JOHN S. NICOLIS, JOHN MILIAS‐ARGITIS and D. CARABALIS
The evolution of the conflict of “blackmail” between two individuals is dealt with—both for symmetric and asymmetric contests. State—space diagrams are presented illustrating the…
Abstract
The evolution of the conflict of “blackmail” between two individuals is dealt with—both for symmetric and asymmetric contests. State—space diagrams are presented illustrating the dynamical coevolution of the cooperathe propensities of the partners when the games are played inductively—and learning takes place via storing the result of the previous outcome. By changing the three parameters of the game α, č, k (the probability of yield— “chicken”—the tempting factor and the coefficient of mutual loss, respectively) we can modify drastically the probability of “locking‐in” at the cooperative state as well as the dynamical repertoire for each contestant (i.e. the number of states between which his strategy undergoes transitions as well as the probabilities of these transitions). Finally, we study the result of additive white noise on the trajectories of the cooperative propensities, both in the symmetric and the asymmetric case.
Julian Benavides Franco, Julio César Alonso Cifuentes, Jaime Andrés Carabalí Mosquera and Anibal Sosa
The Colombian Government proposed a reverse mortgage mechanism to complement retirement income in Colombia. This paper aims to study its feasibility by valuing its premia.
Abstract
Purpose
The Colombian Government proposed a reverse mortgage mechanism to complement retirement income in Colombia. This paper aims to study its feasibility by valuing its premia.
Design/methodology/approach
Under a reverse mortgage scheme, banks issue put options on an owner’s home. To value the option, the authors apply a risk-neutral canonical approach modeling its three sources of risk: home future value, interest rate levels and homeowner life expectancy.
Findings
In all, premia values do not seem too high. However, if future interest rates are above the simulations or home appreciation is below its historical behavior, the premia could sharply increase, jeopardizing the system viability. Limiting the loan-to-home-value ratio or fixed-term annuities are feasible alternatives to keep premium increases at bay. Complementary mechanisms may also help.
Research limitations/implications
The home price and interest rate path estimation do not include inflation dynamics; in recent years inflation level was very low. However, the future does not offer any warrants. Future research also should cap the maximum loss the bank can endure. The pandemic may cause demographic changes affecting the viability of the reverse mortgage (R.M.) program in Colombia.
Practical implications
Based on the analysis, this work suggests possible government policies to help creditors and to maintain bank risks at a reasonable level.
Social implications
An adequate reverse mortgage program may help the policymakers in Colombia to face the adverse environment for Colombia’s housing market and the pressure of its pension system. A good R.M. program generates incentives to purchase homes, given the possibility of receiving an additional rent after retirement.
Originality/value
The paper develops an econometrical improvement over previous work. The authors present a time-series analysis that includes stationarity and co-integration information to model the data-generation process of house prices and interest rates in a multivariate fashion. The authors also improve the valuation formula. Moreover, the paper presents a novel application to Colombia. The authors obtain our demographic data from the United Nations Population Division applying the Lee-Carter method to model mortality rates, which provides ample possibilities to extend reverse mortgage assessment to additional. Finally, this is the first scholarly effort to evaluate the R.M. for the Colombian case.
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Luis F. Aguado, Alexei Arbona and Jesús Heredia-Carroza
This chapter offers empirical evidence of the contribution of a local and popular festival to diversity and inclusion in the hosting territory. With this in mind, three impacts…
Abstract
This chapter offers empirical evidence of the contribution of a local and popular festival to diversity and inclusion in the hosting territory. With this in mind, three impacts (economic, social, and cultural) are determined and measured from the triple perspective of the creation of value of cultural assets. We show the case of the XXII edition of the Petronio Álvarez Pacific Music Festival held in the city of Cali (Colombia) from August 15th to 20th, 2018. The estimates were taken from three sources: (i) an input–output model adapted for the economy of the city of Cali, (ii) A face-to-face survey of 1,030 festival attendees over 18 years old, and (iii) A face-to-face survey of a representatives of each of the 173 business positions that took part in the Festival (e.g., handicrafts, musical instruments, traditional beverages, cuisine, hairstyles, and cosmetics). The results show that the festival: (i) generates inclusive material wealth, which is measured through income and employment for Afro-colombian communities, traditionally marginalized and economically disadvantaged; (ii) is shown as an opportunity to promote intercultural dialogue and diversity for the local community and tourists; and (iii) the community attending the festival (both locals and tourists) contribute to the cultural enrichment of the territory. The applied method might be replicated for other festivals case of studies in other countries in order to generate evidence that can be used for designing cultural policies which encourage diversity and equity in a specific territory.
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Paz Rico and Bernardí Cabrer-Borrás
The purpose of this paper is to analyse the gender differences of self-employment in Spain.
Abstract
Purpose
The purpose of this paper is to analyse the gender differences of self-employment in Spain.
Design/methodology/approach
A binary choice model is specified and estimated, using information from the Continuous Working Life Sample drawn from the registers of the Spanish Social Security. Moreover, the differences in self-employment between men and women are also analysed, through the decomposition proposed by Yun (2004).
Findings
The results indicate that the differences between both groups in the probability of being entrepreneurs stem from unobservable factors. The difference explained by the unobservable component is 84.12 per cent, whereas the rest, 15.88 per cent, is explained by the characteristics component. The explanatory factors of being an entrepreneur affect men and women in the same way, but to a different extent, explained mainly by factors related to gender.
Originality/value
This paper sets out to identify whether there are gender differences in the probability of becoming self-employed and, if there are, to quantify what part of the difference in entrepreneurship between men and women is explained by the characteristics of each gender group and what part is because of unobservable factors. From the perspective of the public authority, knowing the determinants that explain why the entrepreneurial activity is different depending on gender is fundamental in being able to reduce the entrepreneurial gap between men and women.
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This study aims to develop a talent selection model for learning organizations capable of connecting two groups, candidates in a talent hiring process and managers of the hiring…
Abstract
Purpose
This study aims to develop a talent selection model for learning organizations capable of connecting two groups, candidates in a talent hiring process and managers of the hiring company, in a reliable process, promoting organizational learning and increasing employee satisfaction.
Design/methodology/approach
This paper integrates egalitarian principles, an artificial intelligence mechanism founded on stable matching algorithms, and evaluating critical soft skills to enhance recruitment practices within learning organizations. The authors conduct a numerical real-world application in Python to showcase the model’s effectiveness. Five candidates were evaluated for five job positions. Moreover, 26 soft skills were analyzed by the five company leaders, relating them to the requirements of each job position and by all candidates, as a self-assessment process.
Findings
The model promoted egalitarian talent management because it motivates the candidates to choose the preferred position in a company, and the employers hire the best candidate. It is satisfactory for all participants in a company’s hiring process if the parties intend to be fair and egalitarian. The benefits of the process can be considered isolated (parties’ satisfaction) or a part of a company’s effort to stimulate an egalitarian culture in organizational values.
Practical implications
The information generated by the model is used to refine its selection process and improve its understanding of the job requirements and candidate profiles of the company. The model supports this idea, using the concepts of indifference, stability, egalitarianism and the soft skills required and identified to be more effective and learn about themselves.
Social implications
This paper discusses an egalitarian point of view in the recruitment process. It is satisfactory for all participants in a company’s hiring process if the parties intend to be fair and egalitarian. The process’s benefits can be considered part of a company’s effort to stimulate an egalitarian culture in organizational values.
Originality/value
This paper brings an excellent future perspective and points to the company’s development of talent retention. The model simultaneously solves the evolution of talent management processes through new technologies and soft skills emerging in the postpandemic scenario.
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Megha Jaiwani and Santosh Gopalkrishnan
This study aims to transcend geographical boundaries and provide insights into innovative strategies used by Indian Asset Reconstruction Companies (ARCs) in managing distressed…
Abstract
Purpose
This study aims to transcend geographical boundaries and provide insights into innovative strategies used by Indian Asset Reconstruction Companies (ARCs) in managing distressed assets. The study examines the origins, evolution, challenges and opportunities faced by ARCs to derive lessons that can be universally applicable and serve as a valuable blueprint for global investors and institutions seeking effective strategies in managing distressed assets. From a legal and compliance angle, this opens up many perspectives that would help plug loopholes and grey zones within the legal ambit for organisations and institutions.
Design/methodology/approach
The study invokes a critical review of existing literature, news, discussions and publicly available information from reliable sources such as the central bank’s websites to develop the viewpoints and provide recommendations.
Findings
ARCs face challenges, recovering only 19.15% of distressed assets in 2022. Despite constraints like funding, governance issues and regulatory hurdles, there is a substantial opportunity for investors in the Rs. 9.6 lakh crore non-performing assets. The study suggests strategic assessments by banks, emphasises ARCs’ roles in specific sectors and calls for regulatory adjustments. With diverse investors and favourable regulations, this evolving landscape offers significant global opportunities for policymakers and investors in distressed assets.
Practical implications
This study serves as a valuable guide for shaping resilient policies, fostering cross-border collaborations and optimising distressed asset management strategies on a global scale.
Originality/value
This study breaks new ground by examining the private ARCs sector within an emerging economy’s dynamics, presenting insights relevant to global distressed markets. This study serves as a unique resource for those navigating the complexities of distressed markets globally, providing insights that can inform strategies, policies and academic discussions in the broader financial landscape.