The Lucas Paradox and the Quality of Institutions: Then and Now

Size: px
Start display at page:

Download "The Lucas Paradox and the Quality of Institutions: Then and Now"

Transcription

1 Diskussionsbeitäge des Fachbeeichs Witschaftswissenschaft de Feien Univesität Belin Volkswitschaftliche Reihe 2008/3 The Lucas Paadox and the Quality of Institutions: Then and Now Moitz Schulaick und Thomas M. Stege

2 The Lucas Paadox and the Quality of Institutions: Then and Now Moitz Schulaick (Fee Univesity of Belin) * Thomas M. Stege (Univesity of Leizig and CESifo) ** Febuay 2008 In the fist ea of financial globalization ( ), global caital maket integation led to substantial net caital movements fom ich to oo economies. The histoical exeience stands in contast to the contemoay globalization whee goss caital mobility is equally high, but did not incite a substantial tansfe of savings fom ich to oo economies. Using data fo the histoical and moden eiods we extend Lucas (1990) oiginal model and show that diffeences in institutional quality between ich and oo counties can account fo the shaly divegent attens of intenational caital movements. Keywods: caital maket integation; financial globalization; economic histoy. JEL classification: F15; F21; F30; N10; N20; O11; O16 We ae gateful to Michael Clemens, Niall Feguson, Alan M. Taylo, Michael Klein, Angus Maddison, Chis Meissne, Sevket Pamuk, Mac Weidenmie and Jeffey Williamson fo shaing data o thoughts. All emaining mistakes ae ou own. * Fee Univesity of Belin, John-F.-Kennedy-Institute, Deatment of Economics. ** Coesonding autho: Univesity of Leizig, Institute of Theoetical Economics / Macoeconomics, Maschnestasse 31, D Leizig, Tel: +49-(0) , Fax: +49(0) ,

3 2 1. Intoduction Duing the fist ea of financial globalization between 1880 and 1914 intenational caital mobility was as high as today. The Feldstein-Hoioka (1980) test even suggests that caital movements wee highe in the histoical ea (Bayoumi, 1990; Eichengeen, 1990; Taylo, 1996; Jones and Obstfeld, 1997). Yet the attens of intenational caital flows diffe makedly between the two eiods of lagely unesticted caital mobility. Befoe WW1 caital flows wee edominantly one-diectional in the sense that caital flowed fom the ich coe economies in Euoe to the ooe eihey on a net basis. As a consequence, the ich cedito nations in the coe had built u substantial net foeign asset ositions of aound 20 ecent of thei aggegate GDP, and by 1914 foeign caital to outut atios aveaged moe than 100 ecent in develoing counties (Edelstein, 1982; Obstfeld and Taylo, 2004; Schulaick, 2006). In the contemoay globalization, goss caital mobility is equally high, but does not lead to substantial net caital flows between ich and oo economies. As a esult, the Lucas (1990) aadox of missing ich-oo caital flows is moe onounced than in the fist globalization. 1 In thei imotant study, Obstfeld and Taylo (2004,. 55) concluded that the contemoay financial globalization was chaacteized by divesification finance as oosed to develoment finance befoe WW1: Today s foeign asset distibution is much moe about asset swaing by ich counties divesification than it is about the accumulation of lage one-way ositions a citical comonent of the develoment ocess in ooe counties in standad textbook teatments. How can we account fo these diffeences between now and then? Why was caital maket integation befoe 1914 maked by massive net caital flows to oo economies while the contemoay globalization is chaacteized by divesification finance and limited net caital movements? In this ae, we aim to sketch a otential theoetical exlanation fo this henomenon along the lines of Lucas thinking about deteminants of ate of etun diffeentials between develoed and less develoed economies. In his seminal ae, Lucas (1990) agued that diffeences in the elative human caital endowments could be an 1 While Clemens and Williamson (2004) found that the wealth bias of financial investment was as stong befoe 1914, othe studies have questioned the obustness of this esult afte contolling fo outlies and ointed to a much less onounced wealth bias in intenational caital flows befoe WW1 (Obstfeld and Taylo, 2004; Schulaick, 2006). This also mios the ealie findings by Edelstein (1982) who had shown substantial net investment flows fom Euoe to oveseas aeas.

4 3 exlanation fo the absence of substantial net caital movements fom ich and oo counties duing the ost-ww2 eiod. In Lucas oiginal line of thought, hysical caital is comaably unoductive in oo counties because comlementay factos such as human caital ae missing. This esective can be efeed to as the unoductive caital view. The altenative osition, the caital maket failue view, stesses factos such as asymmetic infomation, distoting olicies, and unenfoceable oety ights. This stand of the liteatue highlights the quality of institutions such as the otection of ceditos and the enfocement of oety ights acoss intenational bodes as a necessay condition fo net investment flows and the buildu of sizeable net foeign asset ositions (Shleife, 2003). Recent emiical studies have ointed to the imotant contibution legal and olitical aangements made to develoment finance befoe 1913 by inceasing cedito otection and boowes willingness to ay (Feguson, 2003; Mitchene and Weidenmie, 2005a; Feguson and Schulaick, 2006). Weak institutions have also been made esonsible fo the aucity of ich-oo caital flows in the contemoay globalization. The coss-county study by Alfao et al. (2003) concluded that weak institutional quality was the most imotant vaiable fo exlaining the aucity of ich-oo caital flows between 1971 and Moe ecently Ju and Wei (2006) have shown how the quality of oety ights can be a cause fo the obseved aadoxes in global caital flows. The unoductive caital view and the caital maket failue view ae by no means mutually exclusive. We theefoe ask whethe a combination of these two aoaches is caable of exlaining the diffeent attens of intenational caital flows duing the two eas of financial globalization within a unified famewok. In a fist ste, we extend Lucas (1990) oiginal model to account fo the imact of institutional quality on ate of etun diffeentials between ich and oo counties. In a second ste, we evaluate the model using moden and histoical data to see what diffeence in the quality of institutions between ich and oo counties could exlain the obseved attens of caital flows. Finally, we check the lausibility of these esults against the available evidence on diffeentials in institutional quality between ich and oo counties in both eas of financial globalization. This execise shows that it is ossible to exlain why ich-oo caital movements ae negligible in moden times but wee substantial befoe WW1: we find a consideably highe ate of etun diffeential between ich and oo counties fo the histoical eiod than fo today.

5 4 2. An extended Lucas execise We stat by extending the oiginal Lucas (1990) famewok to incooate the effects of diffeences in institutional quality on ate of etun diffeentials between ich and oo counties. Lucas himself oosed that institutional factos could lay an imotant ole fo the aucity of caital flows fom ich to oo (1990,. 94/95): Until aound 1945, much of the Thid Wold was subject to Euoean-imosed legal and economic aangements, and had been so fo decades o even centuies. A Euoean lending to a boowe in India o the Dutch East Indies could exect his contact to be enfoced with exactly the same effectiveness and by exactly the same means as a contact with domestic boowes. Assume, following Lucas (1990), that the oduction technology is ( ) 1 α α γ Y = A hl K h, whee Y is final outut, A > 0,0 < α < 1, γ > 0 denote constant technology aametes, h is human caital e caita, L (unskilled) labo, K eesents the stock of hysical caital, and h γ catues a oduction extenality. Outut e effective labo, y: = Y/( hl), is given by y = Ak α h γ, whee k: = K/( hl). The cometitive and ivate ate of etun on caital may then be exessed as =, whee 0 μ 1 catues the α 1 γ μα Ak h degee of oety ights otection. By solving y = Ak α h γ fo k and lugging the esult into the evious exession fo the ate of etun, we get A y h 1/ α ( α 1)/ α γ / α = μα. Hence, the atio of the ate of etuns on caital in oo and ich counties may be exessed as follows: ( α 1)/ α γ / α ( α 1)/ α γ / α μ y h μ Y / L h h = = μ y h μ Y / L h h, (1) whee the subindex stands fo oo and fo ich. Equation (1) shows that the ate of etun diffeential, /, deends on the elative otection of oety ights, μ / μ, on elative outut e caita, ( Y / L)/( Y / L ), and on the elative stocks of human caital e caita, h / h. To evaluate the model we need infomation on the tems aeaing on the ight hand side. The baseline set of aametes is discussed in the next section. The human caital extenality aamete is set to γ = While Lucas (1990) uses γ = 0.36, Ciccone and

6 5 Pei (2006) have shown in the meantime that the standad estimates ae heavily uwad biased. Benhabib and Peli (1996) even use γ = 0.1. Since this aamete is had to secify with cetainty, we decided to let γ [0.15,0.2]. 3. Data souces and aamete secification: now and then With egad to the undelying data, we make a few adjustments to Lucas oiginal numeical execise. Fist, unlike Lucas we don t look at just two counties, the US and India, but use a boade samle of develoed and develoing counties. Fo the histoical and the moden eiod ou dataset coves 54 esectively 24 economies. Second, fo both eiods, we slit the samle into a ich and a oo half by classifying all counties as oo if thei GDP e caita is less than the samle mean. Finally, we aveage the elevant data acoss the ich and oo ats of the wold economy in 1913 and We use these aveages to constuct two atios fo elative human caital endowment and elative GDP e caita which we lug into the extended Lucas-model. The data fo the contemoay eiod come fom commonly used souces such as the Wold Develoment Indicato database (Wold Bank, 2005). Inflows of otfolio and equity caital ove GDP ae taken fom the Intenational Financial Statistics (IMF, 2005). Data on educational attainment (aveage yeas of schooling) as a oxy fo human caital endowments ae taken fom the udated Bao-Lee dataset (Bao and Lee, 2000). In total, we count obsevations fo 54 counties fo the contemoay eiod ( ) coveing a lage numbe of develoing and develoed counties. Ou analysis of the histoical eiod builds on thee ecently comiled datasets fo the fist ea of financial globalization (Obstfeld and Taylo, 2003; Clemens and Williamson, 2004; Feguson and Schulaick, 2006). Fom these datasets come all economic vaiables such as the human caital oxy (imay school enollment). Real GDP data come fom the seminal wok of Angus Maddison (Maddison 1995, 2001). Caital flow and foeign investment stock data ae taken fom the wok of Stone (1999) as well as Feis (1965) and Wooduff (1966). A detailed data aendix is available fom the authos on equest. In total, we have assembled data fo 24 counties ove coveing moe than 80 ecent of global GDP in Among the majo economies, the only lage county missing in the histoical samle is China fo which GDP seies do not exist. The histoical dataset comises of Euoean counties (Austia- Hungay, Denmak, Fance, Gemany, Geece, Italy, Noway, Potugal, Russia, Sain), Noth

7 6 Constucting aveage values fo the ich and the oo half of the wold esults in a slightly highe elative human caital endowment in the histoical eiod with oo-to-ich atios of 0.45 back then vesus 0.41 today. With egad to outut diffeentials, we wok with actual GDP e caita data fo the moden eiod which show a ich-to-oo GDP e caita atio of Howeve, this aoach is oblematic fo the histoical eiod as we know that substantial net caital movements between ich and oo haven taken lace duing the eiod. As these flows ae likely to have loweed the initial ga in outut e caita, we need to adjust outut e caita fo the effects of the caital tansfes. Two additional assumtions ae necessay. Fist, we follow Twomey (2000) and Schulaick (2006, table 2) by assuming that the stock of hysical caital in oo counties owned by foeign investos aveaged 100 ecent of GDP in develoing counties in Second, we assume a caital-outut atio of thee. On the basis of this infomation, we can calculate diffeences in GDP e caita between ich and oo counties unde the countefactual assumtion that no caital had flown fom ich to oo. 3 The calculation yields an oiginal ex-ante outut diffeential between oo and ich counties of We also esent ou simulations below with the ex-ost diffeences in GDP e caita of 0.36 to demonstate the imact of these countefactual assumtions. It is inheently difficult to quantify the diffeence in institutional quality between ich and oo economies. In this ae, we consequently abstain fom making diect assumtions, but look to the model to tell us what diffeentials could exlain the obseved attens of caital flows. Nonetheless, a few eliminay consideations ae helful. Fo the contemoay eiod, we can use data on oety ights and legal otection such as the Intenational Poety Rights Index, the oety ights index comiled by the Heitage Foundation and the quality of the legal system measued by the Intenational County Risk Guide. Desite diffeent souces and comilation methods, all these indicatos show that oety ights otection in the aveage develoing county is only about half as effective as in the OECD counties (IPRI, 2007; Heitage Foundation, 2006; Dolla, 2002). Ameican and Austalasian settle economies (Canada, USA, Austalia, New Zealand) as well as South Ameican (Agentina, Bazil, Chile, Mexico, Uuguay), Asian (Ceylon, India, Jaan) and Middle Easten (Egyt, Tukey/Ottoman Emie) economies. 3 A simila ocedue has been ecently alied in a histoical study focusing on the effect of caital movements and mass migation on wage diffeentials by Hatton and Williams (2006).

8 7 Fo the histoical eiod, thee ae no detailed county-by-county assessments of institutional quality that could seve as comaable signosts to aoximate the diffeences in institutional quality. Howeve, it is clea that on the eve of WW1, most of Asia and Afica was unde colonial ule by the Euoean owes. Euoean ule could have had an imact on contact enfocement by foeign investos as Lucas himself noted in the quote above. Did colonial status imove oety ights and legal otection fo foeign investos? Feguson and Schulaick (2006) have shown that county isk imlied by isk emia in the bond maket was 60 ecent lowe fo Bitish colonies than fo indeendent develoing counties afte contolling fo diffeences in economic develoment, debt levels and othe solvency indicatos. Moeove, this Emie Effect emained esent in a samle that included ich coe economies alongside oo colonies. In othe wods, afte contolling fo economic fundamentals and solvency indicatos, in the eyes of Bitish investos the esidual institutional and olitical isks in oo colonies wee actually lowe than in moe advanced economies such as the US, Fance o Gemany. Looking with Lucas at the US and India in the yea 1913 claifies the ictue. By 1913, the US wee the lagest and on a e caita basis among the ichest economies in the wold. India, howeve, was among the ooest ats of the Bitish Emie with a significant ublic debt buden and a eal e caita income of 12 ecent of the US. The county isk emium fo US govenment bonds in the yea 1913 was 52 basis oints ove Bitish Consols. Without fomal guaantees by the Bitish govenment, India s county isk emium as chaged by the intenational bond maket was two basis oints lowe than in the US 50 basis oints. The aveage of the less-develoed ats of the Bitish Emie (including many oo Afican colonies) was 46 basis oints. It seems theefoe likely that colonial status contibuted significantly to equalizing institutional and legal investment isks between ich and oo economies. As fo the othe ats of the develoing wold that wee not unde fomal colonial ule befoe WW1 such as Latin Ameica and Easten Euoe, the ecent liteatue agues that the Euoean owes and the US oliced and otected oety ights by way of an infomal imeialism (Kelly, 1998; Goetzmann and Ukhov, 2001). In aticula Mitchene and Weidenmie (2005a,b) show that militay essue and olitical contol wee an imotant and commonly used enfocement mechanism fo intenational debt tansactions in It seems lausible to assume that such inteventions and indiect olitical contol have loweed

9 8 soveeign isk and esulted in a highe elative degee of oety ights otection in the eihey than today. 4. Evaluating the extended Lucas model Using the aametes esented in table 1, we evaluate the model and lot the esulting ate of etun diffeentials ove the diffeent atios fo institutional quality in gah 1. Looking at the moden eiod, lowe GDP e caita in oo counties as imlied by m m m m ( Y / L )/( Y / L ) 0.25, togethe with diminishing etuns to caital ceates a ositive ate of etun diffeential. Yet, as Lucas agued befoe, weake human caital endowment educes the ate of etun diffeential. 4 Howeve, the new insight fom figue 1 is that in an extended Lucas famewok, i.e. accounting fo diffeences in oety ights otection, a ositive ate of etun diffeential between ich and oo economies aeas only if the diffeential in oety ights otection is at o above 0.6. Assuming the level of oety ights otection in the eihey is 60 ecent of the level develoed wold, ates of etun in the eihey would be a mee 11 ecent highe than in the coe. Given the magin of eo of ou aoximations in table 1, the esulting diffeential is hadly enough to conclude that ex ante ate of etun diffeentials in the contemoay wold economy ae lage enough to incite lage caital flows. If the ate of etun in the tyical ich county amounts to, say, 5 ecent, the ate of etun in the tyical oo county would be 5.55 ecent. In addition, the evidence on elative oety ights otection discussed above even indicates that the diffeential could have been lowe, maybe only aound In this case, the ate of etun diffeential between ich and oo economies ove the ast 25 yeas would have been a athe insignificant 2 ecent. A figue low enough to exlain the obseved aucity of caital flows fom ich to oo counties. 4 m m This esult is qualitatively simila to Lucas (1990,. 94). The eason is that we set h / h 0.41 m m m m m m wheeas Lucas emloys h / h 0.2. On the othe hand, Lucas sets ( Y / L )/( Y / L ) 0.067, wheeas m m m m we have ( Y / L )/( Y / L ) 0.25.

10 9 Table 1: Baseline set of aametes Technology α = 0.3; γ = Relative human caital a m m h h h / h 0.41; h / h 0.45 Relative GDP e caita a m m m m ( Y / L )/( Y / L ) 0.25 (moden eiod; actual) h h h h ( Y / L )/( Y / L ) 0.36 (histoical eiod; actual) h h h h ( Y / L )/( Y / L ) 0.31 (histoical eiod; countefactual) b (a) The undelying data set is descibed in section 3. (b) The constuction of the countefactual elative GDP e caita is descibed in a technical aendix available fom the authos. Evaluating (1) with data fo the histoical eiod, we ask the same question what assumtions we need to make fo elative oety ights otection to have sufficient incentives fo caital movements given the discussed diffeentials in outut and human caital h h h h endowment. The ga in (countefactual) e caita incomes, ( Y / L )/( Y / L ) 0.31, is somewhat smalle than in the contemoay eiod which deesses the ate of etun diffeential. Yet this effect is tamed by a highe elative human caital endowment of oo h h counties befoe WW1 than today, indicated by h / h This being said, the ate of etun diffeential could have been even lage if the imact of e-ww1 migation on human caital levels (Hatton and Williamson, 2006, Table 1; Feguson, 2003,. 11/12) was taken into account. In this case, thee ae easons to assume that the human caital oxy undeestimates the human caital endowment in oo counties befoe Figue 1 demonstates that stating fom a oety ights diffeential in the vicinity of 0.75 a substantial ex ante ate of etun diffeential aeas fo the histoical eiod. The ate of etun diffeential gows to almost 50 ecent as we move close towads the assumtion of equal institutional quality in ich and oo counties ( μ / μ = 1) which could have been the case unde colonial ule. Hence, even if tansaction costs and isk avesion ae taken into account, the ex ante ate of etun diffeential befoe 1914 was lage enough to exlain the obseved caital movements fom ich to oo duing that eiod. Inteestingly, using actual instead of countefactual data on e caita income yields a small ate of etun diffeential of only aound 1.04 (assuming γ = ) at high levels of elative institutional quality, i.e. assuming μ / μ = As thee wee no imediments to caital mobility duing the fist

11 10 ea of globalization, this could be an indication that caital movements had eliminated substantial ate of etun diffeentials by the end of the eiod. Summing u, with highe elative institutional quality in the eihey befoe 1914 than today, an extended Lucas model suggests a substantial ex ante ate of etun diffeential. While difficult to quantify ecisely, the assumtion of highe institutional standads caies a high lausibility in light of the evidence esented on the Emie Effect and infomal aangements that enhanced cedito otection. Fo instance, if we genealize the above examle of equal county isk emia fo the US and India befoe WW1, the esulting ex ante ate of etun diffeential between ich and oo counties in the fist ea of globalization eaches moe than 50 ecent. Assuming a not unealistic diffeential of 0.9 still yields a substantial ate of etun diffeential of 35 ecent high enough to incite substantial caital tansfes fom ich to oo befoe WW1 and hence exlain the diffeent attens of financial globalization then vs. now. Moden Peiod Histoical Peiod 1.5 Imlied ROR diffeentials g=0.15 g= Countefactual ROR diffeentials H"ex ante caital flows"l g= 0.15 g=0.2 g= g= Imlied ROR diffeentials m m m m Figue 1: Rate of etun diffeentials in esonse to elative oety ights. 4. Summay The makedly diffeent attens of intenational caital mobility duing the histoical and the moden ea can be exlained within an extended Lucas (1990) famewok that combines the unoductive caital and the caital maket failue views. Two assumtions ae citical: (1) the human caital extenality in both eiods is in the ange γ [0.15,0.2]; (2) the diffeential in institutional quality between ich and oo counties in the histoical eiod was consideably highe than today, ossibly aound 0.9. While diect evidence on this last

12 11 assumtion is limited, available data and naative histoical accounts make this seem lausible. In the light of the histoical exeience and the ate of etun imlications of an extended Lucas model, imovements in institutional quality ae a key econdition fo lage caital flows to develoing counties 5. Refeences Alfao, L., S. Kalemli-Ozcan and V. Volosovych (2003). Why doesn t caital flow fom ich to oo counties? An emiical investigation Havad Business School Woking Pae, No Bao, R. J. and J.-W. Lee (2000). Intenational Data on Educational Attainment: Udates and Imlications. CID Woking Pae No. 42. htt://www.cid.havad.edu/cidw/042.htm Bayoumi, T. (1990). Saving-Investment Coelations, IMF Staff Paes, 37, Benhabib, J. and R. Peli, Uniqueness and indeteminacy: On the dynamics of endogenous gowth, Jounal of Economic Theoy, 1994, 63, Ciccone, A. and G. Pei, Identifying Human-Caital Extenalities: Theoy with Alications, Review of Economic Studies, 2006, vol. 73, no. 2, Clemens, M. A. and J. Williamson (2004). "Wealth bias in the fist global caital maket boom, " Economic Jounal 114 (2): Cooe, R. (1982). The Gold Standad: Histoical Facts and Futue Posects. Booking Paes on Economic Activity, Vol. 1, David R. Dolla (2002), Institutions, Tade and Gowth, Jounal of Monetay Economics, Dataset. Eichengeen, B. (1990). Tends and Cycles in Foeign Lending. In: Caital Flows in the Wold Economy, H. Siebet (ed.), Tübingen, Moh-Siebeck.

13 12 Edelstein, M. (1982). Oveseas Investment in the Age of High Imeialism. New Yok, Columbia Univesity Pess. Feis, H. (1965). Euoe The Wold's Banke WW Noton, New Yok. Feldstein, M. S. and C. Y. Hoioka (1980). "Domestic Saving and Intenational Caital Flows." Economic Jounal 90: Feguson, N. and M. Schulaick (2006). "The Emie Effect: The Deteminants of County Risk in the Fist Ea of Financial Globalization." Jounal of Economic Histoy 66 (June): Feguson, N. (2003). Bitish Imeialism Revised: The Costs and Benefits of Anglobalization Develoment Reseach Institute Woking Pae Seies No. 2. Goetzmann, William N. and Andey Ukhov (2001), China and Wold Financial Makets Woking Pae, Financial Institutions Cente, Whaton Business School, Hatton, T. J. and J. G. Williamson (2006), What Detemines Immigation s Imact? Comaing Two Global Centuies, Woking Pae Havad Univesity. The Heitage Foundation, 2006 Index of Economic Feedom, Host, Alexanda (2007), Intenational Poety Rights Index 2007, Washington DC, Intenational Monetay Fund (2005), Intenational Financial Statistics. Electonic vesion, accessed via Reseach Time Seies Database (ReTIS 3.2) at Deutsche Bank Reseach. Jones, T. and M. Obstfeld, M. (1997). Saving, Investment, and Gold: A Reassessment of Histoical Cuent Account Data. NBER Woking Pae Dataset: htt://www.nbe.og/databases/jones-obstfeld/

14 13 Ju, J. and S.-J. Wei, A Solution to Two Paadoxes of Intenational Caital Flows, Intenational Monetay Fund, Woking Pae 06/178. Kelly, Tish, Ability and willingness to ay in the age of the Pax Bitannica , Exloations in Economic Histoy, 35 (1998), Lucas, R. (1990). "Why Doesn't Caital Flow Fom Rich to Poo Counties?" Ameican Economic Review 80: Maddison, A. (1995). The Wold Economy: A Millennial Pesective. Pais, OECD Maddison, A. (2001). The Wold Economy. A Millennial Pesective. Pais, OECD. Mitchene, K.J. and Weidenmie, M. (2005a), Emie, Public Goods, and the Roosevelt Coollay, Jounal of Economic Histoy 65 (3): Mitchene, K. J. and M. D. Weidenmie (2005b), Suesanctions and Soveeign Reayment, NBER Woking Pae Seies Woking Pae Obstfeld, M. and A. M. Taylo (2002). "Globalization and Caital Makets. NBER Woking Pae Seies Obstfeld, M. and A. M. Taylo (2003). "Soveeign Risk, Cedibility and the Gold Standad: vs " Economic Jounal 113: Obstfeld, M. and Alan M. Taylo (2004). Global caital makets: integation, cisis, and gowth. Cambidge, Cambidge Univesity Pess. Schulaick, M. (2006). A Tale of Two Globalizations : Caital Flows Fom Rich to Poo in Two Eas of Global Finance. Intenational Jounal of Finance and Economics 11 (4): Shleife, A., "Will the Soveeign Debt Maket Suvive" (Januay 2003). Ameican Economic Review, Paes and Poceedings, Vol. 93, No. 2

15 14 Stone, I. (1999). The Global Exot of Caital fom Geat Bitain. London, Macmillan. Taylo, A. M. (1996). Intenational Caital Mobility: The Saving-Investment Relationshi. NBER Woking Pae Twomey, M. J. (2000). A Centuy of Foeign Investment in the Thid Wold. London, Routledge. Wooduff, W. (1966). The Imact of Westen Man. London, Macmillan. Wold Bank (2005). Wold Develoment Indicatos. Washington, Wold Bank.

16 Diskussionsbeitäge des Fachbeeichs Witschaftswissenschaft de Feien Univesität Belin /1 EICHFELDER, Sebastian Die Gündung de Bankgesellschaft Belin : Betiebswitschaftliche Reihe 2008/2 WIENEN, Julia / Chistina SICHTMANN Vom Podukt zu Solution bei Industiegüten : Liteatuübeblick und aktische Ansatzunkte Betiebswitschaftliche Reihe

Chapter 3 Savings, Present Value and Ricardian Equivalence

Chapter 3 Savings, Present Value and Ricardian Equivalence Chapte 3 Savings, Pesent Value and Ricadian Equivalence Chapte Oveview In the pevious chapte we studied the decision of households to supply hous to the labo maket. This decision was a static decision,

More information

Ilona V. Tregub, ScD., Professor

Ilona V. Tregub, ScD., Professor Investment Potfolio Fomation fo the Pension Fund of Russia Ilona V. egub, ScD., Pofesso Mathematical Modeling of Economic Pocesses Depatment he Financial Univesity unde the Govenment of the Russian Fedeation

More information

Housing in the Household Portfolio and Implications for Retirement Saving: Some Initial Finding from SOFIE

Housing in the Household Portfolio and Implications for Retirement Saving: Some Initial Finding from SOFIE Housing in the Household Potfolio and Imlications fo Retiement Saving: Some Initial Finding fom SOFIE Gant Scobie, Tinh Le and John Gibson N EW ZEALAND T REASURY W ORKING P APER 07/04 M ARCH 2007 NZ TREASURY

More information

Top-Down versus Bottom-Up Approaches in Risk Management

Top-Down versus Bottom-Up Approaches in Risk Management To-Down vesus Bottom-U Aoaches in isk Management PETE GUNDKE 1 Univesity of Osnabück, Chai of Banking and Finance Kathainenstaße 7, 49069 Osnabück, Gemany hone: ++49 (0)541 969 4721 fax: ++49 (0)541 969

More information

How Much Should a Firm Borrow. Effect of tax shields. Capital Structure Theory. Capital Structure & Corporate Taxes

How Much Should a Firm Borrow. Effect of tax shields. Capital Structure Theory. Capital Structure & Corporate Taxes How Much Should a Fim Boow Chapte 19 Capital Stuctue & Copoate Taxes Financial Risk - Risk to shaeholdes esulting fom the use of debt. Financial Leveage - Incease in the vaiability of shaeholde etuns that

More information

Definitions and terminology

Definitions and terminology I love the Case & Fai textbook but it is out of date with how monetay policy woks today. Please use this handout to supplement the chapte on monetay policy. The textbook assumes that the Fedeal Reseve

More information

Trading Volume and Serial Correlation in Stock Returns in Pakistan. Abstract

Trading Volume and Serial Correlation in Stock Returns in Pakistan. Abstract Tading Volume and Seial Coelation in Stock Retuns in Pakistan Khalid Mustafa Assistant Pofesso Depatment of Economics, Univesity of Kaachi e-mail: khalidku@yahoo.com and Mohammed Nishat Pofesso and Chaiman,

More information

Japan s trading losses reach JPY20 trillion

Japan s trading losses reach JPY20 trillion IEEJ: Mach 2014. All Rights Reseved. Japan s tading losses each JPY20 tillion Enegy accounts fo moe than half of the tading losses YANAGISAWA Akia Senio Economist Enegy Demand, Supply and Foecast Goup

More information

YIELD TO MATURITY ACCRUED INTEREST QUOTED PRICE INVOICE PRICE

YIELD TO MATURITY ACCRUED INTEREST QUOTED PRICE INVOICE PRICE YIELD TO MATURITY ACCRUED INTEREST QUOTED PRICE INVOICE PRICE Septembe 1999 Quoted Rate Teasuy Bills [Called Banke's Discount Rate] d = [ P 1 - P 1 P 0 ] * 360 [ N ] d = Bankes discount yield P 1 = face

More information

INITIAL MARGIN CALCULATION ON DERIVATIVE MARKETS OPTION VALUATION FORMULAS

INITIAL MARGIN CALCULATION ON DERIVATIVE MARKETS OPTION VALUATION FORMULAS INITIAL MARGIN CALCULATION ON DERIVATIVE MARKETS OPTION VALUATION FORMULAS Vesion:.0 Date: June 0 Disclaime This document is solely intended as infomation fo cleaing membes and othes who ae inteested in

More information

The impact of migration on the provision. of UK public services (SRG.10.039.4) Final Report. December 2011

The impact of migration on the provision. of UK public services (SRG.10.039.4) Final Report. December 2011 The impact of migation on the povision of UK public sevices (SRG.10.039.4) Final Repot Decembe 2011 The obustness The obustness of the analysis of the is analysis the esponsibility is the esponsibility

More information

Chapter 11: Aggregate Demand II, Applying the IS-LM Model Th LM t

Chapter 11: Aggregate Demand II, Applying the IS-LM Model Th LM t Equilibium in the - model The cuve epesents equilibium in the goods maket. Chapte :, Applying the - Model Th t C ( T) I( ) G The cuve epesents money maket equilibium. M L(, ) The intesection detemines

More information

Exam #1 Review Answers

Exam #1 Review Answers xam #1 Review Answes 1. Given the following pobability distibution, calculate the expected etun, vaiance and standad deviation fo Secuity J. State Pob (R) 1 0.2 10% 2 0.6 15 3 0.2 20 xpected etun = 0.2*10%

More information

Firstmark Credit Union Commercial Loan Department

Firstmark Credit Union Commercial Loan Department Fistmak Cedit Union Commecial Loan Depatment Thank you fo consideing Fistmak Cedit Union as a tusted souce to meet the needs of you business. Fistmak Cedit Union offes a wide aay of business loans and

More information

9:6.4 Sample Questions/Requests for Managing Underwriter Candidates

9:6.4 Sample Questions/Requests for Managing Underwriter Candidates 9:6.4 INITIAL PUBLIC OFFERINGS 9:6.4 Sample Questions/Requests fo Managing Undewite Candidates Recent IPO Expeience Please povide a list of all completed o withdawn IPOs in which you fim has paticipated

More information

Things to Remember. r Complete all of the sections on the Retirement Benefit Options form that apply to your request.

Things to Remember. r Complete all of the sections on the Retirement Benefit Options form that apply to your request. Retiement Benefit 1 Things to Remembe Complete all of the sections on the Retiement Benefit fom that apply to you equest. If this is an initial equest, and not a change in a cuent distibution, emembe to

More information

TRADING DAYS IN 2010 - LONDON DERIVATIVES MARKET INTRODUCTION

TRADING DAYS IN 2010 - LONDON DERIVATIVES MARKET INTRODUCTION EURONEXT DERIVATIVES MARKETS LONDON MARKET TRADING DAYS IN 2010 - LONDON DERIVATIVES MARKET INTRODUCTION An oveview of the Tading Days in 2010 was issued unde London Notice No. 3203 on 13 Octobe 2009.

More information

Controlling the Money Supply: Bond Purchases in the Open Market

Controlling the Money Supply: Bond Purchases in the Open Market Money Supply By the Bank of Canada and Inteest Rate Detemination Open Opeations and Monetay Tansmission Mechanism The Cental Bank conducts monetay policy Bank of Canada is Canada's cental bank supevises

More information

Integer sequences from walks in graphs

Integer sequences from walks in graphs otes on umbe Theoy and Discete Mathematics Vol. 9, 3, o. 3, 78 84 Intege seuences fom walks in gahs Enesto Estada, and José A. de la Peña Deatment of Mathematics and Statistics, Univesity of Stathclyde

More information

Concept and Experiences on using a Wiki-based System for Software-related Seminar Papers

Concept and Experiences on using a Wiki-based System for Software-related Seminar Papers Concept and Expeiences on using a Wiki-based System fo Softwae-elated Semina Papes Dominik Fanke and Stefan Kowalewski RWTH Aachen Univesity, 52074 Aachen, Gemany, {fanke, kowalewski}@embedded.wth-aachen.de,

More information

AMB111F Financial Maths Notes

AMB111F Financial Maths Notes AMB111F Financial Maths Notes Compound Inteest and Depeciation Compound Inteest: Inteest computed on the cuent amount that inceases at egula intevals. Simple inteest: Inteest computed on the oiginal fixed

More information

STUDENT RESPONSE TO ANNUITY FORMULA DERIVATION

STUDENT RESPONSE TO ANNUITY FORMULA DERIVATION Page 1 STUDENT RESPONSE TO ANNUITY FORMULA DERIVATION C. Alan Blaylock, Hendeson State Univesity ABSTRACT This pape pesents an intuitive appoach to deiving annuity fomulas fo classoom use and attempts

More information

Personal Saving Rate (S Households /Y) SAVING AND INVESTMENT. Federal Surplus or Deficit (-) Total Private Saving Rate (S Private /Y) 12/18/2009

Personal Saving Rate (S Households /Y) SAVING AND INVESTMENT. Federal Surplus or Deficit (-) Total Private Saving Rate (S Private /Y) 12/18/2009 1 Pesonal Saving Rate (S Households /Y) 2 SAVING AND INVESTMENT 16.0 14.0 12.0 10.0 80 8.0 6.0 4.0 2.0 0.0-2.0-4.0 1959 1961 1967 1969 1975 1977 1983 1985 1991 1993 1999 2001 2007 2009 Pivate Saving Rate

More information

Tjalling C. Koopmans Research Institute

Tjalling C. Koopmans Research Institute Tjalling C. Koopmans Reseach Institute Tjalling C. Koopmans Reseach Institute Utecht School of Economics Utecht Univesity Kiekenpitplein 1-3584 EC Utecht The Nethelands telephone +31 30 53 9800 fax +31

More information

est using the formula I = Prt, where I is the interest earned, P is the principal, r is the interest rate, and t is the time in years.

est using the formula I = Prt, where I is the interest earned, P is the principal, r is the interest rate, and t is the time in years. 9.2 Inteest Objectives 1. Undestand the simple inteest fomula. 2. Use the compound inteest fomula to find futue value. 3. Solve the compound inteest fomula fo diffeent unknowns, such as the pesent value,

More information

The Predictive Power of Dividend Yields for Stock Returns: Risk Pricing or Mispricing?

The Predictive Power of Dividend Yields for Stock Returns: Risk Pricing or Mispricing? The Pedictive Powe of Dividend Yields fo Stock Retuns: Risk Picing o Mispicing? Glenn Boyle Depatment of Economics and Finance Univesity of Cantebuy Yanhui Li Depatment of Economics and Finance Univesity

More information

Questions for Review. By buying bonds This period you save s, next period you get s(1+r)

Questions for Review. By buying bonds This period you save s, next period you get s(1+r) MACROECONOMICS 2006 Week 5 Semina Questions Questions fo Review 1. How do consumes save in the two-peiod model? By buying bonds This peiod you save s, next peiod you get s() 2. What is the slope of a consume

More information

Intertemporal Macroeconomics

Intertemporal Macroeconomics Intetempoal Macoeconomics Genot Doppelhofe* May 2009 Fothcoming in J. McCombie and N. Allington (eds.), Cambidge Essays in Applied Economics, Cambidge UP This chapte eviews models of intetempoal choice

More information

Debt Shifting in Europe

Debt Shifting in Europe Debt Shifting in Euope Fancesca Baion Paolo Panteghini Univesità di Bescia Ra aele Miniaci Univesità di Bescia Maia Laua Paisi Univesità di Bescia Mach 1, 011 Abstact This aticle aims at analyzing the

More information

Chapter 4: Matrix Norms

Chapter 4: Matrix Norms EE448/58 Vesion.0 John Stensby Chate 4: Matix Noms The analysis of matix-based algoithms often equies use of matix noms. These algoithms need a way to quantify the "size" of a matix o the "distance" between

More information

STOCHASTIC MARKOV MODEL APPROACH FOR EFFICIENT VIRTUAL MACHINES SCHEDULING ON PRIVATE CLOUD

STOCHASTIC MARKOV MODEL APPROACH FOR EFFICIENT VIRTUAL MACHINES SCHEDULING ON PRIVATE CLOUD Intenational Jounal on Cloud Comuting: Sevices and Achitectue(IJCCSA,Vol., No.3,Novembe 20 STOCHASTIC MARKOV MODEL APPROACH FOR EFFICIENT VIRTUAL MACHINES SCHEDULING ON PRIVATE CLOUD Hsu Mon Kyi and Thinn

More information

Semipartial (Part) and Partial Correlation

Semipartial (Part) and Partial Correlation Semipatial (Pat) and Patial Coelation his discussion boows heavily fom Applied Multiple egession/coelation Analysis fo the Behavioal Sciences, by Jacob and Paticia Cohen (975 edition; thee is also an updated

More information

Financing Terms in the EOQ Model

Financing Terms in the EOQ Model Financing Tems in the EOQ Model Habone W. Stuat, J. Columbia Business School New Yok, NY 1007 hws7@columbia.edu August 6, 004 1 Intoduction This note discusses two tems that ae often omitted fom the standad

More information

The transport performance evaluation system building of logistics enterprises

The transport performance evaluation system building of logistics enterprises Jounal of Industial Engineeing and Management JIEM, 213 6(4): 194-114 Online ISSN: 213-953 Pint ISSN: 213-8423 http://dx.doi.og/1.3926/jiem.784 The tanspot pefomance evaluation system building of logistics

More information

Agenda. Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy, Part 2. The supply of and demand for the dollar

Agenda. Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy, Part 2. The supply of and demand for the dollar Agenda Exchange Rates, Business Cycles, and Macoeconomic Policy in the Open Economy, Pat 2 How Exchange Rates ae Detemined (again) The IS-LM Model fo an Open Economy Macoeconomic Policy in an Open Economy

More information

Financial Planning and Risk-return profiles

Financial Planning and Risk-return profiles Financial Planning and Risk-etun pofiles Stefan Gaf, Alexande Kling und Jochen Russ Pepint Seies: 2010-16 Fakultät fü Mathematik und Witschaftswissenschaften UNIERSITÄT ULM Financial Planning and Risk-etun

More information

An Introduction to Omega

An Introduction to Omega An Intoduction to Omega Con Keating and William F. Shadwick These distibutions have the same mean and vaiance. Ae you indiffeent to thei isk-ewad chaacteistics? The Finance Development Cente 2002 1 Fom

More information

Comparing Availability of Various Rack Power Redundancy Configurations

Comparing Availability of Various Rack Power Redundancy Configurations Compaing Availability of Vaious Rack Powe Redundancy Configuations By Victo Avela White Pape #48 Executive Summay Tansfe switches and dual-path powe distibution to IT equipment ae used to enhance the availability

More information

Open Economies. Chapter 32. A Macroeconomic Theory of the Open Economy. Basic Assumptions of a Macroeconomic Model of an Open Economy

Open Economies. Chapter 32. A Macroeconomic Theory of the Open Economy. Basic Assumptions of a Macroeconomic Model of an Open Economy Chapte 32. A Macoeconomic Theoy of the Open Economy Open Economies An open economy is one that inteacts feely with othe economies aound the wold. slide 0 slide 1 Key Macoeconomic Vaiables in an Open Economy

More information

The Supply of Loanable Funds: A Comment on the Misconception and Its Implications

The Supply of Loanable Funds: A Comment on the Misconception and Its Implications JOURNL OF ECONOMICS ND FINNCE EDUCTION Volume 7 Numbe 2 Winte 2008 39 The Supply of Loanable Funds: Comment on the Misconception and Its Implications. Wahhab Khandke and mena Khandke* STRCT Recently Fields-Hat

More information

Saving and Investing for Early Retirement: A Theoretical Analysis

Saving and Investing for Early Retirement: A Theoretical Analysis Saving and Investing fo Ealy Retiement: A Theoetical Analysis Emmanuel Fahi MIT Stavos Panageas Whaton Fist Vesion: Mach, 23 This Vesion: Januay, 25 E. Fahi: MIT Depatment of Economics, 5 Memoial Dive,

More information

A comparison result for perturbed radial p-laplacians

A comparison result for perturbed radial p-laplacians A comaison esult fo etubed adial -Lalacians Raul Manásevich and Guido Swees Diectoy Table of Contents Begin Aticle Coyight c 23 Last Revision Date: Ail 1, 23 Table of Contents 1. Intoduction and main esult

More information

Liquidity and Insurance for the Unemployed

Liquidity and Insurance for the Unemployed Liquidity and Insuance fo the Unemployed Robet Shime Univesity of Chicago and NBER shime@uchicago.edu Iván Wening MIT, NBER and UTDT iwening@mit.edu Fist Daft: July 15, 2003 This Vesion: Septembe 22, 2005

More information

There is considerable variation in health care utilization and spending. Geographic Variation in Health Care: The Role of Private Markets

There is considerable variation in health care utilization and spending. Geographic Variation in Health Care: The Role of Private Markets TOMAS J. PHILIPSON Univesity of Chicago SETH A. SEABUY AND Copoation LEE M. LOCKWOOD Univesity of Chicago DANA P. GOLDMAN Univesity of Southen Califonia DAIUS N. LAKDAWALLA Univesity of Southen Califonia

More information

Episode 401: Newton s law of universal gravitation

Episode 401: Newton s law of universal gravitation Episode 401: Newton s law of univesal gavitation This episode intoduces Newton s law of univesal gavitation fo point masses, and fo spheical masses, and gets students pactising calculations of the foce

More information

Deflection of Electrons by Electric and Magnetic Fields

Deflection of Electrons by Electric and Magnetic Fields Physics 233 Expeiment 42 Deflection of Electons by Electic and Magnetic Fields Refeences Loain, P. and D.R. Coson, Electomagnetism, Pinciples and Applications, 2nd ed., W.H. Feeman, 199. Intoduction An

More information

Comparing Availability of Various Rack Power Redundancy Configurations

Comparing Availability of Various Rack Power Redundancy Configurations Compaing Availability of Vaious Rack Powe Redundancy Configuations White Pape 48 Revision by Victo Avela > Executive summay Tansfe switches and dual-path powe distibution to IT equipment ae used to enhance

More information

The LCOE is defined as the energy price ($ per unit of energy output) for which the Net Present Value of the investment is zero.

The LCOE is defined as the energy price ($ per unit of energy output) for which the Net Present Value of the investment is zero. Poject Decision Metics: Levelized Cost of Enegy (LCOE) Let s etun to ou wind powe and natual gas powe plant example fom ealie in this lesson. Suppose that both powe plants wee selling electicity into the

More information

Basic Financial Mathematics

Basic Financial Mathematics Financial Engineeing and Computations Basic Financial Mathematics Dai, Tian-Shy Outline Time Value of Money Annuities Amotization Yields Bonds Time Value of Money PV + n = FV (1 + FV: futue value = PV

More information

UNIT CIRCLE TRIGONOMETRY

UNIT CIRCLE TRIGONOMETRY UNIT CIRCLE TRIGONOMETRY The Unit Cicle is the cicle centeed at the oigin with adius unit (hence, the unit cicle. The equation of this cicle is + =. A diagam of the unit cicle is shown below: + = - - -

More information

PACE: Policy-Aware Application Cloud Embedding

PACE: Policy-Aware Application Cloud Embedding PACE: Policy-Awae Alication Cloud Embedding Li Ean Li Vahid Liaghat Hongze Zhao MohammadTaghi Hajiaghayi Dan Li Godon Wilfong Y. Richad Yang Chuanxiong Guo Bell Labs Micosoft Reseach Asia Tsinghua Univesity

More information

INTEGRATION AND COMPETITION IN THE EUROPEAN FINANCIAL MARKETS * Juan Fernández de Guevara, Joaquín Maudos and Francisco Pérez **

INTEGRATION AND COMPETITION IN THE EUROPEAN FINANCIAL MARKETS * Juan Fernández de Guevara, Joaquín Maudos and Francisco Pérez ** INTEGRATION AN COMPETITION IN THE EUROPEAN FINANCIA MARKETS * Juan Fenández de Guevaa, Joaquín Maudos and Fancisco Péez ** WP-EC 2003-12 Coesponding autho: Joaquín Maudos, Instituto Valenciano de Investigaciones

More information

CONCEPT OF TIME AND VALUE OFMONEY. Simple and Compound interest

CONCEPT OF TIME AND VALUE OFMONEY. Simple and Compound interest CONCEPT OF TIME AND VALUE OFMONEY Simple and Compound inteest What is the futue value of shs 10,000 invested today to ean an inteest of 12% pe annum inteest payable fo 10 yeas and is compounded; a. Annually

More information

GESTÃO FINANCEIRA II PROBLEM SET 1 - SOLUTIONS

GESTÃO FINANCEIRA II PROBLEM SET 1 - SOLUTIONS GESTÃO FINANCEIRA II PROBLEM SET 1 - SOLUTIONS (FROM BERK AND DEMARZO S CORPORATE FINANCE ) LICENCIATURA UNDERGRADUATE COURSE 1 ST SEMESTER 2010-2011 Chapte 1 The Copoation 1-13. What is the diffeence

More information

NBER WORKING PAPER SERIES FISCAL ZONING AND SALES TAXES: DO HIGHER SALES TAXES LEAD TO MORE RETAILING AND LESS MANUFACTURING?

NBER WORKING PAPER SERIES FISCAL ZONING AND SALES TAXES: DO HIGHER SALES TAXES LEAD TO MORE RETAILING AND LESS MANUFACTURING? NBER WORKING PAPER SERIES FISCAL ZONING AND SALES TAXES: DO HIGHER SALES TAXES LEAD TO MORE RETAILING AND LESS MANUFACTURING? Daia Bunes David Neumak Michelle J. White Woking Pape 16932 http://www.nbe.og/papes/w16932

More information

Strategic Asset Allocation and the Role of Alternative Investments

Strategic Asset Allocation and the Role of Alternative Investments Stategic Asset Allocation and the Role of Altenative Investments DOUGLAS CUMMING *, LARS HELGE HAß, DENIS SCHWEIZER Abstact We intoduce a famewok fo stategic asset allocation with altenative investments.

More information

A framework for the selection of enterprise resource planning (ERP) system based on fuzzy decision making methods

A framework for the selection of enterprise resource planning (ERP) system based on fuzzy decision making methods A famewok fo the selection of entepise esouce planning (ERP) system based on fuzzy decision making methods Omid Golshan Tafti M.s student in Industial Management, Univesity of Yazd Omidgolshan87@yahoo.com

More information

The future challenges of Healthcare

The future challenges of Healthcare The futue challenges of Healthcae D. Eich Hunzike CFO F. Hoffmann La Roche Ltd. JPMogan Healthcae Confeence San Fancisco, Januay 12, 2005 This pesentation contains cetain fowad-looking statements. These

More information

Software Engineering and Development

Software Engineering and Development I T H E A 67 Softwae Engineeing and Development SOFTWARE DEVELOPMENT PROCESS DYNAMICS MODELING AS STATE MACHINE Leonid Lyubchyk, Vasyl Soloshchuk Abstact: Softwae development pocess modeling is gaining

More information

Equity compensation plans New Income Statement impact on guidance Earnings Per Share Questions and answers

Equity compensation plans New Income Statement impact on guidance Earnings Per Share Questions and answers Investos/Analysts Confeence: Accounting Wokshop Agenda Equity compensation plans New Income Statement impact on guidance Eanings Pe Shae Questions and answes IAC03 / a / 1 1 Equity compensation plans The

More information

Chris J. Skinner The probability of identification: applying ideas from forensic statistics to disclosure risk assessment

Chris J. Skinner The probability of identification: applying ideas from forensic statistics to disclosure risk assessment Chis J. Skinne The pobability of identification: applying ideas fom foensic statistics to disclosue isk assessment Aticle (Accepted vesion) (Refeeed) Oiginal citation: Skinne, Chis J. (2007) The pobability

More information

Spirotechnics! September 7, 2011. Amanda Zeringue, Michael Spannuth and Amanda Zeringue Dierential Geometry Project

Spirotechnics! September 7, 2011. Amanda Zeringue, Michael Spannuth and Amanda Zeringue Dierential Geometry Project Spiotechnics! Septembe 7, 2011 Amanda Zeingue, Michael Spannuth and Amanda Zeingue Dieential Geomety Poject 1 The Beginning The geneal consensus of ou goup began with one thought: Spiogaphs ae awesome.

More information

Effect of Contention Window on the Performance of IEEE 802.11 WLANs

Effect of Contention Window on the Performance of IEEE 802.11 WLANs Effect of Contention Window on the Pefomance of IEEE 82.11 WLANs Yunli Chen and Dhama P. Agawal Cente fo Distibuted and Mobile Computing, Depatment of ECECS Univesity of Cincinnati, OH 45221-3 {ychen,

More information

HEALTHCARE INTEGRATION BASED ON CLOUD COMPUTING

HEALTHCARE INTEGRATION BASED ON CLOUD COMPUTING U.P.B. Sci. Bull., Seies C, Vol. 77, Iss. 2, 2015 ISSN 2286-3540 HEALTHCARE INTEGRATION BASED ON CLOUD COMPUTING Roxana MARCU 1, Dan POPESCU 2, Iulian DANILĂ 3 A high numbe of infomation systems ae available

More information

Loyalty Rewards and Gift Card Programs: Basic Actuarial Estimation Techniques

Loyalty Rewards and Gift Card Programs: Basic Actuarial Estimation Techniques Loyalty Rewads and Gift Cad Pogams: Basic Actuaial Estimation Techniques Tim A. Gault, ACAS, MAAA, Len Llaguno, FCAS, MAAA and Matin Ménad, FCAS, MAAA Abstact In this pape we establish an actuaial famewok

More information

EXPERIMENT 16 THE MAGNETIC MOMENT OF A BAR MAGNET AND THE HORIZONTAL COMPONENT OF THE EARTH S MAGNETIC FIELD

EXPERIMENT 16 THE MAGNETIC MOMENT OF A BAR MAGNET AND THE HORIZONTAL COMPONENT OF THE EARTH S MAGNETIC FIELD 260 16-1. THEORY EXPERMENT 16 THE MAGNETC MOMENT OF A BAR MAGNET AND THE HORZONTAL COMPONENT OF THE EARTH S MAGNETC FELD The uose of this exeiment is to measue the magnetic moment μ of a ba magnet and

More information

Patent renewals and R&D incentives

Patent renewals and R&D incentives RAND Jounal of Economics Vol. 30, No., Summe 999 pp. 97 3 Patent enewals and R&D incentives Fancesca Conelli* and Mak Schankeman** In a model with moal hazad and asymmetic infomation, we show that it can

More information

Define What Type of Trader Are you?

Define What Type of Trader Are you? Define What Type of Tade Ae you? Boke Nightmae srs Tend Ride By Vladimi Ribakov Ceato of Pips Caie 20 of June 2010 1 Disclaime and Risk Wanings Tading any financial maket involves isk. The content of this

More information

883 Brochure A5 GENE ss vernis.indd 1-2

883 Brochure A5 GENE ss vernis.indd 1-2 ess x a eu / u e a. p o.eu c e / :/ http EURAXESS Reseaches in Motion is the gateway to attactive eseach caees in Euope and to a pool of wold-class eseach talent. By suppoting the mobility of eseaches,

More information

Questions & Answers Chapter 10 Software Reliability Prediction, Allocation and Demonstration Testing

Questions & Answers Chapter 10 Software Reliability Prediction, Allocation and Demonstration Testing M13914 Questions & Answes Chapte 10 Softwae Reliability Pediction, Allocation and Demonstation Testing 1. Homewok: How to deive the fomula of failue ate estimate. λ = χ α,+ t When the failue times follow

More information

Promised Lead-Time Contracts Under Asymmetric Information

Promised Lead-Time Contracts Under Asymmetric Information OPERATIONS RESEARCH Vol. 56, No. 4, July August 28, pp. 898 915 issn 3-364X eissn 1526-5463 8 564 898 infoms doi 1.1287/ope.18.514 28 INFORMS Pomised Lead-Time Contacts Unde Asymmetic Infomation Holly

More information

Life Insurance Purchasing to Reach a Bequest. Erhan Bayraktar Department of Mathematics, University of Michigan Ann Arbor, Michigan, USA, 48109

Life Insurance Purchasing to Reach a Bequest. Erhan Bayraktar Department of Mathematics, University of Michigan Ann Arbor, Michigan, USA, 48109 Life Insuance Puchasing to Reach a Bequest Ehan Bayakta Depatment of Mathematics, Univesity of Michigan Ann Abo, Michigan, USA, 48109 S. David Pomislow Depatment of Mathematics, Yok Univesity Toonto, Ontaio,

More information

Liquidity and Insurance for the Unemployed*

Liquidity and Insurance for the Unemployed* Fedeal Reseve Bank of Minneapolis Reseach Depatment Staff Repot 366 Decembe 2005 Liquidity and Insuance fo the Unemployed* Robet Shime Univesity of Chicago and National Bueau of Economic Reseach Iván Wening

More information

Valuation of Floating Rate Bonds 1

Valuation of Floating Rate Bonds 1 Valuation of Floating Rate onds 1 Joge uz Lopez us 316: Deivative Secuities his note explains how to value plain vanilla floating ate bonds. he pupose of this note is to link the concepts that you leaned

More information

Ignorance is not bliss when it comes to knowing credit score

Ignorance is not bliss when it comes to knowing credit score NET GAIN Scoing points fo you financial futue AS SEEN IN USA TODAY SEPTEMBER 28, 2004 Ignoance is not bliss when it comes to knowing cedit scoe By Sanda Block USA TODAY Fom Alabama comes eassuing news

More information

CIES Discussion Paper

CIES Discussion Paper CIES Discussion Pape No. 99/15 Univesity of Adelaide Adelaide SA 5005 Austalia A KRUGMAN-DOOLEY-SACHS THIRD GENERATION MODEL OF THE ASIAN FINANCIAL CRISIS Gego Iwin and David Vines August 1999 2 CENTRE

More information

On Efficiently Updating Singular Value Decomposition Based Reduced Order Models

On Efficiently Updating Singular Value Decomposition Based Reduced Order Models On Efficiently dating Singula alue Decoosition Based Reduced Ode Models Ralf Zieann GAMM oksho Alied and Nueical Linea Algeba with Secial Ehasis on Model Reduction Been Se..-3. he POD-based ROM aoach.

More information

Faithful Comptroller s Handbook

Faithful Comptroller s Handbook Faithful Comptolle s Handbook Faithful Comptolle s Handbook Selection of Faithful Comptolle The Laws govening the Fouth Degee povide that the faithful comptolle be elected, along with the othe offices

More information

YARN PROPERTIES MEASUREMENT: AN OPTICAL APPROACH

YARN PROPERTIES MEASUREMENT: AN OPTICAL APPROACH nd INTERNATIONAL TEXTILE, CLOTHING & ESIGN CONFERENCE Magic Wold of Textiles Octobe 03 d to 06 th 004, UBROVNIK, CROATIA YARN PROPERTIES MEASUREMENT: AN OPTICAL APPROACH Jana VOBOROVA; Ashish GARG; Bohuslav

More information

Does the Acquisition of Mines by Firms in Resource-importing Countries Decrease Resource Prices?

Does the Acquisition of Mines by Firms in Resource-importing Countries Decrease Resource Prices? ET Discussion Pae Seies 3-E-073 Does te Acquisition o Mines by Fims in esouce-imoting Counties Decease esouce Pices? HGASHDA Keisaku Kwansei Gakuin Univesity MOTA Tamaki Yamanasi Peectual Univesity MANAG

More information

SUGGESTED SOLUTIONS. 21404 Strategic Financial Management. CA Professional (Strategic Level II) Examination June 2014

SUGGESTED SOLUTIONS. 21404 Strategic Financial Management. CA Professional (Strategic Level II) Examination June 2014 SUGGESTED SOLUTIONS 21404 Stategic Financial Management CA Pofessional (Stategic Level II) Examination June 2014 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA All Rights Reseved Answe No. 01 (a)

More information

Recovering Risk-Neutral Densities from Exchange Rate Options: Evidence in Turkey

Recovering Risk-Neutral Densities from Exchange Rate Options: Evidence in Turkey CENTRAL BANK OF THE REPUBLIC OF TURKEY WORKING PAPER NO: 10/03 Recoveing Risk-Neutal Densities fom Exchange Rate Options: Evidence in Tukey Mach 2010 Halil İbahim AYDIN Ahmet DEĞERLİ Pına ÖZLÜ Cental Bank

More information

Converting knowledge Into Practice

Converting knowledge Into Practice Conveting knowledge Into Pactice Boke Nightmae srs Tend Ride By Vladimi Ribakov Ceato of Pips Caie 20 of June 2010 2 0 1 0 C o p y i g h t s V l a d i m i R i b a k o v 1 Disclaime and Risk Wanings Tading

More information

Cost/Benefit Analysis of Aquaponic Systems

Cost/Benefit Analysis of Aquaponic Systems Cost/Benefit Analysis of Aquaponic Systems Richad Chiang 1 PURPOSE pupose of this pape is to analyse the costs and benefits of aquaponic systems designed fo home use. Howeve, one can easily extapolate

More information

9.5 Amortization. Objectives

9.5 Amortization. Objectives 9.5 Aotization Objectives 1. Calculate the payent to pay off an aotized loan. 2. Constuct an aotization schedule. 3. Find the pesent value of an annuity. 4. Calculate the unpaid balance on a loan. Congatulations!

More information

CHAPTER 10 Aggregate Demand I

CHAPTER 10 Aggregate Demand I CHAPTR 10 Aggegate Demand I Questions fo Review 1. The Keynesian coss tells us that fiscal policy has a multiplied effect on income. The eason is that accoding to the consumption function, highe income

More information

Continuous Compounding and Annualization

Continuous Compounding and Annualization Continuous Compounding and Annualization Philip A. Viton Januay 11, 2006 Contents 1 Intoduction 1 2 Continuous Compounding 2 3 Pesent Value with Continuous Compounding 4 4 Annualization 5 5 A Special Poblem

More information

UPS Virginia District Package Car Fleet Optimization

UPS Virginia District Package Car Fleet Optimization UPS Viginia Distit Pakage Ca Fleet Otimization Tavis Manning, Divaka Mehta, Stehen Sheae, Malloy Soldne, and Bian Togesen Abstat United Pael Sevie (UPS) is onstantly haged with ealigning its akage a fleet

More information

Risk Sensitive Portfolio Management With Cox-Ingersoll-Ross Interest Rates: the HJB Equation

Risk Sensitive Portfolio Management With Cox-Ingersoll-Ross Interest Rates: the HJB Equation Risk Sensitive Potfolio Management With Cox-Ingesoll-Ross Inteest Rates: the HJB Equation Tomasz R. Bielecki Depatment of Mathematics, The Notheasten Illinois Univesity 55 Noth St. Louis Avenue, Chicago,

More information

ON THE (Q, R) POLICY IN PRODUCTION-INVENTORY SYSTEMS

ON THE (Q, R) POLICY IN PRODUCTION-INVENTORY SYSTEMS ON THE R POLICY IN PRODUCTION-INVENTORY SYSTEMS Saifallah Benjaafa and Joon-Seok Kim Depatment of Mechanical Engineeing Univesity of Minnesota Minneapolis MN 55455 Abstact We conside a poduction-inventoy

More information

AN IMPLEMENTATION OF BINARY AND FLOATING POINT CHROMOSOME REPRESENTATION IN GENETIC ALGORITHM

AN IMPLEMENTATION OF BINARY AND FLOATING POINT CHROMOSOME REPRESENTATION IN GENETIC ALGORITHM AN IMPLEMENTATION OF BINARY AND FLOATING POINT CHROMOSOME REPRESENTATION IN GENETIC ALGORITHM Main Golub Faculty of Electical Engineeing and Computing, Univesity of Zageb Depatment of Electonics, Micoelectonics,

More information

Channel selection in e-commerce age: A strategic analysis of co-op advertising models

Channel selection in e-commerce age: A strategic analysis of co-op advertising models Jounal of Industial Engineeing and Management JIEM, 013 6(1):89-103 Online ISSN: 013-0953 Pint ISSN: 013-843 http://dx.doi.og/10.396/jiem.664 Channel selection in e-commece age: A stategic analysis of

More information

Effect of Unemployment Insurance Tax On Wages and Employment: A Partial Equilibrium Analysis

Effect of Unemployment Insurance Tax On Wages and Employment: A Partial Equilibrium Analysis Effect of Unemployment nuance Tax On Wage and Employment: atial Equilibium nalyi Deegha Raj dhikai, Oklahoma Employment Secuity Commiion ynn Gay, Oklahoma Employment Secuity Commiion Jackie Bun, Texa &

More information

College Enrollment, Dropouts and Option Value of Education

College Enrollment, Dropouts and Option Value of Education College Enollment, Dopouts and Option Value of Education Ozdagli, Ali Tachte, Nicholas y Febuay 5, 2008 Abstact Psychic costs ae the most impotant component of the papes that ae tying to match empiical

More information

Introduction to Electric Potential

Introduction to Electric Potential Univesiti Teknologi MARA Fakulti Sains Gunaan Intoduction to Electic Potential : A Physical Science Activity Name: HP: Lab # 3: The goal of today s activity is fo you to exploe and descibe the electic

More information

Rock Compressibility. Reservoir Pressures. PET467E A Note on Rock Compressibility

Rock Compressibility. Reservoir Pressures. PET467E A Note on Rock Compressibility Rock Comessiility PET467E A Note on Rock Comessiility M. Onu Sing 007 A esevoi consists of an imevious cove o ca ock ovelying a oous and emeale ock. The density diffeences etween the oil, gas and wate

More information

Database Management Systems

Database Management Systems Contents Database Management Systems (COP 5725) D. Makus Schneide Depatment of Compute & Infomation Science & Engineeing (CISE) Database Systems Reseach & Development Cente Couse Syllabus 1 Sping 2012

More information

IBM Research Smarter Transportation Analytics

IBM Research Smarter Transportation Analytics IBM Reseach Smate Tanspotation Analytics Laua Wynte PhD, Senio Reseach Scientist, IBM Watson Reseach Cente lwynte@us.ibm.com INSTRUMENTED We now have the ability to measue, sense and see the exact condition

More information

Data Center Demand Response: Avoiding the Coincident Peak via Workload Shifting and Local Generation

Data Center Demand Response: Avoiding the Coincident Peak via Workload Shifting and Local Generation (213) 1 28 Data Cente Demand Response: Avoiding the Coincident Peak via Wokload Shifting and Local Geneation Zhenhua Liu 1, Adam Wieman 1, Yuan Chen 2, Benjamin Razon 1, Niangjun Chen 1 1 Califonia Institute

More information

A Capacitated Commodity Trading Model with Market Power

A Capacitated Commodity Trading Model with Market Power A Capacitated Commodity Tading Model with Maket Powe Victo Matínez-de-Albéniz Josep Maia Vendell Simón IESE Business School, Univesity of Navaa, Av. Peason 1, 08034 Bacelona, Spain VAlbeniz@iese.edu JMVendell@iese.edu

More information