Modern perspectives on stabilization policies

The present paper describes recent research on two central themes of Keynes General Theory: (i) the social waste associated with recessions, and (ii) the effectiveness of fiscal policy as a stabilization tool. The paper also discusses some evidence on the extent to which fiscal policy has been used as a stabilizing tool in industrial economies over the past two decades.

Stabilization versus insurance: Welfare effects of procyclical taxation under incomplete markets

We construct and calibrate a general equilibrium business cycle model with unemployment and precautionary saving. We compute the cost of business cycles and locate the optimum in a set of simple cyclical fiscal policies. Our economy exhibits productivity shocks, giving firms an incentive to hire more when productivity is high. However, business cycles make workers' income riskier, both by increasing the unconditional probability of unusuallylong unemployment spells, and by making wages more variable, and therefore they decrease social welfare by around one-fourth or one-third of 1% of consumption. Optimal fiscal policy offsets the cycle, holding unemployment benefits constant but varying the tax rate procyclically to smooth hiring. By running a deficit of 4% to 5% of output in recessions, the government eliminates half the variation in the unemployment rate, most of the variation in workers'aggregate consumption, and most of the welfare cost of business cycles.

Endogenous business cycles and stabilization policies

The paper reports results on the effects of stylized stabilization policies on endogenously created fluctuations. A simple monetary model with intertemporally optimizing agents is considered. Fluctuations in output may occur due to fluctuations in labor supply which are again caused by volatile expectations which are ``self fulfilling'', i.e. correct given the model. It turns out that stabilization policies that are sufficiently countercyclical in the sense that government spending (on transfers or demand) depends sufficiently strongly negatively on GNP-increases can stabilize the economy at a monetary steadystate for an arbitrarily low degree of distortion of that steady state. Such stabilization has unambiguously good welfare effects and can be achieved without features such as positive lump sum taxation or negative income taxation as part of the stabilization policy.

Strain-induced stabilization of new magnetic spinel structures in epitaxial oxide heterostructures.

We report here on the growth of NiFe2O4 epitaxial thin films of different thickness (3 nm ¿ t ¿ 32 nm) on single crystalline substrates having spinel (MgAl2O4) or perovskite (SrTiO3) structure. Ultrathin films, grown on any of those substrates, display a huge enhancement of the saturation magnetization: we will show that partial cationic inversion may account for this enhancement, although we will argue that suppression of antiparallel collinear spin alignment due to size-effects cannot be excluded. Besides, for thicker films, the magnetization of films on MAO is found to be similar to that of bulk ferrite; in contrast, the magnetization of films on STO is substantially lower than bulk. We discuss on the possible mechanisms leading to this remarkable difference of magnetization.

Iowa Interstate Rest Area Stabilization Ponds, September 1979

This report is presented in two parts . P a r t I takes a new look at the design of rest area stabilization ponds after nearly 10 years' experience with some of the existing ponds and in the light of new design standards issued by Iowa DEQ. The Iowa DOT is embarking on improvements t o the ponds a t some of the r e s t areas. These improvements may include installation of drainage tile around the ponds to lower the water table below the pond bottom, sealing of the ponds with bentonite clay to reduce the infiltration to limits recently established by Iowa DEQ, and the enlargement of the ponds installation of aeration equipment t o increase the pond capacity. As the Iowa DOT embarks on this improvement program, it behooves them t o make only the improvements that are absolutely necessary to achieve waste water treatment goals. These ponds are subject to an extremely seasonal load and thus the ordinary standards used for pond design are not appropriate. Thus, Part I of the report presents a rationale for design and operation of the ponds which is deemed appropriate for t h e i r unique seasonally loaded character. Part I1 of the report looks a t the feasibility of using wind power for the aeration of the ponds, if and when aeration is deemed necessary.

Stabilization of soil hydraulic properties under a long term no-till system

The area under the no-tillage system (NT) has been increasing over the last few years. Some authors indicate that stabilization of soil physical properties is reached after some years under NT while other authors debate this. The objective of this study was to determine the effect of the last crop in the rotation sequence (1st year: maize, 2nd year: soybean, 3rd year: wheat/soybean) on soil pore configuration and hydraulic properties in two different soils (site 1: loam, site 2: sandy loam) from the Argentinean Pampas region under long-term NT treatments in order to determine if stabilization of soil physical properties is reached apart from a specific time in the crop sequence. In addition, we compared two procedures for evaluating water-conducting macroporosities, and evaluated the efficiency of the pedotransfer function ROSETTA in estimating the parameters of the van Genuchten-Mualem (VGM) model in these soils. Soil pore configuration and hydraulic properties were not stable and changed according to the crop sequence and the last crop grown in both sites. For both sites, saturated hydraulic conductivity, K0, water-conducting macroporosity, εma, and flow-weighted mean pore radius, R0ma, increased from the 1st to the 2nd year of the crop sequence, and this was attributed to the creation of water-conducting macropores by the maize roots. The VGM model adequately described the water retention curve (WRC) for these soils, but not the hydraulic conductivity (K) vs tension (h) curve. The ROSETTA function failed in the estimation of these parameters. In summary, mean values of K0 ranged from 0.74 to 3.88 cm h-1. In studies on NT effects on soil physical properties, the crop effect must be considered.

Optimization of Soil Stabilization with Class C Fly Ash, January 1987

Previous Iowa DOT sponsored research has shown that some Class C fly ashes are ementitious (because calcium is combined as calcium aluminates) while other Class C ashes containing similar amounts of elemental calcium are not (1). Fly ashes from modern power plants in Iowa contain significant amounts of calcium in their glassy phases, regardless of their cementitious properties. The present research was based on these findings and on the hyphothesis that: attack of the amorphous phase of high calcium fly ash could be initiated with trace additives, thus making calcium available for formation of useful calcium-silicate cements. Phase I research was devoted to finding potential additives through a screening process; the likely chemicals were tested with fly ashes representative of the cementitious and non-cementitious ashes available in the state. Ammonium phosphate, a fertilizer, was found to produce 3,600 psi cement with cementitious Neal #4 fly ash; this strength is roughly equivalent to that of portland cement, but at about one-third the cost. Neal #2 fly ash, a slightly cementitious Class C, was found to respond best with ammonium nitrate; through the additive, a near-zero strength material was transformed into a 1,200 psi cement. The second research phase was directed to optimimizing trace additive concentrations, defining the behavior of the resulting cements, evaluating more comprehensively the fly ashes available in Iowa, and explaining the cement formation mechanisms of the most promising trace additives. X-ray diffraction data demonstrate that both amorphous and crystalline hydrates of chemically enhanced fly ash differ from those of unaltered fly ash hydrates. Calciumaluminum- silicate hydrates were formed, rather than the expected (and hypothesized) calcium-silicate hydrates. These new reaction products explain the observed strength enhancement. The final phase concentrated on laboratory application of the chemically-enhanced fly ash cements to road base stabilization. Emphasis was placed on use of marginal aggregates, such as limestone crusher fines and unprocessed blow sand. The nature of the chemically modified fly ash cements led to an evaluation of fine grained soil stabilization where a wide range of materials, defined by plasticity index, could be stabilized. Parameters used for evaluation included strength, compaction requirements, set time, and frost resistance.

Stream Stabilization in Western Iowa: Structure Evaluation and Design Manual, HR-385, 1998

Stream degradation is the action of deepening the stream bed and widening the banks due to the increasing velocity of water flow. Degradation is pervasive in channeled streams found within the deep to moderately deep loess regions of the central United States. Of all the streams, however, the most severe and widespread entrenchment occurs in western Iowa streams that are tributaries to the Missouri River. In September 1995 the Iowa Department of Transportation awarded a grant to Golden Hills Resource Conservation and Development, Inc. The purpose of the grant, HR-385 "Stream Stabilization in Western Iowa: Structure Evaluation and Design Manual", was to provide an assessment of the effectiveness and costs of various stabilization structures in controlling erosion on channeled streams. A review of literature, a survey of professionals, field observations and an analysis of the data recorded on fifty-two selected structures led to the conclusions presented in the project's publication, Design Manual, Streambed Degradation and Streambank Widening in Western Iowa. Technical standards and specifications for the design and construction of stream channel stabilization structures are included in the manual. Additional information on non-structural measures, monitoring and evaluation of structures, various permit requirements and further resources are also included. Findings of the research project and use and applications of the Design Manual were presented at two workshops in the Loess Hills region. Participants in these workshops included county engineers, private contractors, state and federal agency personnel, elected officials and others. The Design Manual continues to be available through Golden Hills Resource Conservation and Development.

Stream Stabilization in Western Iowa, HR-352, 1994

Stream channel erosion in the deep loess soils region of western Iowa causes severe damage along hundreds of miles of streams in twenty-two counties. The goal of this project was to develop information, systems, and procedures for use in making resource allocation decisions related to the protection of transportation facilities and farmland from damages caused by stream channel erosion. Section one of this report provides an introduction. Section two presents an assessment of stream channel conditions from aerial and field reconnaissance conducted in 1993 and 1994 and a classification of the streams based on a six stage model of stream channel evolution. A Geographic Information System is discussed that has been developed to store and analyze data on the stream conditions and affected infrastructure and assist in the planning of stabilization measures. Section three presents an evaluation of two methods for predicting the extent of channel degradation. Section four presents an estimate of costs associated with damages from stream channel erosion since the time of channelization until 1992. Damage to highway bridges represent the highest costs associated with channel erosion, followed by railroad bridges and right-of-way; loss of agricultural land represents the third highest cost. An estimate of costs associated with future channel erosion on western Iowa streams is also presented in section four. Section four also presents a procedure to estimate the benefits and costs of implementing stream stabilization measures. The final section of this report, section five, presents information on the development of the organizational structure and administrative procedures which are being used to plan, coordinate, and implement stream stabilization projects and programs in western Iowa.

Low Cost Techniques of Base Stabilization, HR-312, 1994

This project was initiated in 1988 to study the effectiveness of four different construction techniques for establishing a stable base on a granular surfaced roadway. After base stabilization, the roadway was then seal coated, eliminating dust problems associated with granular surfaced roads. When monies become available, the roadway can be surfaced with a more permanent structure. A 2.8 mi (4.5 km) section of the Horseshoe Road in Dubuque County was divided into four divisions for this study. This report discusses the procedures used during construction of these different divisions. Problems and possible solutions have been analyzed to better understand the capabilities of the materials and construction techniques used on the project. The project had the following results: High structural ratings and soil K factors for the BIO CAT and Consolid bases did not translate to good roadway performance; the macadam base had the best overall performance; the tensar fabric had no noticeable effect on the macadam base; and the HFE-300 performed acceptably.

Evaluation of Carbide Waste Lime for Soil Stabilization, Progress Report, HR-111

A lime by-product from the manufacture of acetylene from calcium carbide will be commercially available in Iowa. Since the cost of carbide waste lime f.o.b. source is only about half that of ordinary commercial lime, this material was investigated for potential uses in soil stabilization. The by-product lime is calcium hydroxide in a water slurry with approximately 40% solid concentration. Its effectiveness at stabilizing soils was checked by comparing with commercial high-calcium and dolomitic monohydrate varieties of lime. This was done by soil strength and plasticity tests in addition to studies of the reaction products by X-ray diffraction and chemical methods.

Pilot Construction Project for Granular Shoulder Stabilization, TR-634, 2013

Granular shoulders need to be maintained on a regular basis because edge ruts and potholes develop, posing a safety hazard to motorists. The successful mitigation of edge-rut issues for granular shoulders would increase safety and reduce the number of procedures currently required to maintain granular shoulders in Iowa. In addition, better performance of granular shoulders reduces the urgency to pave granular shoulders. Delaying or permanently avoiding paving shoulders where possible allows more flexibility in making investments in the road network. To stabilize shoulders and reduce the number of maintenance cycles necessary per season, one possible stabilizing agent—acidulated soybean oil soapstock—was investigated in this research. A pilot testing project was conducted for selected problematic shoulders in northern and northeastern Iowa. Soapstock was applied on granular shoulders and monitored during application and pre- and post-application. Application techniques were documented and the percentage of application success was calculated for each treated shoulder section. As a result of this research, it was concluded that soybean oil soapstock can be an effective stabilizer for granular shoulders under certain conditions. The researchers also developed draft specifications that could possibly be used to engage a contractor to perform the work using a maintenance-type construction contract. The documented application techniques from this project could be used as guidance for those who want to apply soapstock for stabilizing granular shoulders but might not be familiar with this technique.

Evaluation of Lime as an Additive to Soil-Asphalt Stabilization, HR-1, Progress Report, 1961

This report presents the results of a limited investigation of the use of lime as an auxiliary additive for improving the stabilization of soils with cutback asphalts. It is felt that the data obtained presents additional information on the subject of asphalt stabilization