Evidence of the heterogeneous market hypothesis using wavelet multi -resolution analysis

In finance literature many economic theories and models have been proposed to explain and estimate the relationship between risk and return. Assuming risk averseness and rational behavior on part of the investor, the models are developed which are supposed to help in forming efficient portfolios that either maximize (minimize) the expected rate of return (risk) for a given level of risk (rates of return). One of the most used models to form these efficient portfolios is the Sharpe's Capital Asset Pricing Model (CAPM). In the development of this model it is assumed that the investors have homogeneous expectations about the future probability distribution of the rates of return. That is, every investor assumes the same values of the parameters of the probability distribution. Likewise financial volatility homogeneity is commonly assumed, where volatility is taken as investment risk which is usually measured by the variance of the rates of return. Typically the square root of the variance is used to define financial volatility, furthermore it is also often assumed that the data generating process is made of independent and identically distributed random variables. This again implies that financial volatility is measured from homogeneous time series with stationary parameters. In this dissertation, we investigate the assumptions of homogeneity of market agents and provide evidence for the case of heterogeneity in market participants' information, objectives, and expectations about the parameters of the probability distribution of prices as given by the differences in the empirical distributions corresponding to different time scales, which in this study are associated with different classes of investors, as well as demonstrate that statistical properties of the underlying data generating processes including the volatility in the rates of return are quite heterogeneous. In other words, we provide empirical evidence against the traditional views about homogeneity using non-parametric wavelet analysis on trading data, The results show heterogeneity of financial volatility at different time scales, and time-scale is one of the most important aspects in which trading behavior differs. In fact we conclude that heterogeneity as posited by the Heterogeneous Markets Hypothesis is the norm and not the exception.

Education policy and national income distribution: New evidence from recent cross -country data

In the mid 19th century, Horace Mann insisted that a broad provision of public schooling should take precedence over the liberal education of an elite group. In that regard, his generation constructed a state sponsored common schooling enterprise to educate the masses. More than 100 years later, the institution of public schooling fails to maintain an image fully representative of the ideals of equity and inclusion. Critical theory in educational thought associates the dominant practice of functional schooling with maintenance of the status quo, an unequal distribution of financial, political, and social resources. This study examined the empirical basis for the association of public schooling with the status quo using the most recent and comparable cross-country income inequality data. Multiple regression analysis evaluated the possible relationship between national income inequality change over the period 1985-2005 and variables representative of national measures of education supply in the prior decade. The estimated model of income inequality development attempted to quantify the relationship between education supply factors and subsequent income inequality developments by controlling for economic, demographic, and exogenous factors. The sample included all nations with comparable income inequality data over the measurement period, N = 56. Does public school supply affect national income distribution? The estimated model suggested that an increase in the average years of schooling among the population age 15 years or older, measured over the period 1975-1985, provided a mechanism that resulted in a more equal distribution of income over the period 1985-2005 among low and lower-middle income nations. The model also suggested that income inequality increased less or decreased more in smaller economies and when the percentage of the population age < 15 years grew more slowly over the period 1985-2000. In contrast, this study identified no significant relationship between school supply changes measured over prior periods and income inequality development over the period 1985-2005 among upper-middle and high income nations.

Strategic positioning of Taiwan in the outsourcing market: Evidence from information technology services and electronic manufacturing outsourcing to China

In outsourcing relationships with China, the Electronic Manufacturing (EM) and Information Technology Services (ITS) industry in Taiwan may possess such advantages as the continuing growth of its production value, complete manufacturing supply chain, low production cost and a large-scale Chinese market, and language and culture similarity compared to outsourcing to other countries. Nevertheless, the Council for Economic Planning and Development of Executive Yuan (CEPD) found that Taiwan's IT services outsourcing to China is subject to certain constraints and might not be as successful as the EM outsourcing (Aggarwal, 2003; CEPD, 2004a; CIER, 2003; Einhorn and Kriplani, 2003; Kumar and Zhu, 2006; Li and Gao, 2003; MIC, 2006). Some studies examined this issue, but failed to (1) provide statistical evidence about lower prevalence rates of IT services outsourcing, and (2) clearly explain the lower prevalence rates of IT services outsourcing by identifying similarities and differences between both types of outsourcing contexts. This research seeks to fill that gap and possibly provide potential strategic guidelines to ITS firms in Taiwan. This study adopts Transaction Cost Economics (TCE) as the theoretical basis. The basic premise is that different types of outsourcing activities may incur differing transaction costs and realize varying degrees of outsourcing success due to differential attributes of the transactions in the outsourcing process. Using primary data gathered from questionnaire surveys of ninety two firms, the results from exploratory analysis and binary logistic regression indicated that (1) when outsourcing to China, Taiwanese firms' ITS outsourcing tends to have higher level of asset specificity, uncertainty and technical skills relative to EM outsourcing, and these features indirectly reduce firms' outsourcing prevalence rates via their direct positive impacts on transaction costs; (2) Taiwanese firms' ITS outsourcing tends to have lower level of transaction structurability relative to EM outsourcing, and this feature indirectly increases firms' outsourcing prevalence rates via its direct negative impacts on transaction costs; (3) frequency does influence firms' transaction costs in ITS outsourcing positively, but does not bring impacts into their outsourcing prevalence rates, (4) relatedness does influence firms' transaction costs positively and prevalence rates negatively in ITS outsourcing, but its impacts on the prevalence rates are not caused by the mediation effects of transaction costs, and (5) firm size of outsourcing provider does not affect firms' transaction costs, but does affect their outsourcing prevalence rates in ITS outsourcing directly and positively. Using primary data gathered from face-to-face interviews of executives from seven firms, the results from inductive analysis indicated that (1) IT services outsourcing has lower prevalence rates than EM outsourcing, and (2) this result is mainly attributed to Taiwan's core competence in manufacturing and management and higher overall transaction costs of IT services outsourcing. Specifically, there is not much difference between both types of outsourcing context in the transaction characteristics of reputation and most aspects of overall comparison. Although there are some differences in the feature of firm size of the outsourcing provider, the difference doesn't cause apparent impacts on firms' overall transaction costs. The medium or above medium difference in the transaction characteristics of asset specificity, uncertainty, frequency, technical skills, transaction structurability, and relatedness has caused higher overall transaction costs for IT services outsourcing. This higher cost might cause lower prevalence rates for ITS outsourcing relative to EM outsourcing. Overall, the interview results are consistent with the statistical analyses and provide support to my expectation that in outsourcing to China, Taiwan's electronic manufacturing firms do have lower prevalence rates of IT services outsourcing relative to EM outsourcing due to higher transaction costs caused by certain attributes. To solve this problem, firms' management should aim at identifying alternative strategies and strive to reduce their overall transaction costs of IT services outsourcing by initiating appropriate strategies which fit their environment and needs.

Intuition and its component parts in the heuristic processing of deception detection: Hunch, *evidence, and reliance on intuitive efficacy

Rated trust in intuitive efficacy (measured as trust, belief, use, accuracy and weighting of intuition) was investigated as a predictor of self-designated use of intuitive (hunch and hunch plus evidential belief) vs. deliberative (evidential belief and evidential belief plus hunch) deception detection judgments and actual accuracy. Twenty-nine student participants were filmed as they made true and deceptive statements about their everyday activities on a given evening (last Friday night), and college students (N=238) judged 20 (10=true, 10=deceptive) of these filmed statements as truthful or deceptive. Participants provided ratings of reliance on hunches vs. evidential belief, confidence in film judgments, intuitive efficacy, accuracy in deception detection, reliance on cues to deception, and experiences with intuition. Generalized estimated equation modeling using binary logistics demonstrated accuracy in identifying true vs. deceptive statements was predicted by film number, hunch-evidence ratings, weighting of intuition, and total cues cited. Weighting of intuition was predictive of accuracy across participants, with higher weighting predictive of higher accuracy in general. Participants who cited evidential belief plus hunch and moderate to high weighting incorrectly reversed their true vs. deceptive judgments. Accuracy for true statements was higher for hunches and hunch plus evidential belief, whereas accuracy for deceptive statements was higher for evidential belief Accuracy for participants who relied on evidential belief plus hunch was at chance. Subjective experiences underlying judgments differed by participant and type of film viewed (true vs. deceptive) and were predicted by hunch-evidence ratings, trust, use, intuitive accuracy, and total cues cited. Trust predicted increases in judging films to be true, whereas use and accuracy predicted increases in judging films as deceptive; none were predictive of accuracy. Increased number of cues cited predicted judgments of deception, whereas decreased number of cues cited predicted truth. The study concluded that participants have the capacity to self-define their judgments as subjectively vs. deliberately based, provide subjective assessments of the influence of intuitive vs. objective information on their judgments, and can apply this self-knowledge, through effective weighting of intuition vs. other types of information, in making accurate judgments of true and deceptive everyday statements.

Molecular Evidence for Taxonomic Relationships of the Endangered Species Jacquemontia Reclinata (Convolvulaceae)

Jacquemontia reclinata House (Convolvulaceae) is a federally-listed endangered species endemic to coastal strand habitat of southeastern Florida, from Palm Beach to Miami-Dade counties. Although J. reclinata is currently defined as a species, its taxonomic distinctness has never been analyzed using phylogenetic evidence. In order to assess the evolutionary distinctness of J. reclinata and identify its closest relatives, internal transcribed spacer (ITS) regions within nuclear ribosomal DNA were sequenced, and the sequence data was used to reconstruct a phylogeny of Jacquemontia. The study included the three putative relatives of J. reclinata and all other species within Jacquemontia known to occur in the Greater Antilles and Bahamas, except for three species. Results concur with previous morphological studies, which suggest that J. reclinata is closely related to J. cayensis Britton, J. curtisii Peter, and J. havanensis Urban. These three species and J. reclinata form an unresolved clade. Therefore, it is not certain which of these Caribbean species is sister to J. reclinata. The lack of resolution within the clade that includes J. reclinata implies that the taxa within the clade are evolutionarily similar. Future taxonomic studies of J. reclinata should focus in resolving relationships within the Jacquemontia reclinata clade.

Evidence of Recent Phosphorus Enrichment in Surface Soils of Taylor Slough and Northeast Everglades National Park

Everglades National Park (ENP) is the last hydrologic unit in the series of impounded marsh units that make up the present-day Everglades. The ENP receives water from upstream Water Conservation Areas via canals and water control structures that are highly regulated for flood control, water supply, wildlife management, concerns about poor water quality and the potential for downstream ecosystem degradation. Recent surveys of surface soils in ENP, designed for random sampling for spatial analysis of soil nutrients, did not sample proximate to inflow structures and thus did not detect increased soil phosphorus associated with these water conveyances. This study specifically addressed these areas in a focused sampling effort at three key inflow points in northeast ENP which revealed elevated soil TP proximate to inflows. Two transects extending down Shark River Slough and one down Taylor Slough (a natural watershed of particular ecological value) were found to have soil TP levels in excess of 500 mg kg−1—a threshold above which P enrichment is indicated. These findings suggest the negative impact of elevated water (P) from surface flows and support the assertion that significant soil TP enrichment is occurring in Taylor Slough and other areas of northeastern ENP.

Impact of Late Holocene Climate Variability and Anthropogenic Activities on Biscayne Bay (Florida, U.S.A.): Evidence From Diatoms

Shallow marine ecosystems are experiencing significant environmental alterations as a result of changing climate and increasing human activities along coasts. Intensive urbanization of the southeast Florida coast and intensification of climate change over the last few centuries changed the character of coastal ecosystems in the semi-enclosed Biscayne Bay, Florida. In order to develop management policies for the Bay, it is vital to obtain reliable scientific evidence of past ecological conditions. The long-term records of subfossil diatoms obtained from No Name Bank and Featherbed Bank in the Central Biscayne Bay, and from the Card Sound Bank in the neighboring Card Sound, were used to study the magnitude of the environmental change caused by climate variability and water management over the last ~ 600 yr. Analyses of these records revealed that the major shifts in the diatom assemblage structures at No Name Bank occurred in 1956, at Featherbed Bank in 1966, and at Card Sound Bank in 1957. Smaller magnitude shifts were also recorded at Featherbed Bank in 1893, 1942, 1974 and 1983. Most of these changes coincided with severe drought periods that developed during the cold phases of El Niño Southern Oscillation (ENSO), Atlantic Multidecadal Oscillation (AMO) and Pacific Decadal Oscillation (PDO), or when AMO was in warm phase and PDO was in the cold phase. Only the 1983 change coincided with an unusually wet period that developed during the warm phases of ENSO and PDO. Quantitative reconstructions of salinity using the weighted averaging partial least squares (WA-PLS) diatom-based salinity model revealed a gradual increase in salinity at the three coring locations over the last ~ 600 yr, which was primarily caused by continuously rising sea level and in the last several decades also by the reduction of the amount of freshwater inflow from the mainland. Concentration of sediment total nitrogen (TN), total phosphorus (TP) and total organic carbon (TOC) increased in the second half of the 20th century, which coincided with the construction of canals, landfills, marinas and water treatment plants along the western margin of Biscayne Bay. Increased magnitude and rate of the diatom assemblage restructuring in the mid- and late-1900s, suggest that large environmental changes are occurring more rapidly now than in the past.

Evidence of climate variability and tropical cyclone activity from diatom assemblage dynamics in coastal southwest Florida

Estuaries are dynamic on many spatial and temporal scales. Distinguishing effects of unpredictable events from cyclical patterns can be challenging but important to predict the influence of press and pulse drivers in the face of climate change. Diatom assemblages respond rapidly to changing environmental conditions and characterize change on multiple time scales. The goals of this research were to 1) characterize diatom assemblages in the Charlotte Harbor watershed, their relationships with water quality parameters, and how they change in response to climate; and 2) use assemblages in sediment cores to interpret past climate changes and tropical cyclone activity. ^ Diatom assemblages had strong relationships with salinity and nutrient concentrations, and a quantitative tool was developed to reconstruct past values of these parameters. Assemblages were stable between the wet and dry seasons, and were more similar to each other than to assemblages found following a tropical cyclone. Diatom assemblages following the storm showed a decrease in dispersion among sites, a pattern that was consistent on different spatial scales but may depend on hydrological management regimes. ^ Analysis of sediment cores from two southwest Florida estuaries showed that locally-developed diatom inference models can be applied with caution on regional scales. Large-scale climate changes were suggested by environmental reconstructions in both estuaries, but with slightly different temporal pacing. Estimates of salinity and nutrient concentrations suggested that major hydrological patterns changed at approximately 5.5 and 3 kyrs BP. A highly temporally-resolved sediment core from Charlotte Harbor provided evidence for past changes that correspond with known climate records. Diatom assemblages had significant relationships with the three-year average index values of the Atlantic Multidecadal Oscillation and the El Niño Southern Oscillation. Assemblages that predicted low salinity and high total phosphorus also had the lowest dispersion and corresponded with some major storms in the known record, which together may provide a proxy for evidence of severe storms in the paleoecological record. ^

Further evidence for the relationship between eating frequency, body mass index, and physical activity

The relationship between the frequency of eating, physical activity and Body Mass Index (BMI) was investigated. Seventy five women, aged 24 to 55, were recruited from Florida International University. Via interview, subjects provided information regarding demographics and habitual eating frequency over 24-hours, and completed both the Baecke Questionnaire of Habitual Physical Activity and the Health Insurance Plan of New York Questionnaire on Physical Activity. Pearson correlations and partial correlation coefficients were used to assess the relationship between eating frequency, physical activity, age, and BMI. Results revealed significant positive correlations between eating frequency and total physical activity scores, and leisure time physical activity scores, but not between eating frequency and physical activity on the job. Partial correlations suggest that there may be an effect of eating frequency on BMI both through an effect on physical activity and through another mechanism. These results suggest that more frequent eaters tend to be more physically active, which may partially explain why lower body weights is associated with more frequent eating.