Measuring Macroprudential Risk Through Financial Fragility: A Minskyan Approach

This paper presents a method to capture the growth of financial fragility within a country and across countries. This is done by focusing on housing finance in the United States, the United Kingdom, and France. Following the theoretical framework developed by Hyman P. Minsky, the paper focuses on the risk of amplification of shock via a debt deflation instead of the risk of a shock per se. Thus, instead of focusing on credit risk, for example, financial fragility is defined in relation to the means used to service debts, given credit risk and all other sources of shocks. The greater the expected reliance on capital gains and debt refinancing to meet debt commitments, the greater the financial fragility, and so the higher the risk of debt deflation induced by a shock if no government intervention occurs. In the context of housing finance, this implies that the growth of subprime lending was not by itself a source of financial fragility; instead, it was the change in the underwriting methods in all sectors of the mortgage markets that created a financial situation favorable to the emergence of a debt deflation. Stated alternatively, when nonprime and prime mortgage lending moved to asset-based lending instead of income-based lending, the financial fragility of the economy grew rapidly

Strengths-Weaknesses-Opportunities-Threats analysis of carbon footprint indicator and derived recommendations

ABSTRACT: Demand for a low carbon footprint may be a key factor in stimulating innovation, while prompting politicians to promote sustainable consumption. However, the variety of methodological approaches and techniques used to quantify life-cycle emissions prevents their successful and widespread implementation. This study aims to offer recommendations for researchers, policymakers and practitioners seeking to achieve a more consistent approach for carbon footprint analysis. This assessment is made on the basis of a comprehensive Strengths-Weaknesses-Opportunities-Threats or SWOT Analysis of the carbon footprint indicator. It is carried out bringing together the collective experience from the Carbonfeel Project following the Delphi technique principles. The results include the detailed SWOT Analysis from which specific recommendations to cope with the threats and the weaknesses are identified. In particular, results highlight the importance of the integrated approach to combine organizational and product carbon footprinting in order to achieve a more standardized and consistent approach. These recommendations can therefore serve to pave the way for the development of new, specific and highly-detailed guidelines

Assigning defined daily doses animal: a European multi-country experience for antimicrobial products authorized for usage in pigs

Objectives: To establish a consensus defined daily dose animal (DDDA) for each active substance (AS) and administration route for porcine veterinary antimicrobial products authorized in four European countries, thus allowing cross-country quantification and comparison of antimicrobial usage data. Methods: All veterinary antimicrobial products authorized for porcine use in Belgium, France, Germany and Sweden were listed for each administration route. First, separate DDDAs for each product were defined based on the recommended dosing for the main indication. Second, a consensus DDDA was established by taking the mean of the DDDAs for each product within a certain category of AS plus administration route. Results: One-hundred-and-fifty-nine, 240, 281 and 50 antimicrobial products were licensed in Belgium, France, Germany and Sweden, respectively, in February 2013. Large variations were observed for dosage and treatment duration recommendations between products and between countries for the same ASs. Only 6.8% of feed/water and 29.4% of parenteral AS groups had the same recommended dosage in the four countries. Conclusions: This study presents a consensus DDDA list for use in the quantification and comparison of antimicrobial consumption. Four major recommendations have been formulated: (i) urgent need for harmonization of authorization and recommended summary of product characteristics (SPC) dosages; (ii) expand the developed preliminary DDDA list to include all authorized veterinary medicinal products in all EU member states and for all (food-producing) animal species; (iii) improved accessibility of country-specific SPC data would be preferable; and (iv) statement of the 'long-acting' duration of a product in the SPC