Financial intermediation and equity investment with costly monitoring

This paper studies the efficiency of equilibria in a productive OLG economy where the process of financial intermediation is characterized by costly state verification. Both competitive equilibria and Constrained Pareto Optimal allocations are characterized. It is shown that market outcomes can be socially inefficient, even when a weaker notion than Pareto optimality is considered.

The aggregate claims distribution of a life insurance portfolio with a pairwise positive dependence structure

The individual life model has always been considered as the one closest to the real situation of the total claims of a life insurance portfolio. It only makes the ¿nearly inevitable assumption¿ of independence of the lifelenghts of insured persons in the portfolio. Many clinical studies, however, have demonstrated positive dependence of paired lives such as husband and wife. In our opinion, it won¿t be unrealistic expecting a considerable number of married couples in any life insurance portfolio (e.g. life insurance contracts formalized at the time of signing a mortatge) and these dependences materially increase the values for the stop-loss premiums associated to the aggregate claims of the portfolio. Since the stop-loss order is the order followed by any risk averse decison maker, the simplifying hypothesis of independence constitute a real financial danger for the company, in the sense that most of their decisions are based on the aggregated claims distribution. In this paper, we will determine approximations for the distribution of the aggregate claims of a life insurance portfolio with some married couples and we will describe how to make safe decisions when we don¿t know exactly the dependence structure between the risks in each couple. Results in this paper are partly based on results in Dhaene and Goovaerts (1997)

The aggregate claims distribution of a life insurance portfolio with a pairwise positive dependence structure

The individual life model has always been considered as the one closest to the real situation of the total claims of a life insurance portfolio. It only makes the ¿nearly inevitable assumption¿ of independence of the lifelenghts of insured persons in the portfolio. Many clinical studies, however, have demonstrated positive dependence of paired lives such as husband and wife. In our opinion, it won¿t be unrealistic expecting a considerable number of married couples in any life insurance portfolio (e.g. life insurance contracts formalized at the time of signing a mortatge) and these dependences materially increase the values for the stop-loss premiums associated to the aggregate claims of the portfolio. Since the stop-loss order is the order followed by any risk averse decison maker, the simplifying hypothesis of independence constitute a real financial danger for the company, in the sense that most of their decisions are based on the aggregated claims distribution. In this paper, we will determine approximations for the distribution of the aggregate claims of a life insurance portfolio with some married couples and we will describe how to make safe decisions when we don¿t know exactly the dependence structure between the risks in each couple. Results in this paper are partly based on results in Dhaene and Goovaerts (1997)

The equity core and the core

In this paper we study the equity core (Selten, 1978) and compare it with the core. A payo vector is in the equity core if no coalition can divide its value among its members proportionally to a given weight system and, in this way, give more to each member than the amount he or she receives in the payo vector. We show that the equity core is a compact extension of the core and that, for non-negative games, the intersection of all equity cores with respect to all weights coincides with the core of the game. Keywords: Cooperative game, equity core, equal division core, core. JEL classi cation: C71

1st National Accessiblity Plan 2004-2012: achieving equal opportunities and full participation through design for all

According to official statistics, disabled people in Spain number 3.5 million and make up 8.8% of the Spanish population. This group of people are increasingly being recognised as members of society with equal rights, and many of their demands are gradually being transformed into solutions that benefit society as a whole. One example is improved accessibility. Accessible built environments are more human and inclusive places, as well as being easier to get around. Improved accessibility is now recognised as a requirement shared by all members of society, although it is achieved thanks to the demands of disabled people and their representatives. The 1st National Accessibility Plan is a strategic framework for action aimed at ensuring that new products, services and built environments are designed to be accessible for as many people as possible (Design for All) and that existing ones are gradually duly adapted.

Tacit collusion and capacity withholding in repeated uniform price auctions

This paper contributes to the study of tacit collusion by analyzing infinitely repeated multiunit uniform price auctions in a symmetric oligopoly with capacity constrained firms. Under both the Market Clearing and Maximum Accepted Price rules of determining the uniform price, we show that when each firm sets a price-quantity pair specifying the firm's minimum acceptable price and the maximum quantity the firm is willing to sell at this price, there exists a range of discount factors for which the monopoly outcome with equal sharing is sustainable in the uniform price auction, but not in the corresponding discriminatory auction. Moreover, capacity withholding may be necessary to sustain this out-come. We extend these results to the case where firms may set bids that are arbitrary step functions of price-quantity pairs with any finite number of price steps. Surprisingly, under the Maximum Accepted Price rule, firms need employ no more than two price steps to minimize the value of the discount factor

Sequencing games without initial order

In this note we study uncertainty sequencing situations, i.e., 1-machine sequencing situations in which no initial order is specified. We associate cooperative games with these sequencing situations, study their core, and provide links with the classic sequencing games introduced by Curiel et al. (1989). Moreover, we propose and characterize two simple cost allocation rules for uncertainty sequencing situations with equal processing times.

Is it redistribution or centralization? On the determinants of government investment in infrastructure

The dilemma efficiency versus equity, together with political partisan interests, has received increasing attention to explain the territorial allocation of investments. However, centralization intended to introduce or reinforce hierarchization in the political system has not been object as of now of empirical analysis. Our main contribution to the literature is providing evidence that meta-political objectives related to the ordering of political power and administration influence regional investment. In this way, we find evidence that network mode’s (roads and railways) investment programs are influenced by the centralization strategy of investing near to the political capital, while investment effort in no-network modes (airports and ports) appears to be positively related to distance. Since investment in surface transportation infrastructures is much higher than that in airports and ports, and taken into account that regions surrounding the political capital are poorer than the average, we suggest that centralization rather than redistribution has been the driver for the concentration of public investment on these regions.

Take-the-best and other simple strategies: Why and when they work 'well' in binary choice

The effectiveness of decision rules depends on characteristics of bothrules and environments. A theoretical analysis of environments specifiesthe relative predictive accuracies of the lexicographic rule 'take-the-best'(TTB) and other simple strategies for binary choice. We identify threefactors: how the environment weights variables; characteristics of choicesets; and error. For cases involving from three to five binary cues, TTBis effective across many environments. However, hybrids of equal weights(EW) and TTB models are more effective as environments become morecompensatory. In the presence of error, TTB and similar models do not predictmuch better than a naïve model that exploits dominance. We emphasizepsychological implications and the need for more complete theories of theenvironment that include the role of error.

Olson vs. Coase: Coalitional worth in conflict

We analyze a model of conflict with endogenous choice of effort, wheresubsets of the contenders may force the resolution to be sequential:First the alliance fights it out with the rest and in case they win later they fight it out among themselves. For three-player games, wefind that it will not be in the interest of any two of them to form analliance. We obtain this result under two different scenarios:equidistant preferences with varying relative strengths, and vicinityof preferences with equal distribution of power. We conclude that thecommonly made assumption of super-additive coalitional worth is suspect.

Metrical strength and contradiction in turkish Makam music

In this paper we investigate how note onsets in Turkish Makam music compositions are distributed, and in how far this distribution supports or contradicts the metrical structure of the pieces, the usul. We use MIDI data to derive the distributions in the form of onset histograms, and comparethem with metrical weights that are applied to describe the usul in theory. We compute correlation and syncopation values to estimate the degrees of support and contradiction, respectively. While the concept of syncopation is rarelymentioned in the context of this music, we can gain interesting insight into the structure of a piece using such a measure.We show that metrical contradiction is systematically applied in some metrical structures. We will compare thedifferences between Western music and Turkish Makam music regarding metrical support and contradiction. Such a study can help avoiding pitfalls in later attempts to perform audio processing tasks such as beat tracking or rhythmic similarity measurements.

Double-Antiprism Central Configurations of the 3n-Body Problem

Abstract In this paper we study numerically a new type of central configurations of the 3n-body problem with equal masses which consist of three n-gons contained in three planes z = 0 and z = ±β = 0. The n-gon on z = 0 is scaled by a factor α and it is rotated by an angle of π/n with respect to the ones on z = ±β. In this kind of configurations, the masses on the planes z = 0 and z = β are at the vertices of an antiprism with bases of different size. The same occurs with the masses on z = 0 and z = −β. We call this kind of central configurations double-antiprism central configurations. We will show the existence of central configurations of this type.

Study on the removal of biodegradable NOM from seawater using biofiltration

Despite the low biodegradability of seawater NOM, problems associated with biofouling are common in facilities that handle seawater. In this work, a fixed-film aerobic biofilter is proposed as an effective unit for preventing biofouling in such facilities. A packed-bed biofilter with an EBCT = 6 - 11 min was employed. The results demonstrated that the DOC is reduced by 6% and the BOD7 is reduced up to 15%. The LC-OCD analysis revealed that biofiltration abates the LMW neutrals and biopolymer fractions by 33 and 17%, respectively. However, the fractionation with UF membrane showed that the biofiltration process is able to degrade the more biodegradable compounds that have molecular weights that are greater than 1 kDa and compounds with molecular weights of less than 1 kDa. After biofiltration, the biological activity measured in terms of ATP removal was reduced by 60%. Finally, a test to evaluate the biofilm formation capacity of a water sample revealed reductions of ~94% when comparing biofiltered and non-biofiltered seawater. Therefore, a fixed-film aerobic biofiltration process could be a useful treatment for the removal of biodegradable organic matter from seawater and for improving the water quality in terms of less biofilm formation capacity.

Music-supported training is more efficient than functional motor training for recovery of fine motor skills in stroke patients

MOTOR IMPAIRMENTS ARE COMMON AFTER STROKE but efficacious therapies for these dysfunctions are scarce. Extending an earlier study on the effects of music-supported training (MST), behavioral indices of motor function were obtained before and after a series of training sessions to assess whether this new treatment leads to improved motor functions. Furthermore, music-supported training was contrasted to functional motor training according to the principles of constraint-induced therapy (CIT). In addition to conventional physiotherapy, 32 stroke patients with moderately impaired motor function and no previous musical experience received 15 sessions of MST over a period of three weeks, using a manualized, step-bystep approach. A control group consisting of 15 patients received 15 sessions of CIT in addition to conventional physiotherapy. A third group of 30 patients received exclusively conventional physiotherapy and served as a control group for the other three groups. Fine as well as gross motor skills were trained by using either a MIDI-piano or electronic drum pads programmed to emit piano tones. Motor functions were assessed by an extensive test battery. MST yielded significant improvement in fine as well as gross motor skills with respect to speed, precision, and smoothness of movements. These improvements were greater than after CIT or conventional physiotherapy. In conclusion, with equal treatment intensity, MST leads to more pronounced improvements of motor functions after stroke than CIT.