The Efficiency of Decentralized Investment Management Systems

The primary purpose of this paper is to demonstrate that decentralized investment management systems may not always be efficient. Specifically, within the context of a particular portfolio choice paradigm it is shown that a given decentralized investment management system is (weakly) efficient if and only if the joint probability distribution of asset rates of return satisfy certain covariance restrictions. If these restrictions do not obtain then the asset portfolios generated by this decentralized structure will generally be inferior to those which would be generated by a completely centralized structure. This paper also discusses how the managers of departments within an efficient decentralized structure should behave so as to generate portfolios which are optimal from the point of view of the institution as a whole. Generally, departmental managers should behave as if they have less risk aversion than the institution as a whole. In fact, a given manager should be more risk averse the greater the value of his portfolio. Finally, we note that the efficiency concept employed in this paper is equivalent to the proposition that certain assets admit consistent simple sum aggregation. It is shown that this implies that the efficient decentralization of investment decisions permits the institution to economize on the information which must be passed to higher level departments.

Consistent Simple Sum Aggregation over Assets

This paper discusses the issue of consistent simple sum aggregation over assets within the context of expected utility maximizing investors. The first part of the paper extends the Hicks and Leontief aggregation theorems of consumer choice theory to the portfolio choice problem. Next, necessary and sufficient conditions for consistent simple sum aggregation are derived for Nerton's (1973) continuous-time trading model of investor behavior. Results relating to the construction of consistent rate of return indices for simple sum composite assets are also presented.

Rational Expectations, the Expectations Hypothesis, and Treasury Bill Yields: An Econometric Analysis

This paper tests the joint hypothesis of rational expectations and the expectations model of the term structure for three- and six-month Treasury bills. Previous studies are extended in three directions. First, common efficient markets-rational expectations tests are compared, and it is shown that four of the five tests considered are asymptotically equivalent, and that the fifth is less restrictive than the other four. Second, the joint hypothesis is tested using weekly data for Treasury bills maturing in exactly 13 and 26 weeks beginning in 1970 and ending in 1979. In contrast, previous studies using comparable data have typically discarded 12/13 of the sample to form a nonoverlapping data set. Finally, a more complete set of possible determinants of time-varying term premiums is tested.

Using a fuzzy inference system to control a pumped storage hydro plant

The paper discusses the development of a fuzzy inference system (FIS) based governor control for a pumped storage hydroelectric plant. The First Hydro Company's plant at Dinorwig in North Wales is the largest of its kind in Europe and is mainly used for frequency control of the UK electrical grid. In previous investigations, a detailed model of the plant was developed using MATLAB(R)/SIMULINK(R) and this is now being used to compare FIS governor operation with the proportional-integral-derivative (PID) controller currently used. The paper describes the development of an FIS governor, and shows that its response to a step increase in load is superior to the PID under certain conditions of load. The paper proceeds to discuss the implications of these results in view of the possible practical application of an FIS governor at the Dinorwig plant

Cancers of unknown primary diagnosed during hospitalization: a population-based study

Background: Cancers of Unknown Primary (CUP) are the 3-4th most common causes of cancer death and recent clinical guidelines recommend that patients should be directed to a team dedicated to their care. Our aim was to inform the care of patients diagnosed with CUP during hospital admission. Methods: Descriptive study using hospital admissions (Scottish Morbidity Record 01) linked to cancer registrations (ICD-10 C77-80) and death records from 1998 to 2011 in West of Scotland, UK (population 2.4 m). Cox proportional hazards models were used to assess effects of baseline variables on survival. Results: Seven thousand five hundred ninety nine patients were diagnosed with CUP over the study period, 54.4% female, 67.4% aged ≥ 70 years, 36.7% from the most deprived socio-economic quintile. 71% of all diagnoses were made during a hospital admission, among which 88.6% were emergency presentations and the majority (56.3%) were admitted to general medicine. Median length of stay was 15 days and median survival after admission 33 days. Non-specific morphology, emergency admission, age over 60 years, male sex and admission to geriatric medicine were all associated with poorer survival in adjusted analysis. Conclusions: Patients with a diagnosis of CUP are usually diagnosed during unplanned hospital admissions and have very poor survival. To ensure that patients with CUP are quickly identified and directed to optimal care, increased surveillance and rapid referral pathways will be required

Community resilience, climate change, sustainability & engagement : adventures in creative project-based education on the Eyre Peninsula

Teaching sustainability ethics and creative practical technological applications holistically, in a multi-disciplinary ethos, with real community engagement is fraught with pedagogical and logistical issues. This paper reviews a highly community-acclaimed tertiary course/project, offered at the School of Architecture, Landscape Architecture &amp; Urban Design at the University of Adelaide, undertaken on the Eyre Peninsula in 1st semester 2009. The course successfully enhanced student appreciation of rural community capacity building and economic fragility issues while undertaking a project-based approach to interrogating and working with rural communities to devise and demonstrate potential micro-relevant design and planning initiatives that could strengthen community resilience, climate change adaptiveness, and validate natural resource management aims within townships. The project involved some 120 students in 6 host communities through 6 local municipalities with the full support of the Natural Resource Management (NRM) Board and Local Government Association (LGA).The paper reviews the project, its historical evolution, aims, objectives, learning strategies, community aspirations and outcomes, and positions such against various professional education accreditation frameworks. The methodological learning process, including its philosophical, pedagogical and instruments outcomes are reviewed and interrogated. The student learning outcomes, University reputation impact, and community impact, professional practice knowledge and skill attributes, and instrumental outcomes are also reviewed drawing upon evidence derived from extensive meetings, questionnaire surveys, synergistic NRM-sponsored research projects, student evaluation of teachings (SELTS), and local media coverage of the project.The project has received applause from the Australian Institute of Architects (AIA) and Australian Institute of Landscape Architects (AILA), and preliminary endorsement from the Planning Institute of Australia (PIA), as being integral to the School&rsquo;s curriculum that achieves their professional accreditation expectations of key learning experiences relevant to climate change, master planning and design, and community engagement. The project offers a possible educational model that enriches student experience and learning and addresses recent generic university community engagement policy expectations.<br /

Land Registration and Administrative Reform in Southeast Asian States: Progress and

An aspect of good governance is an effective system of land administration. A central component of this is the comprehensive registration of rural property title by the state to create more secure and legally protected tenure for farmers and cultivators. In response to the need for comprehensive land titling in rural areas in most states of Southeast Asia, major reform programs have been implemented to this end in recent years. However, constraints have been encountered, resulting in only variable progress in achieving comprehensive registration, especially of small land holdings. These constraints will be examined in the article in relation to both individual and communal tenure. Also considered will be institutional constraints that have impeded registration. In conclusion the article will explain the impediments in title registration in relation to three sets of factors: poor standards of governance, receptivity of traditional communities to title registration and policy capture of title registration by business and bureaucratic elites