Testing the optimality of aggregate consumption decisions: is there rule-of-thumb behavior?

Consumption is an important macroeconomic aggregate, being about 70% of GNP. Finding sub-optimal behavior in consumption decisions casts a serious doubt on whether optimizing behavior is applicable on an economy-wide scale, which, in turn, challenge whether it is applicable at all. This paper has several contributions to the literature on consumption optimality. First, we provide a new result on the basic rule-of-thumb regression, showing that it is observational equivalent to the one obtained in a well known optimizing real-business-cycle model. Second, for rule-of-thumb tests based on the Asset-Pricing Equation, we show that the omission of the higher-order term in the log-linear approximation yields inconsistent estimates when lagged observables are used as instruments. However, these are exactly the instruments that have been traditionally used in this literature. Third, we show that nonlinear estimation of a system of N Asset-Pricing Equations can be done efficiently even if the number of asset returns (N) is high vis-a-vis the number of time-series observations (T). We argue that efficiency can be restored by aggregating returns into a single measure that fully captures intertemporal substitution. Indeed, we show that there is no reason why return aggregation cannot be performed in the nonlinear setting of the Pricing Equation, since the latter is a linear function of individual returns. This forms the basis of a new test of rule-of-thumb behavior, which can be viewed as testing for the importance of rule-of-thumb consumers when the optimizing agent holds an equally-weighted portfolio or a weighted portfolio of traded assets. Using our setup, we find no signs of either rule-of-thumb behavior for U.S. consumers or of habit-formation in consumption decisions in econometric tests. Indeed, we show that the simple representative agent model with a CRRA utility is able to explain the time series data on consumption and aggregate returns. There, the intertemporal discount factor is significant and ranges from 0.956 to 0.969 while the relative risk-aversion coefficient is precisely estimated ranging from 0.829 to 1.126. There is no evidence of rejection in over-identifying-restriction tests.

Moral hazard and nonlinear pricing in a general equilibrium model

The paper analyzes a two period general equilibrium model with individual risk and moral hazard. Each household faces two individual states of nature in the second period. These states solely differ in the household's vector of initial endowments, which is strictly larger in the first state (good state) than in the second state (bad state). In the first period households choose a non-observable action. Higher leveis of action give higher probability of the good state of nature to occur, but lower leveIs of utility. Households have access to an insurance market that allows transfer of income across states of oature. I consider two models of financiaI markets, the price-taking behavior model and the nonlínear pricing modelo In the price-taking behavior model suppliers of insurance have a belief about each household's actíon and take asset prices as given. A variation of standard arguments shows the existence of a rational expectations equilibrium. For a generic set of economies every equilibrium is constraíned sub-optímal: there are commodity prices and a reallocation of financiaI assets satisfying the first period budget constraint such that, at each household's optimal choice given those prices and asset reallocation, markets clear and every household's welfare improves. In the nonlinear pricing model suppliers of insurance behave strategically offering nonlinear pricing contracts to the households. I provide sufficient conditions for the existence of equilibrium and investigate the optimality properties of the modeI. If there is a single commodity then every equilibrium is constrained optimaI. Ir there is more than one commodity, then for a generic set of economies every equilibrium is constrained sub-optimaI.

Processing and hygrothermal effects on viscoelastic behavior of glass fiber/epoxy composites

Fiber reinforced epoxy composites are used in a wide variety of applications in the aerospace field. These materials have high specific moduli, high specific strength and their properties can be tailored to application requirements. In order to screening optimum materials behavior, the effects of external environments on the mechanical properties during usage must be clearly understood. The environmental action, such as high moisture concentration, high temperatures, corrosive fluids or ultraviolet radiation (UV), can affect the performance of advanced composites during service. These factors can limit the applications of composites by deteriorating the mechanical properties over a period of time. Properties determination is attributed to the chemical and/or physical damages caused in the polymer matrix, loss of adhesion of fiber/resin interface, and/or reduction of fiber strength and stiffness. The dynamic elastic properties are important characteristics of glass fiber reinforced composites (GRFC). They control the damping behavior of composite structures and are also an ideal tool for monitoring the development of GFRC's mechanical properties during their processing or service. One of the most used tests is the vibration damping. In this work, the measurement consisted of recording the vibration decay of a rectangular plate excited by a controlled mechanism to identify the elastic and damping properties of the material under test. The frequency amplitude were measured by accelerometers and calculated by using a digital method. The present studies have been performed to explore relations between the dynamic mechanical properties, damping test and the influence of high moisture concentration of glass fiber reinforced composites (plain weave). The results show that the E' decreased with the increase in the exposed time for glass fiber/epoxy composites specimens exposed at 80 degrees C and 90% RH. The E' values found were: 26.7, 26.7, 25.4, 24.7 and 24.7 GPa for 0, 15, 30, 45 and 60 days of exposure, respectively. (c) 2005 Springer Science + Business Media, Inc.

Hygrothermal effects on damping behavior of metal/glass fiber/epoxy hybrid composites

Continuous fiber/metal laminates (FML) offer significant improvements over current available materials for aircraft structures due to their excellent fatigue endurance and low density. Glass fibers/epoxy laminae and aluminum foil (Glare) are commonly used to obtain these hybrid composites. The environmental factors can limit the applications of composites by deteriorating the mechanical properties during service. Usually, epoxy resins absorb moisture when exposed to humid environments and metals are prone to surface corrosion. Therefore, the combination of the two materials in Glare (polymeric composite and metal). can lead to differences that often turn out to be beneficial in terms of mechanical properties and resistance to environmental influences. In this work. The viscoelastic properties. such as storage modulus (E') and loss modulus (E'), were obtained for glass fiber/epoxy composite, aluminum 2024-T3 alloy and for a glass fiber/epoxy/aluminum laminate (Glare). It was found that the glass fiber/epoxy (G/E) composites decrease the E' modulus during hygrothermal conditioning up to saturation point (6 weeks). However, for Glare laminates the E' modulus remains unchanged (49GPa) during the cycle of hygrothermal conditioning. The outer aluminum sheets in the Glare laminate shield the G/E composite laminae from moisture absorption. which in turn prevent, in a certain extent, the material from hygrothermal degradation effects. (c) 2005 Elsevier B.V. All rights reserved.

Damping behavior of continuous fiber/metal composite materials by the free vibration method

Fiber metal laminates (FML) offer significant improvements over current available materials for aircraft structures due to their excellent mechanical characteristics and relatively low density. Non-destructive testing techniques are being used in the characterization of composite materials. Among these, vibration testing is one of the most used tools because it allows the determination of the mechanical properties. In this work, the viscoelastic properties such as elastic (E') and viscous (E) responses were obtained for aluminum 2024 alloy; carbon fiber/epoxy; glass fiber/epoxy and their hybrids aluminum 2024 alloy/carbon fiber/epoxy and aluminum 2024 alloy/glass fiber/epoxy composites. The experimental results were compared to calculated E modulus values by using the composite micromechanics approach. For all specimens studied, the experimental values showed good agreement with the theoretical values. The damping behavior, i.e. The storage modulus and the loss factor, from the aluminum 2024 alloy and fiber epoxy composites can be used to estimate the viscoelastic response of the hybrid FML. (c) 2005 Elsevier Ltd. All rights reserved.

Investigation of nonlinear dielectric properties in Sr0.75Ba0.25Nb2O6 relaxor ferroelectric thin films

The ac and dc driving fields dependence of the dielectric permittivity for the strontium barium niobate relaxor ferroelectric thin films has been investigated. The nonlinear dielectric properties were obtained by using the measurements of the dielectric permittivity of the material as a function of the ac and dc "bias" electric field amplitude in wide frequency (100 Hz-10 MHz) and temperature (50-450 K) intervals. The results hint the existence of a true mesoscopic dielectric relaxor response in the ferroelectric thin film, which is very similar to those observed in bulk relaxor ferroelectrics. An anomalous behavior of the NL dielectric response was observed when submitted to moderate dc electric fields levels,,indicating a crossover from paraelectric to a glasslike behavior on cooling the sample toward the freezing transition. The obtained results were analyzed within the framework of the models proposed in the current literature.

Nonlinear methods of heart rate variability analysis in diabetes

Background: The autonomic dysfunction stands out among the complications associated to diabetes mellitus (DM) and may be evaluated through the heart rate variability (HRV), a noninvasive tool to investigate the autonomic nervous system that provides information of health impairments and may be analyzed by using linear and nonlinear methods. Several studies have shown that HRV measured in a linear form is altered in DM. Nevertheless, a few studies investigate the nonlinear behavior of HRV. Therefore, this study aims at gathering information regarding the autonomic changes in subjects with DM identified by nonlinear analysis of HRV.Methods: For that, searches were performed on Medline, SciELO, Lilacs and Cochrane databases using the crossing between the key-words: diabetic autonomic neuropathy, autonomic nervous system, diabetes mellitus and heart rate variability. As inclusion criteria, articles published on a period from 2000 to 2010 with DM type land type II population which assessed the autonomic nervous system by nonlinear indices HRV were considered.Results: The electronic search resulted in a total of 1873 references with the exclusion of 1623 titles and abstracts and from the 250 abstracts remaining, 8 studies were selected to the final analysis that completed the inclusion criteria.Conclusions: In general, the analysis showed that the nonlinear techniques of HRV allowed detecting autonomic changes in DM. The methods of nonlinear analysis are indicated as a possible tool to be used for early diagnosis and prognosis of autonomic dysfunction in DM.

Biological behavior of the gerbil ventral prostate in three phases of postnatal development

In this study, we characterized the gerbil's ventral prostate histology ultrastructurally and quantitatively throughout three phases of postnatal development (young, adult, and old) in order to comprehend its biological behavior and propensity to developing spontaneous lesions with aging. The gerbil prostate is composed of alveoli and ducts immersed in a stroma composed of smooth muscle, fibroblasts, collagen and elastic fibers and vessels. The prostate tissue components present morphological and quantitative aspects that vary according to age. Young animals have an immature gland with modest secretory activity. Synthetic activity remained stable in adult and old gerbil. However, prostatic morphology was altered in the aging, showing an increased epithelium and stromal fibrosis. The nuclei of the secretory cells increased with aging, whereas nucleoli presented few alterations during postnatal development. The epithelial proliferation and stromal remodeling noted in this study indicate that the gerbil prostate may respond to the androgen declines typical of senescence through epithelial proliferation and stromal remodeling.

A mathematical model for wave propagation in elastic tubes with inhomogeneities: Application to blood waves propagation

We study the propagation of waves in an elastic tube filled with an inviscid fluid. We consider the case of inhomogeneity whose mechanical and geometrical properties vary in space. We deduce a system of equations of the Boussinesq type as describing the wave propagation in the tube. Numerical simulations of these equations show that inhomogeneities prevent separation of right-going from left-going waves. Then reflected and transmitted coefficients are obtained in the case of localized constriction and localized rigidity. Next we focus on wavetrains incident on various types of anomalous regions. We show that the existence of anomalous regions modifies the wavetrain patterns. (c) 2007 Elsevier B.V. All rights reserved.

Nonlinear Schrodinger equation with power-law confining potential

Critical limits of a stationary nonlinear three-dimensional Schrodinger equation with confining power-law potentials (similar to r(alpha)) are obtained using spherical symmetry. When the nonlinearity is given by an attractive two-body interaction (negative cubic term), it is shown how the maximum number of particles N-c in the trap increases as alpha decreases. With a negative cubic and positive quintic terms we study a first order phase transition, that occurs if the strength g(3) of the quintic term is less than a critical value g(3c). At the phase transition, the behavior of g(3c) with respect to alpha is given by g(3c)similar to 0.0036+0.0251/alpha+0.0088/alpha(2).

Asymptotic soliton train solutions of the defocusing nonlinear Schrodinger equation

Asymptotic behavior of initially large and smooth pulses is investigated at two typical stages of their evolution governed by the defocusing nonlinear Schrodinger equation. At first, wave breaking phenomenon is studied in the limit of small dispersion. A solution of the Whitham modulational equations is found for the case of dissipationless shock wave arising after the wave breaking point. Then, asymptotic soliton trains arising eventually from a large and smooth initial pulse are studied by means of a semiclassical method. The parameter varying along the soliton train is calculated from the generalized Bohr-Sommerfeld quantization rule, so that the distribution of eigenvalues depends on two functions-intensity rho(0)(x) of the initial pulse and its initial chirp v(0)(x). The influence of the initial chirp on the asymptotic state is investigated. Excellent agreement of the numerical solution of the defocusing NLS equation with predictions of the asymptotic theory is found.

General soliton matrices in the Riemann-Hilbert problem for integrable nonlinear equations

We derive the soliton matrices corresponding to an arbitrary number of higher-order normal zeros for the matrix Riemann-Hilbert problem of arbitrary matrix dimension, thus giving the complete solution to the problem of higher-order solitons. Our soliton matrices explicitly give all higher-order multisoliton solutions to the nonlinear partial differential equations integrable through the matrix Riemann-Hilbert problem. We have applied these general results to the three-wave interaction system, and derived new classes of higher-order soliton and two-soliton solutions, in complement to those from our previous publication [Stud. Appl. Math. 110, 297 (2003)], where only the elementary higher-order zeros were considered. The higher-order solitons corresponding to nonelementary zeros generically describe the simultaneous breakup of a pumping wave (u(3)) into the other two components (u(1) and u(2)) and merger of u(1) and u(2) waves into the pumping u(3) wave. The two-soliton solutions corresponding to two simple zeros generically describe the breakup of the pumping u(3) wave into the u(1) and u(2) components, and the reverse process. In the nongeneric cases, these two-soliton solutions could describe the elastic interaction of the u(1) and u(2) waves, thus reproducing previous results obtained by Zakharov and Manakov [Zh. Eksp. Teor. Fiz. 69, 1654 (1975)] and Kaup [Stud. Appl. Math. 55, 9 (1976)]. (C) 2003 American Institute of Physics.

Studying nonlinear effects on the early stage of phase ordering using a decomposition method

Nonlinear effects on the early stage of phase ordering are studied using Adomian's decomposition method for the Ginzburg-Landau equation for a nonconserved order parameter. While the long-time regime and the linear behavior at short times of the theory are well understood, the onset of nonlinearities at short times and the breaking of the linear theory at different length scales are less understood. In the Adomians decomposition method, the solution is systematically calculated in the form of a polynomial expansion for the order parameter, with a time dependence given as a series expansion. The method is very accurate for short times, which allows to incorporate the short-time dynamics of the nonlinear terms in a analytical and controllable way. (c) 2005 Elsevier B.V. All rights reserved.

Disturbance and repair of solitary waves in blood vessels with aneurysm

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Localized modes of binary mixtures of Bose-Einstein condensates in nonlinear optical lattices

The properties of the localized states of a two-component Bose-Einstein condensate confined in a nonlinear periodic potential (nonlinear optical lattice) are investigated. We discuss the existence of different types of solitons and study their stability by means of analytical and numerical approaches. The symmetry properties of the localized states with respect to nonlinear optical lattices are also investigated. We show that nonlinear optical lattices allow the existence of bright soliton modes with equal symmetry in both components and bright localized modes of mixed symmetry type, as well as dark-bright bound states and bright modes on periodic backgrounds. In spite of the quasi-one-dimensional nature of the problem, the fundamental symmetric localized modes undergo a delocalizing transition when the strength of the nonlinear optical lattice is varied. This transition is associated with the existence of an unstable solution, which exhibits a shrinking (decaying) behavior for slightly overcritical (undercritical) variations in the number of atoms.