Contagion is defined as the relationship that exists in returns above and afar the economic essentials like exposure to common international risk factors (Cai & Wong, 2010 p. 10). To control the possible effects of frequent exposure to necessities in enhancing the contagion correlation, the research will filter the country’s index returns for familiar exposures. The filtering will define the deviations from the predictable correlation in proceeds based on the economic fundamentals. The research will regress the returns of every nation individually using some variables using a regression model. Testing for the worst return contagion To capture the cross-border contagion in proceeds, the research will utilize the value approach that will test whether the trial observations in the filtered returns are related across nations. Trial observations are the filtered returns in the lower deciles of a nation’s time series allotment over the whole sample period. The research will use the logit model to tackle the problem of contagion by approximating whether a specified nation is more expected to have the worst return in a specified week, restricted to other countries having as well experienced the worst return in the preceding week. The dependent variable is an indicator variable that is set to one in case the local nation index under study has a weekly return in the lower deciles of every weekly proceeds for that nation and zero otherwise (Morrison & White, 2013 p. 645). To evaluate
The second and chief objective is to assess the impact of the crisis on the foreign exchange and stock markets. The report answers why the crisis adversely affected the Latin American market indices while the US market indices continued to rise.
MC: With regard to estimates of "world beta," measures of the sensitivity of a national market to world market movements…
In the articles “Is a Bad Mood Contagious” and “ On a Sunny Day, You May Get the Rain-Day Blues from Facebook Friends” proves that our mood can be affected by the emotions of others. My mom would always be in a squabble when I get home. After a considerable day at school she would always make me absurd. See even your family can get you in a bad mood.
Epidemic has become the term of choice when discussing obesity in North America, and the struggle against the disease continues since effective long-term treatment has yet to appear. Obese individuals also often face prejudice, due to a common misperception that their condition solely results from lifestyle choices. However, studies show that environment accounts only for 50-65% of occurrence (Campfield et al. 1997, Bouchard and Perusse 1993 as cited by Campfield et al. 1996), leaving much to genetic influence. Recently much attention has been directed at the OB protein, or leptin, pathway due to its apparent influence on obesity-related components. Under the current context, leptin’s most important biological role is as an indicator of appetite satiety (Campfield et al. 1996). Generally, leptin levels have been found to increase with food intake and decrease with hunger (Coll et al. 2007). In normal function, leptin circulates in the bloodstream, and appropriately, OB-R receptors have been found in the brain and peripheral tissues (Campfield et al. 1996).
In faces of crises, people may go to any lengths to pursue what they feel is necessary. The films Contagion, directed by Steven Soderbergh in 2010, and GATTACA, directed by Andrew Niccol in 1997, both explore themes of morality in times of crises, whether these crises are of personal nature or affect a widespread population. Both films explore ethical implications of technology as it pertains to scientific development, and in addition weaves in a narrative surrounding various moral decisions regarding the personal relationships between principal characters. Collectively, Contagion and GATTACA ultimately force their audiences to confront ethics regarding justice to the general population as well as individual justice, and each film does so
This epidemic is the spread of market downside from country to country and is a spill-over effect that is influenced by the agents’ four behaviors which are governments, financial institutions, investors, and borrowers. Financial contagion happens to both advanced economies and developing countries and causes financial volatility. It affects countries capital flows, exchange rates, and stock prices. The contagion contains problems such as irrational phenomena, macroeconomic shocks that cause local shocks passed through competitive devaluations, trade links, and financial
The idea of a superbug sweeping the world has long fired up people’s imaginations, the 2011 movie Contagion is one manifestation of such fears, albeit a pretty scientifically-accurate manifestation. While the film certainly depicts a “worst-case scenario,” where an unknown and highly-contagious virus that is difficult to grow in a lab infects millions of people around the globe, it carefully works with the technical details, providing a plausible situation.
Also, this estimation allows the using of a lagged dependent variable to check whether there is a possible cointegration in the economic variables, with the possibility of one variable forecasting another (Campbell & Shiller, 1988). Including the lagged dependent variable can reduce the occurrence of autocorrelation arising
Contagion is a movie that was released in 2011 which is based on fear, greed, heroism and greed and involves a lot of sick people. This movie is very scary and provides lessons in the field of virology and epidemiology. The movie is set at ever-changing challenges as well as threats of microbial origin that lead to the origin of casualties who vary from few individuals to lots and lots of millions of people. It has been described as a global pandemic as it affected many people all over the world. The outbreak of the disease has been depicted from the rise, vaccination and the prevention methods of a new disease.
While there can be a significant, negative impact on public health due to travel and international trade of goods and food, I don't believe that it's necessary to reduce the flow of people, food and manufactured goods between countries. Instead, steps should be taken to reduce the likelihood of transmitting diseases or to minimize the damage that does occur when a disease is transmitted.
One of confound empirical findings reported in recent finance literature is the presence of abnormally high stock returns on the day before holidays. In this paper, we are trying to investigate the holiday effects in a novel context. Specifically, we attempt to test the presence of holiday effect for a sub-group of stocks namely, the cross-listed stocks. We are interested in the holiday effects for the US stocks that are listed in a forging stock exchange. Both academic and practitioners in the field of finance have investigated the holiday effects. In one
In 2008 the world economy faced its most dangerous crisis since the Great Depression of the 1930s. The contagion, which began in 2007 when sky-high home prices in the United States finally turned decisively downward, spread quickly, first to the entire U.S. financial sector and then to financial markets overseas.
Since the Greece's debt crisis happened, the Euro zone has to confront with a huge sovereign debt crisis, like governments' debt increased, bond yield spreads widened, Euro exchange rate fell as well, which caused that the whole international financial markets gradually lost the confidence. The purpose of this essay is to discuss the impact of this crisis both on foreign exchange and derivative markets. And the rest words is to analyse several possible reasons why this small economy could trigger such a wide impact on global financial markets, in which contagion can
Investing in emerging markets offer tempting advantages to investors. The volatile economies of countries considered to be in this category have a potential for extraordinary returns. A caveat to investors considering opportunities in emerging markets are the presence of unstable governments, the chance of nationalization, poor property rights protection, and large swings in prices. Emerging markets are far from a sure thing. But, despite high individual risk, emerging markets can reduce portfolio risk. The volatile economies of these countries have such low correlations compared to the domestic market that they actually provide the greatest degree of diversification.
References: American Economic Association, JEL Classification Codes Guide. Retrieved October 6, 2012 from: http://www.aeaweb.org/jel/guide/jel.php Centre d'Etudes Prospectives et d’Informations Internationales (CEPII) (2011). Geodesic Distances. Retrieved on October 6, 2012 from: http://www.cepii.fr/anglaisgraph/bdd/distances.htm International Monetary Fund. (2012). International Financial Statistics Yearbook 2012. Washington, DC: International Monetary Fund Krugman, Obstfeld, and Melitz (2012), International Economics Theory & Policy, (9th edition), Pearson Education United Nations. (2011). 2011 International Trade Statistics Yearbook. New York: United Nations. Retrieved on October 14, 2012 from: http://comtrade.un.org/pb/CountryPagesNew.aspx?y=2011 United Nations Statistics Division, Countries or areas, codes and abbreviations. Retrieved October 15, 2012 from: