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The purpose of this paper is to provide an overview of the farm and rural credit system in China. To do this the authors use the so‐called “7 Cs” of credit (these include: Credit, Character, Capacity, Capital, Condition, Capability, and Collateral) and for each “C” provide some aspect of importance related to agricultural finance.

This paper is largely based on a survey of 897 farm households in Shaanxi and Gansu provinces, and extensive interviews of agricultural lenders conducted in the summer and fall of 2009. These data are used in simple form and in regression form to explain a variety of credit issues in China.

A number of key factors related to credit delivery and demand are found. First, using the 7 Cs as a guide proved to be very fruitful for disentangling the many institutional and cultural facets affecting rural credit in China. Under “Character” the authors discuss the cultural characteristics of the Chinese farmer in terms of informal lending and borrowing; under “Capacity” the authors discuss the challenges of delivering credit to farms with limited resources; under “Condition” the authors discuss group guarantees and credit worthy villages, credit rationing and insurance and incomplete markets; under “Capability” the authors discuss income inequality and challenges in economies of scale and size; and for “Collateral” the authors discuss the implications of lack of collateral and limitations on farm economic growth due to the collectivization of land and the potential for agricultural lending from the transferability and mortgagability of land or forestry use rights.

Although the assessment provides a great deal of breadth and depth across many credit‐related issues in China, it is not an exhaustive study. Agricultural and rural credit in China is very complex and in many instance under developed. The survey results from Shaanxi and Gansu tell a story that is consistently told throughout China, but the authors would caution against using the data to characterize farm credit across China as a whole.

Large swaths of China have either no or very rudimentary credit services. Even in areas where credit is in supply there are issues of poverty that could be aided with credit access and delivery. In order to improve livelihoods through credit institutions, it is important to understand rural credit in many dimensions. This paper takes a step in that direction.

Despite the importance of rural credit in China, it is largely understudied and not well understood. This paper makes progress in providing such an understanding. Our reasoning for using our unique approach is that by understanding the 7 Cs of credit one comes to understand the elemental characteristics of the credit decision from the lender's point of view but in a way that takes into account conditions at the farm level. The 7 Cs provide an objective approach to credit assessment that balances both the supply of and demand for credit.

This paper uses contingent claims analysis to evaluate the implicit government guarantee to Fannie Mae and Freddie Mac prior to their placement into conservatorship. The main findings of the paper indicate that the expected value of the guarantee was in line with the size of capital injections under the Treasury Preferred Stock Purchase Agreement and that the market expected the government to cover nearly all expected losses on senior debt. However, simulations reveal that the eventual total cost to recapitalize the GSEs may be significantly higher than provided for under the original terms of the conservatorship.

The purpose of this paper is to apply duration methods to a sample of Farm Service Agency (FSA) direct, seven‐year operating loans to identify those variables that influence the time to loan termination and type of termination. Variables include both those known at time of loan origination and those that characterize the changing economic environment over the life of the loan. Also, to examine the impact of various FSA programs promoting policy objectives.

A systematic sample of 877 seven‐year, FSA direct loans originated between October 1, 1993 and September 30, 1996 was collected. Cox regression, competing risks models are estimated as a function of borrower and loan characteristics observable at loan origination. Economic indicator variables emphasizing the farm economy and observed quarterly over the life of the loan are also included as explanatory variables.

Loan characteristics, borrower financial characteristics and degree of borrower interaction with FSA observable at origin are significant variables in determining type of loan outcome (default or paid‐in‐full) and time to outcome. Changes in the economic environment and farm economy during the life of the loan are significant.

The sample consists only of FSA direct loans which implies borrowers are at financial margin. Application of method to agricultural loans from conventional commercial lenders could identify different significant factors.

Using length of time to loan termination instead of just type of outcome provides for a richer analysis of loan performance. Loan performance over time is influenced by the larger economy and should be incorporated into loan performance modeling.

The study described in the paper demonstrates use of competing risks models on intermediate agricultural loans and develops how this technique can be used to learn about dynamic aspects of loan performance. Sample consists of observations on individual FSA direct loan borrowers. The FSA direct loan program is the major source of credit for agricultural borrowers at the financial margin.

PPPs can impose important future public costs, while PPP government guarantees create explicit contingent liabilities similar to public debt obligations. The risk that arises from such partnerships must be transparently valued to assess a country's fiscal profile. The purpose of this study is to show that the notion of a PPP as a (set of) contingent claim(s) can also be used to value the PPP public risk.

Taking a finance perspective, the paper refers to more traditional cases of asset valuation, applies them to a PPP and compares more carefully different set-ups of a PPP. The paper introduces and analyzes the different scenarios that were at the government's disposal for executing a transport infrastructure project.

The findings reveal that, for the first years, the burden on the surplus or deficit will be less in the case of the PPP compares to typical public investment. Secondly, the net contingent PPP flows constitute the real effect on the deficit and correspondingly on the public debt and weaken the government's fiscal position. Finally, the paper attributes a specific price to the PPP public risk introducing CDS valuation with and without counterparty (government) default.

This study, by proposing a method to evaluate PPP risk, complements previous literature on PPPs, which touches upon issues mainly related to the description of PPP types, the effect of contingent commitments and the accounting classification of PPP assets.

Two strands of the literature are combined, namely the modeling of disability insurance and the design, valuation and discussion of insurance-linked securities.

This paper provides a discussion regarding the advantages and detriments of disability-linked securities in comparison with mortality-linked bonds and swaps as well as regarding potential disability-linked indices and the potential use. The discussion is followed by an introduction of a potential design and a corresponding valuation of disability bonds and swaps.

This securitization will provide useful tools for the risk management of disability risk in a risk-based regulatory framework.

No disability-linked securities have been defined and discussed so far.

Although public‐private partnerships (PPPs) have been used internationally, the New Zealand Government has only recently started to consider using PPPs to deliver public assets and services. However, there is uncertainty about whether the New Zealand Government should actively enter into PPP arrangements. The government lacks a robust decision‐making tool for assisting with choosing alternative procurement methods. PPPs are seen as risky, but innovative procurement options, with obstacles to overcome before they use can become common place. Nervousness about the use of PPPs requires the New Zealand Government to have a thorough understanding of the drivers and obstacles, and also to understand the applicability of international PPP experience to New Zealand. The purpose of this paper is to investigate the drivers and obstacles for adopting PPPs in New Zealand and provide details on how these obstacles might be overcome by using innovative country‐specific solutions.

Semi‐structured interviews with senior industry players and round table discussions are the research methods used.

The research found that the drivers for PPP adoption include acceleration of infrastructure provision, better risk allocation, whole of life cost savings, improved quality of services, access additional revenue sources, benefits for local economic and social development, and improved project scrutiny. The results show that the drivers appear to be more than securing private financing for public infrastructure. Greater efficiency in the use of resources has been emphasised by New Zealand practitioners. With regard to the apparent obstacles, research showed these to be: political, social and legal risks, unfavourable economic and commercial conditions, high transaction costs and lengthy lead time, problems related to the public sector and problems with the private sector. Possible solutions to these obstacles are derived from national and international research and assessed for their applicability to New Zealand.

The paper presents discussion on the concerns expressed by the New Zealand industry about PPPs at strategic, institutional, and industry level. The identified obstacles and suggested solutions provide some initial guidance on how to proceed with PPP implementation in New Zealand. More research needs to be done to understand the various key facets identified here (e.g. tendering process, contractual arrangement, and risk allocation) and their wider effects. The research is based on interviews with a limited number of senior industry respondents, along with the general results of three industry round table discussions. Therefore, follow‐on interviews need to be conducted with private sector partners, sponsors and funding bodies, in order to gain a wider view of the issues under investigation.

The findings of the research are of assistance to decision makers in both the public and private sectors in New Zealand. By understanding the drivers and obstacles for PPP adoption, and posing solutions to these obstacles, the New Zealand construction industry might be in a better position to adopt PPP schemes.

City investment companies (CICs) in China, set up and funded by the government, are playing an important role in the construction of urban infrastructure in China. The purpose of this paper is to analyze the structural risk of diversified project financing of CICs and explore its key influencing factors.

The best worst method (BWM) is used in this study to empirically analyze and quantitatively study the optimization of the structural risk of diversified financing of CICs.

In this study, the structural risk of diversified financing of CICs has been clearly defined, and its key evaluation indexes, including the structure of projects, the structure of financing, asset-liability ratio, earnings before interest and tax margin, the rate of return on capital and the ratio of long-term debt and short-term debt, have been determined. What is more, a comprehensive evaluation system of the structural risk of diversified financing has been established.

This study has established a comprehensive evaluation system of the structural risk of diversified financing. Based on the validated systematic evaluation, comparison and ranking of the structural risk of diversified financing of CICs by using the BWM, the ranking results can help investors to select the CICs with small structural risk of diversified financing to invest.

The purpose of this paper is to compare knowledge employees' perceptions of contingent work with their managers' perceptions, highlighting potential differences in their respective psychological contracts which might produce dissonance in the employment relationship.

Original research using interviews and scalar data of both contingent knowledge workers and their managers are reported. The study sample consists of 32 contingent knowledge workers and 33 managers in five industries in Canada: two public sector and three private sector.

The results of this study indicate that differences exist between contingent knowledge workers and their managers with how contingent work affects career goals, promotion opportunities, and training and development opportunities. Additionally, differences occur in the constructs that mirror the traditional empirical measurements of the psychological contract. Two major themes are revealed: coping with uncertainty and integration with the organization on the part of contingent workers and managers.

This study contributes to research on contingent employment as it compares manager and contingent knowledge worker responses in terms of the psychological contracts formed by each.