Market reactions to regulations on minerals from the democratic republic of the Congo

Using an event study approach to analyze stock market data from the United States, I investigate how regulations on conflict minerals sourced in the Democratic Republic of the Congo were perceived by investors. I find that for a subset of mining companies, stock returns were abnormally high when regulations in the US became more likely. I also find that returns were higher for communications equipment manufacturing companies when strong regulations in the DRC were announced. I argue that these responses were due to the competitive environments faced by each of these company types. These findings relate to debates surrounding the effects of the conflict mineral regulations. While some critics argue that reporting requirements were tantamount to a ban on minerals from the DRC, I find that stock returns for a subset of companies were sensitive to legislation in the DRC after legislation became law in the US, suggesting that market participants did not expect a complete trade ban on regulated mining and trading activities.     

Conflict circuit breakers in the Great Lakes Region of Africa

Conflict resolution in the African Great Lakes Region has been linked to the protocols and projects agreed upon at the Second International Conference on the Great Lakes Region (ICGLR). The ICGLR created a continental-wide framework of conflict circuit breakers focused on resolving the structural and surface situational causes of the 1996 to 2003 armed conflicts that drew in at least six nations and destabilised the entire region. The implementation of these protocols and projects will serve as a test for the African Great Lakes Region to move away from conflict and into a cooperation and development phase; however, the effort to bring peace, stability and development will face obstacles not only in the security sector, but also in developing infrastructure, civil society, and good governance. In summary, this article contends that peace in the Great Lakes Region will depend equally on two factors: internal governance and building civil society institutions, and focused regional interlocking circuit-breaking institutions.     

THE FRAGILE TRADITION OF NUCLEAR RESTRAINT

The Tradition of Non-Use of Nuclear Weapons by T.V. Paul. Stanford University Press, 2009. 319 pages, $29.95.     

End effects in capacity expansion models with finite horizons

Capacity expansion models are typically formulated in the context of some finite horizon. Because the firm lasts longer than the horizon, a bias can enter into the optimal solution from the model horizon chosen. Recently, Grinold [8] has proposed a “dual-equilibrium method” for ameliorating possible distortions. Although the dual-equilibrium method has superior analytical properties to other methods, it is conceptually more complex. In this paper it is shown that there are situations where the “primal-equilibrium” approach of Manne [15] provides equivalent results and that the use of annualized capital costs in the objective function, although somewhat less efficient, results in a similar model.     

Tolerance intervals for univariate distributions

A review of univariate tolerance intervals is presented from an application-oriented point of view. Both β-content and β-expectation intervals are defined and considered. Standard problems are discussed for the distribution-free case and with various distributional assumptions (normal, gamma, Poisson) which occur most frequently in practice. The determination of sample size is emphasized. A number of examples are used to illustrate the types of problems which permit solutions with the excellent tables now available.