On The Timing of Default Losses: When and Why?

At the light of what happened in 2010 and 2011, a lot of European countries founded themselves in a difficult position where all the credit rating agencies were downgrading debt states. Problem of solvency and guarantees on the states' bond were perceived as too risky for a Monetary Union as Europe is. Fear of a contagion from Greece as well was threatening the other countries as Italy, Spain, Portugal and Ireland; while Germany and France asked for a division between risky and riskless bond in order to feel more safe. Our paper gets inspiration by Roch and Uhlig (2011), it refers to the Argentinian case examined by Arellano (2008) and examine possible interventions as monetization or bailout as proposed by Cole and Kehoe (2000). We propose a model in which a state defaults and cannot repay a fraction of the old bond; but contrary to Roch and Uhlig that where considering a one-time cost of default we consider default as an accumulation of losses, perceived as unpaid fractions of the old debts. Our contributions to literature is that default immediately imply that economy faces a bad period and, accumulating losses, government will be worse-off. We studied a function for this accumulation of debt period by period, in order to get an idea of the magnitude of this waste of resources that economy will face when experiences a default. Our thesis is that bailouts just postpone the day of reckoning (Roch, Uhlig); so it's better to default before accumulate a lot of debts. What Europe need now is the introduction of new reforms in a controlled default where the Eurozone will be saved in its whole integrity and a state could fail with the future promise of a resurrection. As experience show us, governments are not interested into reducing debts since there are ECB interventions. That clearly create a distortion between countries in the same monetary union, giving to the states just an illusion about their future debtor position.

Geometrical optimization of a short-stem hip implant for the reduction of proximal stress shielding (ottimizzazione geometrica di uno stelo corto di protesi d?anca per la riduzione della schermatura del carico prossimale)

Nowadays the number of hip joints arthroplasty operations continues to increase because the elderly population is growing. Moreover, the global life expectancy is increasing and people adopt a more active way of life. For this reasons, the demand of implant revision operations is becoming more frequent. The operation procedure includes the surgical removal of the old implant and its substitution with a new one. Every time a new implant is inserted, it generates an alteration in the internal femur strain distribution, jeopardizing the remodeling process with the possibility of bone tissue loss. This is of major concern, particularly in the proximal Gruen zones, which are considered critical for implant stability and longevity. Today, different implant designs exist in the market; however there is not a clear understanding of which are the best implant design parameters to achieve mechanical optimal conditions. The aim of the study is to investigate the stress shielding effect generated by different implant design parameters on proximal femur, evaluating which ranges of those parameters lead to the most physiological conditions.