Home bias and the need to build a bond market track record

This chapter extends the survival-of-the-fittest evolutionary environment to consider the possibility that new political parties, when they first come into existence, do not pick decision rules at random but instead choose rules that have a track record of past success. This is done by adding replicator-mutator dynamics to the model, according to which the probability that each rule is selected by a new party is an evolving but noisy function of that rule's past performance. Estimating characteristic outputs when this type of positive feedback enters the dynamic model creates new methodological challenges. The simulation results show that it is very rare for one decision rule to drive out all others over the long run. While the diversity of decision rules used by party leaders is drastically reduced with such positive feedback in the party system, and while some particular decision rule is typically prominent over a certain period of time, party systems in which party leaders use different decision rules are sustained over substantial periods.

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Finance and Credit ◽

10.24891/fc.26.12.2858 ◽

2020 ◽

Vol 26 (12) ◽

pp. 2858-2878

Author(s):

M.I. Emets

Keyword(s):

Linear Regression ◽

Yield Curve ◽

Bond Market ◽

Third Party ◽

Bond Pricing ◽

Market Development ◽

Fair Price ◽

Lower Yield ◽

Yield Curves ◽

Bond Yield

Subject. The article addresses the green bond pricing as compared to bonds other than green ones. Objectives. The aims are to determine how the fact that a bond is identified as a green one, the issue amount, and the availability of third-party verification, influence the yield to maturity; to make recommendations on effective green bond pricing. Methods. The study employs econometric testing of hypotheses, using the multiple linear regression. The sample includes 318 green and 1695 conventional bonds. Results. Green bonds have a lower yield to maturity in comparison with conventional bonds. The yield to maturity of green bonds with third-party verification is lower, as contrasted with green bonds without verification. Conclusions. The next step in the green bond market development is creating a benchmark yield curve for sovereign green bonds, with parallel issuance of conventional, non-green bonds. The yield curve is crucial for effective bond pricing. Two yield curves, i.e. for green and non-green bonds, will enable investors to estimate the fair price on issuance, as well as to define, if there is a difference in pricing.

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Josephus: Noble Sicarii Suicide or Mass Slaughter at Mount Masada?

Journal for Semitics ◽

10.25159/2663-6573/4681 ◽

2019 ◽

Vol 28 (1) ◽

Author(s):

Nicholas Peter Allen

Keyword(s):

Rhetorical Strategies ◽

Historical Events ◽

Track Record

An attempt is made to ratiocinate historical events at Mount Masada in circa 74 C.E. as related by Josephus Flavius. Cohen (1982, 393) clearly sees Josephus as a mostly dishonest historian, one who happily exaggerates and embellishes his accounts. As a consequence of this rhetorical straitjacket that he places Josephus in, Cohen (for one) cannot accept Josephus’s Masada account as being an “unalloyed version of the truth.” The author analyses Josephus’s track record apropos his recording of other historical events and submits that, rhetorical strategies aside, the historian can largely trust Josephus’s accounts.

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