Capital market equilibrium with moral hazard and flexible technology

(Magill, M., Quinzii, M., 2002. Capital market equilibrium with moral hazard. Journal of Mathematical Economics 38, 149-190) showed that, in a stockmarket economy with private information, the moral hazard problem may be resolved provided that a spanning overlap condition is satisfed. This result depends on the assumption that the technology is given by a stochastic production function with a single scalar input. The object of the present paper is to extend the analysis of Magill and Quinzii to the case of multiple inputs. We show that their main result extends to this general case if and only if, for each firm, the number of linearly independent combinations of securities having payoffs correlated with, but not dependent on, the firms output is equal to the number of degrees of freedom in the firm's production technology.

AUSLEM (AUStralian Land Erodibility Model): A tool for identifying wind erosion hazard in Australia

We present AUSLEM (AUStralian Land Erodibility Model), a land erodibility modelling system that utilizes a rule-set of surficial and climatic thresholds applied through a Geographic Information System (GIs) modelling framework to predict landscape susceptibility to wind erosion. AUSLEM is distinctive in that it quantitatively assesses landscape susceptibility to wind erosion at a 5 x 5 km. spatial resolution on a monthly time-step across Australia. The system was implemented for representative wet (1984), dry (1994), and average rainfall (1997) years with corresponding low, high and moderate dust storm day frequencies. Results demonstrate that AUSLEM can identify landscape erodibility, and provide an interpretation of the physical nature and distribution of erodible landscapes in Australia. Further, results offer an assessment of the dynamic tendencies of erodibility in space and time in response to the El Nino Southern Oscillation (ENSO) and seasonal synoptic scale climate variability. A comparative analysis of AUSLEM output with independent national and international wind erosion, atmospheric aerosol and dust event records indicates a high level of model competency. (c) 2006 Elsevier B.V. All rights reserved.

Hazard detection in older adult drivers

Older adults make up an increasing propordon of automobile drivers in Australia. Despite the fact that older drivers generally drive much less than younger drivers, there is a disdnct increase in accidents, fatalides and injuries in drivers over age 65 (per actual kilometres driven). Accurate means of screening older adults to idendfy those at increased risk of motor vehicle accidents have proved elusive. Neuropsychological assessment and clinical examinadon are not well-correlated with accident risk. On-road tesdng, which is more highly correlated with accident risk, is expensive and dme-consuming, as well as being less suitable as a screening process. Hazard percepdon methods have been used as an effecdve screening method for idendfying younger adults at increased risk of accidents. A brief video-based hazard percepdon screening test involving footage of genuine traffic hazards for use on older individuals will be presented.

Signal detection theory in applied tasks: The case of hazard perception in driving

Fuzzy signal detection analysis can be a useful complementary technique to traditional signal detection theory analysis methods, particularly in applied settings. For example, traffic situations are better conceived as being on a continuum from no potential for hazard to high potential, rather than either having potential or not having potential. This study examined the relative contribution of sensitivity and response bias to explaining differences in the hazard perception performance of novices and experienced drivers, and the effect of a training manipulation. Novice drivers and experienced drivers were compared (N = 64). Half the novices received training, while the experienced drivers and half the novices remained untrained. Participants completed a hazard perception test and rated potential for hazard in occluded scenes. The response latency of participants to the hazard perception test replicated previous findings of experienced/novice differences and trained/untrained differences. Fuzzy signal detection analysis of both the hazard perception task and the occluded rating task suggested that response bias may be more central to hazard perception test performance than sensitivity, with trained and experienced drivers responding faster and with a more liberal bias than untrained novices. Implications for driver training and the hazard perception test are discussed.