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We address the problem of selecting a topological design for a network having a single traffic source and uncertain demand at the remaining nodes. Solving the associated fixed charge network flow (FCF) problem requires finding a network design that limits both the fixed costs of establishing links and the variable costs of sending flow to the destinations. In this paper, we discuss how to obtain a sequence of optimal solutions that arise as the demand intensity varies from low levels to high. One of the network design alternatives associated with these solutions will be chosen based upon the dominant selection criteria of the decision maker. We consider both probabilistic and non-probabilistic criteria and compare the network designs associated with each. We show that the entire sequence of optimal solutions can be identified with little more effort than solving a single FCF problem instance. We also provide solution approaches that are relatively efficient and suggest good design alternatives based upon approximations to the optimal sequence.

In this chapter, we propose a nonconventional methodology, the graph theory, which is especially relevant for the study of high-dimensional financial data. We illustrate the advantages of this method in the context of systemic risk in derivative markets, a main subject nowadays in finance. A key issue is that this methodology can be used in various areas. Numerous applications have now to face the challenge of analyzing gigantic financial data sets, which are more and more frequent. We offer a pedagogical introduction to the use of the graph theory in finance and to some tools provided by this method. As we focus on systemic risk, we first examine correlation-based graphs in order to investigate markets integration and inter/cross-market linkages. We then restrain the analysis to a subset of these graphs, the so-called “minimum spanning trees.” We study their topological and dynamic properties and discuss the relevance of these tools as well as the robustness of the empirical results relying on them.

In terms of notional value outstanding, derivatives markets declined in both over-the-counter and exchange-traded transactions during the 2007–2009 global financial crisis (GFC) period, as counterparty and credit concerns became pre-eminent. However, during the 2010–2011 second stage of the GFC, markets rebounded and by June 2011 outstandings reached new levels which highlight the importance these contracts continue to play in the day-to-day risk management and trading activities of corporations and financial intermediaries. The bulk of the contracts traded are interest rate-related instruments and are denominated in either US dollars or Euro. Credit-related instruments remain an important market segment, although outstandings remain at pre-crisis period levels. Of particular concern for regulators is the role of non-bank financial intermediaries, which are the main counterparty to derivatives transactions. While their share of the market remains unchanged over the last decade, outstandings overall have increased more than fourfold. The present volume considers the issues that participants face in today's derivatives markets including the potential impact of derivatives on economic stability, pricing issues, modelling as well as model performance and the application of derivatives for risk management and corporate control.

Financial systemic risk is often assessed by the interconnectedness of financial institutes (FI) in terms of cross-ownership, overlapping investment portfolios, interbank credit exposures, etc. Less is known about the interconnectedness between FIs through the lens of consumer credits. Using detailed consumer credit data in Canada, this chapter constructs a novel banking network to measure FIs’ interconnectedness in the consumer credit markets. Results show that FIs on average are more connected to each other over the sample period, with the interconnectedness measure increases by 19% from 2013 Q4 to 2019 Q4. FIs with more diversified portfolios are more connected in the network. Among various types of FIs, secondary FIs have the notable increase in interconnectedness. Domestic Systemically Important Banks and secondary FIs offering a broad range of loan products are more connected to large FIs, while those specialized in single loan types are more connected to their industry peers. FI connectedness is also significantly related to their participation in the mortgage markets.

Purpose — This chapter reviews the key findings of the reported research in this volume using the wider international literatures on transport and social exclusion as its conceptual framework. It begins by briefly summarising the research and policy context in which the study is set. It then provides an overview of major conceptual, theoretical and methodological advancements relevant to this area over the last 10 years in order to evaluate the study’s contribution to research, policy and practice internationally.

Methodology — The conceptual framework for this chapter is based on a comprehensive review of the international literatures on transport and social exclusion. After a brief introduction to these, it outlines key conceptual, theoretical and methodological advancements as they pertain to transport-related social exclusion. In addition, it evaluates the scope and implications of the methodological approach with particular reference to contemporary scholarly debates in this area. The chapter subsequently explores the applicability of the research in policy and practice, both inside and outside the Australian context.

Findings — The chapter concludes that the research has made a significant contribution to conceptual, theoretical and methodological developments within the area of transport-related exclusion, and has helped move forward related debates within policy circles. Opportunities for further research are also identified.

As described in the z-Tree (Zurich Toolbox for Readymade Economic Experiments) tutorial (Fischbacher, 2002), use of the z-Tree software for designing and administering research experiments is quite straightforward. z-Tree is likely to be a viable alternative for accounting researchers interested in administering a computerized experimental game, and it could offer some advantages over web-based administration or use of complicated spreadsheet tools. With little or no programming experience and no familiarity with z-Tree, a researcher can likely program the example experiment described herein to be functional within a day and ready to administer within a week. Thus, one appeal of z-Tree is the ease of programming and execution and possibly reduced investment of time by the researcher. This tutorial describes use of the z-Tree software to program a noninteractive accounting research experiment; as such, it should serve as a supplemental and more specific tutorial, with many illustrations, for accounting researchers considering using the z-Tree program.

Stock Participation Accreting Redemption Quarterly-pay Securities (SPARQS), a service mark of Morgan Stanley, represent another form of equity-linked structured notes. The SPARQS generally provide the investors with higher interest payments that substantially exceed the market interest rate for corresponding standard bonds, in exchange for a call feature. The call option limits the potential appreciation of the SPARQS in case the underlying common stock price rises. Moreover, the SPARQS are mandatorily convertible at maturity that entail more risk than ordinary debts due to the possibility that investors might not receive their principal amount in case the underlying common stock price declines. This paper derives a general pricing formula for the SPARQS using the binomial tree approach. An empirical test of a specific SPARQS issue indicates that the binomial tree model is quite accurate.

Adolescent students with disabilities often struggle with completing writing tasks efficiently. Until recently, most research regarding writing efficiency or fluency has examined production skills such as handwriting with young writers or examined how to use measures of fluency to assess student performance. In this chapter, 10 studies that directly address the impact of instruction on adolescents' writing fluency will be reviewed. Findings indicated that when teacher modeling and structured practice was provided for writing within a time limit, students' writing improved in the number of ideas or text parts written and in holistic quality. When measured, improvement generalized to a standardized writing fluency test. Implications for future research are noted.