Technology-related peso problems in stock returns

Although empirical evidence suggests the contrary, many asset pricing models assume stock returns to be symmetrically distributed. In this paper it is argued that the occurrence of negative jumps in a firm's future earnings and, consequently, in its stock price, is positively related to the level of network externalities in the firm's product market. If the ex post frequency of these negative jumps in a sample does not equal the ex ante assessed probability of occurrence, the sample is subject to a peso problem. The hypothesis is tested for by regressing the skewness coefficient of a firm’s realised stock return distribution on the firm’s R&D intensity, i.e. the ratio of the firm’s research and development expenditure to its net sales. The empirical results support the technology-related peso problem hypothesis. In samples subject to such a peso problem, the returns are biased up and the variance is biased down.

What is A Virtual Service?- Broadening the Perspective on Technology-Based Services

This article expands the discussion of the impact of technology on services and contributes to a broader comprehension of the nature of virtual services. This is done by discovering dimensions that distinguish physical services from virtual services, i.e. services that are distributed by electronic means and where the customer has no direct human interaction with the service provider. Differences in the core characteristics of services, servicescape and service delivery are discussed. Moreover, dimensions that differentiate between virtual services are analysed. A classification scheme for virtual services is proposed, including the origin of the service, the element of the service offering, the customisation process, stage of the service process performed, and the degree of mobility of the service.

Optimum atomic spacing for AlAs etching in GaAs epitaxial lift-off technology

With respect to GaAs epitaxial lift-off technology, we report here the optimum atomic spacing (5-10 nm) needed to etch off the AlAs release layer that is sandwiched between two GaAs epitaxial layers. The AlAs etching rate in hydrofluoric acid based solutions was monitored as a function of release layer thickness. We found a sudden quenching in the etching rate, approximately 20 times that of the peak value, at lower dimensions (similar to2.5 nm) of the AlAs epitaxial layer. Since this cannot be explained on the basis of a previous theory (inverse square root of release layer thickness), we propose a diffusion-limited mechanism to explain this reaction process. With the diffusion constant being a mean-free-path-dependent parameter, a relation between the mean free path and the width of the channel is considered. This relation is in reasonable agreement with the experimental results and gives a good physical insight to the reaction kinetics.

Studies in biogas technology. Part IV. A novel biogas plant incorporating a solar water-heater and solar still

A reduction in the heat losses from the top of the gas holder of a biogas plant has been achieved by the simple device of a transparent cover. The heat losses thus prevented have been deployed to heat a water pond formed on the roof of the gas holder. This solar-heated water is mixed with the organic input for ‘ hot-charging ’ of the biogas plant. A thermal analysis of such a solar water-heater ‘ piggy-backing ’ on the gas holder of a biogas plant has been carried out.To test whether the advantages indicated by the thermal analysis can be realised in practice, a biogas plant of the ASTRA design was modified to incorporate a roof-top solar water-heater. The operation of such a modified plant, even under ‘ worst case ’ onditions, shows a significant improvement in the gas yield compared to the unmodified plant. Hence, the innovation reported here may lead to drastic reductions in the sizes and therefore costs of biogas plants. By making the transparent cover assume a tent-shape, the roof-top solar heater can serve the additional function of a solar still to yield distilled water. The biogas plant-cum-solar water-heater-cum-solar still described here is an example of a spatially integrated hybrid device which is extremely cost-effective.

Studies in biogas technology. Part III. Thermal analysis of biogas plants

A thermal model for a conventional biogas plant has been developed in order to understand the heat transfer from the slurry and the gas holder to the surrounding earth and air respectively. The computations have been performed for two conditions : (i) when the slurry is at an ambient temperature of 20°C, and (ii) when it is at 35°C, the optimum temperature for anaerobic fermentation. Under both these conditions, the gas holder is the major “culprit” with regard to heat losses from the biogas plant. The calculations provide an estimate for the heat which has to be supplied by external means to compensate for the net heat losses which occur if the slurry is to be maintained at 35°C. Even if this external supply of heat is realised through (the calorific value of) biogas, there is a net increase in the biogas output, and therefore a net benefit, by operating the plant at 35°C. At this elevated temperature, the cooling effect of adding the influent at ambient temperature is not insignificant. In conclusion, the results of the thermal analysis are used to define a strategy for operating biogas plants at optimum temperatures, or at higher temperatures than the ambient.

Studies in biogas technology. Part II. Optimisation of plant dimensions

In this paper, the design basis of the conventional Khadi and Village Industries Commission biogas plants has been elucidated. It has been shown that minimisation of the cost of the gas holder alone leads to the narrow and deep digesters of conventional plants. If instead, the total capital cost of the gas holder plus digester is minimised, the optimisation leads to wide and shallow digesters, which are less expensive. To test this alternative, two prototype plants have been designed, constructed and operated. These plants are not only 25–40% cheaper, but their performance is actually slightly better than the conventional plants.

Studies in biogas technology. Part I. Performance of a conventional biogas plant

This paper gives an account of a conventional 5.66 m3/day (200 cubic ft/day) biogas plant which has been instrumented, operated and monitored for 2 1/2 years. The observations regarding input to the plant, sludge and biogas outputs, and conditions inside the digester, have been described. Three salient features stand out. First, the observed average daily gas yield is much less than the rated capacity of the plant. Secondly, the plants show ease of operation and a very slow response to reductions and cessations of dung supply. Thirdly, the unexpectedly marked uniformity of density and temperature inside the digester indicates the almost complete absence of the stratification which is widely believed to take place; hence, biogas plants may be treated as isothermal, ‘ uniform ’ density, most probably imperfectly mixed, fed-batch reactors operating at the mean ambient temperature and the density of water.