Tourism and Crime: Evidence from the Philippines

Using panel data gathered from 16 regions of the Philippines for the period 2009-11, this paper investigates the relationship between tourism and crime. The findings of the study show that the relation between tourism and crime may largely depend on the characteristics of visitors and the types of crime. For all types of crime and their aggregate, no significant correlation between the crime rate (defined as the number of crime cases divided by population) and total tourist arrivals is found. However, a statistically significant positive relation is found between foreign tourism and robbery and theft cases as well as between overseas Filipino tourism and robbery. On the other hand, domestic tourism is not significantly correlated with any of the four types of crimes. These results, together with a strong evidence of the negative relationship between crime and the crime clearance efficiency, present much opportunity for policy intervention in order to minimize the crime externality of the country\u27s tourism-led development strategy

On eigenvalue bounds for the finite-state birth-death process intensity matrix

The paper sets forth a novel eigenvalue interlacing property across the finite-state birth-death process intensity matrix and two clearly identified submatrices as an extension of Cauchy’s interlace theorem for Hermitian matrix eigenvalues. A supplemental proof involving an examination of probabilities acquired from specific movements across states and a derivation of a form for the eigenpolynomial of the matrix through convolution and Laplace transform is then presented towards uncovering a similar characteristic for the general Markov chain transition rate matrix. Consequently, the proposition generates bounds for each eigenvalue of the original matrix, easing numerical computation. To conclude, the applicability of the property to some real square matrices upon transformation is explored

Digital Simulations for Grade 7 to 10 Mathematics

This article describes a Department of Science and Technology – Philippine Council for Industry, Energy and Emerging Technology (DOST-PCIEERD) project aimed to facilitate the implementation of the mathematical objectives raised by the Department of Education’s (DepEd) K to 12 program in the Philippines through the use of innovative digital technologies. In particular, a selection of application software (“apps”) were created for Grade 7 to 10 mathematics that covered topics indicated in the five strands outlined in the K to 12 program – namely (1) number, (2) geometry, (3) measurement, (4) patterns and algebra, and (5) statistics and probability. The design of the apps was informed by an amalgamated framework of the Cognitive Theory of Multimedia Learning (Mayer 2005) and Mathematical Theories of Representation (Goldin 1998). The design was informed by how students learn and how students learn mathematics. The project also aimed to design manipulable software that allows learners to construct and grapple with their mental representations of mathematical concepts. This paper describes a selection of the apps designed by the project and how their features were informed by the theoretical framework. It also presents results from pilot studies that demonstrate the apps’ potential to increase performance, facilitate conceptual development, and increase learners’ engagement

Representation of exchange option prices under stochastic volatility jump-diffusion dynamics

In this article, we provide representations of European and American exchange option prices under stochastic volatility jump-diffusion (SVJD) dynamics following models by Merton [Option pricing when underlying stock returns are discontinuous. J. Financ. Econ., 1976, 3(1-2), 125–144], Heston [A closed-form solution for options with stochastic volatility with applications to bond and currency options. Rev. Financ. Stud., 1993, 6(2), 327–343], and Bates [Jumps and stochastic volatility: Exchange rate processes implicit in Deutsche Mark options. Rev. Financ. Stud., 1996, 9(1), 69–107]. A Radon–Nikodým derivative process is also introduced to facilitate the shift from the objective market measure to other equivalent probability measures, including the equivalent martingale measure. Under the equivalent martingale measure, we derive the integro-partial differential equation that characterizes the exchange option prices. We also derive representations of the European exchange option price using the change-of-numéraire technique proposed by Geman et al. [Changes of numéraire, changes of probability measure and option pricing. J. Appl. Probab., 1995, 32(2), 443–458] and the Fourier inversion formula derived by Caldana and Fusai [A general closed-form spread option pricing formula. J. Bank. Finance, 2013, 37, 4893–4906], and show that these two representations are comparable. Lastly, we show that the American exchange option price can be decomposed into the price of the European exchange option and an early exercise premium

A Numerical Approach to Pricing Exchange Options under Stochastic Volatility and Jump-Diffusion Dynamics

We consider a method of lines (MOL) approach to determine prices of European and American exchange options when underlying asset prices are modeled with stochastic volatility and jump-diffusion dynamics. As with any other numerical scheme for partial differential equations (PDEs); the MOL becomes increasingly complex when higher dimensions are involved; so we first simplify the problem by transforming the exchange option into a call option written on the ratio of the yield processes of the two assets. This is achieved by taking the second asset yield process as the numéraire. Under the equivalent martingale measure induced by this change of numéraire; we derive the exchange option pricing integro-partial differential equations (IPDEs) and investigate the early exercise boundary of the American exchange option. We then discuss a numerical solution of the IPDEs using the MOL; its implementation using computing software and possible alternative boundary conditions at the far limits of the computational domain. Our analytical and numerical investigation shows that the near-maturity behavior of the early exercise boundary of the American exchange option is significantly influenced by the dividend yields and the presence of jumps in the underlying asset prices. Furthermore; with the numerical results generated by the MOL; we are able to show that key jump and stochastic volatility parameters significantly affect the early exercise boundary and exchange option prices. Our numerical analysis also verifies that the MOL performs more efficiently; than other finite difference methods or simulation approaches for American options; since the MOL integrates the computation of option prices; greeks and the early exercise boundary; and does so with the least error

<Articles>Tourism and Crime: Evidence from the Philippines

Using panel data gathered from 16 regions of the Philippines for the period 2009–11, this paper investigates the relationship between tourism and crime. The findings of the study show that the relation between tourism and crime may largely depend on the characteristics of visitors and the types of crime. For all types of crime and their aggregate, no significant correlation between the crime rate (defined as the number of crime cases divided by population) and total tourist arrivals is found. However, a statistically significant positive relation is found between foreign tourism and robbery and theft cases as well as between overseas Filipino tourism and robbery. On the other hand, domestic tourism is not significantly correlated with any of the four types of crimes. These results, together with a strong evidence of the negative relationship between crime and the crime clearance efficiency, present much opportunity for policy intervention in order to minimize the crime externality of the country's tourism-led development strategy

App-based scaffolds for writing two-column proofs

This paper presents apps designed to assist students in understanding and developing proofs in geometric theorems. These technologies focus on triangle congruence, triangle similarity and properties of parallelograms. Focus group discussions and initial testing of the apps revealed that the apps offered a more engaging medium for learning proving and were capable of facilitating proof-writing skills in geometry

App for Addition and Subtraction of Integers

This paper presents a mobile app, AlgeOps, created to assist students in understanding addition and subtraction of integers. The design of the app amalgamated the neutralization model (based on cancelling integers of opposite signs) and the number line model to offer a more holistic representation of integers. Furthermore, since AlgeOps presents two objects, boxes and balloons, the learning objective may be extended to adding and subtracting polynomials. Pre- and post-assessments, student observations and interviews with teachers and students revealed the app can increase performance, facilitate conceptual development, and increase engagement in tasks involving integer addition and subtraction