aiming at the sustainability and the creation of conditions that help them monitor and mitigate its negative impacts.

O turismo e a percepção dos seus impactes pela comunidade local: o caso da Ilha do Sal, Cabo Verde

A análise tradicional do turismo visando apenas a sua dimensão económica tem-se mostrado redutora e insuficiente para explicar as inúmeras e versáteis alterações que pode provocar a nível social, cultural, político e ambiental. A complexidade da actividade turística e a carência de instrumentos ajustados para avaliar e tornar mensuráveis os seus impactes constituem terreno fértil à emergência de mitos e de juízos de valor em torno dos efeitos por ele causado nos países receptores. A linha orientadora da investigação parte do pressuposto que a actividade turística só faz sentido e se torna viável se proporcionar uma experiência qualitativa aos principais agentes envolvidos: os turistas e os residentes. A tentativa de compreender a forma como os impactes do turismo são percepcionados pela comunidade receptora da ilha do Sal em Cabo Verde está intimamente associado à convicção que um turismo de qualidade e sustentável só é possível auscultando a população e envolvendo-a no planeamento, gestão e monitorização da actividade. A análise da percepção dos impactes da actividade turística por parte da comunidade desemboca indirectamente no conhecimento dos níveis de satisfação da comunidade em relação à forma como se tem realizado o desenvolvimento turístico na ilha. No âmbito do trabalho de investigação foram realizados duzentos e trinta e um questionários cujos resultados da investigação levam a acreditar que a comunidade local salense possui uma clara consciência dos impactes do turismo no seu quotidiano. Verifica-se que a percepção dos impactes económicos e sociais negativos reúnem maior consenso que os impactes positivos. Os impactes culturais e ambientais são ainda pouco perceptíveis por parte dos inquiridos. Por outro lado, os inquiridos na sua generalidade não se sentem envolvidos no planeamento da actividade turística, embora haja elevadas expectativas em relação à actividade como forma de melhoria das condições de vida da população. A inexistência de um comportamento linear dos impactes da actividade turística no destino e de um modelo de desenvolvimento turístico perfeito e ajustável a todas as realidades obriga a que sejam delineados por parte dos países receptores políticas de planeamento visando a sustentabilidade e condições para a monitorização e mitigação dos seus impactes.

Estudo de caso: o uso da língua portuguesa por jovens provindos de outros países no domínio privado, público e educativo

A afluência de imigrantes a Portugal, nas últimas três décadas transformou radicalmente todo o tecido social português, caracterizando-se hoje pela sua heterogeneidade. Até ao início da década de 90 do século XX, os fluxos migratórios provinham essencialmente dos Países de Língua Oficial Portuguesa, com maior incidência de Cabo Verde, Brasil e Angola. É nessa década que se registam movimentos bastante significativos de imigrantes provenientes da Europa Central e Oriental, principalmente da Ucrânia, Rússia, Roménia e Moldávia, assim como da Ásia, destacando-se os naturais da China, Índia, Paquistão e das antigas repúblicas soviéticas. De acordo com a análise apresentada pelo Instituto Nacional de Estatística em Dezembro de 2006, residiam de forma legal em Portugal 329 898 cidadãos de nacionalidade estrangeira, sendo as maiores comunidades de Cabo Verde (57 349), Brasil (41 728) e Angola (28 854). A sociedade portuguesa do século XXI, distancia-se cada vez mais do conceito de monolinguismo, tal como se evidencia no Projecto Gulbenkian “Diversidade Linguística na Escola Portuguesa”, que, segundo o estudo feito, onze por cento dos alunos residentes na área da Grande Lisboa nasceram fora de Portugal e têm como línguas maternas cinquenta e oito idiomas. É urgente uma intervenção diferente no que corresponde a esta nova realidade linguística em Portugal e sobretudo no que concerne à integração do “outro”, reconhecendo e respeitando as várias línguas maternas e culturas, como também a sua preservação a fim de possibilitar o desenvolvimento íntegro e harmonioso da identidade. A heterogeneidade da actual sociedade portuguesa impõe um olhar atento para com esta nova realidade no país, sobretudo em muitas das escolas onde a par do uso da língua portuguesa outras línguas são também usadas como forma de comunicação entre os mesmos pares, situação esta perfeitamente desajustada da realidade escolar madeirense Estudo de caso: O uso da Língua Portuguesa por jovens oriundos de outros países nos domínios privado, público e educativo. 10 de inícios da década de 90 do século XX, à excepção dos alunos provenientes da Venezuela, os denominados luso-descendentes. A escola mudara, tudo se alterara, havia que tentar perceber o que estava a ocorrer, um novo Mundo “invadira” as turmas, prontas a aprender, a saber, a descobrir. Era preciso preencher o silêncio expectante. Aprender uma nova língua, a portuguesa, decorrente da obrigatoriedade implícita de tratar-se da língua oficial, obrigava a repensar o ensino, a continuamente desvendar novos caminhos possibilitadores de encontro entre a língua materna e a segunda, de reencontro com a identidade linguística e cultural que não se quer perdidas, só tornado possível na diferença. A par de uma escola que se apresentava de forma diferente, cuja intervenção teria de ser oposta à de então, uma vez que a aprendizagem do português era feita como língua segunda (L2), muitas foram e são as inquietações, um turbilhão de interrogações decorriam deste contacto constante de uma língua que se diz minha, fonte de partilha com outros jovens. O uso da língua portuguesa confinar-se-á unicamente à escola com os professores e colegas ou despoletará curiosidades, vontades, interesses, motivados por objectivos confinados ao percurso e à história humana? Muitas são as interrogações que ocorrem, muitos são também os momentos de sabedoria mútua de línguas e países a desvendar num contínuo ininterrupto e é essa constante procura que determina a busca de respostas. Entre muitas interrogações uma afigurava-se de forma latente, quiçá fonte de resposta para outras interrogações inerentes à língua portuguesa como língua segunda. A sua utilização por parte dos alunos de outras nacionalidades nos domínios privado, público e educativo engloba domínios diversos capazes de informar acerca do uso dessa mesma língua. Importa no entanto reforçar que estes alunos constituem um grupo heterogéneo sob diversos pontos de vista: etário, linguístico e cultural. Do ponto de vista linguístico a população que tem o português como língua segunda abrange alunos falantes de diferentes línguas maternas, umas mais próximas, outras mais afastadas do português, propiciando diferentes graus de transferência de conhecimentos linguísticos e de experiências comunicativas, como também em diferentes estádios de aquisição e que fora da escola o usam em maior ou menor número de contextos e com um grau de frequência desigual. Estudo de caso: O uso da Língua Portuguesa por jovens oriundos de outros países nos domínios privado, público e educativo. 11 Dispõem também de diferentes capacidades individuais para discriminar, segmentar e produzir sequências linguísticas. Já do ponto de vista cultural apresentam diferentes hábitos de aprendizagem, bem como diferentes representações e expectativas face à escola. Todos estes factores determinarão ritmos de progressão distintos no que respeita à aprendizagem do português como língua segunda. As oportunidades de aprendizagem e de uso que cada indivíduo tem ao longo da vida, determinantes no processo de aquisição, desenvolvimento e aprendizagem de uma língua, variam bastante de indivíduo para indivíduo. Os alunos podem viver num mesmo contexto no entanto razões variadíssimas determinarão diferentes oportunidades de aprendizagem e de uso. Viver-se num contexto de imersão não é suficiente para que todos tenham o mesmo grau de exposição a material linguístico rico e variado da L2. Essas oportunidades também se relacionam com a distância linguística entre língua primeira (L1) e a língua segunda, quanto mais afastadas são as duas línguas mais os falantes da L2 se refugiam na sua língua materna, assim como também se associam aos hábitos culturais da comunidade e da família.

Alfabetização de crianças caboverdianas em língua portuguesa como língua não materna : o ensino da leitura

abstract: Cape Verde is a country of bilingual characteristics, where coexist two languages: the mother tongue – the Creole of Cape Verde (CCV) or the Capeverdian Language (LCV) and the Non Maternal language – the Portuguese that is the official language and, therefore, the language used in the process of education and learning. This situation generates conflicts so much to linguistic level as to cultural level. The two languages presents some lexical resemblances, what drives, many times, to misconceptions and linguistics errors that complicate children in the learning, in particular, of reading that constitute the base for the learning of others knowledge. The learning of reading, in the Non Maternal language, requires a development of the oral language in Portuguese Language, which stimulates the reasoning of the child through playful exercises and cognitivists and construtivists approaches. In this way, the competences of phonological processing in the acquisition of the competences of reading are important for the discrimination of written text and favor the learning and the development of reading. The child, through the discovery, begins to elaborate concepts in the way to obtain a relation with the written language, by functional form. Adopting a methodology of case study and through questionnaires, direct observation and collect of documentary information, this dissertation presents and analyzes connected aspects to the literacy of capeverdian children in the beginning of the schooling and to the learning of reading as basic support for the learning of Non Maternal language. The subsidies collected by the study, presented in this dissertation will contribute for the education progress of reading and, also, for implement successfully the learning of reading of the students, developing to practical of reading and the expectations in uncover the multiplicity of the dimensions of experience in that domain and contribute for a relative comprehension of written and reading modes.

O turismo e a percepção dos seus impactes pela comunidade local : o caso da Ilha do Sal, Cabo Verde

The traditional analysis of tourism, having in mind only its economic impacts has been shown to be reductive and insufficient to explain the numerous and versatile modifications these can and will stimulate in a society at many levels, e.g. socially, culturally, politically and in the environment. The complexity of touristic activities and the insufficient measuring instruments that can provide exact data about these, gives terrain to the emergence of myths and value judgments around the effects in countries where tourism is a reality. This study aims at understanding how the impacts of tourism are grasped by the local community in Sal island – Cape Verde – convinced as we are that a quality and sustainable touristic offer can only be done by trialing the population, and involving them in the planning, managing and monitoring processes. The analysis of the perception of the impacts of touristic activities by the population tells us a lot about the levels of satisfaction of such communities towards the way in which the touristic development has been carried out in their surroundings. This study has been made through the inquiry of 231 locals, by means of a questionnaire, that showed that the population in this island has a very clear conscience of the impacts of tourism in their day-to-day lives. Conclusions drawn are that the negative economic and social impacts are greater than the positive; the cultural and environmental impacts are not so significant, and that the people feel that their voice has not been heard in what planning touristic activities is concerned. Nevertheless, they have high expectations regarding tourism as a way of ameliorating their life conditions. The inexistence of a linear behavior of impacts of touristic activities in the receptive countries and a perfect and adjustable model for tourism development make these countries delineate new politics aiming at the sustainability and the creation of conditions that help them monitor and mitigate its negative impacts.