An application of capital allocation principles to operational risk

The cost of operational risk refers to the capital needed to a fford the loss generated by ordinary activities of a firm. In this work we demonstrate how allocation principles can be used to the subdivision of the aggregate capital so that the firm can distribute this cost across its various constituents that generate operational risk. Several capital allocation principles are revised. Proportional allocation allows to calculate a relative risk premium to be charged to each unit. An example of fraud risk in the banking sector is presented and some correlation scenarios between business lines are compared. Keywords: solvency, quantile, value at risk, copulas

Allocation of above-ground growth in Pinus sylvestris - impacts of tree size and competition

Abstract

Essays in equilibrium asset pricing

Introduction This dissertation consists of three essays in equilibrium asset pricing. The first chapter studies the asset pricing implications of a general equilibrium model in which real investment is reversible at a cost. Firms face higher costs in contracting than in expanding their capital stock and decide to invest when their productive capital is scarce relative to the overall capital of the economy. Positive shocks to the capital of the firm increase the size of the firm and reduce the value of growth options. As a result, the firm is burdened with more unproductive capital and its value lowers with respect to the accumulated capital. The optimal consumption policy alters the optimal allocation of resources and affects firm's value, generating mean-reverting dynamics for the M/B ratios. The model (1) captures convergence of price-to-book ratios -negative for growth stocks and positive for value stocks - (firm migration), (2) generates deviations from the classic CAPM in line with the cross-sectional variation in expected stock returns and (3) generates a non-monotone relationship between Tobin's q and conditional volatility consistent with the empirical evidence. The second chapter proposes a standard portfolio-choice problem with transaction costs and mean reversion in expected returns. In the presence of transactions costs, no matter how small, arbitrage activity does not necessarily render equal all riskless rates of return. When two such rates follow stochastic processes, it is not optimal immediately to arbitrage out any discrepancy that arises between them. The reason is that immediate arbitrage would induce a definite expenditure of transactions costs whereas, without arbitrage intervention, there exists some, perhaps sufficient, probability that these two interest rates will come back together without any costs having been incurred. Hence, one can surmise that at equilibrium the financial market will permit the coexistence of two riskless rates that are not equal to each other. For analogous reasons, randomly fluctuating expected rates of return on risky assets will be allowed to differ even after correction for risk, leading to important violations of the Capital Asset Pricing Model. The combination of randomness in expected rates of return and proportional transactions costs is a serious blow to existing frictionless pricing models. Finally, in the last chapter I propose a two-countries two-goods general equilibrium economy with uncertainty about the fundamentals' growth rates to study the joint behavior of equity volatilities and correlation at the business cycle frequency. I assume that dividend growth rates jump from one state to other, while countries' switches are possibly correlated. The model is solved in closed-form and the analytical expressions for stock prices are reported. When calibrated to the empirical data of United States and United Kingdom, the results show that, given the existing degree of synchronization across these business cycles, the model captures quite well the historical patterns of stock return volatilities. Moreover, I can explain the time behavior of the correlation, but exclusively under the assumption of a global business cycle.

Iowa Department of Natural Resources, Strategic Plan, FY 2014-2017

This report outlines the strategic plan for Iowa Department of Natural Resources, goals and mission.

Geology and ground-water resources of Cerro Gordo County, Iowa, 1970

The purposes of this report are to delineate and describe aquifers in Cerro Gordo County, evaluate the availability and quality of water in the aquifers, supply data on ground-water utilization, and determine the rate of growth and the magnitude of the cone of drawdown in the Mason City area. It includes photos and fold-out maps

When several queens reign: how polygyny affects social life in ants

Astract: The aim of this thesis was to investigate how the presence of multiple queens (polygyny) affects social organization in colonies of the ant Formica exsecta. This is important because polygyny results in reduced relatedness among colony members and therefore reflects a potential paradox for altruistic cooperation being explained by inclusive fitness theory. The reason for this is that workers in polygynous colonies rear no longer only their siblings (high inclusive fitness gain) but also more distantly ox even unrelated brood (low or no inclusive fitness gain). All research projects conducted in this thesis are novel and significant contributions to the understanding of the social evolution of insect societies. We used a mixture of experimental and observational methodologies in laboratory and field colonies of F. exsecta to examine four important aspects of social life that are impacted by polygyny. First, we investigated the influence of queen number on colony sex allocation and found that the number of queens present in a colony significantly affects colony sex ratio investment. The data were consistent with the queen-replenishment hypothesis, which is based on the observation that newly mated queens are often recruited back to their parental nest. According to this theory, colonies containing many queens should only produce males due to local resource competition (i.e. related queens compete for common resources), whereas colonies hosting few queens benefit most from producing new queens to ensure colony survival. Second, we examined how reproduction is partitioned among nestmate queens. We detected a novel pattern of reproductive partitioning whereby a high proportion of queens were completely specialized in the production of only a subset of offspring classes produced within a colony, which might translate into great differences in reproductive success between queens. Third, we could demonstrate that F. exsecta workers indiscriminately reared highly related and unrelated brood although such nepotistic behaviour (preferential rearing of relatives) would be predicted by inclusive fitness theory. The absence of nepotism is probably best explained by its negative effects on overall colony efficiency. Finally, we conducted a detailed population genetic analysis, which revealed that the genetic population structure is different for queens and workers. Our data were best explained with queens forming family-based groups (multicolonial population structure), whereas workers from several nests seemed to be grouped into larger unites (unicolonial population structure) with workers moving freely between neighbouring nests. Altogether, the presented work significantly increased our understanding of the complex organization of polygynous social insect colonies and shows how an important life history trait such as queen number affects social organization at various levels. Résumé: Le but de cette thèse était d'étudier comment la présence de plusieurs reines par colonie (polygynie) influence la vie sociale chez la fourmi Formica exsecta. Ce sujet est important parce que la polygynie chez les insectes sociaux présente un passible paradoxe au niveau de la théorie du "fitness inclusive". Ce paradoxe est basé sur le fait que les ouvrières n'élèvent plus uniquement leurs frères et soeurs (gain de "fitness inclusive" maximale), mais également des individus moins ou pas du tout apparentés (gain de "fitness inclusive" réduit ou absent). Tous les projets de recherche présentés au cours de cette thèse apportent une meilleure compréhension et connaissance au niveau de l'organisation des colonies chez les insectes sociaux. Nous avons employé des méthodes d'observation et de laboratoire afin de mettre en évidence des aspects importants de la vie sociale chez les fourmis influencés par la polygynie. Quatre aspects ont été caractérisés : (1) l'influence du nombre de reines sur le sexe ratio produit par la colonie. Nous avons démontré que les colonies contenant beaucoup de reines produisaient rarement des reines tandis que les colonies contenant peu de reines souvent investissaient beaucoup de ressources dans la production des reines. Ces résultats sont en accord avec la "queen-replenishment hypothesis" qui est basé sur l'observation que les nouvelles reines sont recrutées dans la colonie où elles étaient nées. Cette hypothèse postule que la production des reines est défavorable dans les colonies contenant beaucoup de reines, parce que ces reines apparentées, rentrent en compétition pour des ressources communes. Au contraire, la production des reines est favorable dans des colonies contenant peu de reines afin d'assurer la survie de la colonie ; (2) comment les reines dans une colonie répartissent leur reproduction. Nous avons mis en évidence un nouveau pattern de cette répartition où une grande proportion de reines est complètement spécialisée dans la production d'un seul type de couvain ce qui probablement aboutit à des différences significatives entre reines dans le succès reproducteur ; (3) la capacité des ouvrières à discriminer un couvain de soeur d'un couvain non apparenté. Les résultats ont montré que les ouvrières ne font pas de discrimination entre le couvain de soeur et le couvain non apparenté ce qui n'est pas en accord avec la théorie de la "fitness inclusive". Cette absence de discrimination est probablement due à des effets négatifs comme par exemple la diminution de la production du couvain; (4) la structure génétique d'une population de F. exsecta. Nous avons mis en évidence que la structure génétique entre des groupes de reines est significativement différente de la structure génétique entre des groupes d'ouvrières. Les données suggèrent que les reines forment des groupes basés sur une structure familiale tandis que les ouvrières sont groupées dans des unités plus grandes.

Audit report on the Iowa Water Pollution Control Works Financing Program and the Iowa Drinking Water Facilities Financing Program, joint programs of the Iowa Finance Authority and the Iowa Department of Natural Resources, for the year ended June 30, 2014

Audit report on the Iowa Water Pollution Control Works Financing Program and the Iowa Drinking Water Facilities Financing Program, joint programs of the Iowa Finance Authority and the Iowa Department of Natural Resources, for the year ended June 30, 2014

Spatial Polarization of the Ecological Footprint distribution

The international allocation of natural resources is determined, not by any ethical or ecological criteria, but by the dominance of market mechanisms. From a core-periphery perspective, this allocation may even be driven by historically determined structural patterns, with a core group of countries whose consumption appropriates most available natural resources, and another group, having low natural resource consumption, which plays a peripheral role. This article consists of an empirical distributional analysis of natural resource consumption (as measured by Ecological Footprints) whose purpose is to assess the extent to which the distribution of consumption responds to polarization (as opposed to mere inequality). To assess this, we estimate and decompose different polarization indices for a balanced sample of 119 countries over the period 1961 to 2007. Our results points toward a polarized distribution which is consistent with a core-periphery framework.

Resources for career education, 1977.

This document contains a multitude of resources for career education available to Iowans from many sources.

Audit report on the Iowa Water Pollution Control Works Financing Program (Clean Water Program) and the Iowa Drinking Water Facilities Financing Program (Drinking Water Program), joint programs of the Iowa Finance Authority and the Iowa Department of Natural Resources, for the year ended June 30, 2005

Audit report on the Iowa Water Pollution Control Works Financing Program (Clean Water Program) and the Iowa Drinking Water Facilities Financing Program (Drinking Water Program), joint programs of the Iowa Finance Authority and the Iowa Department of Natural Resources, for the year ended June 30, 2005

Audit report on the Iowa Water Pollution Control Works Financing Program (Clean Water Program) and the Iowa Drinking Water Facilities Financing Program (Drinking Water Program), joint programs of the Iowa Finance Authority and the Iowa Department of Natural Resources, for the year ended June 30, 2004

Audit report on the Iowa Water Pollution Control Works Financing Program (Clean Water Program) and the Iowa Drinking Water Facilities Financing Program (Drinking Water Program), joint programs of the Iowa Finance Authority and the Iowa Department of Natural Resources, for the year ended June 30, 2004

Partisan targeting of inter-governmental transfers & state interference in local elections: evidence from Spain

[spa] En este trabajo examinamos si, en la asignación de transferencias, los gobernantes regionales discriminan a favor de los gobiernos locales controlados por el mismo partido político, y si las perspectivas electorales de los gobiernos locales mejoran si están políticamente alineados con el gobierno regional. Con una nueva base de datos que considera 3.000 municipios españoles durante el período 2000-07 y un diseño de discontinuidad en la regresión, documentamos un efecto robusto de importante magnitud: en elecciones ajustadas, los municipios alineados con el gobierno regional reciben, en media, un 83% más de transferencias per cápita y su gobernante obtiene un 10% más de votos en las elecciones locales. También demostramos que el efecto de la alineación política es mayor: (i) si las elecciones regionales y locales se celebran el mismo día, (ii) en regiones donde las elecciones regionales son menos competidas, y (iii) en regiones con más recursos presupuestarios.

Partisan targeting of inter-governmental transfers & state interference in local elections: evidence from Spain

[spa] En este trabajo examinamos si, en la asignación de transferencias, los gobernantes regionales discriminan a favor de los gobiernos locales controlados por el mismo partido político, y si las perspectivas electorales de los gobiernos locales mejoran si están políticamente alineados con el gobierno regional. Con una nueva base de datos que considera 3.000 municipios españoles durante el período 2000-07 y un diseño de discontinuidad en la regresión, documentamos un efecto robusto de importante magnitud: en elecciones ajustadas, los municipios alineados con el gobierno regional reciben, en media, un 83% más de transferencias per cápita y su gobernante obtiene un 10% más de votos en las elecciones locales. También demostramos que el efecto de la alineación política es mayor: (i) si las elecciones regionales y locales se celebran el mismo día, (ii) en regiones donde las elecciones regionales son menos competidas, y (iii) en regiones con más recursos presupuestarios.