Higher-order moments in the theory of diversifying and portfolio composition

This paper examines the role of higher-order moments in portfolio choice within an expected-utility framework. We consider two-, three-, four- and five-parameter density functions for portfolio returns and derive exact conditions under which investors would all be optimally plungers rather than diversifiers. Through comparative statics we show the importance of higher-order risk preference properties, such as riskiness, prudence and temperance, in determining plunging behaviour. Empirical estimates for the S&P500 provide evidence for the optimality of diversification.

Equitable representation in councils: theory and an application to the United Nations Security Council

We analyze democratic equity in council voting games (CVGs). In a CVG, a voting body containing all members delegates decision-making to a (time-varying) subset of its members, as describes, e.g., the relationship between the United Nations General Assembly and the United Nations Security Council (UNSC). We develop a theoretical framework for analyzing democratic equitability in CVGs at both the country and region levels, and for different assumptions regarding preference correlation. We apply the framework to evaluate the equitability of the UNSC, and the claims of those who seek to reform it. We find that the individual permanent members are overrepresented by between 21.3 times (United Kingdom) and 3.8 times (China) from a country-level perspective, while from a region perspective Eastern Europe is the most heavily overrepresented region with more than twice its equitable representation, and Africa the most heavily underrepresented. Our equity measures do not preclude some UNSC members from exercising veto rights, however.

How the sublime became "now": time, modernity and aesthetics in Lyotard's rewriting of Kant

Writing in the late 1980s, Nancy gives as examples of the "recent fashion for the sublime" not only the theoreticians of Paris, but the artists of Los Angeles, Berlin, Rome, and Tokyo. At the beginning of the twenty-first century, the sublime may of course no longer seem quite so "now" as it did back then, whether in North America, Europe, or Japan. Simon Critchley, for one, has suggested that, at least as regards the issue of its conceptual coupling to "postmodernism," the "debate" concerning the sublime "has become rather stale and the discussion has moved on." Nonetheless, if that debate has indeed "moved on"-and thankfully so-it is not without its remainder, particularly in the very contemporary context of a resurgence of interest in explicitly philosophical accounts of art, in the wake of an emergent critique of cultural studies and of the apparent waning of poststructuralism's influence-a resurgence that has led to a certain "return to aesthetics" in recent Continental philosophy and to the work of Kant, Schelling, and the German Romantics. Moreover, as Nancy's precise formulations suggest, the "fashion" [mode] through which the sublime "offers itself"-as "a break within or from aesthetics"-clearly contains a significance that Critchley's more straightforward narration of shifts in theoretical chic cannot encompass. At stake in this would be the relation between the mode of fashion and art's "destiny" within modernity itself, from the late eighteenth century onwards. Such a conception of art's "destiny," as inextricably linked to that of the sublime, is not unique to recent French theory. In a brief passage in Aesthetic Theory, Adorno also suggests that the "sublime, which Kant reserved exclusively for nature, later became the historical constituent of art itself.... [I]n a subtle way, after the fall of formal beauty, the sublime was the only aesthetic idea left to modernism." As such, although the term has its classical origins in Longinus, its historical character for "us," both Nancy and Adorno argue, associates it specifically with the emergence of the modern. As another philosopher states: "It is around this name [of the sublime] that the destiny of classical poetics was hazarded and lost; it is in this name that ... romanticism, in other words, modernity, triumphed."

An algebra and conceptual model for semantic tagging of collaborative digital libraries

Cost-effective semantic description and annotation of shared knowledge resources has always been of great importance for digital libraries and large scale information systems in general. With the emergence of the Social Web and Web 2.0 technologies, a more effective semantic description and annotation, e.g., folksonomies, of digital library contents is envisioned to take place in collaborative and personalised environments. However, there is a lack of foundation and mathematical rigour for coping with contextualised management and retrieval of semantic annotations throughout their evolution as well as diversity in users and user communities. In this paper, we propose an ontological foundation for semantic annotations of digital libraries in terms of flexonomies. The proposed theoretical model relies on a high dimensional space with algebraic operators for contextualised access of semantic tags and annotations. The set of the proposed algebraic operators, however, is an adaptation of the set theoretic operators selection, projection, difference, intersection, union in database theory. To this extent, the proposed model is meant to lay the ontological foundation for a Digital Library 2.0 project in terms of geometric spaces rather than logic (description) based formalisms as a more efficient and scalable solution to the semantic annotation problem in large scale.