A SIMULATION APPROACH TO THE VALUATION OF CAPITAL BUDGETING PROJECTS INCORPORATING A DEFER OPTION

Techniques applied to determine the value of derivatives have been recently exported in the field of investment valuation. This paper aims to provide some light to the use of a new technique in the investment valuation literature, aiming to take into account the value of flexibility. This technique, designed by Longstaff and Schwartz, combines Monte Carlo simulation and the Ordinary Least Squares in order to value American-style derivatives with different specifications. We show that this method can easily be incorporated to value capital budgeting projects in the framework of the real options theory and provides coherent results from an economic point of view. We do this by estimating the value of several cases of an investment project that incorporates an option to defer the initial investment or layout through time. We estimate these values by using the Ox programming language. Algunas técnicas aplicadas para determinar el valor de derivados han sidorecientemente exportadas en el campo de la valoración de inversiones. Este trabajo tienecomo objetivo clarificar el uso de una nueva técnica dentro de la literatura de valoraciónde inversiones, teniendo en cuenta el valor de flexibilidad. Esta técnica, diseñada porLongstaff y Schwartz, combina la simulación de Monte Carlo y los Mínimos CuadradosOrdinarios con el objetivo de valorar derivados de tipo americano con distintasespecificaciones. En este trabajo demostramos que este método puede ser fácilmenteincorporado para valorar proyectos de inversión en el marco de la teoría de opcionesreales y muestra resultados coherentes desde el punto de vista económico. Lo hacemosestimando el valor de distintos casos de un proyecto de inversión que incorpora unaopción de posponer la inversión inicial en el tiempo. Estimamos estos valores usando ellenguaje de programación Ox.Least Squares Monte Carlo, opción de espera, movimiento geométrico Browniano, proyecto de inversión. Least Squares Monte Carlo, defer option, geometric Brownian motion, investment project.

Subjective well-being and basic needs: Evidence from rural Guatemala

This paper deals with basic needs fulfillment interpreted in a subjective way. We develop a framework in which the basic needs of households in developing areas are valued from a subjective point of view. We estimate how certain indicators and assets influence basic needs perception. We compare income and perceived basic needs poverty measures, finding that they mismatch. We conclude that income-based approaches should be complemented with other indicators such as subjective satisfaction measures to understand development and measure poverty.Subjective well-being, basic needs, poverty, Guatemala, Highlands.

The link between water access and subjective well-being: some methods and proposals.

The study of happiness or subjective well-being has traditionally been studied within the disciplines of psychology or sociology. Although economics has contemplated happiness in research terms, it has only recently been studied in any depth. In this paper we offer several proposals in order to investigate the relationship between water access and happiness, suggesting some situations that would merit further research. Moreover, we have included some methodological notes in order to achieve this objective. This relationship can be useful in two ways. Firstly, it can favour the contemplation of water access as a human right. Secondly, it can serve as a framework for the decision-making process carried out by Governments and NGOs in developing countries.

Performance and ownership in the governance of urban water

In this paper the differences in terms of performance between public and the private governance in urban water management are investigated. A statistical ranking is implemented to determine programmatic efficiency differences in DEA, using an incomplete panel data that gathers information on 20 water utilities in Andalusia, in Southern Spain. In the model, labour and operational costs are considered as inputs. The volume of revenue water, the number of connections and the network length are used as outputs. The analysis indicates that private management is more efficient. The efficiency indicators adjusted by a variable related to quality are estimated and demonstrate that privatization of the service does not mean any loss in terms of quality. However, there are no significant differences between both types of management including as a desirable input hydraulic yield as a proxy of the degree of network renovation. A lower hydraulic efficiency in private management would suggest that the need to make significant investments could be an important factor when making the decision to privatize the management of the urban water service: Water supply; Management; Local government;

The importance of time in referee home bias due to social pressure. Evidence from Spanish football

This paper analyses referee home bias due to social pressure with data from the matches played in the First Division of the Spanish football league between the 2002/03 and 2009/10 seasons. Finally, our main conclusion is that the time the referee has to make a decision does affect the final outcome; while there is no referee home bias when a free kick is awarded, in the case of booking players, when the referee has more time to make a decision, social pressure can influence the final outcome in favour of the home team.Social pressure; crowd effect; referee home bias; sports economics.

Life satisfaction of foreing people in Spain during the economic crisis

En este trabajo pretendemos analizar los determinantes de la satisfacción con la vida de las personas extranjeras en España y las diferencias con las autóctonas. Las preguntas clave son las siguientes: ¿Es más infeliz la población extranjera que la autóctona? ¿Existen diferencias entre los distintos factores relacionados con la felicidad de ambas poblaciones? Los resultados indican que, controlando por variables económicas y sociales, los/as extranjeros/as están más insatisfechos/as que los/as autóctonos/as. Sin embargo, los resultados sugieren que el impacto de la crisis y las diferencias de ingresos condicionan la relación entre ser extranjero/a y la satisfacción con la vida.In this research we analyze the determinants on life satisfaction of foreign people in Spain. The key questions we pose are as follows: Are foreign people more dissatisfied than Spaniards? Are there differences in the factors related to the life satisfaction of foreigners and Spaniards? The results indicate that, controlling for economic and social variables, foreigners are more dissatisfied than the native ones. However, the results suggest that the impact of the crisis, and income differences, condition the relationship between being foreign and satisfaction with life

Subjective well-being and basic needs: evidence from rural Guatemala

This paper deals with basic needs fulfillment interpreted in a subjective way. We develop a framework in which the basic needs of households in developing areas are valued from a subjective point of view. We estimate how certain indicators and assets influence basic needs perception. We compare income and perceived basic needs poverty measures, finding that they mismatch. We conclude that income-based approaches should be complemented with other indicators such as subjective satisfaction measures to understand development and measure poverty

Conceptualizations of Happiness and Vegetarianism: Empirical Evidence from University Students in Spain

Vegetarianism improves human and planetary health in addition to animal welfare. Motivations for meat-reduced diets include health-related and ethical reasons, with the latter being the main driver for eschewing meat. However, evidence on vegetarian happiness is inconclusive and the results reported are mixed. This constitutes a challenge for policy aiming to encourage people to shift toward plant-based diets. In this research, we aim to provide some evidence on this question: to what extent is there a link between the different moral codes related to ideas of happiness and vegetarianism? To do so, we apply the happiness moral codes from the Conceptual Referent Theory, and assess vegetarianism from the perspective of the psychological aspect of vegetarian identity (flexitarian, pescatarian, lacto-ovo vegetarian, and vegan) and dietary behavior (vegetarian self-assessment scale). Analyzing a sample of university students in Spain, we discover that some happiness constructs (tranquility, fulfilment, and virtue) are positively related to vegetarianism while others are inversely related (enjoyment and stoicism). In terms of policy implications, we find that ethical grounds one holds on happiness in relation to vegetarianism may play a role in fostering or hindering plant-based lifestyles.Universidad de Granada/CBUASpanish Agencia Estatal de Investigación and the European Regional Development Fund (project ECO2017–86822-R)The Regional. Government of AndalusiaThe European Regional Development Fund (project ECO2017–86822-R); the Regional. Government of Andalusia and the European Regional Development Fund (Projects P18-RT-576 and B-SEJ-018-UGR18)The University of Granada (Plan Propio. Unidad Científica de Excelencia: Desigualdad, Derechos Humanos y Sostenibilidad -DEHUSO)

¿Qué aportan los estudios de felicidad al buen vivir, y viceversa? (What is the contribution of happiness studies in buen vivir, and vice versa?)

ResumenEn los últimos años, la ciencia se ha preocupado de estudiar la felicidad y sus causas. Sin embargo, en los estudios no se ha prestado demasiada atención a grupos de individuos que comparten una idea bastante personal sobre qué es el bienestar, que va más allá de la opinión occidental. El presente texto pretende analizar las posibles ventajas e inconvenientes, así como las limitaciones y aportaciones, que los estudios de felicidad pueden ocasionar en la comprensión del Buen Vivir de los pueblos indígenas latinoamericanos. También sacaremos conclusiones sobre qué puede aportar el Buen Vivir a los estudios de la felicidad.AbstractIn the last years, science has studied happiness and its causes. However, research has not given much attention to groups that share a particular view of happiness, that goes beyond the western idea. This paper aims to analyze the possible advantages and disadvantages, as well as limitations and contributions of happiness research in the comprehension of Buen Vivir of Latin American indigenous people. We also draw conclusions on the contribution of Buen Vivir in happiness studies