Literature review of work and family conflict

Literature review of work and family conflict This chapter introduces and explains the important theoretical and practical resource for an understanding of the conflict between work and family among married female teachers in Malaysia. This chapter consists of two sections namely; section I: Theoretical framework of work-family conflict from Western and Islamic perspectives. For section II: Literature Review on Work-Family Conflict. Focus of the study is to examine the impact of work-family conflict-efficacy WFC efficacy and religious coping (RC) on work-family conflict (WFC) and well-being among female teachers in Malaysia. The study also validates the instruments. Then, the researcher estimate the relationships. This chapter explained on theoretical perspectives that support the theoretical framework as foundation and background of the study that being conducted. Apart from that, this section also discusses the basis and background of the study of conceptual framework research on the perspective of theoretical background in Western and Islamic Perspectives. It involves on the development of a model on the relationships among the variables in WFC efficacy, RC, WFC and well-being. Many researchers have attempted to construct a single model for WFC conflict in connection with well-being. Theories and models discussed in this section were the relevant in work-family conflict, which provided significant contributions in the construction of the proposed theoretical framework. The model is based on the theoretical foundations and empirical evidences obtained from literature reviews, which consists of several elements. Overviews of Work-family Conflict Theories Role Theory by Kahn et al., Spillover Theory Conservation of Resources Model (COR)by Model of Work-Family Role Pressure Incompatibility Overview of the Theory of Well-being Model of Teachers Stress by Kyriacou Sutcliffe) Social Cognitive Theory by Bandura Religious Coping Theory by Pargement Moral Development Theory by Carol Gilligan OVERVIEW OF WORK-FAMILY CONFLICT THEORIES Several theories have been received a great deal attention in the literature throughout the past few decades. Most of the studies focused on six competing theories as a theoretical framework in work-family conflict research; role theory, spillover, compensation, segmentation, conservation of resources model (COR) and Integration. In this study, the researcher focuses only on several theories that related to WFC which are role theory, spillover and COR. The main focus of the study is to examine the relationship of WFC efficacy and religious coping (RC) on work-family conflict (WFC) and well-being (WB) of married female teachers in Malaysia. Work-family conflict is a type of inter-role conflict in which the role demands stemming from one domain (work or family) are incompatible with role demands stemming from another domain (family or work) (Greenhaus Beutell, 1985; Kahn, Wolfe, Quinn, Snoek, Rosenthal, 1964). According to Kahn, Wolfe, Quinn, Snoek, and Rosenthal (1964), roles are the result of expectations of others about appropriate behavior in a particular position. Role conflict is described as the psychological tension that is aroused by conflicting role pressures. Role theory suggests that conflict occurs when individuals engage in multiple roles that are incompatible (Katz Kahn, 1978). Based on the discussion of the work-family conflict and well-being model, Figure 2.1 provides the summary. Role Theory (Kahn et al., 1964) Spillover Theory (1980) Model of Work-Family Role Pressure (1985) Conservation of Resources Model (1989) Model of Teacher Stress (1978) The Relationship between Personality and Stress (Bolger and Zuckerman, 1995) Social Cognitive Theory (Bandura, 1977) Religious Coping (Pargament, 1990) Role Theory (Kahn, Wolfe, Quinn, Snoek, and Rosenthal, 1964) Most of the research on the work-family interface has been guided by role theory (e.g., Kahn, Wolfe, Quinn, Snoek, Rosenthal, 1964; Katz Kahn, 1978). According to role theory, the demand of multiple roles has given an impact for well-being. This rationale basically fits the logic of a stressor-strain model (Karasek Theorell, 1990), with work-family conflict as stressor. Similarly, much of the research on WFC has been based on the premise that multiple roles inevitably create strain (e.g., Frone et al., 1992, Allen Grigsby, 1997) as suggested by role theory (Katz Kahn, 1879).Due to limited amount of time and energy that individuals have to fulfill their multiple roles at the same time, they tend to experience stress (Goode, 1960). Specifically, the role theory (Duxbury Higgins, 1991) postulates that expectations associated with work and family roles can lead to physical and psychological strain in two ways. First, the demand of multiple roles within the work and family domain can lead to overall increase in workload. Second, expectations surrounding either of these roles can evoke pressures that dominate the time of an individual and interfere with expectations associated with the performance of the other role. However, the usefulness of role theory as a basis for crossover research is that it underscores the inter-relations between a focal person and his / her role senders in the work and family setting. Spillover Theory According to the spillover explanation, it may refer to the impact that the satisfaction and affect from the work domain has on the family domain or the impact that the satisfaction and affect from family domain has on the work domain. Additionally, the relationship between work and non-work activities can be positive or negative. Positive spillover refers to situations in which the satisfaction, energy and sense of accomplishment derived from the work environment carry over into the non-work domain. Conversely, negative spillover occurs when problems, fatigue or frustration carry over from the work domain to the non-work domain (Bartolonme Evens, 1980). Other researchers have conceptualized spillover in a similar manner. For example, Zedeck and Mosier (1990) asserted that increased satisfaction (dissatisfaction) in the work domain leads to increased satisfaction (dissatisfaction) with life. Spillover is a process whereby experiences in one roles more similar. Research has examined the spillover of mood, values, skills and behaviors from one role to another (Edwards and Rothbard, 2000). Therefore, spillover is likely to promote work-family conflict when an affect like dissatisfaction with work consistently spills over in to ones family life, thus increasing role conflict. This role conflict stems from the difficulty associated with trying to maintain a satisfying home life when dissatisfaction from work continues to interfere. Therefore, the central premise of spillover is reciprocity or bidirectional relationship of affect in the work and family domains. In other word, conflict between work and family occurs because the affect from one domain (work) is incompatible with the other domain (family). In this study spillover theory explain the negative effect in dealing with work and family roles respectively. Model of Work-Family Role Pressure Incompatibility The model of work-family role pressure incompatibility (figure 2.3) which was proposed by Greenhaus Beutell (1985) encompassed the antecedents of interrole conflict and offered detailed explanations of the types of interrole conflict, which were used widely by researchers in the work-family interface. The model depicted two main areas, the sources of conflict in both work and nonwork domains and the role pressure incompatibility. The role pressure incompatibility reflected the interrole conflict construct in the present study; and was classified into three forms; time-based conflict, strain-based conflict and behavior-based conflict. However, in this study examined only two forms as defined by Netemeyer et al. (1996, p.401), that work-family conflict as a form of interrole conflict in which the general demands of, time devoted to and strain created by the job interfere with performing family-related responsibilities. Greenhaus Beutell (1985) proposed the model of work-family role pressure incompatibility (figure 2.3) encompassed the work domain and family domain that explained in detailed the types of interrole conflict, which were used widely by researchers in the work-family interface. The model depicted domains from work and family which affect from three forms of interrole conflict namely; time-based conflict, strain-based conflict and behavior-based conflict. However, in this study examined only two forms as defined by Netemeyer et al. (1996, p.401), that is work-family conflict as a form of interrole conflict in which the general demands of, time devoted to and strain created by the job interfere with performing family-related responsibilities. FAMILY DOMAIN Illustrative Pressures Time Young Children Spouse Employment Large Families Strain Family Conflict Low spouse support Behaviour expectations for Warmth and Openness Role Pressure Incompatibility Time devoted to one role makes it difficult to fulfill requirements for another role. Strain produced by one role makes it difficult to fulfill requirements of another role Behaviour required in one role makes it difficult to fulfill requirements of another role. WORK DOMAIN Illustrative Pressures Hour worked Time Inflexible work- schedule Shiftwork Role conflict Strain Role Ambiguity Boundary-spanning activities expectations for Behaviour secretiveness and objectivity Negative Sanction for Noncompliance Role Salience Figure 2.3. Work-Family Role Pressure Incompatibility (Adapted from Greenhaus Beutell, 1985: pp.78) The strength of this model was the conceptual distinctions made among the types of interrole conflict. Therefore, this model assisted in the development of the theoretical framework in the current study by suggesting the different types of interrole conflict to be evaluated in both work-and nonwork-domains. For instance, in work domain, if the amount of working hours were too much makes it difficult to fulfill the roles in family domain. Conservation of Resources Model (COR; Hobfoll, 1989) Often work-family researchers have not based their predictions on strong conceptual frameworks (Hobfoll, 1989). The field has been dominated by role theory (Kahn et al., 1964), which is undoubtedly the most cited theory by work-family researchers, together with spillover and segmentation theory (Zedeck Mosier, 1990). Although these theories offer a rationale for the consequences of work-family conflict, they are limited in explaining actual behavior, interaction between actors, or decision making or prioritizing in case of work-family conflict (Poelmans, 2004). Thus, to develop a comprehensive theoretical background for this research, the study also included conservation resources model by Hobfoll (1989) that can explain, predict, and help solve problems that individuals face when balancing work and home responsibilities (Clark, 2000, p. 749). Hobfoll explain that when an individual perceives or experiences environmental circumstances that threaten or cause depletion of resources, he or she psychologically responds in ways that minimize loss of resources. For example, resources might include self-esteem and employment (Hobfoll, 1989). In this study, WFC-efficacy and religious coping as resources of work-family conflict that hopes to reduce work-family conflict and increase well-being of married female teachers in Malaysia. Grandey and Cropanzano (1999) were among the first researchers to apply COR to examine work-family conflict (WFC). They argue that COR theory is an improvement over the use of role theory. Role theory is limited in its ability to explain work-family relationships because it fails to specify moderating variables that might affect the relationship between work-family stressors and stress outcomes. COR theory, in contrast, proposes that interrole conflict leads to stress because resources are lost in the process of juggling both work and family roles (p. 352). The role of work and family stress as an antecedent of work-family conflict can also be explained by the COR model as suggested by Grandey and Cropanzano (1999). The COR model proposes that individuals act to acquire and maintain a variety of resources, such as objects, energies, condition and personal characteristic. COR theory provides a framework for understanding the nature of stress, based on the belief that individuals seek to obtain, build and protect their resources. The theory has been applied to a variety of setting, including community psychology, disaster research, and organizational research. Furthermore, the COR model appears to be a promising perspective for advancing our understanding of work-family relationships. Overview of the Psychological Well-being Theories Associations between work-family conflict and psychological distress have been widely explored and suggest that increased conflict is associated with increased psychological distress ( Major et al., 2002; Stephens et al., 2001) Many different well-being conceptualizations have been provided but, as Gasper (2002), point out, the term well-being is a concept or abstraction used to refer to whatever is assessed in an evaluation of a persons life situation or being. In short, it is a description of the state of individuals life situation. In addition, Easterlin (2001), for example, goes so far as to equate explicitly happiness, subjective well-being, satisfaction, utility, well-being and welfare. Kathryn Dianne (2009) argued that employee well-being consists of subjective well-being (life satisfaction and dispositional affect), workplace well-being (job satisfaction and work-related affect) and psychological well-being (self acceptance, positive relations with others, environmental mastery, autonomy, purpose in life and personal growth). In recent years, researchers, educators, policy-makers and politicians have been directly concerned with well-being, which have been viewed variously as happiness, satisfaction, enjoyment, contentment; and engagement and fulfillment or a combination of these and other, hedonic and eudaimonic factors. It has also been recognized that well-being and the environment are intimately interconnected and may take different forms. Well-being is complex and multifaceted. It is considered as a state and a process. Well-being includes personal, interpersonal and collective needs which influence each other. Well-being may take different forms, which may conflict across groups in society, requiring an overarching settlement. Well-being may also take different forms over the life course of an individual. Interventions to enhance well-being may take different forms. They should be conducted at individual, community and societal level. In the 50 years since Jahodas (1958) seminal report outlining the complexity of defining mental health, significant progress has been made towards the definition and conceptualization of this concept. One noteworthy development was the turn away from definitions of health as the absence of disease (Keyes 2006). Later this was cemented by the work of authors such as Diener (1984), Ryff (1989), Waterman (1993) and Ryff and Keyes (1995). Essentially they argued that mental health should be defined as the presence of wellness rather than the absence of disease. Some speculation surrounds the causal ordering of these two constructs; some believe life satisfaction is a determinant of job satisfaction (whereby overall life satisfaction spills over into satisfaction with life domains) whilst others believe job satisfaction is one of the determinants of overall life satisfaction (Rode 2004). However, the title of the paper, Building a Better Theory of Well-being prepared by Easterlin (2007) shows that Western theories of well-being were inconclusive. Model of Teacher Stress (cf. Kyriacou Sutcliffe, 1978a, p.3) Kyriacou and Sutcliffe (1978a) adopted the theoretical conceptualization of Lazarus to predict school teachers stress reactions. Figure 2.4 presents a simplified version of the model. According to the model, potential stressors are seen as antecedents of teacher stress. Characteristic of the Individual Teacher Biographical personality e.g. support, self-efficacy Teacher Stress Negative effects Response correlates psychological physiological behavioural Chronic Symptoms Psychosomatic coronary mental Coping Mechanisms To reduce perceived threat Potential Stressors Physical psychological Figure 2.4 A Model of Teacher Stress (cf. Kyriacou Sytcliffe, 1978a, p.3) Kyriacou and Sutcliffe (1978a) make an explicit distinction between stressors which are mainly physical (e.g., many pupils in the classes) and those which are essentially psychological (e.g., poor relationships with colleagues). Coping attempts can help to deal with stressful situations, that is, to reduce the perceived threat of those situations. If coping mechanisms are inappropriate, stress occurs. Teacher stress is seen mainly as a negative affect with diverse psychological (e.g., job dissatisfaction), physiological (e.g., high blood pressure), and behavioral (e.g., absenteeism) correlates. In the long run these negative stress effects lead to physiological and biochemical changes accompanied by psychosomatic and even chronic symptoms like coronary heart diseases. Finally, characteristics of the individual teacher are assumed to influence the process. Based on this model, the present study examined WFC-efficacy as a characteristic of the individual teacher on WFC and well-being a nd religious coping as a coping mechanism considered as a predictors in dealing with WFC and well-being. To be clear, WFC is the main dependent variable and well-being as a second dependent variable. WFC-efficacy and religious coping are analyzed as predictors of WFC and well-being Furthermore, the study also integrate WFC as a mediator between both predictors respectively. Banduras Social Cognitive Theory Perceived self-efficacy is concerned with judgments of personal capability, whereas self-esteem is concerned with judgments of self-worth. People make causal contributions to their own psychosocial functioning through mechanisms of personal agency. Among the mechanisms of agency, none is more central or pervasive than peoples beliefs of personal efficacy. Perceived self-efficacy refers to beliefs in ones capabilities to organize and execute the courses of action required to manage prospective situations. Efficacy beliefs influence how people think, feel, motivate themselves, and act. A central question in any theory of cognitive regulation of motivation, affect, and action concerns the issues of causality. Do efficacy beliefs operate as causal factors in human functioning? The findings of diverse causal tests, in which efficacy beliefs are systematically varied, are consistent in showing that such beliefs contribute significantly to human motivation and attainments (Bandura, 1992a). The substantial body of research on the diverse effects of perceived personal efficacy can be summarized as follows: people who have a low sense of efficacy in given domains shy away from difficult tasks, which they view as personal threats. They have low aspirations and weak commitment to the goals they choose to pursue. When face with difficult tasks, they dwell on their personal deficiencies, the obstacles they will encounter, and all kinds of adverse outcomes. Banduras social cognitive theory states that behavior, environment, and person/cognitive factors are all important in understanding personality. Bandura coined the term reciprocal determinism to describe the way behavior, environment, and person/cognitive factors interact to create personality. Behavior Person and cognitive Environment factors Figure 2.6 Banduras Social Cognitive Theory Banduras social cognitive theory emphasizes reciprocal influences of behavior, environment, and person/cognitive factors. The environment can determine a persons behavior, and the person can act to change the environment. Similarly, person/cognitive factors can both influence behavior and be influenced by behavior. Self-efficacy is the belief that one can master a situation and produce positive outcomes. Bandura and the others have shown that self-efficacy is related to a number of positive developments in peoples lives, including solving problems, becoming more sociable, initiating a diet or an exercise program and maintaining it, and quitting smoking (Bandura, 2001, 2006, 2007a, 2007b; Schunk, 2008; Schunk Zimmerman, 2006). Self-efficacy influences whether people even try to develop healthy habits, as well as how much effort they expend in coping with stress, how long they persist in the face of obstacles, and how much stress and pain they experience (Fisher, Schilinger, 2006). Researchers also have found that self-efficacy is linked with successful job interviewing and job performance (Judge Bono, 2001; Tay, Ang, Van Dyne, 2006). Making positive changes to promote our health can be challenge. But fortunately, we all have a variety of psychological and social tools at our disposal to help us in the journey to a new, healthier life. There are three powerful tools: self-efficacy, motivation, and religious faith. Self-efficacy is the individuals belief that he or she can master a situation and produce positive outcomes. If there is a problem to be fixed, self-efficacy-that is, having a can-do attitude-is related to finding a solution. Self-efficacy is the power of belief in you. Not only self-efficacy related to initiating and maintaining a healthy lifestyle; religious faith is, too (Krause, 2006; Park, 2007). Pargaments Religious Coping Theory (1990) Religious-coping responses may eliminate or resolve the stressful probe, thereby preserving or improving the health of the person. Such a hypothesis suggests a model of religious commitment that has both direct and indirect effects on health, with the indirect effects operating through religious support as well as religious coping. Religious coping is dealing with life effectively within the research for significance toward the sacred (Pargament, 1997). Pargament (1990, 1997) suggested a process through which religion plays a part in coping. The process of coping activities and coping outcome, and religion can be a part of each of the central constructs of coping. Religion can contribute to the coping process, shaping the character of live events. In addition, religion itself is shaped by the elements of this process. People bring with them a system of general beliefs, practices, aspirations, and relationships which affect how they deal with difficult moments. A number of studies have definitely linked religious participation to a longer life (Hummer others, 2004; Krause, 2006; McCullough others, 2000). Religious-coping responses may eliminate or resolve the stressful probe, thereby preserving or improving the health of the person. Such a hypothesis suggests a model of religious commitment that has both direct and indirect effects on health, with the indirect effects operating through religious support as well as religious coping. Religious coping is dealing with life effectively within the research for significance toward the sacred (Pargament, 1997). Religious coping is expressed in the cognitive construction of the triggering event, in the ends sought and in the methods used to reach these ends. Religious coping may be involved in the conservation or transformation of ends. Pargaments (1997) model is potentially useful in determining how this religious coping influence work-family conflict. Pargament (1997) proposed a model that integrates religion into Lazarus and Folkmans (1984) classic tripartite theory of coping consisting of primary and secondary appraisals of a stressor; cognitive or behavioral strategies to deal with the event; and sought-after outcomes of coping. Specifically, Pargament (1997) theorized that life events can be interpreted in religious term (i.e., religious coping appraisals), that religion offers people of all ages unique religious pathways to cope with s tress (i.e., religious coping processes), and that religion can imbue with sacred significance the destinations that people strive to reach by means of coping processes. In Pargaments model, religious coping is a broad construct, defined as a search for significance in times of stress in ways related to the sacred (Pargament, 1996, 1997). The term the sacred highlights what makes religion unique. The core of the sacred consists of concepts of God, the divine, and the transcendent, but virtually any object can become part of the sacred through its association with or representation of divinity (Pargament Mahoney, in press). And, unlike other personal and social institutions, religion connects the search for significance during times of stress with higher powers and beliefs, experiences, rituals and institutions associated with supernatural forces. In this frame of reference, spirituality is conceptualized as the heart of religion and defined as the search for the sacred (Pargament Mahoney, 2002). Issues on Feminism in Work-Family Conflict Carol Gilligans Moral Development Theory As human beings grow we somehow develop the ability to assess what is right or wrong, acceptable or unacceptable. In other words; we develop morality, a system of learned attitudes about social practices, institutions, and individual behavior used to evaluate situations and behavior as good or bad, right or wrong (Lefton, 2000). One theorist, Carol Gilligan, found that morality develops by looking at much more than justice. The following will discuss the morality development theory of Carol Gilligan and its implications. Carol Gilligan was the first to consider gender differences in her research with the mental processes of males and females in their moral development. In general, Gilligan noted differences between girls and boys in their feelings towards caring, relationships, and connections with other people. More specifically Gilligan noted that girls are more concerned with care, relationships, and connections with other people than boys (Lefton, 2000). Thus, Gilligan hypothesized that as younger children girls are more inclined towards caring and boys are more inclined towards justice (Lefton, 2000). Gilligan suggests this difference is due to gender and the childs relationship with the mother (Lefton, 2000). Kohlbergs theory is comprised of three levels of moral development becoming more complex. Kohlbergs moral development theory did not take into account gender, and from Kohlbergs theory Gilligan found that girls do in-fact develop moral orientations differently than boys. According to Gilligan, the central moral problem for women is the conflict between self and other. Within Gilligans theoretical framework for moral development in females, she provides a sequence of three levels (Belknap, 2000). At level one of Gilligans theoretical framework a womans orientations is towards individual survival (Belknap, 2000); the self is the sole object of concern. The first transition that takes place is from being selfish to being responsible. At level two the main concern is that goodness is equated with self-sacrifice (Belknap, 2000). This level is where a woman adopts societal values and social membership. Gilligan refers to the second transition from level two to level three as the transition from goodness to truth (Belknap, 2000). Here, the needs of the self must be deliberately uncovered; as they are uncovered the woman begins to consider the consequences of the self and other (Belknap, 2000). One study by Gilligan Attanucci (1988) looked at the distinction between care and justice perspectives with men and women, primarily adolescence and adults when faced with real-life dilemmas. The study showed that: a) concerns about justice and care are represented in peoples thinking about real-life moral dilemmas, but that people tend to focus on one or the other depending on gender, and b) there is an association between moral orientation and gender such that women focus on care dilemmas and men focus on justice dilemmas (Gilligan Attanucci, 1988). Gilligans theory has had both positive and negative implications in the field of psychology. One positive implication is that her work has influenced other psychologists in their evaluations of morality. Also, Gilligans work highlights that people think about other people in a humanly caring way. Gilligan also emphasized that both men and women think about caring when faced with relationship dilemmas, similarly both are likely to focus on justice when faced with dilemmas involving others rights. On the other hand, the most criticized element to her theory is that it follows the stereotype of women as nurturing, men as logical. The participants of Gilligans research are limited to mostly white, middle class children and adults (Woods, 1996. In general, literature reviews have provided that Gilligans work needs a broader more multicultural basis. In work-family conflict study, Gilligans theory can explain regarding the different between female and male in handling work and family domain as general. The moral orientations and development of women in this theory has shows that women is more caring or in other word more responsible in terms of handling family related condition compare to men. In summary, Carol Gilligan has provided a framework for the moral orientations and development of women. Gilligans theory is comprised of three stages: self-interest, self-sacrifice, and post-conventional thinking where each level is more complex. Overall, Gilligan found that girls do develop morality, differently than others. Gilligans theory holds particular implications for adolescent girls specifically as this is typically when they enter the transition from level two to level three. However, as do all theories Gilligans has advantages and disadvantages that should be considered when looking at moral orientations. The History of Work-Family Conflict Construct Since its early development, theoretical discourse in the field of work-family conflict has been confined to a few dominant theories, such as role theory (Kahn, Wolfe, Quinn, Snoek Rosenthal, 1964; Katz Kahn, 1978) and spillover theory (Zedeck Mosier, 1990). Since Zedecks (1992) call for the refinement and development of theory in the work-family field, a series of alternative theories have been suggested as a conceptual basis for explaining work-family conflict, such as Hobfolls (1989) conservation of resources theory (Grandey Cropanzano, 1999). Most research on the work-family interface has focused on work-family conflict (Allen et al., 2000). Conflict between work and

Cfa- Economics

ADS It has two variables, share price S and time t. However, there is a second derivative only with respect to the share price and only a first derivative with respect to time. In finance, these type equations have been around since the early seventies, thanks to Fischer Black and Myron Schools. However, equations of this form are very common in physics Physicists refer to them as heat or diffusion equations. These equations have been known In physics for almost two centuries and, naturally. Scientists have learnt a great deal about them.Among numerous applications of these equations in natural sciences, the classic examples are the models of Diffusion of one material within another, like smoke particles in air, or water pollutions; Flow of heat from one part of an object to another. This is about as much I wanted to go into physics of the BBS equation. Now let us concentrate on finance. What Is The Boundary Condition? As I have already mentioned, the BBS equation does not say which financial instrument it describes. Therefore, the equation alone is not sufficient for valuing derivatives.There must be some additional information provided. This additional information is called the boundary conditions. Boundary conditions determine initial or final values of some financial product that evolves over time according to the PDP. Usually, they represent some contractual clauses of various derivative securities. Depending on the product and the problem at hand, boundary conditions would change. When we are dealing with derivative contracts, which have a termination date, the most natural boundary conditions are terminal values of the contracts.For example, the boundary condition for a European call Is the payoff function V(SST,T) = Max( SST-DE) at expiration. In financial problems, it is also usual to specify the behavior of the elution at SO and as S . For example, It is clear that when the share value S , the value of a put option should go to zero. To summaries, equ ipped with the right boundary conditions. It Is possible using some techniques to solve the BBS equation 1 OFF tort various financial instruments. There are a number tot deterrent solution method one of which I now would like to describe to you.Transformation To Constant Coefficient Diffusion Equations Physics students may find this subsection interesting. Sometimes it can be useful to transform the basic BBS equation into something a little bit simpler by a change of variables. For example, instead of the function V(S,t), we can introduce a new function according to the following rule V(S,t) = e ¤x +  ¤Ã‚ ¶LLC(X, 6) where or oh=-1 02 – 10, 2 -0 or 10. 000142 Then IS(x, 6) satisfies the basic diffusion equation D U D 21. 1 = 2 . DXL It is a good exercise to check (using your week 8) that the above change of variables equation.This equation looks much simpler that can be important, for example when simple numerical schemes. Previous ‘partial derivative exercises' f m om r indeed gives rise to the standard diffusion than the original BBS equation. Sometimes seeking closed-form lotions, or in some Green's Functions One solution of the BBS equation, which plays a significant role in option pricing, is 1 You can also read about this transformation in the original paper by Black and Schools, a copy of which you can get from me. 7 ? expo 0 for any S'. (Exercise: verify this by substituting back into the BBS equation. ) This solution behaves in an unusual way as time t approaches expiration T. You can see that in this limit, the exponent goes to zero everywhere, except at S=S', when the solution explodes. This limit is known as a Doric delta function: lime G(S , t) * 6 (S , S Don not confuse this delta function with the delta of delta hedging! ) Think of this as a function that is zero everywhere except at one point, S=S', where it is infinite.One of the properties of is that its integral is equal to one: +m Another very important property en De TA-don ation is where f(S) is an arbitrary function. Thus, the delta-function ‘picks up' the value of f at the point, where the delta-function is singular, I. E. At S'=S. How all of this can help us to value financial derivatives? You will see it in a moment. The expression G(S,t) is a solution of the BBS equation for any S'. Because of the linearity of the BBS equation, we can multiply G(S,t) by any constant, and we get another solution.But then we can also get another solution by adding together expressions of the form G(S,t) but with different values for S'. Putting this together, and taking an integral as Just a way of adding together many solutions, we find that V (S ,t)= If(S (S , t)ads ‘ o m is also a solution of the BBS equation for arbitrary function f(S'). Now if we choose the arbitrary function f(S') to be the payoff function of a given derivative problem, then V(S,t) becomes the value of the option. The function G(S,t) is called the Green's function.The formula abov e gives the exact solution for the option value in terms of the arbitrary payoff function. For example, the value of a European call is given by the following integral c(S , t) = f Max( S E (S , t) ads Let us check that as t approaches T the above call option gives the correct payoff. As we mentioned this before, in the limit when t goes to T, the Green's function becomes a delta-function. Therefore, taking the limit we get T , T) = I Max( S E T , S ‘)ads Max( SST -E ,0). Here we used the property of the delta-function.Thus, the proposed solution for the call option does satisfy the required boundary condition. Formula For A Call Normally, in financial literature you see a formula for European options written in terms of cumulative normal distribution functions. You may therefore wonder how the exact result given above in terms of the Green's function is related to the ones in the literature. Now I'd like to explain how these two results are related. Let us first focus on a Eu ropean call. Let us look at the formula for a call c(S , f Max( S E (S , t)ads We integrate from O to infinity. But it is clear that when S'

Global Warming Affects International Business

During the 20th century, the earth's average surface temperature increased by 0. 6 °  ± (). 2 °C (Folland et al. 2001), and there’s strong evidence that human activities are the main cause of this trend (Mitchell et al. 2001). This increase in global surface temperature is thought to have at least some effect on the frequency of extreme weather events due to climate changes (Folland et al. 2001), and there is concern that these changes will have an enormous impact on various industries (Hitz and Smith 2004). Balancing environmental measures with economic development, that is, working toward sustainable development, is the fundamental goal of global environmental policies, including those for global warming (Hijioka, Masui, Takahashi, Matsuoka, and Harasawa 2006). Over the last decade, scientists have extensively studied the greenhouse effect, which holds that the accumulation of carbon dioxide (CO2) is expected to produce global warming and other significant climatic changes over the next century (Mendelsohn, Nordhaus and Shaw, 1994). In this essay, we will be discussing about the impact to an analysis of global warming change effects on agriculture and insurance industries, and some qualitative conclusions on the relative importance of the government decision. Numerous studies indicate major impacts on agriculture, especially if there is significant mid-continental drying and warming in the country (Mendelsohn et al. , 1994). Normally, sky-high food prices reflect scarcity caused by crop failure. Stocks are run down as everyone lives off last year's stores. This year harvests have been poor in some places, notably Australia, where the drought-hit wheat crop failed for the second year running. And world cereals stocks as a proportion of production are the lowest ever recorded. The run-down has been accentuated by the decision of large countries (America and China) to reduce stocks to save money (Peterson, 1979). With respect to research on global warming, United States and other international research programs are aiming towards improving future predictions. Such programs are arguably weakest in modelling feedbacks from human activities, including effects of trends towards greater urbanization and deforestation on local and regional climates. Economic incentives and culturally motivated practices are in large part driving changes in land use. Understanding incentives and responses by individuals, companies, and governments in developing countries will strengthen the human behavioural component of feedbacks to the climate system. U. S farm policy merits reform to increase farmers’ flexibility in responding to climatic changes without financial penalties that government programs may potentially give to such responses. Besides, government also introduce price support programs to inhibit climate change adaptation. Subsidies, tariffs and non-tariff barriers continue to distort world trade in agriculture and food. Subsidised prices reduce the ability of farmers in non-subsidising countries to earn a sustainable income and generate the capital required to increase production and improve productivity (Hill, Cronk and Wickramasekera, 2011). For example, today’s farmers are paid any positive difference between the support price for any program commodity and the international market price. International commodity markets smooth the price effects of production and consumption shocks, so changes in the patterns of food consumption induced by climate change thus are tempered by open trade or called free trade (Robert and Sally, 1995). Free trade occurs when there is an absence of barriers to the free flow of goods and services between countries Free trade might also increase the efficiency with which a country’s stock of resources of resources, as increased supplies of labour and capital from abroad become available for use within the country (Hill, Cronk and Wickramasekera, 2011). One manifestation insight is the joint implementation approach to greenhouse gas reductions initiated by several countries, including the U. S. Under joint implementation, the least costly projects to reduce greenhouse gas emissions or enhance carbon sinks can be pursued jointly across countries by, in essence, giving private agents and governments opportunities to meet emission reduction targets anywhere and in cooperation with ay others around the world. For example, forestry projects are one of the important outcomes of joint implementation in agriculture industry. Planting trees in reforestation or afforestation projects enhances the absorptive capacity of the biosphere and leads to carbon dioxide reductions in the atmosphere(Robert and Sally, 1995). Besides, Tesco, a European supermarket chain, is beginning a program to provide a global warming rating for everything it sells (Scot, 2007). The chain is creating an index to measure the â€Å"carbon footprint† required to produce, package, and transport ach product in its stores. Consumers can then include the carbon footprint along with price and product quality when making purchasing decisions. Weather and climate are ‘‘core business’’ for the insurance industry. Many extreme weather events such as cyclones, hailstorms, bushfires and floods are projected to increase in either intensity or frequency under climate change. A changing, less predictable climate has the potential to reduce the insurance industry’s capacity to calculate, price and spread this weather-related risk. In Australia, 19 out of the 20 most costly natural disasters, in terms of property insurance losses, have been weather related (Michael, 2007). While insurers face huge risks for society’s failure to act to curb greenhouse gas emissions, there are untapped opportunities for the insurance industry to use its financial muscle to push for changes in government policies as well as damaging business practices of the oil and fossil fuel power generating companies and the auto industry, to name the most obvious (Carrie, 2003). Analysis of the risks associated with climate change provides insurance companies with a working example of the benefits in considering long-term as well as short term issues. Understanding long-term risks and opportunities enables insurers to ensure our business is sustainable in the long term, while generating enduring shareholder value (Michael, 2007). Insurers and reinsurers using their considerable financial resources as â€Å"catalysts† for the development of renewable, emission reductions and energy efficient technologies could serve the industry by reducing risks and opening up new lines of business activity (Carrie, 2003). Government is committed to undertaking further research to increase the scientific understanding of the impacts of global warming, to identify ways to reduce the impact that global warming is expected to have on society and to identify insurance based, policies incentives for a reduction in future greenhouse gas emissions. However, success in dealing with this global problem requires action across the entire economy. While we are learning more about the economics and geophysics of global warming, policy makers should continue to seek ways to minimize social costs of climate change and change mitigation, a process which the economics profession has much to contribute. Prominent examples of efficiency-enhancing policy measures are he promotion of free trade, the liberalization of farm policy, and the joint implementation of greenhouse gas reduction objectives under the Framework Convention on Climate change (Robert and Sally, 1995). Climate change presents a strong case for the need for business, governments and community groups to work together to find sustainable solutions to this critical challenge of the 21st century (Michael, 2007).

Diary of a Wimpy Kid, Popular Book Series With Cartoons

The Diary of a Wimpy Kid  series is  a big hit with both boys and girls, ages 8 to 12. Billed as a novel in cartoons, Book One is the diary of protagonist Greg Heffley. (Greg is upfront in wanting readers to know, This is a JOURNAL, not a diary and ...this was MOMs idea, not mine.)  Diary of a Wimpy Kid, with its combination of words and cartoons, is particularly appealing to reluctant readers. Summary of the Story Greg is one of three children. According to Greg, his little brother, Manny, never gets in trouble, even if he really deserves it, and his older brother Rodrick is always getting the best of Greg. In his diary, Greg details his daily activities, starting with the first day of middle school and his warnings to readers about choosing where to sit in class. How does Greg feel about middle school? He thinks its dumb because  You got kids like me who havent hit their growth spurt yet mixed in with these gorillas who need to shave twice a day. Whether its dealing with bullying, his friend Rowley, homework, or family life, Greg is always busy trying to figure out the angle that will make things work out best for him. Author Jeff Kinney does a great job, in words and pictures, of illustrating the general goofiness that comes with being a self-centered adolescent, and the hilarious things that happen as a result. Author and Illustrator Overview Diary of a Wimpy Kid is Jeff Kinneys first book. While a student at the University of Maryland, Kinney had his own comic strip, Igdoof, in the school newspaper. After college, he began writing Diary of a Wimpy Kid and putting it online in daily installments on FunBrain.com. Then, publisher Harry N. Abrams signed Kinney to a multi-book deal to create a Diary of a Wimpy Kid series for the Amulet Books imprint. Despite the success of his books, Kinney has kept his day job working for an Internet publishing company. As far as how much the series is based on his life, Kinney said in an interview. that the books are a mix of his own family stories growing up, but with his own comedic spin on them. Diary of a Wimpy Kid Recommendation The books lined pages, plus Gregs writing and his pen and ink sketches and cartoons, make it seem like an authentic diary which adds greatly to the readers enjoyment and relatability. If you are looking for a book with a main character who is a perfect role model for your child, this isnt it. But if you are looking for a funny book your kids will enjoy and identify with, grab a copy. Diary of a Wimpy Kid  is best suited for tweens and younger teens. (Amulet Books, An Imprint of Harry N. Abrams, Inc. 2007. ISBN: 9780810993136) More Diary of a Wimpy Kid Books As of February 2017, there were eleven books in the Diary of a Wimpy Kid series, including titles like  Diary of a Wimpy Kid: Rodrick Rules and Diary of a Wimpy Kid: The Last Straw. In addition, if Gregs diary has inspired your kids to try writing and drawing, they will enjoy Diary of a Wimpy Kid: Do-It-Yourself Book, which includes writing and drawing prompts, with lots of space for kids to fill. Sources ComicMix, Interview: Jeff KinneyWimpyKid.com, About the Author