The match between climate services demands and Earth System Models supplies

Earth System Models (ESM) are key ingredients of many of the climate services that are currently being developed and delivered. However, ESMs have more applications than the provision of climate services, and similarly many climate services use more sources of information than ESMs. This discussion paper elaborates on dilemmas that are evident at the interface between ESMs and climate services, in particular: (a) purposes of the models versus service development, (b) gap between the spatial and temporal scales of the models versus the scales needed in applications, and (c) Tailoring climate model results to real-world applications. A continued and broad-minded dialogue between the ESM developers and climate services providers’ communities is needed to improve both the optimal use and direction of ESM development and climate service development. We put forward considerations to improve this dialogue between the communities developing ESMs and climate services, in order to increase the mutual benefit that enhanced understanding of prospects and limitations of ESMs and climate services will bring.This work and its contributors (B. van den Hurk, C. Hewitt, J. Bessembinder, F. Doblas-Reyes, R. Döscher) were funded by the Horizon 2020 Framework Programme of the European Union: Project ref. 689029 (Climateurope project). The co-author and editor of the journal states that she was not involved in the review process of the paper.Peer ReviewedPostprint (published version

How Informative Is Floating NAV When Securities Trade Infrequently?

We examine if a floating net asset value (NAV) increases the transparency of risk for investors. Using closed-income fixed income funds we find little evidence that a floating NAV helps investors better understand the value and risk of a fund when a fund\u27s assets trade infrequently. This potentially informs the debate regarding the adoption of a floating NAV in the money market industry. Our results suggest that it is unlikely that the benefits of floating NAV will outweigh the costs

Tailoring information about climate change and its impacts

Resultaten van onderzoek naar klimaatverandering en de mogelijke effecten zijn vaak niet beschikbaar in een vorm waarin ze direct door anderen gebruikt kunnen worden. Gebruikers van klimaat- en impactinformatie hebben vaak ook geen goed overzicht over de beschikbare gegevens van alle sectoren en resultaten zijn soms inconsistent

Landbouw, water en extremen

Bij de effecten van klimaatverandering wordt vaak onderscheid gemaakt tussen primaire en secundaire effecten. Onder primaire effecten worden verstaan veranderingen in zeespiegel, neerslag, temperatuur en wind. Secundaire effecten zoals verzilting, wateroverschot en -tekort, overstromingsrisico en hittestress ontstaan afhankelijk fysisch-geografische aspecten in een gebied, zoals hoogteligging, bodemtype en hydrologische eigenschappen. Voor het beschrijven en begrijpen van klimaatverandering is een onderscheid in de verschillende primaire en secundaire effecten belangrijk. Wanneer gekeken wordt naar de effecten op verschillende typen landbouw lopen deze effecten door elkaar en hebben een interactie. Voor enkele signaalgewassen zijn door Alterra en KNMI kwantitatief relevante grenswaarden in relatie tot de verschillende klimaatscenario’s beschreven. Is onderdeel van klimaateffectatla

Klimaateffectatlas 1.0

Het project Van schetsboek naar Klimaateffectatlas bouwt voort op de klimaatschetsboeken die in de periode 2007-2008 zijn ontwikkeld voor een achttal provincies. Bij de klimaateffectschetsboeken in de eerste fase is ook een eerste beeld geschetst van een Geoportaal (voorheen geodatabase) om alle relevante klimatologische gegevens via internet te ontsluiten. Doel van dit Geoportaal Klimaateffectatlas is het opzetten van een gemeenschappelijke kennisbasis met voor alle provincies dezelfde eenduidige informati

Analysis of the efficiency of the Iberian power futures market.

Market efficiency is analysed for the Iberian Power Futures Market and other European Power Markets, as well as other fuel markets through evaluation of ex-post Forward Risk Premium. The equilibrium price from compulsory call auctions for distribution companies within the framework of the Iberian Power Futures Market is not optimal for remuneration purposes as it seems to be slightly upward biased. In the period considered (August 2006–July 2008), monthly futures contracts behave similarly to quarterly contracts. Average risk premia have been positive in power and natural gas markets but negative in oil and coal markets. Different hypotheses are tested regarding increasing volatility with maturity and regarding Forward Risk Premium variations (decreasing with variance of spot prices during delivery period and increasing with skewness of spot prices during delivery period). Enlarged data sets are recommended for stronger test results. Energy markets tend to show limited levels of market efficiency. Regarding the emerging Iberian Power Futures Market, price efficiency is improved with market development of all the coexistent forward contracting mechanisms and with further integration of European Regional Electricity Markets

Market conditions, trader types and price–volume relation in energy futures markets

We investigate the asymmetric relations between trading volume and price changes, and trading volume and price volatility of energy futures contracts across maturities and under different market conditions. Using a relatively long sample of daily observations, we examine whether the impact of trading volume on returns and volatility of futures contracts can be time-varying and dependent on the market condition. We differentiate the market condition based on the slope of the forward curve into backwardation and contango. The results indicate that trading volume and returns are positively related when the market is in backwardation and negatively related when the market is in contango. In addition, the positive relation between changes in trading volume and volatility of futures contracts seem to be stronger when the market is in backwardation than when it is in contango. Finally, the results indicate that, to a certain extent, trade participation and trading activities of agents in energy futures markets can be explained by the slope of the forward curve which reflects the market condition and sentiment

Stock Exchanges and Issuers: A Changing Relationship

The nature of the relation between stock exchanges and firms seeking a listing has changed considerably over the past decades. In this paper, we argue that the relationship has lost most of its historic complexity and has almost been reduced to a standardized contract in the sense that there are few contractual properties distinguishing listing on different exchanges apart from granting access to a specific liquidity pool. Analyzing the actual specifications of listing agreements at five major stock exchanges, we demonstrate that the contractual features are converging towards a standardized agreement. Furthermore, we show that some of the functions formerly fulfilled by exchanges are now performed by other institutions. We analyze whether these changes are reflected by policy makers in their efforts to create integrated European capital markets.Die Beziehung zwischen Börsen und Eigenkapitalemittenten hat sich in den vergangenen Jahrzehnten fundamental verändert. In diesem Beitrag argumentieren wir, dass diese Beziehung einer standardisierten Vertragsbeziehung gleicht, die ihre historische Komplexität weitgehend verloren hat. Während Börsen in der Vergangenheit unterschiedlich gestaltete Listinganforderungen an Unternehmen gestellt und durchgesetzt haben, ist heute ihr wesentliches Differenzierungsmerkmal die Liquidität der gehandelten Aktien. Eine Untersuchung der Listinganforderungen von fünf bedeutenden Börsen zeigt, dass die wichtigsten Vertragsbestandteile des Abkommens zwischen Emmittent und Börse weitgehend vereinheitlicht sind. Wir zeigen weiterhin, dass neue Institutionen wie etwa nationale Börsenaufsichtsbehörden einige der früher von Börsen wahrgenommenen Aufgaben übernommen haben. Abschließend untersuchen wir, ob und in welchem Maße diese Veränderungen in den gegenwärtigen Bemühungen zur Schaffung integrierter europäischer Kapitalmärkte berücksichtigt werden

The Illiquidity of Corporate Bonds

This paper examines the illiquidity of corporate bonds and its asset-pricing implications. Using transactions data from 2003 to 2009, we show that the illiquidity in corporate bonds is substantial, significantly greater than what can be explained by bid–ask spreads. We establish a strong link between bond illiquidity and bond prices. In aggregate, changes in market-level illiquidity explain a substantial part of the time variation in yield spreads of high-rated (AAA through A) bonds, overshadowing the credit risk component. In the cross-section, the bond-level illiquidity measure explains individual bond yield spreads with large economic significance.Charles A. Dice Center for Research in Financial EconomicsJ.P. Morgan & Co