New public management of Higher education, Foucault and power

The theory of New Public Management (NPM) suggest that one of the features of advanced liberal rule is the tendency to define social, economic and political issues as problems to be solved through management. This paper argues that the restructuring of Higher Education (HE) in many Western countries since the 1980s has involved a shift from an emphasis on administration and policy to one of its efficient management. Utilising Foucault’s concept of governmentality rather than the liberal discourse of management as a politically neutral technology, managerialism can be seen as a newly emergent and increasingly rationalised disciplinary regime of governmentalising practices in advanced liberalism. As such the contemporary University as an institution governed by NPM can be demonstrated to have emerged not as the direct outcome of democratic policies that have rationalised its activities (so that the emancipatory aims of personal development, an educated workforce and of true research can be fully realised), nor can it be understood as the instrument through which individuals or self-realising classes are defeated through the calculations of the state acting on behalf of economic interests, rather it can be seen as the contingent and intractable outcome of the complex power/knowledge relations of advanced liberalism. I analyse the interlocking of the ‘tutor-subject’ and ‘student-subject’ as a local enacting of policy discourse informed by the NPM of HE that reshapes subjectivity and retunes the relationship between tutor and student. I put forward suggestions for how resistance to these new modes of disciplinary subjectification can be enacted.

The parallel solution of early-exercise Asian options with stochastic volatility

This paper describes an parallel semi-Lagrangian finite difference approach to the pricing of early exercise Asian Options on assets with a stochastic volatility. A multigrid procedure is described for the fast iterative solution of the discrete linear complementarity problems that result. The accuracy and performance of this approach is improved considerably by a strike-price related analytic transformation of asset prices. Asian options are contingent claims with payoffs that depend on the average price of an asset over some time interval. The payoff may depend on this average and a fixed strike price (Fixed Strike Asians) or it may depend on the average and the asset price (Floating Strike Asians). The option may also permit early exercise (American contract) or confine the holder to a fixed exercise date (European contract). The Fixed Strike Asian with early exercise is considered here where continuous arithmetic averaging has been used. Pricing such an option where the asset price has a stochastic volatility leads to the requirement to solve a tri-variate partial differential inequation in the three state variables of asset price, average price and volatility (or equivalently, variance). The similarity transformations [6] used with Floating Strike Asian options to reduce the dimensionality of the problem are not applicable to Fixed Strikes and so the numerical solution of a tri-variate problem is necessary. The computational challenge is to provide accurate solutions sufficiently quickly to support realtime trading activities at a reasonable cost in terms of hardware requirements.