Should fiscal authorities cooperate in a monetary union with public deficit targets?

In this paper we analyse the setting of optimal policies in a monetary union with one monetary authority and various fiscal authorities that have a public deficit target. We will show that fiscal cooperation among the fiscal authorities, in the presence of positive supply shocks, ends up producing higher public deficits than in a non-cooperative regime. JEL No. E61, E63, F33, H0. Keywords: monetary union, fiscal policy coordination.

How tight should one's hands be tied? Fear of floating and credibility of exchange rate regimes

This paper analyzes the linkages between the credibility of a target zone regime, the volatility of the exchange rate, and the width of the band where the exchange rate is allowed to fluctuate. These three concepts should be related since the band width induces a trade-off between credibility and volatility. Narrower bands should give less scope for the exchange rate to fluctuate but may make agents perceive a larger probability of realignment which by itself should increase the volatility of the exchange rate. We build a model where this trade-off is made explicit. The model is used to understand the reduction in volatility experienced by most EMS countries after their target zones were widened on August 1993. As a natural extension, the model also rationalizes the existence of non-official, implicit target zones (or fear of floating), suggested by some authors.

Memory in contracts: the experience of the EBRD (1991-2003)

The objective of this paper is to identify the role of memory in repeated contracts with moral hazard in financial intermediation. We use the database we have built containing the contracts signed by the European Bank for Reconstruction and Development EBRD between 1991 and 2003. Our framework is a standard setting of repeated moral hazard. After having controlled for the adverse selection component, we are able to prove that client reputation is the discrimination device according to which the bank fixes the amount of credit for the established clients. Our results unambiguously isolate the effect of memory in the bank's lending decisions.

Bioluminescent sensor proteins for point-of-care therapeutic drug monitoring.

For many drugs, finding the balance between efficacy and toxicity requires monitoring their concentrations in the patient's blood. Quantifying drug levels at the bedside or at home would have advantages in terms of therapeutic outcome and convenience, but current techniques require the setting of a diagnostic laboratory. We have developed semisynthetic bioluminescent sensors that permit precise measurements of drug concentrations in patient samples by spotting minimal volumes on paper and recording the signal using a simple point-and-shoot camera. Our sensors have a modular design consisting of a protein-based and a synthetic part and can be engineered to selectively recognize a wide range of drugs, including immunosuppressants, antiepileptics, anticancer agents and antiarrhythmics. This low-cost point-of-care method could make therapies safer, increase the convenience of doctors and patients and make therapeutic drug monitoring available in regions with poor infrastructure.

Perinatal choline supplementation reveals a dissociation between two types of spatial strategies.

Choline supplementation improving memory functions in rodents is assumed to increase the synthesis and release of acetylcholine in the brain. We have found that a combined pre- and postnatal supplementation results in long-lasting facilitation of spatial memory in juvenile rats when training was conducted in presence of a local salient cue. The present work was aimed at analysing the effects of peri- and postnatal choline supplementation on spatial abilities of naive adult rats. Rats given a perinatal choline supplementation were trained in various cued procedures of the Morris navigation task when aged 5 months. The treatment had a specific effect of reducing the escape latency of the rats when the platform was at a fixed position in space and surrounded by a suspended cue. This effect was associated with an increased spatial bias when the cue and platform were removed. In this condition, the control rats showed impaired spatial discrimination following the removal of the target cue, most likely due to an overshadowing of the distant environmental cues. This impairment was not observed in the treated rats. Further training with the suspended cue at unpredictable places in the pool revealed longer escape latencies in the control than in the treated rats suggesting that this procedure induced a selective perturbation of the normal but not of the treated rats. A special probe trial with the cue at an irrelevant position and no escape platform revealed a significant bias of the control rats toward the cue and of the treated rats toward the uncued spatial escape position. This behavioural dissociation suggests that a salient cue associated with the target induces an alternative "non spatial" guidance strategy in normal rats, with the risk of overshadowing of the more distant spatial cues. In this condition, the choline supplementation facilities a spatial reliance on the cue, that is an overall facilitation of learning a set of spatial relations between several visual cues. As a consequence, the improved escape in presence of the cue is associated with a stronger memory of the spatial position following disappearance of the cue. This and previous observations suggest that a specific spatial attention process relies on the buffering of highly salient visual cues.to facilitate integration of their relative position in the environment.

The ghost of past species occurrence: improving species distribution models for presence-only data

1. Model-based approaches have been used increasingly in conservation biology over recent years. Species presence data used for predictive species distribution modelling are abundant in natural history collections, whereas reliable absence data are sparse, most notably for vagrant species such as butterflies and snakes. As predictive methods such as generalized linear models (GLM) require absence data, various strategies have been proposed to select pseudo-absence data. However, only a few studies exist that compare different approaches to generating these pseudo-absence data. 2. Natural history collection data are usually available for long periods of time (decades or even centuries), thus allowing historical considerations. However, this historical dimension has rarely been assessed in studies of species distribution, although there is great potential for understanding current patterns, i.e. the past is the key to the present. 3. We used GLM to model the distributions of three 'target' butterfly species, Melitaea didyma, Coenonympha tullia and Maculinea teleius, in Switzerland. We developed and compared four strategies for defining pools of pseudo-absence data and applied them to natural history collection data from the last 10, 30 and 100 years. Pools included: (i) sites without target species records; (ii) sites where butterfly species other than the target species were present; (iii) sites without butterfly species but with habitat characteristics similar to those required by the target species; and (iv) a combination of the second and third strategies. Models were evaluated and compared by the total deviance explained, the maximized Kappa and the area under the curve (AUC). 4. Among the four strategies, model performance was best for strategy 3. Contrary to expectations, strategy 2 resulted in even lower model performance compared with models with pseudo-absence data simulated totally at random (strategy 1). 5. Independent of the strategy model, performance was enhanced when sites with historical species presence data were not considered as pseudo-absence data. Therefore, the combination of strategy 3 with species records from the last 100 years achieved the highest model performance. 6. Synthesis and applications. The protection of suitable habitat for species survival or reintroduction in rapidly changing landscapes is a high priority among conservationists. Model-based approaches offer planning authorities the possibility of delimiting priority areas for species detection or habitat protection. The performance of these models can be enhanced by fitting them with pseudo-absence data relying on large archives of natural history collection species presence data rather than using randomly sampled pseudo-absence data.

Off-the-Record Target Zones: Theory with an Application to Hong Kongs Currency Board

This paper provides a modelling framework for evaluating the exchange rate dynamics of a target zone regime with undisclosed bands. We generalize the literature to allow for asymmetric one-sided regimes. Market participants' beliefs concerning an undisclosed band change as they learn more about central bank intervention policy. We apply the model to Hong Kong's one-sided currency board mechanism. In autumn 2003, the Hong Kong dollar appreciated from close to 7.80 per US dollar to 7.70, as investors feared that the currency board would be abandoned. In the wake of this appreciation, the monetary authorities finally revamped the regime as a symmetric two-sided system with a narrow exchange rate band.

Continuity of set-valued maps revisited in the light of tame geometry

Continuity of set-valued maps is hereby revisited: after recalling some basic concepts of variational analysis and a short description of the State-of-the-Art, we obtain as by-product two Sard type results concerning local minima of scalar and vector valued functions. Our main result though, is inscribed in the framework of tame geometry, stating that a closed-valued semialgebraic set-valued map is almost everywhere continuous (in both topological and measure-theoretic sense). The result –depending on stratification techniques– holds true in a more general setting of o-minimal (or tame) set-valued maps. Some applications are briefly discussed at the end.

Relative susceptibility of different stages of Rhodinius Prolixus to the entomopathogenic Hyphomycete Beauveria Bassiana

Laboratory bioassays were conducted to determine the relative suscepbility of eggs, 1st-, 3rd-, 5th- instar nymphs and adults of Rhodnius prolixus to one isolate of the entomopathogenic hyphomycete, Beauveria bassiana. Treatments consisted of directly spraying on insects of increasing doses of inoculum (3 x 10* to 3 x 10 (elevated to 5th potency) conidia per cm*). Mortality due to all doses of conidia was very high in the five tested stages of the target insect. Experiments on eggs demonstrated that the fungal isolate was able to kill eggs before they hatched. Both time-mortality and dose-mortality responses showed that the susceptibility of R. prolixus varied according to its stage of development and increased with age. As matter of fact, at the dose of 3 x 10* conidia per cm*, LD50 varied between 11.2 days in 1st-instar nymphs and 6.4 days in both 5th-instar nymphs and adults. Comparison of LD50 permitted to estimate that 1st-instar nymphs were about 700-fold less susceptible than the two oldest stages

Linkages of dietary patterns, international trade and land use: the case of olive oil in the European Union

Within only two decades olive oil developed from a niche product which could hardly be found in food stores outside the producing regions towards an integrated component in the diets of industrial countries. This paper discusses the impacts of the promotion of the “healthy Mediterranean diet” on land use and agro-ecosystems in the producing countries. It examines the dynamics of olive oil production, trade and consumption in the EU15 in the period 1972 to 2003 and the links between dietary patterns, trade and land use. It analyses the underlying socio-economic driving forces behind the increasing spatial disconnect between production and consumption of olive oil in the EU15 and in particular in Spain, the world largest producer during the last three decades. In the observed period olive oil consumption increased 16 fold in the non-producing EU15 countries. In the geographically limited producing regions like Spain, the 5 fold increase in export production was associated with the rapid industrialization of olive production, the conversion of vast Mediterranean landscapes to olive monocultures and a range of environmental pressures. High amounts of subsidies of the European Common Agricultural Policy and feedback loops within production and consumption systems were driving the transformation of the olive oil system. Our analysis indicates the process of change was not immediately driven by increases in demand for olive oil in non-producing countries, but rather by the institutional setting of the European Union and by concerted political interventions.

Antiretroviral treatment of adult HIV infection: 2012 recommendations of the International Antiviral Society-USA panel.

CONTEXT: New trial data and drug regimens that have become available in the last 2 years warrant an update to guidelines for antiretroviral therapy (ART) in human immunodeficiency virus (HIV)-infected adults in resource-rich settings. OBJECTIVE: To provide current recommendations for the treatment of adult HIV infection with ART and use of laboratory-monitoring tools. Guidelines include when to start therapy and with what drugs, monitoring for response and toxic effects, special considerations in therapy, and managing antiretroviral failure. DATA SOURCES, STUDY SELECTION, AND DATA EXTRACTION: Data that had been published or presented in abstract form at scientific conferences in the past 2 years were systematically searched and reviewed by an International Antiviral Society-USA panel. The panel reviewed available evidence and formed recommendations by full panel consensus. DATA SYNTHESIS: Treatment is recommended for all adults with HIV infection; the strength of the recommendation and the quality of the evidence increase with decreasing CD4 cell count and the presence of certain concurrent conditions. Recommended initial regimens include 2 nucleoside reverse transcriptase inhibitors (tenofovir/emtricitabine or abacavir/lamivudine) plus a nonnucleoside reverse transcriptase inhibitor (efavirenz), a ritonavir-boosted protease inhibitor (atazanavir or darunavir), or an integrase strand transfer inhibitor (raltegravir). Alternatives in each class are recommended for patients with or at risk of certain concurrent conditions. CD4 cell count and HIV-1 RNA level should be monitored, as should engagement in care, ART adherence, HIV drug resistance, and quality-of-care indicators. Reasons for regimen switching include virologic, immunologic, or clinical failure and drug toxicity or intolerance. Confirmed treatment failure should be addressed promptly and multiple factors considered. CONCLUSION: New recommendations for HIV patient care include offering ART to all patients regardless of CD4 cell count, changes in therapeutic options, and modifications in the timing and choice of ART in the setting of opportunistic illnesses such as cryptococcal disease and tuberculosis.

Let-7a Is a Direct EWS-FLI-1 Target Implicated in Ewing's Sarcoma Development.

Ewing's sarcoma family tumors (ESFT) are the second most common bone malignancy in children and young adults, characterized by unique chromosomal translocations that in 85% of cases lead to expression of the EWS-FLI-1 fusion protein. EWS-FLI-1 functions as an aberrant transcription factor that can both induce and suppress members of its target gene repertoire. We have recently demonstrated that EWS-FLI-1 can alter microRNA (miRNA) expression and that miRNA145 is a direct EWS-FLI-1 target whose suppression is implicated in ESFT development. Here, we use miRNA arrays to compare the global miRNA expression profile of human mesenchymal stem cells (MSC) and ESFT cell lines, and show that ESFT display a distinct miRNA signature that includes induction of the oncogenic miRNA 17-92 cluster and repression of the tumor suppressor let-7 family. We demonstrate that direct repression of let-7a by EWS-FLI-1 participates in the tumorigenic potential of ESFT cells in vivo. The mechanism whereby let-7a expression regulates ESFT growth is shown to be mediated by its target gene HMGA2, as let-7a overexpression and HMGA2 repression both block ESFT cell tumorigenicity. Consistent with these observations, systemic delivery of synthetic let-7a into ESFT-bearing mice restored its expression in tumor cells, decreased HMGA2 expression levels and resulted in ESFT growth inhibition in vivo. Our observations provide evidence that deregulation of let-7a target gene expression participates in ESFT development and identify let-7a as promising new therapeutic target for one of the most aggressive pediatric malignancies.

Experimental approaches in the targeting of photodynamic therapeutics

RÉSUMÉ : Chez l'homme, le manque de sélectivité des agents thérapeutiques représente souvent une limitation pour le traitement des maladies. Le ciblage de ces agents pour un tissu défini pourrait augmenter leur sélectivité et ainsi diminuer les effets secondaires en comparaison d'agents qui s'accumuleraient dans tout le corps. Cela pourrait aussi améliorer l'efficacité des traitements en permettant d'avoir une concentration localisée plus importante. Le ciblage d'agents thérapeutiques est un champ de recherche très actif. Les stratégies sont généralement basées sur les différences entre cellules normales et malades. Ces différences peuvent porter soit sur l'expression des molécules à leurs surfaces comme des récepteurs ou des transporteurs, soit sur les activités enzymatiques exprimées. Le traitement thérapeutique choisi ici est la thérapie photodynamique et est déjà utilisé pour le traitement de certains cancers. Cette thérapie repose sur l'utilisation de molécules qui réagissent à la lumière, les photosensibilisants. Elles absorbent l'énergie lumineuse et réagissent avec l'oxygène pour former des radicaux toxiques pour les cellules. Les photosensibilisants utilisés ici sont de deux natures : (i) soit ils sont tétrapyroliques (comme les porphyrines et chlorines), c'est à dire qu'ils sont directement activables par la lumière ; (ii) soit ce sont des prodrogues de photosensibilisants comme l'acide 5aminolévulinique (ALA) qui est transformé dans la cellule en protoporphyrine IX photosensibilisante. Dans le but d'augmenter la sélectivité des photosensibilisants, nous avons utilisé deux stratégies différentes : (i) le photosensibilisant est modifié par le greffage d'un agent de ciblage ; (ii) le photosensibilisant est incorporé dans des structures moléculaires de quelques centaines de nanomètres. Les sucres et l'acide folique sont des agents de ciblage largement établis et ont été utilisés ici car leurs récepteurs sont surexprimés à la surface de nombreuses cellules malades. Ainsi, des dérivés sucres ou acide folique de l'ALA ont été synthétisés et évalués in vitro sur de nombreuses lignées cellulaires cancéreuses. La stratégie utilisant l'acide folique est apparue incompatible avec l'utilisation de l'ALA puisque aucune photosensibilité n'a été induite par le composé. La stratégie utilisant les sucres a, par ailleurs, provoquée de bonnes photosensibilités mais pas d'augmentation de sélectivité. En parallèle, la combinaison entre les propriétés anticancéreuses des complexes métalliques au ruthénium avec les propriétés photosensibilisantes des porphyrines, a été évaluée. En effet, les thérapies combinées ont émergé il y a une dizaine d'années et représentent aujourd'hui de bonnes alternatives aux monothérapies classiques. Des ruthenium(I1)-arènes complexés avec la tetrapyridylporphyrine ont ainsi présenté de bonnes cytotoxicités et de bonnes phototoxicités pour des cellules de mélanomes. Des porphyrines ont aussi été compléxées avec des noyaux de diruthénium et ce type de dérivé a présenté de bonnes phototoxicités et une bonne sélectivité pour les cellules cancéreuses de l'appareil reproducteur féminin. L'incorporation de photosensibilisants tétrapyroliques a finalement été effectuée en utilisant des nanoparticules (NP) biocompatibles composées de chitosan et de hyaluronate. L'effet de ces NP a été évalué pour le traitement de la polyarthrite rhumatoïde (PR). Les NP ont d'abord été testées in vitro avec des macrophages de souris et les résultats ont mis en évidence de bonnes sélectivités et photosensibilités pour ces cellules. In vivo chez un modèle marin de la PR, l'utilisation de ces NP a révélé un plus grand temps de résidence des NP dans le genou de la souris en comparaison du temps obtenu avec le photosensibilisant seul. Le traitement par PDT a aussi démontré une bonne efficacité par ailleurs égale à celle obtenue avec les corticoïdes utilisés en clinique. Pour finir, les NP ont aussi démontré une bonne efficacité sur les myelomonocytes phagocytaires humains et sur les cellules contenues dans le liquide synovial de patients présentant une PR. Tous ces résultats suggèrent que les deux stratégies de ciblage peuvent être efficaces pour les agents thérapeutiques. Afm d'obtenir de bons résultats, il est toutefois nécessaire de réaliser une analyse minutieuse de la cible et du mode d'action de l'agent thérapeutique. Concernant les perspectives, la combinaison des deux stratégies c'est à dire incorporer des agents thérapeutiques dans des nanostructures porteuses d'agents de ciblage, représente probablement une solution très prometteuse. SUMMARY : In humans, the lack of selectivity of drugs and their high effective concentrations often represent limitations for the treatment of diseases. Targeting the therapeutical agents to a defined tissue could enhance their selectivity and then diminish their side effects when compared to drugs that accumulate in the entire body and could also improve treatment efûciency by allowing a localized high concentration of the agents. Targeting therapeutics to defined cells in human pathologies is a main challenge and a very active field of research. Strategies are generally based on the different behaviors and patterns of expression of diseased cells compared to normal cells such as receptors, proteases or trans-membrane carriers. The therapeutic treatment chosen here is the photodynamic therapy and is already used in the treatment of many cancers. This therapy relies on the administration of a photosensitizer (PS) which will under light, react with oxygen and induce formation of reactive oxygen species which are toxic for cells. The PSs used here are either tetrapyrolic (i. e. porphyries and chlorins) or prodrugs of PS (5-aminolevulinic acid precursor of the endogenous protoporphyrin Imo. In order to improve PS internalization and selectivity, we have used two different strategies: the modification of the PSs with diseased cell-targeting agents as well as their encapsulation into nanostructures. Sugars and folic acid are well established as targeting entities for diseased cells and were used here since their transporters are overexpressed on the surface of many cancer cells. Therefore sugar- and folic acid-derivatives of 5-aminolevulinic acid (ALA) were synthesized and evaluated in vitro in several cancer cell lines. The folic acid strategy appeared to be incompatible with ALA since no photosensitivity was induced while the strategy with sugars induced good photosensitivites but no increase of selectivity. Alternatively, the feasibility of combining the antineoplastic properties of ruthenium complexes with the porphyrin's photosensitizing properties, was evaluated since combined therapies have emerged as good alternatives to classical treatments. Tetrapyridylporphyrins complexed to ruthenium (I17 arenes presented good cytotoxicities and good phototoxicities toward melanoma cells. Porphyries were also complexed to diruthenium cores and this type of compound presented good phototoxicities and good selectivity for female reproductive cancer cells. The encapsulation of tetrapyrolic PSs was finally investigated using biocompatible nanogels composed of chitosan and hyaluronate. The behavior of these nanoparticles was evaluated for the treatment of rheumatoid arthritis (RA). They were first tested in vitro in mouse macrophages and results revealed good selectivities and phototoxicities toward these cells. In vivo in mice model of RA, the use of such nanoparticles instead of free PS showed longer time of residence in mice knees. Photodynamic protocols also demonstrated good efficiency of the treatment comparable to the corticoid injection used in the clinic. Finally our system was also efficient in human cells using phagocytic myelomonocytes or using cells of synovial fluids taken from patients with RA. Altogether, these results revealed that both strategies of modification or encapsulation of drugs can be successful in the targeting of diseased cells. However, a careful analysis of the target and of the mode of action of the drug, are needed in order to obtain good results. Looking ahead to the future, the combination of the two strategies (i.e. drugs loaded into nanostructures bearing the targeting agents) would represent probably the best solution.

Liver kidney microsomes type 1 antibodies are associated with 80% reduction of the CYP2D6 activity in patients with chronic hepatitis C

Introduction Liver kidney microsomal type 1 (LKM-1) antibodies have been shown to decrease CYP2D6 activity in vitro. We investigated whether LKM-1 antibodies might reduce CYP2D6 activity also in vivo.Materials and Methods All patients with chronic hepatitis C and LKM-1 antibodies enrolled in the Swiss Hepatitis C Cohort Study (SCCS) were assessed: ten were eligible and fi tted to patients without LKM-1 antibodies. Patients were genotyped for CYP2D6 variants to exclude individuals with a poor metabolizer genotype. CYP2D6 activity was measured by a specifi c substrate using the dextromethorphan/dextrorphan (DEM/DOR) metabolic ratio to classify patients into four activity phenotypes (i.e. ultrarapid, extensive, intermediate and poor metabolizers). The concordance between phenotype based on DEM/DOR ratio and phenotype expected from genotype was examined in LKM-1 positive and negative patients. Groups were compared with respect to the DEM/DOR metabolic ratio.Results All patients had a CYP2D6 extensive metabolizer genotype. The observed phenotype was concordant with CYP2D6 genotype in most LKM-negative patients, whereas only three (30%) LKM-1 positive patients had a concordant phenotype (six presented an intermediate and one a poor metabolizer phenotype). The median DEM/DOR ratio was six-fold higher in LKM-1 positive than in LKM-1 negative patients (0.096 vs. 0.016, p = 0.004), indicating that CYP2D6 metabolic function was significantly reduced in the presence of LKM-1 antibodies.Conclusion In chronic hepatitis C patients with LKM-1 antibodies, the CYP2D6 metabolic activity was on average reduced by 80%. The impact of LKM-1 antibodies on CYP2D6-mediated drug metabolism pathways warrants further translational studies in the setting of new protease inhibitor therapies

Bcl9/Bcl9l are critical for Wnt-mediated regulation of stem cell traits in colon epithelium and adenocarcinomas.

Canonical Wnt signaling plays a critical role in stem cell maintenance in epithelial homeostasis and carcinogenesis. Here, we show that in the mouse this role is critically mediated by Bcl9/Bcl9l, the mammalian homologues of Legless, which in Drosophila is required for Armadillo/beta-catenin signaling. Conditional ablation of Bcl9/Bcl9l in the intestinal epithelium, where the essential role of Wnt signaling in epithelial homeostasis and stem cell maintenance is well documented, resulted in decreased expression of intestinal stem cell markers and impaired regeneration of ulcerated colon epithelium. Adenocarcinomas with aberrant Wnt signaling arose with similar incidence in wild-type and mutant mice. However, transcriptional profiles were vastly different: Whereas wild-type tumors displayed characteristics of epithelial-mesenchymal transition (EMT) and stem cell-like properties, these properties were largely abrogated in mutant tumors. These findings reveal an essential role for Bcl9/Bcl9l in regulating a subset of Wnt target genes involved in controlling EMT and stem cell-related features and suggest that targeting the Bcl9/Bcl9l arm of Wnt signaling in Wnt-activated cancers might attenuate these traits, which are associated with tumor invasion, metastasis, and resistance to therapy.