Do Farmers Exhibit Disposition Effect?: Evidence from Grain Marketing

disposition effect, grain marketing, Agribusiness, Institutional and Behavioral Economics, Marketing,

Econometric Model for Cement demand and supply in Bolivia

This document introduce the obtained results of the econometric estimation of cement demand and supply in Bolivia considered as a simultaneous equations model, based on two equations, one for the demand and another for the supply. The objective of this study is to quantify the forces that affect the cement market in the period understood among the years 1994 up to 2003. Five models of simultaneous equations were considered, which are based on the respective linear functions of cement demand and supply to be able to explain the coefficients associated to the variables in form of elasticities. The estimates were made following the classic methodology of econometrics with the respective statistical validation, being carried out the individual and grupal validation of the coefficients associated to each variable indicating the statistic significance of the same ones.cement, demand, supply, bolivia.

POVERTY, TAX EVASION AND THE OPTIMUM GENERAL INCOME TAX

This paper combines poverty considerations in the social welfare function and tax evasion into an optimal general income tax problem. It investigates the optimal audit and tax structures using a model with two types of individual, endogenous labor supply and a hybrid social welfare function that captures the pluralism of the objectives of a full committed government. The results confirm the previous literature on tax evasion: (i) skilled households should never be audited and face any distortions in the labor supply, (ii) unskilled households have to be audited randomly (probability less than one) and (iii) Individuals should be rewarded if telling the truth about their income. In addition, the introduction of poverty concern as a negative externality brings new characteristics for the optimum income tax on poor: (iv) they may (or not) face negative marginal income tax. Also, a numerical example is provided to further explore the model.

Evolving Market Performance in Brazilian Futures Contracts Using Relative Efficiency

Marketing,

Bourgin-Yang versions of the Borsuk-Ulam theorem for pp-toral groups

Let $V$ and $W$ be orthogonal representations of $G$ with $V^G= W^G=\{0\}$. Let $S(V )$ be the sphere of $V$ and $f : S(V ) \to W$ be a $G$-equivariant mapping. We give an estimate for the dimension of the set $Z_f=f^{-1}\{0\}$ in terms of $\dim V$ and $\dim W$, if $G$ is the torus $\mathbb T^k$, or the $p$-torus $\mathbb Z_p^k$. This extends the classical Bourgin-Yang theorem onto this class of groups. Finally, we show that for any $p$-toral group $G$ and a $G$-map $f:S(V) \to W$, with $\dim V=\infty$ and $\dim W<\infty$, we have $\dim Z_f= \infty$.Comment: Major revisio

Dynamic Decision Making in Agricultural Futures and Options Markets

This paper investigates the dynamics of sequential decision-making in agricultural futures and options markets. Analysis of trading records of 12 traders identified considerable heterogeneity in individual dynamic trading behavior. Using risk measures derived from the deltas and vegas of trader’s portfolios, we find nearly half the traders behavior is consistent with a house-money effect and the other half with loss aversion. These findings correspond closely to expected behavior inferred from elicited utility and probability weighting functions. The results call into question more aggregate findings that discount probability weighting to develop risk measures which support the notion of more uniform, less heterogeneous, behavior. Understanding behavior in a prospect theory context appears to call for investigation of both the probability weighting and utility functions. Our findings also suggest that strategies for loss-averse traders who consolidate gains and avoid using gains in risk-seeking market activities are effective.loss aversion, house-money effect, futures, options, Agricultural Finance,

Probability Distortion and Loss Aversion in Futures Hedging

We analyze how the introduction of probability distortion and loss aversion in the standard hedging problem changes the optimal hedge ratio. Based on simulated cash and futures prices for soybeans, our results indicate that the optimal hedge changes considerably when probability distortion is considered. However, the impact of loss aversion on hedging decisions appears to be small, and it diminishes as loss aversion increases. Our findings suggest that probability distortion is a major driving force in hedging decisions, while loss aversion plays just a marginal role.Marketing,

Theory of Nonequilibrium Spin Transport and Spin Transfer Torque in Superconducting-Ferromagnetic Nanostructures

Spin transport currents and the spin-transfer torques in voltage-biased superconducting-ferromagnetic nanopillars (SFNFS point contacts) are computed. We develop and implement an algorithm based on the Ricatti formulation of the quasiclassical theory of superconductivity to solve the time-dependent boundary conditions for the nonequilibrium Green's functions for spin transport through the ferromagnetic interfaces. A signature of the nonequilibrium torque is a component perpendicular to the plane spanned by the two ferromagnetic moments. The perpendicular component is absent in normal-metal-ferromagnetic nanopillars (NFNFN) contacts, but is shown to have the same order of magnitude as the in-plane torque for non-equilibrium SFNFS contacts. The out-of-plane torque is due to the rotation of quasiparticle spin by the exchange fields of the ferromagnetic layers. In the ballistic limit the equilibrium torque is related to the spectrum of spin-polarized Andreev bound states, while the {\sl ac} component, for small bias voltages, is determined by the nearly adiabatic dynamics of the Andreev bound states. The nonlinear voltage dependence of the non-equilibrium torque, including the subharmonic gap structure and the high-voltage asymptotics, is attributed to the interplay between multiple Andreev reflections, spin filtering and spin mixing. These properties of spin angular momentum transport may be exploited to control the state of nanomagnets.Comment: 15 pages, 14 figure