Do Words Matter? The Impact of Communication on the PIIGS' CDS and Bond Yield Spreads during Europe's Sovereign Debt Crisis

The paper aims to shed light on the role of communication in the European debt crisis. It examines the effects of public statements by ECB Governing Council members, EU officials and national representatives on the PIIGS' CDS and bond yield spreads. The focus lies on dovish statements that signal strong determination in the rescue of indebted countries, and hawkish statements that indicate limited commitment to support the PIIGS and protect its creditors. The analysis of daily data for the period between January 1, 2009 and August 12, 2011 in an EGARCH framework suggests that communication by representatives of Germany, France, and the EU as well as ECB Governing Council members had an immediate impact on both types of securities. No effects.

Conservation of threatened habitat types under future climate change – Lessons from plant-distribution models and current extinction trends in southern Germany

A higher risk of future range losses as a result of climate change is expected to be one of the main drivers of extinction trends in vascular plants occurring in habitat types of high conservation value. Nevertheless, the impact of the climate changes of the last 60 years on the current distribution and extinction patterns of plants is still largely unclear. We applied species distribution models to study the impact of environmental variables (climate, soil conditions, land cover, topography), on the current distribution of 18 vascular plant species characteristic of three threatened habitat types in southern Germany: (i) xero-thermophilous vegetation, (ii) mesophilous mountain grasslands (mountain hay meadows and matgrass communities), and (iii) wetland habitats (bogs, fens, and wet meadows). Climate and soil variables were the most important variables affecting plant distributions at a spatial level of 10 × 10 km. Extinction trends in our study area revealed that plant species which occur in wetland habitats faced higher extinction risks than those in xero-thermophilous vegetation, with the risk for species in mesophilous mountain grasslands being intermediary. For three plant species characteristic either of mesophilous mountain grasslands or wetland habitats we showed exemplarily that extinctions from 1950 to the present day have occurred at the edge of the species’ current climatic niche, indicating that climate change has likely been the main driver of extinction. This is largely consistent with current extinction trends reported in other studies. Our study indicates that the analysis of past extinctions is an appropriate means to assess the impact of climate change on species and that vulnerability to climate change is both species- and habitat-specific.

A pharyngeal jaw evolutionary innovation facilitated extinction in Lake Victoria cichlids

Evolutionary innovations, traits that give species access to previously unoccupied niches, may promote speciation and adaptive radiation. Here, we show that such innovations can also result in competitive inferiority and extinction. We present evidence that the modified pharyngeal jaws of cichlid fishes and several marine fish lineages, a classic example of evolutionary innovation, are not universally beneficial. A large-scale analysis of dietary evolution across marine fish lineages reveals that the innovation compromises access to energy-rich predator niches. We show that this competitive inferiority shaped the adaptive radiation of cichlids in Lake Tanganyika and played a pivotal and previously unrecognized role in the mass extinction of cichlid fishes in Lake Victoria after Nile perch invasion.

The Optimal Capital Structure of Banks: Balancing Deposit Insurance, Capital Requirements and Tax-Advantaged Debt

The capital structure and regulation of financial intermediaries is an important topic for practitioners, regulators and academic researchers. In general, theory predicts that firms choose their capital structures by balancing the benefits of debt (e.g., tax and agency benefits) against its costs (e.g., bankruptcy costs). However, when traditional corporate finance models have been applied to insured financial institutions, the results have generally predicted corner solutions (all equity or all debt) to the capital structure problem. This paper studies the impact and interaction of deposit insurance, capital requirements and tax benefits on a bankÇs choice of optimal capital structure. Using a contingent claims model to value the firm and its associated claims, we find that there exists an interior optimal capital ratio in the presence of deposit insurance, taxes and a minimum fixed capital standard. Banks voluntarily choose to maintain capital in excess of the minimum required in order to balance the risks of insolvency (especially the loss of future tax benefits) against the benefits of additional debt. Because we derive a closed- form solution, our model provides useful insights on several current policy debates including revisions to the regulatory framework for GSEs, tax policy in general and the tax exemption for credit unions.

The effect of the shift from HMO to PPO plans on the prevalence of hospital bad debt in the insured population: A case study in two Houston-area hospitals

In spite of the dramatic increase and general concern with U.S. hospital bad debt expense (AMNews, January 12, 2004; Philadelphia Business Journal, April 30, 2004; WSJ, July 23, 2004), there appears to be little available analysis of the precise sources and causes of its growth. This is particularly true in terms of the potential contribution of insured patients to bad debt expense in light of the recent shift in managed care from health maintenance organization (HMO) plans to preferred provider organization (PPO) plans (Kaiser Annual Survey Report, 2003). This study examines and attempts to explain the recent dramatic growth in bad debt expense by focusing on and analyzing data from two Houston-area hospital providers within one healthcare system. In contrast to prior studies in which self-pay was found to be the primary source of hospital bad debt expense (Saywell, R. M., et al., 1989; Zollinger, T. W., 1991; Weissman, Joel S., et al., 1999), this study hypothesizes that the growing hospital bad debt expense is mainly due to the shifting trend away from HMOs to PPOs as a conscious decision by employers to share costs with employees. Compared to HMO plans, the structure of PPOs includes higher co-pays, coinsurance, and deductibles for the patient-pay portion of medical bills, creating the potential for an increase in bad debt for hospital providers (from a case study). This bad debt expense has a greater impact in the community hospital than in the Texas Medical Center hospital. ^

Occurrence and Range-through database of functional diversity of marine ecosystems after the Late Permian mass extinction event

The Late Permian mass extinction event about 252 million years ago was the most severe biotic crisis of the past 500 million years and occurred during an episode of global warming. The loss of around two-thirds of marine genera is thought to have had substantial ecological effects, but the overall impacts on the functioning of marine ecosystems and the pattern of marine recovery are uncertain. Here we analyse the fossil occurrences of all known benthic marine invertebrate genera from the Permian and Triassic periods, and assign each to a functional group based on their inferred lifestyle. We show that despite the selective extinction of 62-74% of these genera, all but one functional group persisted through the crisis, indicating that there was no significant loss of functional diversity at the global scale. In addition, only one new mode of life originated in the extinction aftermath. We suggest that Early Triassic marine ecosystems were not as ecologically depauperate as widely assumed. Functional diversity was, however, reduced in particular regions and habitats, such as tropical reefs; at these smaller scales, recovery varied spatially and temporally, probably driven by migration of surviving groups. We find that marine ecosystems did not return to their pre-extinction state, and by the Middle Triassic greater functional evenness is recorded, resulting from the radiation of previously subordinate groups such as motile, epifaunal grazers.

Benthic foraminifera extinction at the base of the Brunhes Chronozone at ODP Holes 108-658A and 108-659A

A faunal boundary found at the base of the Brunhes Chronozone at Sites 658 and 659 confirms previous observations from several locations in the Atlantic Ocean and may be classified as a supraregional "extinction event". Several benthic foraminifer species typical of the Pliocene disappear near the Brunhes/Matuyama boundary, thus marking the upper limit of a faunal zone (faunal unit). Improved chronological dating indicates that the disappearance of these species occurs over a period of about 100,000 yr.

Abrupt vegetation change after the Late Quaternary megafaunal extinction in southeastern Australia

A substantial extinction of megafauna occurred in Australia between 50 and 45 kyr ago, a period that coincides with human colonization of Australia. Large shifts in vegetation also occurred around this time, but it is unclear whether the vegetation changes were driven by the human use of fire-and thus contributed to the extinction event-or were a consequence of the loss of megafaunal grazers. Here we reconstruct past vegetation changes in southeastern Australia using the stable carbon isotopic composition of higher plant wax n-alkanes and levels of biomass burning from the accumulation rates of the biomarker levoglucosan from a well-dated sediment core offshore from the Murray-Darling Basin. We find that from 58 to 44 kyr ago, the abundance of plants with the C-4 carbon fixation pathway was generally high-between 60 and 70%. By 43 kyr ago, the abundance of C-4 plants dropped to 30% and biomass burning increased. This transient shift lasted for about 3,000 years and came after the period of human arrival and directly followed megafauna extinction at 48.9-43.6 kyr ago. We conclude that the vegetation shift was not the cause of the megafaunal extinction in this region. Instead, our data are consistent with the hypothesis that vegetation change was the consequence of the extinction of large browsers and led to the build-up of fire-prone vegetation in the Australian landscape.