Competition in the banking industry

Competition in the banking industry The banking system of a country plays a vital role in social welfare of the people in the country and of people of the world in general. It offers services to enterprises and consumers to undertake their business activities and to easily perform their day-to-day transactions. It is necessary to ensure an efficient functioning of the banking system; otherwise, a dull and bogus banking system brings about an ultimate threat of potential for financial instability. That is the reason why the competition in financial sector is of much importance. The importance is for many reasons; i.e. it relates to the efficiency, quality and innovation of the production of financial services. Most importantly, it helps in taking careful decisions in policy making for banks (Claessens and Laevens, 2003). In recent years, a lot of research work has been carried out, investigating the nature of competition in the banking industry along with the degree of competition, factors affecting the competition and the effects of competition on other market factors on micro level as well as on macro economic level. An explanation for the vast amount of studies on this topic is that competition can not be measured directly due to the lack of detailed information on prices and costs of the various banking products (Bikker et al., 2007). This topic has also gained popularity among bankers, economists and policy makers because of globalisation, liberalization of financial markets and banking harmonization all over the world, especially in the European Union. Since early 90s, there are a lot of regulatory changes observed in the banking industry in order to achieve the establishment of a single, competitive market in the financial sector of Europe. It was initially triggered with the implementation of the Second Banking Coordination Directive defining conditions for Single Banking License. As a consequence, entry barriers have been removed substantially for the new entrants increasing competition, coupled with a significant consolidation process. The intuition behind this was Market Contestability; a market is contestable if there are no barriers to entry, exit is absolutely costless and the prices are highly elastic to demands for industry output. The key idea is that a firm may be compelled to be more competitive and efficient by the prospect of new entrants (Allen and Engert, 2007). Furthermore, costless exit means that if a firm enters into a new market and then decides to withdraw, it is required to recover sunk entry costs. These features insure that even if a market has a small number of active firms, it is still effectively contestable and competitive (Nathan A. and Neave E., 1989). Moreover, the pro-competitive deregulation process has increased the level of competition (Cetorelli, 2004), particularly in non-traditional and non-interest bearing areas of banking activity (Goddard et al. 2001). Trivieri F. (2005) documents that in the course of the 1990s, the Italian banking system underwent profound changes at normative and institutional levels, which led among other things to a significant relaxation of the entry barriers, to the liberalisation of bank branching, to the redefinition of ownership structure and to a large number of mergers and acquisitions. The effects of these transformations and, in particular, of those linked to the process of consolidation have been studied by many authors (see, among others: Resti, 1997; Angelini and Cetorelli, 2000; Messori, 2001; Sapienza, 2002; Focarelli et al., 2002; Focarelli and Panetta, 2003). According to European Central Bank 1999, 29 percent banks had been merged or shrunk between 1985 and 1997. In Italian banking industry, the Second Banking Directive was implemented in 1993, followed by a 20 percent reduction in the number of banks as a result of consolidation. It is observed that competition has been increased in recent years in European banking markets which is also generally true for Italy. Angelini and Cetorelli (2000) cite that a rise in the competition is easily found in European banking markets during recent years. Danthine, Giavazzi, Vives and von Thadden (1999) report a somewhat generalized decrease in banks net interest margins across Europe during the 1990s. Consistent with the European evidence, a declining trend in bank margins is also observed across different markets in Italy. This paper focuses only on the banking industry of Italy and analyzes the evaluation of competitive conditions, nature and the degree of competition in the Italian banking industry using firm-level balance sheet data. In this paper, we explore more thoroughly the competitive nature and degree of competition in the Italian banking industry by adopting a methodology developed in empirical industrial organization and used extensively in banking. Further more, we will compare our results with previous results to find out that whether the degree of competition has been increased or it has been as same as it was in the past. The setup of the remainder of this paper is as follows. Section 2 contains some important information about structure and features of a competitive banking industry which helps in understanding the competition more thoroughly. Next Section 3 introduces the original Panzar-Rosse model along with the previous studies in the field. Section 4 gives a brief explanation of the general Panzar and Rosse model. This section also shows the interpretation of the H-statistic along with the description of the testing hypothesis. Following Section 5 deals with the empirical model used in this study including long-run equilibrium test. This section also contains the banks data used for the empirical illustration for our theoretical findings. Finally in the last Section 6 empirical results and conclusion is discussed. OPTIMAL COMPETITIVE STRUCTURE OF THE BANKING SYSTEM According to Northcott C. (2004), competition improves efficiency and growth in the banking sector but market power or concentration is necessary for stability in the industry. Moreover, competitive environment promotes productive and allocative efficiency leading towards economies of scale while market power improves credit availability, stability, quality of banks loan portfolios, screening of loans and monitoring them. As a result, market power should not be eliminated, but rather used to facilitate an environment that promotes competitive behaviour. FEATURES OF A COMPETITIVE BANKING INDUSTRY Concentration weakens competition by fostering collusive behaviour among firms. Increased market concentration was found to be associated with higher prices and greater than normal profits (Bain, 1951). Smirlock (1985) and Evanoff and Fortier (1988) argue that higher profits in concentrated markets could be the result of greater productive efficiency. Berger (1995) finds some evidence that the efficiency hypothesis holds in US banking. In Europe, on the other hand, structural factors appeared to be more important and the SCP hypothesis seemed to hold (Goddard et al., 2001). If a well-developed financial system is provided then contestability improves with new entrants. Contestability is not necessarily related to concentration or the number of banks. Concentration and competition can exist together because of the presence of asymmetric information and branches and the effect and use of new technologies. (Northcott C, 2004) LITERATURE REVIEW AND THEORETICAL ISSUES: According to Bikker and Haaf (2000), initially the economic literature on the issue of competition in the industrial sector can be divided into two main categories; structural approach and non-structural approach. Structural approach can be further divided into two main paradigms. First type of structural approach is Structure-Conduct-Performance (SCP) paradigm, which tells us that the degree of competition is determined by the structural characteristics of the market, such as, number of firms, size of the firms, etc. The SCP was developed in the early 1950s by Mason (1939) and Bain (1951). Bain (1951) constructs the market power hypothesis that collusive behaviour is initiated by high concentration which results in large profits for firms. Later, Stigler (1964) and Demsetz propose efficiency hypothesis in contrast of marker power hypothesis stating that the efficiency of bigger firms may be the reason for high concentration instead of collusive behaviour of firms, while during 1980s, Baumol, Panzar and Willig (1983) build contestability hypothesis. Their hypothesis states that if entry and exit barriers are relaxed then competition may be prevailed (Mkrtchyan A. 2005). Second approach is Efficient-Structure-Hypothesis (ESH), which states that greater concentration in the industry not only increases the level of efficiency in the sector but also increases the degree of competition in that sector. Non-structural approach is based on describing the nature of competition in the context of the studies of New Economic Industrial Organization (NIEO). It suggests non-structural models to analyse the competition in markets which do not rely on the markets structure. Particularly, Klein (1971), Baumol, Panzar, and Willig [1982] provide a theory that shows that market competitiveness can be inferred irrespective of the structure of the market. NIEO studies include Iwata Model (1974), Brasnahan Model (1982), Rosse and Panzar (1977), Panzar and Rosse (1982), Panzar and Rosse Model (1987), etc. Non-structural method or firms input-output cost studies have gained more popularity than the structural approach among academics, researchers, analysts and policy makers. Particularly Panzar and Rosse model (1987) is the most widely used and is very popular model for competition. Duncan (2003) mentions that the Panzar and Rosse (P-R) model provides a comprehensive and simple method to calculate the competition. It does not require intensive data as compared to other models and has been firmly related to theoretical side. The information required for this model is easily available as it calculates the sum of the factor prices elasticities estimated from a reduced form of revenue function. The Rosse-Panzar test has been developed to examine competitive conditions in the light of the contestability theory (Rosse and Panzar, 1977; 1982; 1987). This approach measures the degree of competition by analyzing how each banks revenues react to changes in input prices. It has primarily emerged to test market conditions that encompass all spectrums of competitiveness away from the restrictions brought about by the structural concepts. Basically, it depends on the relationship between gross revenues of the firm and the change in its input prices by using a statistic which is called the H-statistics that measures the sum of elasticities of total revenue with respect to each input price. As this approach includes the revenue equation so for banks, mainly the revenues are interest revenue. In this approach, h-statistics is used to measure the degree of competition. The H-statistics will tell us the responsiveness of revenues to the changes in input prices. If h-statistics is less t han or equal to zero then there will be monopoly, if it is between zero and one then there will be monopolistic competition and if it is equal to one then there will be perfect competition (Greenberg J. and Simbanegavi W.). This approach is preferred when testing the data of different individual banks. Moreover, P-R approach yields similar results without any ambiguity as it has clearly defined hypotheses with specific interpretations. PREVIOUS GENERAL STUDIES ABOUT BANK COMPETITION: Rearrange the literature review according to the claessens and neave. A great number of papers have been written on investigating competition in the banking industry using Panzar and Rosse model (1987). But the motivations for analyzing the nature of the competition are vastly varied like contribution of institutional and structural factors, growth, regions, stability, financing, efficiency, contestability, consolidation, cross-border capital flows, risks etc. The summary of the previous works and their findings can be seen in the Appendix Table 1. Panzar J. and Rosse J. (1987) develop test for Monopoly and use linear regression model to estimate the H-statistic for the newspaper industry, reporting that it is vague to conclude that the newspaper firms earn oligopoly profits. Looking at the cross-country studies carried out in the EU banking markets, one of the earliest analysis is undertaken by Molyneux et al. (1994) who test the Panzar-Rosse statistics on a sample of banks in France, Germany, Italy, Spain and the UK for the period 1986-89. Results indicate monopolistic competition in all countries except Italy where the monopoly hypothesis can not be rejected. Shaffer and Disalvo (1994) use this test to analyze the data of a duopoly banking market in south central Pennsylvania to exercise the procedure for concentration and competitive conduct. Waleed Murjan and Cristina Ruza (2002) examine the Arab Middle Eastern banking markets with this test concluding that the banking sector is more competitive in non-oil-producing countries than the banking industry in oil-producing countries. Gelos and Roldos (2002) apply this method on 8 different countries of Latin America and Europe, finding that market contestability prevents the competitive pressure from declining which can happen because of the consolidation while Claessens and Laeven (2003) process the data of 50 countries obtaining the same results. Bikker and Haaf (2002) assess the banking industry in 17 European countries and six countries that are outside of Europe comparing competitive conditions and market structure. Goddard, J. and Wilson, J. (2006) report misspecification bias in the revenue equation for the banking sectors of 19 developed and developing countries. They suggested a dynamic revenue equation for unbiased estimation rather than fixed effects estimation which is severely biased towards zero. Gilbert (1984) and Berger (1995) test the data for 8,235 banks in 23 developed nations producing the results that a higher degree of market power has less risk exposure. Yuan Y. (2005) assesses the competition in Chinese Banking sector and comes up with the results that China already has had perfectly competitive condition before new foreign entrants and it still has the same situation. Duncan D. (2003) presents the empirical assessment of the market structure of the Jamaican banking sector and competitive trends in the market finding monopolistic behaviour. Al-Muharrami S. et al. (2006) take GCC Arab countries into observation and suggest that Kuwait, Saudi Arabia and the UAE operate under perfect competition; and Bahrain and Qatar operate under conditions of monopolistic competition. Nathan A. and Neave E. (1989) exercise the test on Canadian financial industry and reject the hypothesis of monopoly power in Canadas financial system. PREVIOUS STUDIES ABOUT COMPETITION IN ITALIAN BANKING INDUSTRY: A great number of studies on competition in financial sector of EU countries have been reported which also include Italy in general. But there are also some research-papers which are produced specifically for Italy. Some of them are: Cetorelli N. and Angelini P. (2000) study the case of the Italian banking industry and cite that competitive conditions have improved substantially after 1992, and it is believed that the introduction of the Single Banking License in 1993 also helps fostering the competitive behaviour in Italian banking industry. DellAriccia G. and Bonaccorsi E. (2003) investigate the relationship between bank competition and firm creation. They document that the effects of competition in the banking sector on the creation of firms in the non-financial sector are less favourable to the emergence of new firms in industries where information asymmetries are greater. Coccorese P. (2002) rejects the theory that competition can be easily reduced by the collusive behaviour of the firms, and comes up with the conclusion that strong concentration does not necessarily prevent competition among firms. Trivieri F. (2005) compares the banks involved in the cross-ownership and banks that are not involved. He finds that Italian banks involved in cross-ownership are less competitive than the banks which are not involved in cross-ownership, hence proving cross-ownership decreases competition. GENERALIZED PANZAR AND ROSSE (1987) APPROACH: P-R model assumptions: Firstly, there are some assumptions and conditions in which Panzar and Rosse model works. The model supposes that banks operate in long run equilibrium. Although Goddard Wilson (2006), documents that this condition is not needed any more if a correctly specified dynamic revenue equation is adopted which permits virtually unbiased estimation of the H-statistic. This eliminates the need for a market equilibrium assumption, but incorporates instantaneous adjustments as a special case. So in this paper long run equilibrium postulate holds. Another assumption is that the market participants affect the performance of the banks by their actions. Another postulate is that the price elasticity of demand is greater than unity. Moreover, the model posits that there is a homogenous cost structure. Furthermore, profits are maximised to obtain the equilibrium number of banks and the equilibrium output. In long rum equilibrium, it is known that banks maximise their profits when, marginal revenue eq uals to marginal cost (Bikker and Haaf, 2000). Trivieri F. (2005) also adds that the banks are treated as single product firms which mainly provide intermediation services. EXPLANATION OF PR MODEL: Claessens and Laeven (2003) cite that the Panzar and Rosse model studies the impact of changes in factor input prices reflected in equilibrium revenues by a specific bank. Bikker and Haaf (2000) write that Panzar and Rosse model gives simple models for oligopolistic, competitive and monopolistic markets. This test works on the reduced form revenue equation and uses H-statistics. This H-statistics can tell us not only the nature of competition but also gives information about the degree of the competition. H-statistics if measures between 0 and 1, it is monopolistic competition, 0 is considered as monopoly and 1 as perfect competition. Here, a general banking market model is used, which determines equilibrium output and the equilibrium number of banks by maximising profits. The model is also able to allow for bank-specific variables in the equation. According to Bikker and Haaf (2000), in the long run equilibrium, it is known that banks maximise their profits at the break-even point. The break-even point is where marginal revenue equals marginal cost. So, the bank i maximises its profits, where marginal revenue equals marginal cost: (1) Ri refers to revenues and Ci to costs of bank i (the prime denoting marginal), xi is the output of bank i, n is the number of banks, wi is a vector of m factor input prices of bank i, zi is a vector of exogenous variables that shift the banks revenue function, ti is a vector of exogenous variables that shift the banks cost function. Secondly, it means that in equilibrium at the market level, the zero profit constraint holds (Bikker and Haaf, 2000): (2) Variables marked with an asterisk (*) represent equilibrium values. Panzar and Rosse define a measure of competition H as the sum of the elasticities of the reduced-form revenues with respect to factor prices (Bikker and Haaf, 2000): (3) According to Khan, M. (2009), it measures the percentage change in (equilibrium) revenue due to a one percent change in all input factor prices (change in cost). From duality theory, it is known that one percent increase in factor prices will lead to one percent upward shift in cost function. The impact of this shift in cost function on the (equilibrium) revenue of the banks is directly related to the degree of competition in the banking sector. Bikker and Haaf (2000) further explain that Panzar and Rosse prove that under monopoly or under perfectly collusive oligopoly, an increase in input prices will increase marginal costs, reduce equilibrium output and subsequently reduce revenues; hence H will be zero or negative. An increase in input prices raises both marginal and average costs by an equal proportion as the cost is homogeneous of degree one in input prices without altering the optimal output of any individual firm. Exit of some firms increases the demand faced by each of the remaining firms, thereby leading to an increase in prices and total revenues by as same amount as the rise in costs, resulting perfect competition where H-statistic is positive but not greater than unity. In this case marginal and average cost will be increased by the rise in input prices (Nathan A. and Neave H., 1989). INTERPRETATION OF H-STATISTICS: Panzar and Rosse prove that, under monopolistic competition, H is between zero and unity. H is a decreasing function of the perceived demand elasticity, so H increases with the competitiveness of the banking industry. As a result, this H-statistic can serve as a continuous interpretation of the competitiveness. Although this is not mentioned by Panzar and Rosse (1987) but with some assumptions this continuous interpretation is correct. So, the testable hypotheses are: The banking industry is characterised by monopoly for H=0, monopolistic competition for 0 HYPOTHESIS TESTING; Khan, M. (2009) mentions: Two-sided Perfect Competition Test: Maintaining the long run equilibrium postulate, if banks are operating under perfect competition, a one percent change in cost will lead to a one percent change in revenues. Output will not be changed if the demand function is perfectly elastic under perfect competition, output price and cost both will increase by the same extent. This implies that under perfect competition, H-statistic will be equal to one. Statistically, we will test the following hypothesis. H0 : H = 1 Perfect competition prevails in the banking sector. H1 : H à ¢Ã¢â‚¬ °Ã‚   1 There is no perfect competition in the banking sector. Two-sided Monopolistic Competition Test: If banks are operating in monopolistically competitive environment, one percent increase in cost will lead to less than one percent increase in revenue as the bank faces fairly inelastic demand function. Statistically, we will test the following hypothesis. H0 : 0 H1 : H à ¢Ã¢â‚¬ °Ã‚ ¤ 0 or H à ¢Ã¢â‚¬ °Ã‚ ¥ 1 Banks are not operating in a monopolistic competition environment. One-sided Monopoly Test: Standard theory of market structure suggests that the sum of factor input price elasticities should be less than zero if the underlying market structure is monopoly. Statistically, we will test the following hypothesis. H0 : H à ¢Ã¢â‚¬ °Ã‚ ¤ 0 Banks are operating in a monopoly condition. H1 : H > 0 Banks are not operating in a monopoly condition. (Khan M., 2009) EMPIRICAL FRAMEWORK AND METHODOLOGY: The test is robust with any definition of market whether it is within the national boundaries or it is the global international banking industry because there is no need to specify a geographic market. Before testing, it is commonly necessary to obtain a reduced form of revenue equation which consists of revenue as a dependent variable, factor input prices as independent variables and some controlled or firms specific factors. The basic equation is: Total interest revenue = total cost + controlled variables + error term The panel data is used in the paper which is the data collected over multiple time periods. It is the combination of cross-sectional and time series dimensions. Hence, it can be derived as: Ci = a + Byi + Ei (4) Ct = a + Byt + Et (5) Where, C is the dependent variable, a is constant term, B is the coefficient of the independent term, y is the independent variable and E is the error term. Combining both the equations (4) and (5), the final basic equation can be given as: Cit = a + Byit + Eit (6) But Panzar and Rosse define the H as the sum of the elasticities of the reduced-form revenues with respect to factor prices, so the econometric model of the Panzar and Rosse statistic may be represented by the following equation: (7) For i = 1,..I; t = 1,T; Where, R is a measure of gross revenue. W is a vector of factor prices (the H statistic is given by the sum of the estimated coefficients of the variables in this vector); S is a vector of scale variables; X is a vector of exogenous and bank-specific variables that may shift the cost and revenue schedule, ÃŽÂ µ indicates the error term; I is the total number of banks; T is the number of periods observed (Trivieri, 2005). To calculate the sum of elasiticities, it is necessary to estimate the log linear model instead of estimating a simple linear model that is the reason for taking the log of all the variables in equation (7). The sign of the variables of different costs and bank specific variables are positive showing a direct relationship to revenues (Trivieri, 2005). In this pooled regression, extra intercepts or dummies for time are used, but dummies for individuals are not included because of the application of within-group-estimators. Because with-in-group estimator takes first difference and removes the individuals dummies variables by itself. Thus being a fixed effects model, it measures differences in intercepts for each group and the differences are calculated by a separate dummy variable for each group (Trivieri, 2005). The use of fixed effects panel regression with time dummies allows calculating the relevant parameters of the empirical model. Furthermore, unobserved heterogeneity is controlled by the fixed effects too avoiding omitted variable problems (Trivieri, 2005). In this paper, the intermediation approach developed by Sealey and Lindley (1977), is followed which tells that deposits, labour and capital are inputs for the banks. The empirical model applied in this paper is as: LGIRTA = B1LLABCOST + B2LCAPCOST + B3LFUNDCOST + B4LLTA + B5LBMIX (8) Where, LGIRTA = Log of Gross Interest Revenues over Total Assets LLABCOST = Log of Labour factor price LCAPCOST = Log of Capital Cost LFUNDCOST = Log of Funding Cost LLTA = Log of Loans to Total Assets LBMIX = Log of Loans to Banks and Clients over Total Loans This paper addresses the banking industry of Italy. The data includes 480 banks approximately, of all sizes in Italy. The data contains two different samples. First sample consists of the data from 1995 to 1997, total 3 years, and the second sample contains data from 1997 to 2000, total 3 years. We make a comparison and inference between the results obtained by these two samples through our empirical model and find out the competitive behaviour of Italian financial market. LONG RUN EQUILIBRIUM TEST: An important underlying condition of the H-statistic for competition is the long run equilibrium. Panzar and Rosse (1987) cite that this postulate is crucial for the cases of perfect competition and monopolistic competition. Though, it is not a fundamental assumption in the case of monopoly because when H is less than or equal to zero then it is a long run assumption for monopoly (Trivieri, 2005). Long run equilibrium test for the observations can be done with the prerequisite that: competitive markets equalise the return rates across firms, so that in equilibrium these rates should not be correlated with input prices (Trivieri, 2005). In our empirical model as in Shaffer (1982), this test can be carried out by re-estimating the equation with the proxy for the return on assets, ROA, as dependent variable in the calculation of H. In this context, H = 0 implies that the data are in long run equilibrium (Trivieri, 2005). The intuition behind this theory is that, return on assets, ROA, should not be related to input prices. De Bandt and Davis (1999), define the equilibrium condition as the state in which changes in banking sector are considered as gradual, long run equilibrium for the observations does not mean that competitive conditions remain the same and do not change through out the period of observations (Trivieri, 2005). Although it is inappropriate to use Rosse-Panzar test which is based on a static equilibrium framework, but in the real financial market, the equilibrium adjustments are less than instantaneous, resulting disequilibrium on some points in time or frequently, or always. Moreover, when it is known that the adjustments towards equilibrium are partial and not instantaneous then using fixed effects estimation for the static revenue equation will result in biased H-statistics toward zero (Goddard J. and Wilson J., 2006). For the long run equilibrium, we estimate the following equation: LROA = B1LLABCOST + B2LCAPCOST + B3LFUNDCOST + B4LLTA + B5LBMIX (9) DATA AND SAMPLE DESCRIPTION: The empirical part of this paper uses an unbalanced panel data set on which the Panzar and Rosse methodology has been applied containing a range of Italian banking firms. The data and the samples used for the estimation of H indicator are provided by Dr. Leone Leonida, Queen Mary, University of London. The data used in this paper are annual and refer to the period 1995-1997 (3 years) for the first sample. The first sample for the econometric analysis is made up of an unbalanced panel data of 480 financial institutions of all sizes, for a total of 1401 observations. The number of parameters is 487. The longest time series is 3 years long and the shortest time series is only 2 years long with 2 time dummies. The second sample covers the period of 1998-2000 (3 years) having 1330 number of observation from 474 banks of all sized. The number of parameters is 481. The longest time series is 3 years long and the shortest time series is 2 years long depicting unbalanced panel data with 2 time dummies. In the Appendix, Table 3 provides a summary of the definition of relevant dependent variable, independent variables, bank specific factors variables and control variables. LGIRTA is the log of gross interest revenue over total assets, which is used as dependent variable, also used by De Bandt and Davis (2000), and Trivieri F. (2005). Trivieri (2005) points out that according to Vesala (1995) and De Bandt and Davis (2000) it is the most appropriate choice because it then represents a price equation and not the revenue equation. Moreover, our equation will be consistent with the conceptual structure used by the application of Panzar and Rosses statistic to the banking sector. The choice for taking only the interest part of the total revenue of banks is consistent with underlying notion of the P-R model that financial intermediation is the core business of most banks. However, Shaffer (1982) and Nathan and Neaves (1989) have included total revenue instead of only interest revenue because of the fact that banks have increased their non-interest activities and services which have started generating income other than interest. But s

Analysis of Poe’s The Raven Essay -- Poe Raven Essays

The first two stanzas of The Raven introduce you to the narrator, and his beloved maiden Lenore.   You find him sitting on a â€Å"dreary† and dark evening with a book opened in front of him, though he is dozing more than reading.   Suddenly, he hears knocking on his door, but only believes it to be a visitor nothing more.   He remembers another night, like this one, where he had sought the solace of his library to forget his sorrows of his long lost beloved, and to wait for dawn.   Meanwhile the tapping on his door continues.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Poe’s most famous poem begins with an imagery that immediately brings the reader into a dark, cold, and stormy night.   Poe does not wish for his readers to stand on the sidelines and watch the goings on, but actually be in the library with the narrator, hearing what he hears and seeing what he sees.   Using words and phrases such as â€Å"midnight dreary† and â€Å"bleak December† Poe sets the mood and tone, by wanting his readers to feel the cold night and to reach for the heat of the â€Å"dying embers† of the fireplace.   You do not come into this poem thinking daffodils and sunshine, but howling winds and shadows.   By using these words, Poe gives you the sense of being isolated and alone.   He also contrasts this isolation, symbolized by the storm and the dark chamber, with the richness of the objects in the library.   The furnished room also reminds him of the beauty of his lost Lenore.   Al so, Poe uses a rhythm in his beginning stanza, using â€Å"tapping†, followed by â€Å"rapping, rapping at my door†, and ending with â€Å"tapping at my chamber door.†Ã‚   You can almost hear the tapping on the door of the library as ... ...e opens the door.   When he found himself opening the door, he saw nothing but darkness.   And this is the point where he figures that there is nothing out there.   I think the reason Poe was so afraid, reflects back on Lenore.   I understood Lenore to be Poe’s love at some point in his life.   He’s been so depressed, that all he thinks about is her, but then again, he is also trying to forget about her at the same time.  Ã‚  Ã‚   And when he first heard the sounds of rustling, he might of thought it could be the spirit of Lenore.   I think this was the reason for him to have been so afraid.   Poe drew a lot of his ideas and images into his own imagination.   And the images he had of Lenore, was not making him feel any better.   I think that most of Poe’s thoughts and feelings all came from his mind, and not his heart.

Diversity in Sports Essay

Diversity in sports simply means equal opportunities for every athlete irregardless of gender, color, race, or origin. This is what the true spirit of competition should be all about. Sports should not only involve the white race, Americans, or men but also other races and sex(Jackson 2007). Rev. Jesse Jackson, Sr. , in his report to the House Committee on Energy and Commerce, said that in recent years, diversity in sports has become very evident. In the world of American football, the Indianapolis Colts, coached by an African-American, won a Super Bowl. In baseball, the Chicago White Sox, a multi-racial team managed by Ozzie Guillen, a Latino, and Ken Williams, an African-American, won the World Series in 2005. A year later, the New York Mets, who is managed by a Latino manager and an African-American general manager, almost duplicated the White Sox’ feat, losing only in Game 7 of the National League Championship. This goes to show that moves to diversify sports are moving forward(Jackson 2007). The National Basketball Association (NBA) has led the way in terms of sports diversity by opening its doors to other races. Long ago, the NBA was dominated by Americans or Canadians. Recently, however, one can see the teams drafting players from Europe and recently Asia. The Major League Baseball (MLB) and National Football League (NFL) are likewise starting to provide opportunities for other races which is why spectators would get to see the likes of Alfonso Soriano and Sammy Sossa hitting homeruns here and there(Jackson 2007). Diversity in Sports 4 The NBA: Taking the Lead In Diversity Leading the way as far as diversity in professional sports is the National Basketball Association (NBA). For more than twenty years, the NBA has become the leader in promoting equal opportunities to all races. Here are some NBA diversity facts and figures as reported by The Institute for Diversity in Ethics and Sports(Spears, 2007): 15% of team vice presidents in the NBA are held by colored people, which is the highest in all of professional sports. 79% of NBA players have colors. In 2007, the number of African-American players increased to 75% which is higher than the 73% recorded in 2006. Employment opportunities for colored people at the League offices were at 34 percent, which is 2% higher than the previous year. 39% of professional positions in the League Office are occupied by women. 12 teams in the NBA are handled by African-American coaches. The NBA’s total of 40% still tops all of professional sports. With 53 African-American head coaches, the NBA has more than doubled the number of colored head coaches in any other professional sports. Next in line is the MLB with 25 colored managers. 41% of assistant coaches in the NBA are colored which is the highest so far in the history of the league. Diversity in Sports 5 There are four African-American CEO/Presidents in the league and two other presidents of basketball operations. To date, they are the only people who have held such position in all of professional sports. In 2006, there were eight African-American general managers in the NBA, which tops other professional sports league. By the end of 2006-07, the NBA had 64 percent white referees, 32 percent African-American, 3 percent Latin Americans, and a single black referee in Violet Palmer. Diversity in College Sports While professional sports is heading towards diversity, such is not the case in college sports. According to a report by the University of Central Florida, diversity has not been progressing in collegiate leagues. Here are the facts(Belew, 2006): In Division I schools, only 25. 2% of head coaches are African-American which is higher by 2% than the previous year. In Division IA, out of a total of 119 football head coaches, only six are African-American and zero percent are women. In college basketball, only 4. 1% of head coaches come from the minority group with 2. 6% being Latin Americans. The enforcement of Title IX did not help the cause of women in college sports as not a single one of them is represented. Diversity in Sports 6 In sports involving women, most Division I, II, and III coaching jobs are occupied by 89. 6%, 90. 9%, and 92. 9%, respectively. In the men’s division, the breakdown was 90. 6%, 89. 5%, and 93. 4%, respectively, served as head coaches. Diversity in the Olympics The Olympic Games is one of the many sporting competitions that practices diversity in sports. Once every four years, athletes from various nations converge in one venue in order to have a shot at sports excellence(Guttmann, nd). There are two varieties of this international sporting event namely Winter and Summer Olympics. Contemporary Olympics started in Athens, Greece in 1896, a couple of years after Pierre de Coubertin proposed the holding of an Olympic Games to push for peace in the world. The inaugural Games only had about 300 athletes from less than 15 countries taking part in 43 events in nine disciplines. When the Olympics returned to Athens in 2004, the number of participants had ballooned to 10,000 athletes representing 202 nations vying in 28 various sports(Guttmann, nd). Women In The Olympics During the inaugural Olympics, there were no female athletes who took part in the Games. Four years later, however, golf and tennis allowed the participation of women. In 1912, swimming and diving became available for women athletes as well. Sixteen years later during the 1928 Games, gymnastics and track and field had female athletes likewise. Since then, the number of women competing in the Olympics have considerably increased. At present, fifty percent of all teams are comprised by women, with the exception of the Muslim countries, where female participation is minimal(Guttmann, nd). Diversity in Sports 7 The Paralympics Games In the true spirit of diversity in sports, disabled people can have an opportunity to experience competitive spirit and sports excellence with their own version of the Olympic Games. Introduced in 1960, in conjunction with the Olympic Games in Rome, the Paralympics, as it is called, highlights male and female athletes representing six various disability groups. The emphasis of the Paralympics Games is not on the disability but on individual achievements. Since then, the growth of the event has become steady. From the initial 400 athletes that took part in 1960, a total of 3806 athletes representing 136 nations took part during the 2004 Athens Paralympics Games. Beijing, China will be the cite of the next Paralympics Games(International Paralympics Committee, nd). Conclusion When it comes to sports, not a single nation can dominate all the events. While host nations of the Olympics choose the events where they have the advantage, chances are other nations will beat them in other fronts. This is what diversity in sports is all about. Fairness and equality in the light of competition. References Belew, B(2006 December 17). Diversity in College Sports – Coaching. The Biz of Knowledge. Retrieved July 14 2008 from http://www. thebizofknowledge. com/2006/12/diversity_in_college_sports_co_1. html Guttman, A(nd). Olympic Games. Microsoft Encarta Online Encyclopedia. Retrieved July 14 2008 from http://www. encarta. msn. com

Gilgamesh Synopsis

The Epic of Gilgamesh is an ancient poem/literature from Mesopotamia (present day Iraq). The Epic of Gilgamesh is amongst the earliest work of literature known to man. This Literature was originally inscribed on 12 clay tablets in cuneiform script. This literature explores the adventures of Gilgamesh, the historical part-god and part-human King of Uruk (one of the many cities in ancient Mesopotamia). This literature also explores the boundaries of love, friendship, death, immortality, and life as we might relate to it today.Gilgamesh was two-thirds god and one-third human/mortal. He was portrayed in the literature a human king of his people of Uruk and also a supernatural god. Gilgamesh was the strongest of all men, the bravest of the bravest, and a magnificent builder. One of Gilgamesh’s greatest accomplishments was that he was able to build temple towers (ziggurats) and walls that protected his Uruk people from invasions. The Epic of Gilgamesh described a catastrophic flood similar to that experienced by Noah in the Christian bible.This Noah like character was known as Utnapishtim in this literature. He was a king and priest who was granted immortality from the gods after his great boat carried him, his wife, and every living creature to safety after the flood. Utnapishtim was the keeper of the secrets of immortality. Despite some of Gilgamesh’s great accomplishments he was very arrogant as a king and as a mortal who had some godlike features. The people of Uruk were fearful of Gilgamesh, and they prayed to their gods to liberate them from Gilgamesh’s arrogance.Relief came in the form of Enkidu, the beastly man who sought to be Gilgamesh’s rival but instead became his good companion, after being seduced by Shamhat (the temple prostitute). Gilgamesh lived a life of supremacy and adventures. Gilgamesh and his companion Enkidu achieved numerous victories over their adversaries, one of which was the demon Humbada. The gods had later pu nished Gilgamesh and Enkidu for their forms of tyranny by giving Enkidu a slow and painful death. After the death of companion and friend Enkidu, a grief-stricken Gilgamesh became fearful of his own mortality and went in pursuit of Utnapishtim’s secrets of immortality.Gilgamesh traveled the ends of the earth searching for Utnapishtim, the one man whom the Gods saved from the flood, and who was supposed to be able to give Gilgamesh immortality. Gilgamesh’s pursuit for immortality was futile, despite that fact that he was giving an alternative for attaining immortality in the form of a plant which was located at the bottom of the ocean. Gilgamesh went back to Uruk not only tired and weary but, as a changed man with a more approving attitude about life. Gilgamesh seemingly became more appreciative of mortality and optimistic about still achieving greatness and a legacy as a mortal versus an immortal.

Tension in Macbeth, Act 2 Essay Example

Tension in Macbeth, Act 2 Essay Example Tension in Macbeth, Act 2 Paper Tension in Macbeth, Act 2 Paper Essay Topic: Macbeth How does Shakespeare create tension in Act 2, scenes 1 and 2? Shakespeares Macbeth is a play that develops around tension all the way through. Shakespeare manages to create tension in a variety of ways in terms of the thematic aspects, linguistic aspects and dramatic aspects. Act II (scenes I and 11) is the part of Macbeth where Lady Macbeth and her husband (Macbeth) actually carry out their plans and do the deed. Instead of planning and talking about killing King Duncan of Scotland, the Macbeths go ahead and actually do it. Tension is built up before the killing in scene I and also in scene II when Macbeth reappears having done the deed. We can see the Macbeths reactions and feelings to their crime and if the characters are uneasy or on edge, then it adds to the tension. Act II, scene 1, starts off at night, in fact after midnight. In Shakespeares time midnight was considered to be the witching hour. Shakespeares use of the concept of darkness is an excellent way of creating tension because many people have a deep founded fear of the dark. The darkness can be seen in the language, The moon is down and in the Royal Shakespeare Company production of Macbeth an eerie atmosphere is created through dim lighting. This version of Macbeth uses pauses and silence by the characters in order to create tension. Also evil things come from the dark; Banquo says All the candles are out, meaning there are no starts in the sky. Banquo finds it difficult to get to sleep because of cursed thoughts. This language shows us that Banquo is obviously very anxious and fear is plaguing his imagination. The semantic field of sleep is very clear at this point in Macbeth, in particular in Act II, scene II. Banquo shouts Give me my sword, suggesting that he is edgy and anxious despite being in his friends castle. For me, it wouldnt be the sort of command you would shout unless you were disturbed by something and of course we know that Banquo is extremely fearful due to either his worry about the witches prophecies or it is a possibility that he suspects Macbeth. Banquos worry about the witches was something shared by the society in Shakespearian times, who were very fearful of the supernatural. Therefore the references to the supernatural would have increased tension amidst the audience. The actual theme of killing the King certainly creates the utmost tension in itself. In Shakespearian times the King was seen as next to God, so to murder the King i. e. commit treason would be a wicked sin, for which the killer would be cut off from God. There is a stark contrast in Banquos and Macbeths manner. Banquo speaks his mind and is open about his feelings whereas Macbeth hides his true feelings. When Banquo says I dreamt last night of the three weird sisters, Macbeths response is I think not of them. The audience knows this is a blatant lie and Macbeth isnt telling his friend Banquo of his true feelings and what he is really feeling inside. Shakespeare uses dramatic irony here to create tension, where we (the audience) know more than the characters do. Another key point at this moment in the play, where Macbeth and Banquo are speaking, is the tone they speak to each other in. They speak to each other in a very polite, formal way, which shows how nervous they are; this in turn communicates itself to the audience. The soliloquy is a very poignant part of Act II, scene I and for Shakespeare it is a crucial way in which he can create tension. Basically Macbeth thinks he sees a bloody dagger in mid air, which seems to be leading him to Duncans chamber. Tension is created, as the audience can see that Macbeth is hallucinating, which will clearly make them think that Macbeth is being deeply psychologically affected by the plan to murder King Duncan. Macbeth himself even exclaims, Or art thou a dagger of the mind, a false creation. The soliloquy includes the line And on thy blade and dudgeon gouts of blood. These are very grim words, which add to the tension. Words such us blood and blade are very strong connotations of violence. They create an evil, horrible image of death in the mind of those in the audience. The recurring semantic field of death keeps on reminding the audience of the impending murder. Macbeths personification of murder undoubtedly creates a lot of tension. The audience can feel this tension as Macbeth describes the murder as a person. I think tension is very high at this point in the play because Macbeth appears to be verging on madness. The imaginary sword that Macbeth sees in his hallucination contrasts with the real one he eventually pulls out. In Polanskis film version of Macbeth, use is made of a super imposed dagger. In my opinion this ploy spoils the soliloquy and in fact has the opposite effect to the desired effect of creating tension; it destroys the tension and is definitely not as effective as seeing the intensity of an actor grabbing at nothing. This film version also makes use of a voice-over, rather than showing the actor speaking the words. This isnt as dramatically effective because the audience doesnt feel as close the character and his emotions. Immediately after the soliloquy comes the ringing of a bell, signalling that the action is about to commence. The audience has been waiting for this moment, for it is part of the Macbeths plans that the bell rings. Tensions among the audience would already be running high, and this sudden sound effect would increase the tension even more. I think the actual murder would not have been scripted by Shakespeare and he would be murdered offstage for two very important reasons. Firstly it leaves the audience in doubt and unaware of whether Macbeth has committed the murder or not; this would benefit the play because it would keep the audience intrigued, on the edge of their seats. Also the murder wouldnt be shown on stage due to the sensitivity of the public, who couldnt begin to comprehend the fact that someone might murder the King. It would be a blasphemous, atrocious crime. In Polanskis film we actually see the murder happen and personally do not think this a good idea as I would rather see the play with Duncans murder offstage. This because it creates more dubiety about the murder I would rather remain sceptical as to whether it has occurred or not. In Act II, scene II, Duncans murder takes place. The audience would be over come with anticipation and extremely eager to find out what happens next. At this point they are questioning whether or not Macbeth has stooped low enough to kill his King. The scene starts off with a defiant Lady Macbeth stating, That which hath made them drunk hath made me bold. She doesnt know whether Macbeth has followed through with their plans. She waits alone in anticipation on the stage. This creates suspense and is crucial to the dramatic aspect of the play. Macbeth on the other hand is off stage. Shakespeare structures it cleverly so that the audience sees characters on their own and together. He shows Macbeths worry through his line, Whos there. This shows Macbeths great concern that someone is there who might disturb him and identify him as the murderer. Lady Macbeth starts to become agitated and her optimism is gradually fading. She wonders whether the plan might have failed and Shakespeare shows this by Lady Macbeth saying lines such as I laid their daggers ready and He could not miss them. These show her real desperation at this point.

Free Essays on The Separation Of Church And State In The European Union

Separation of Church and State in the European Union The European Union, the intergovernmental organization between 25 European nations, faces many challenges concerning where it will go, how it will develop, and how and when it will expand. As its work continues and further develops, the Member States take many steps to be more united and uniform. Such developments are the birth of the Euro as the EU‘s monetary unit and the abolition of borders between the Member States except the United Kingdom. The writing of the EU Constitution is another development. However, this one has raised much controversy over one issue: the omission of religious reference in the Constitution. This issue raises many questions, and one of them is whether the EU should seek standard policy regarding the state-church relationships of the Member States. Perhaps a coherent way to look at and discuss this question is by comparing the EU to another union, such as the United States. The difference between their structures and developments can point out how the EU should behave about the separation of church and state. The US, being a federation, believes that constitutionally, the church and state should be separated. This policy helps the US function as a successful body, under the principles it has set. However, unlike the US, the EU does not need to find a uniform way in dealing with the church-government relationships in order to function as a successful body, since the EU has no central gover nment and is not an organization which interferes with the strictly internal policies of the Member States. The US developed in such a way that a uniform in church-state relationships is needed. Ever since the colonial period, there was an established religion in some of the colonies. For instance, New England had a Puritan domination, and the Colony of Virginia had the Anglican Church as official religion. However, with the Revolutionary War, these ... Free Essays on The Separation Of Church And State In The European Union Free Essays on The Separation Of Church And State In The European Union Separation of Church and State in the European Union The European Union, the intergovernmental organization between 25 European nations, faces many challenges concerning where it will go, how it will develop, and how and when it will expand. As its work continues and further develops, the Member States take many steps to be more united and uniform. Such developments are the birth of the Euro as the EU‘s monetary unit and the abolition of borders between the Member States except the United Kingdom. The writing of the EU Constitution is another development. However, this one has raised much controversy over one issue: the omission of religious reference in the Constitution. This issue raises many questions, and one of them is whether the EU should seek standard policy regarding the state-church relationships of the Member States. Perhaps a coherent way to look at and discuss this question is by comparing the EU to another union, such as the United States. The difference between their structures and developments can point out how the EU should behave about the separation of church and state. The US, being a federation, believes that constitutionally, the church and state should be separated. This policy helps the US function as a successful body, under the principles it has set. However, unlike the US, the EU does not need to find a uniform way in dealing with the church-government relationships in order to function as a successful body, since the EU has no central gover nment and is not an organization which interferes with the strictly internal policies of the Member States. The US developed in such a way that a uniform in church-state relationships is needed. Ever since the colonial period, there was an established religion in some of the colonies. For instance, New England had a Puritan domination, and the Colony of Virginia had the Anglican Church as official religion. However, with the Revolutionary War, these ...

Chapter 10 Flashcards Example for Free (#10)

Chapter 10 T/F Discussion boards are an earlier form of social networks. T/F Ryze was the first social network. T/F Orkut is the leading social network in Brazil. T/F Social networks blur the line between business and personal life. T/F A white label social network can also be called a corporate social network. T/F It is considered a best practice for companies to set up a profile on Facebook. T/F Large social networks are being threatened by niche social networks that cater to specific interests An online service where members can establish relationships Which social network made the mistake of alienating its early adopters by deleting suspicious accounts? Why is the Coca-Cola Facebook page different from other brand pages? The company shares the page administration with fans. What social network did not succeed in the U.S. but has been successful in other countries? Which of the following statements is false? People on social networks seek out brand relationships. Why are social networks so useful for businesses that sell to consumers? They are a great way to find and reach potential customers. According to the text, which is not considered a mistake on a LinkedIn profile? Completing a profile with as much detail as possible. One advantage of a white label social network is that It can be customized to suit the needs of a particular audience. What is the appeal of a private social network for a nonprofit? It provides a means for them to organize a cause without the distractions of a general social network. Why should firms consider investing in a presence on larger social networks? They set social media trends and have the largest audiences. What did Quantivo learn about targeting groups on LinkedIn? A group’s activity level is more important than its size. How does brand intelligence relate to social networks? It is a way to assess a company’s transparency online. Explain why marketers looking to reach a global audience must consider social networks beyond Facebook. Different social networks are popular in different countries, and a marketer needs to be aware of this when looking to reach and connect with specific international audiences. building relationships using discussion boards to converse about topics of shared interest An online meeting place for consumers and influencers to: to create, share and interact with content. Gangs 2 marketing ch. 15 yipyip HEP 3000 chapter 11 MGT exam 3 Marketing Chapter 7 quiz ch 8-9 Fountain Intro to Drugs and Behavior, Chapter 11: Caffeine (Practice questions) Marketing Test 2 company About StudyMoose Contact Careers Help Center Donate a Paper Legal Terms & Conditions Privacy Policy Complaints We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy We will write a custom sample essay on