Banking performance and technological change in non-core EU countries: A study of Spain and Portugal

The purpose of this paper is to investigate the cost efficiency of banks operating in two "non-core" EU countries, Portugal and Spain, over a number of years. Specifically, the paper aims to examine the extent to which banks' efficiency is influenced by their portfolio orientation and scale of operation. Data envelopment analysis is used to identify banks' levels of performance over time in both countries. In order to decompose banks' total factor productivity change into technological, scale efficiency and pure efficiency changes, the Malmquist index method is applied. Banks operating in both countries have improved their performance over time and savings banks and large banks, in particular, have tended to outperform other types of banks. Banks operating in Spain tend to perform better than in Portugal and Spanish-owned banks perform better than their Portuguese-owned counterparts. The improvements in performance revealed have mainly been due to technological change. Bankscope is a well- respected data source and has been the basis of many studies of performance in international banking. Unfortunately, owing to data deficiencies, around 20 per cent of the banks operating in Portugal and Spain were not included. Practical implications - If Portuguese banks are to be competitive internationally, there is considerable need for efficiency improvements. The paper provides insights into the dynamics of the Portuguese and Spanish banking systems. The results should be of interest to management in banking and bank regulators in Europe, and economists and others studying bank performance trends. The research reported may shed light on some of the challenges facing the banking sectors of the "new" EU states (such as Poland and Hungary)

Testing for international financial markets integration

This paper examines the extent to which financial markets across the main international financial centres integrated between 1988 and 2001 in the face of technological change and capital market liberalisation. Two empirical approaches are adopted based on principal components analysis and cointegration tests, applied respectively to covered interest rate differentials and real interest rates.. The results suggest that some financial integration occurred during the 1990s but that integration is far from complete at the international level. The study also confirms differing trends in the integration of financial markets in different geographical regions.School of Managemen

Challenges Facing the Polish Banking Industry: A Comparative Study with UK Banks

In 2004 Poland entered the EU. This paper investigates the performance of the Polish banking industry over the period 1999–2004, by looking specifically at its comparative efficiency in relation to one of the largest banking sectors in the EU namely, that of the UK. Based on a range of efficiency measures, the empirical results reveal a surprising degree of relative efficiency in the Polish banking industry, no doubt reflecting the substantial economic changes introduced in Poland since 1989. The findings suggest that the Polish banking sector should be able to withstand the new competitive pressures that it faces following entry into the banking sector of the EU.Poland, UK, banking, efficiency, performance

Density-matrix renormalization group: a pedagogical introduction

The physical properties of a quantum many-body system can, in principle, be determined by diagonalizing the respective Hamiltonian, but the dimensions of its matrix representation scale exponentially with the number of degrees of freedom. Hence, only small systems that are described through simple models can be tackled via exact diagonalization. To overcome this limitation, numerical methods based on the renormalization group paradigm that restrict the quantum many-body problem to a manageable subspace of the exponentially large full Hilbert space have been put forth. A striking example is the density-matrix renormalization group (DMRG), which has become the reference numerical method to obtain the low-energy properties of one-dimensional quantum systems with short-range interactions. Here, we provide a pedagogical introduction to DMRG, presenting both its original formulation and its modern tensor-network-based version. This colloquium sets itself apart from previous contributions in two ways. First, didactic code implementations are provided to bridge the gap between conceptual and practical understanding. Second, a concise and self-contained introduction to the tensor network methods employed in the modern version of DMRG is given, thus allowing the reader to effortlessly cross the deep chasm between the two formulations of DMRG without having to explore the broad literature on tensor networks. We expect this pedagogical review to find wide readership amongst students and researchers who are taking their first steps in numerical simulations via DMRG.Comment: 30 pages, 17 figure

Are brands which “activated” sustainable practices promoting them efficiently in Portugal?

Brands are developing a more sustainable business approach due to increasing environmental and social concerns, worldwide and in Portugal. However, besides the increasing availability of the Portuguese consumer to purchase sustainable brands, information about brands’ sustainable practices is not reaching these consumers. The research conducted by interviewing Portuguese sustainable consumers showed that there’s a misfit between brands’ sustainable practices and consumers perception of these sustainable practices, as a result there is much potential for improving. This project gives to every brand performing sustainable practices in Portugal significant insights on how are these practices perceived by the Portuguese sustainable consumer and what can be improved to engage with this consumer

Reliability, measurement error and construct validity of four proprioceptive tests in patients with chronic idiopathic neck pain

Background: There are different neck proprioceptive tests that are believed to be targeting different sources of proprioceptive information. Objective: To assess the reliability, measurement error, discriminative validity and convergent validity of four proprioceptive tests (head repositioning to neutral – HRNT, torsion test - TT, head repositioning to 30° rotation – HR30T and figure of eight relocation test – F8T) in individuals with chronic idiopathic neck pain and asymp- tomatic individuals. A secondary aim was to assess the divergent validity of these tests by correlating them against measures of disability, pain catastrophizing and fear of movement. Design: – Reliability and validity study. Methods: – 66 participants (33 with chronic neck pain and 33 asymptomatic) were assessed using four pro- prioceptive tests, pain catastrophizing scale, neck disability index, tampa scale of kinesiophobia and visual analogue scale. Results: Proprioceptive tests showed moderate to good reliability (ICC: 0.55 to 0.85), but high measurement error. All tests but the HR30T were significantly different between participants with and without neck pain (p < 0.05). Only the HRNT showed an area under the curve above 0.5 (AUC95% CI = 0.51; 0.78, p ≤ 0.042). Between test correlations ranged between 0.35 and 0.61 and correlations between proprioceptive tests and catastrophizing, fear of movement and disability were, in general, lower than 0.3. Conclusion: The four proprioceptive tests showed reliability and measurement errors good enough for group comparisons but of limited utility for individual comparisons. They seem to measure related but dissimilar constructs and the HRNT seemed better at discriminating individuals with and without NP and easier to perform in clinical practice.publishe

Scalar field dark matter and the Higgs field

We discuss the possibility that dark matter corresponds to an oscillating scalar field coupled to the Higgs boson. We argue that the initial field amplitude should generically be of the order of the Hubble parameter during inflation, as a result of its quasi-de Sitter fluctuations. This implies that such a field may account for the present dark matter abundance for masses in the range 10^-6 - 10^-4 eV, if the tensor-to-scalar ratio is within the range of planned CMB experiments. We show that such mass values can naturally be obtained through either Planck-suppressed non-renormalizable interactions with the Higgs boson or, alternatively, through renormalizable interactions within the Randall–Sundrum scenario, where the dark matter scalar resides in the bulk of the warped extra-dimension and the Higgs is confined to the infrared brane