Do financial distress and liquidity crises affect value and size premiums?

This study investigates the impact of liquidity crises on the relationship between stock (value and size) premiums and default risk in the US market. It first examines whether financial distress can explain value and size premiums, and then, subsequently, aims to determine whether liquidity crises increase the risk of value and size premium investment strategies. The study employs a time-varying approach and a sample of US stock returns for the period between January 1982 and March 2011, a period which includes the current liquidity crisis, so as to examine the relationship between default risk, liquidity crises and value and size premiums. The findings indicate that the default premium has explanatory power for value and size and premiums, which affect firms with different characteristics. We also find that liquidity crises may actually increase the risks related to size and value premium strategies.

Localism as restorative politics; social capital and anti-politics in the London Borough of Burgundia

ABSTRACT The purpose of this paper is to explore the political implications of policies and measures designed to promote “localism”. That is to say, the devolution of power down to a neighbourhood level, as enacted under the 2011 Localism Act. The implementation of localism in London boroughs will be examined. The context is the current concern over disengagement in an era of “anti-politics”, so it is intended to gain an understanding of how localism is interpreted and implemented on the ground. A tentative thesis, of a “restorative politics”, is proposed, such that localism is dynamic and is generating healthy political activity which counters anti-politics in the local community. This could have profound implications for the political parties locally and at Westminster. The extant theories about localism include constructivist interpretations suggesting that a neo-liberal localism is anti-political. This is contested. An emerging narrative heralding a new dawn of empowerment, and related themes concerning social capital, subsidiarity and anti-politics are reviewed. A necessarily empirical approach is adopted in an essentially functionalist frame of reference. There is a review of both academic and policy literature, combined with interviews of professionals involved in localism. This paper is designed to scope a future more substantial piece of research. The conference brief asks; “what scales or levels are appropriate for organising politics in this century”. In a century so far characterised by disillusionment, democratic deficits and abstention, the answer may be; local. The Good Life is lived locally in shared experience and familiar surroundings, hitherto not much amenable to local change. Burgundia is a reference to the film “Passport to Pimlico” (1949), when ABSTRACT The purpose of this paper is to explore the political implications of policies and measures designed to promote “localism”. That is to say, the devolution of power down to a neighbourhood level, as enacted under the 2011 Localism Act. The implementation of localism in London boroughs will be examined. The context is the current concern over disengagement in an era of “anti-politics”, so it is intended to gain an understanding of how localism is interpreted and implemented on the ground. A tentative thesis, of a “restorative politics”, is proposed, such that localism is dynamic and is generating healthy political activity which counters anti-politics in the local community. This could have profound implications for the political parties locally and at Westminster. The extant theories about localism include constructivist interpretations suggesting that a neo-liberal localism is anti-political. This is contested. An emerging narrative heralding a new dawn of empowerment, and related themes concerning social capital, subsidiarity and anti-politics are reviewed. A necessarily empirical approach is adopted in an essentially functionalist frame of reference. There is a review of both academic and policy literature, combined with interviews of professionals involved in localism. This paper is designed to scope a future more substantial piece of research. The conference brief asks; “what scales or levels are appropriate for organising politics in this century”. In a century so far characterised by disillusionment, democratic deficits and abstention, the answer may be; local. The Good Life is lived locally in shared experience and familiar surroundings, hitherto not much amenable to local change. Burgundia is a reference to the film “Passport to Pimlico” (1949), when a London neighbourhood declared independence and its citizens temporarily created the Good Life for themselves. Is the 21st century localism generating a restorative politics?

Accounting for the dissociating properties of organic chemicals in LCIA: an uncertainty analysis applied to micropollutants in the assessment of freshwater ecotoxicity

In life cycle impact assessment (LCIA) models, the sorption of the ionic fraction of dissociating organic chemicals is not adequately modeled because conventional non-polar partitioning models are applied. Therefore, high uncertainties are expected when modeling the mobility, as well as the bioavailability for uptake by exposed biota and degradation, of dissociating organic chemicals. Alternative regressions that account for the ionized fraction of a molecule to estimate fate parameters were applied to the USEtox model. The most sensitive model parameters in the estimation of ecotoxicological characterization factors (CFs) of micropollutants were evaluated by Monte Carlo analysis in both the default USEtox model and the alternative approach. Negligible differences of CFs values and 95% confidence limits between the two approaches were estimated for direct emissions to the freshwater compartment; however the default USEtox model overestimates CFs and the 95% confidence limits of basic compounds up to three orders and four orders of magnitude, respectively, relatively to the alternative approach for emissions to the agricultural soil compartment. For three emission scenarios, LCIA results show that the default USEtox model overestimates freshwater ecotoxicity impacts for the emission scenarios to agricultural soil by one order of magnitude, and larger confidence limits were estimated, relatively to the alternative approach.