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“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

Although stock price co-movement has been examined extensively, its causes are not well understood. Using a decomposition method, we extract three information components from the turnover rate: market information, firm-specific information, and investors' opinion divergence. We find that market information strengthens stock price co-movement, whereas firm-specific information weakens it. Moreover, our analysis shows that divergence of investors' opinion increases stock price variations but weakens price co-movement.

Like the cross-country convergence or divergence analysis in incomes to address the global phenomenon, the same analysis is also required to be done in the case of a group of states within a national territory. Further, it is also required to see whether convergence or divergence in incomes of the states is attributable to the convergence or divergence in their allocations of bank credits. Thus, this chapter aims at examining whether the selected major states in India are converging or diverging in the allocations of bank credit, and if so, what will be the magnitudes of decreases or increases in the level of disparities and inequalities in credit allocations. This study concludes that there is a clear diverging tendency of credit allocations of the states of India during the post-reform period so far as the absolute convergence hypothesis of the neoclassical theory is concerned. Further, in terms of the framework of σ convergence, the study observes that all phases of the Indian economy have produced converging paths of the inter-state credit allocations, and the path becomes diverging during the post-reform phase. Based on the quantifications of the magnitudes of disparities and inequalities in terms of CV, C4 concentration, HHI and Gini values, this study thus reveals that there are significant increases in the levels of disparities and inequalities in the allocations of credit to the states from the pre-reform to the post-reform phases. Therefore, the persistence of divergence in income or rising income inequality during the phase of the major reform program in India may be due to the persistence of divergence and rising inequality in the allocation of bank credit.

The authors discuss the econometric underpinnings of Barro (2006)'s defense of the rare disaster model as a way to bring back an asset pricing model “into the right ballpark for explaining the equity-premium and related asset-market puzzles.” Arbitrarily low-probability economic disasters can restore the validity of model-implied moment conditions only if the amplitude of disasters may be arbitrary large in due proportion. The authors prove an impossibility theorem that in case of potentially unbounded disasters, there is no such thing as a population empirical likelihood (EL)-based model-implied probability distribution. That is, one cannot identify some belief distortions for which the EL-based implied probabilities in sample, as computed by Julliard and Ghosh (2012), could be a consistent estimator. This may lead to consider alternative statistical discrepancy measures to avoid the problem with EL. Indeed, the authors prove that, under sufficient integrability conditions, power divergence Cressie-Read measures with positive power coefficients properly define a unique population model-implied probability measure. However, when this computation is useful because the reference asset pricing model is misspecified, each power divergence will deliver different model-implied beliefs distortion. One way to provide economic underpinnings to the choice of a particular belief distortion is to see it as the endogenous result of investor's choice when optimizing a recursive multiple-priors utility a la Chen and Epstein (2002). Jeong et al. (2015)'s econometric study confirms that this way of accommodating ambiguity aversion may help to address the Equity Premium puzzle.

How do new professional service firms strategically position themselves in fields where developing a favourable external reputation is critical to performance? Are certain positioning strategies more effective than others? This study reveals that most professional service firm start-ups attempt to establish themselves by pursuing a strategy of moderate divergence from a field's institutionalized practices. Those that do so, however, do not perform as well as those that either conform more closely to these institutional prescriptions or depart more radically from them. In other words, balance beguiles but purism pays.

Due to greater returns to high skill and desirable amenities, high-skilled workers are increasingly agglomerating in metropolitan areas and form path dependence. This chapter explores whether the land supply policy of China constraining big cities' urban construction land quota strengthens the spatial divergence of human capital. Using city-level land supply data, population census data, and land transaction micro data, we find that the higher the degree of a city's land supply lagging behind land demand, the greater the enlargement effect of the initial share of population with college degrees on the increase in share of population with college degrees. Further research reveals that the main mechanism causing this phenomenon is the rapidly rising housing prices hindering low-skill labor flows to big cities.

Food sovereignty has increasingly become a common political framework for alternative food movements seeking for radical change in the agrifood system. The transformative potential of food sovereignty is context-dependent, resulting in different approaches and strategies in different territories. In this chapter, we address the case of Catalonia (Spain), as an example of global North food sovereignty movement, in which consumers play a predominant role. Based on five discourses on food sovereignty previously identified as a political proposal for social change in Catalonia, namely “activism,” “anti-purism,” “self-management,” “pedagogy,” and “pragmatism,” we discuss internal divergences within the movement that lead to convergences with other political trends in the agrifood system. Despite the movement converges in several critical points at a conceptual level, such as what is the meaning of food sovereignty, or its understanding of the food sovereignty proposal as a vehicle for deepening democracy, it has strong divergences at the operational level, that is, on how to achieve the social and political change it seeks. A structuralist or agency-focused vision of social change and the relevance assigned to ideological affinity among actors are core elements explaining such divergences. In this chapter, the authors explore these internal divergences within the Catalan food sovereignty movement, which at the same time lead to convergences with other repoliticization concepts within the agrifood studies literature (specifically food democracy, food citizenship, and political consumerism).

The unexpected Eurozone Sovereign Debt Crisis (2010–2012) aroused different attempts of interpretation among analysts and practitioners. While some attributed the crisis to a “contagion” effect of the Subprime Mortgages Financial Crisis in the United States (2007–2009), others saw in it an expression of deeper fundamental economic imbalances.

This chapter presents an evaluation of whether there is convergence or divergence in the sectorial international competitiveness of the Eurozone area countries. A Dynamic Panel Data analysis on country-level exports for all Eurozone members for a period that goes from 1993 to 2014 finds significant evidence of international competitiveness convergence in four- out of 10-export sectors, and no significant evidence of divergence in the rest. While that evidence is not consistent with the high expectations generated by monetary integration more than 15 years ago, those four sectors correspond to high value-added economic activities and, in that sense, indicate a more homogeneous productive modernization process is taking place in the area.

In this chapter we examine the determinants of the long-run stock price performance of Initial Public Offerings (IPOs) on Europe’s new stock markets. We report that the average company that went public on these markets has been a very poor long-term investment. We find that the stock price performance during a three-year window is inversely related to first-day returns. We also find that the long-term underperformance of IPO firms begins after the lock-up agreement has expired and insiders start trading in the firm’s shares. These findings are consistent with the divergence of opinion hypothesis of Miller (1977).

Through a categorisation of the convergence/divergence frame of this book into conceptual, organisational and analytical, and following a ‘corporate environmental’ and ‘corporate food’ regimes theoretical basis, in this chapter we sum up the findings of this collective work and develop some future research needs. The results presented show that at the conceptual level we can outline two different trends regarding alternative agrifood movements and their social transformation potential. In the global South the movements have a more radical/oppositional focus while in the global North the focus is more alternative/progressive. The context in the latter, where the movements are generally consumers leaded and political consumerism plays an important role, is a serious threat for the movements, leading to a loss of the transformative ideal as mainstreaming and conventionalisation occurs. We wonder if it is possible to build a common fighting strategy with a model perspective that allows global North movements to stay radical/oppositional. At the organisational level we conclude that novel tools are required to build common views promoting oppositional strategies. Experiences from the Diálogo de Saberes suggest that this tool built on different principles and values such as horizontalisation, learning, respect or gender perspective, among others, can be useful in this matter. In this regard, further research is needed to look at how alternative agrifood movements deal with gender and whether ecofeminist theories can help in the process of building a common global oppositional strategy. Finally, the analytical level centred in the production system shows that even at this very pragmatic level the food regime applies and that it is the values underlying each production system what defines the options for convergence and divergence.