Monetary Policy, Stock Price Misalignments and Macroeconomic Instability

Perhaps the most fundamental prediction of financial theory is that the expected returns on financial assets are determined by the amount of risk contained in their payoffs. Assets with a riskier payoff pattern should provide higher expected returns than assets that are otherwise similar but provide payoffs that contain less risk. Financial theory also predicts that not all types of risks should be compensated with higher expected returns. It is well-known that the asset-specific risk can be diversified away, whereas the systematic component of risk that affects all assets remains even in large portfolios. Thus, the asset-specific risk that the investor can easily get rid of by diversification should not lead to higher expected returns, and only the shared movement of individual asset returns – the sensitivity of these assets to a set of systematic risk factors – should matter for asset pricing. It is within this framework that this thesis is situated. The first essay proposes a new systematic risk factor, hypothesized to be correlated with changes in investor risk aversion, which manages to explain a large fraction of the return variation in the cross-section of stock returns. The second and third essays investigate the pricing of asset-specific risk, uncorrelated with commonly used risk factors, in the cross-section of stock returns. The three essays mentioned above use stock market data from the U.S. The fourth essay presents a new total return stock market index for the Finnish stock market beginning from the opening of the Helsinki Stock Exchange in 1912 and ending in 1969 when other total return indices become available. Because a total return stock market index for the period prior to 1970 has not been available before, academics and stock market participants have not known the historical return that stock market investors in Finland could have achieved on their investments. The new stock market index presented in essay 4 makes it possible, for the first time, to calculate the historical average return on the Finnish stock market and to conduct further studies that require long time-series of data.

Network Knowledge versus Cluster Knowledge- The Gordian Knot of Knowledge Transfer Concepts

Both management scholars and economic geographers have studied knowledge and argued that the ability to transfer knowledge is critical to competitive success. Networks and other forms for cooperation are often the context when analyzing knowledge transfer within management research, while economic geographers focus on the role of the cluster for knowledge transfer and creation. With the common interest in knowledge transfer, few attempts to interdisciplinary research have been made. The aim of this paper is to outline the knowledge transfer concepts in the two strands of literature of management and economic geography (EG). The paper takes an analytical approach to review the existing contributions and seek to identify the benefits of further interaction between the disciplines. Furthermore, it offers an interpretation of the concepts of cluster and network, and suggests a clearer distinction between their respective definitions. The paper posits that studies of internal networks transcending national borders and clusters are not necessarily mutually exclusive when it comes to transfer of knowledge and the learning process of the firm. Our conclusion is that researchers in general seem to increasingly acknowledge the importance of studying both the effect of and the need for geographical proximity and external networks for the knowledge transfer process, but that there exists equivocalness in defining clusters and networks.

Studies on friction and transfer layer: role of surface texture

Friction influences the nature of transfer layer formed at the interface between tool and metal during sliding. In the present investigation, experiments were conducted using “Inclined Scratch Tester” to understand the effect of surface texture of hard surfaces on coefficient of friction and transfer layer formation. EN8 steel flats were ground to attain surfaces of different textures with different roughness. Then super purity aluminium pins were scratched against the prepared steel flats. Scanning electron micrographs of the contact surfaces of pins and flats were used to reveal the morphology of transfer layer. It was observed that the coefficient of friction and the formation of transfer layer depend primarily on the texture of hard surfaces, but independent of surface roughness of hard surfaces. It was observed that on surfaces that promote plane strain conditions near the surface, the transfer of material takes place due to the plowing action of the asperities. But, on a surface that promotes plane stress conditions the transfer layer was more due to the adhesion component of friction. It was observed that the adhesion component increases for surfaces that have random texture but was constant for the other surfaces

Simultaneous measurement of aerodynamic and heat transfer data for large angle blunt cones in hypersonic shock tunnel

Aerodynamic forces and fore-body convective surface heat transfer rates over a 60 degrees apex-angle blunt cone have been simultaneously measured at a nominal Mach number of 5.75 in the hypersonic shock tunnel HST2. An aluminum model incorporating a three-component accelerometer-based balance system for measuring the aerodynamic forces and an array of platinum thin-film gauges deposited on thermally insulating backing material flush mounted on the model surface is used for convective surface heat transfer measurement in the investigations. The measured value of the drag coefficient varies by about +/-6% from the theoretically estimated value based on the modified Newtonian theory, while the axi-symmetric Navier-Stokes computations overpredict the drag coefficient by about 9%. The normalized values of measured heat transfer rates at 0 degrees angle of attack are about 11% higher than the theoretically estimated values. The aerodynamic and the heat transfer data presented here are very valuable for the validation of CFD codes used for the numerical computation of How fields around hypersonic vehicles.

Transfer of saline tolerance from one strain of rice to another by injection of DNA

Direct injection of genomic DNA from salt tolerant cv. Pokkali into developing floral tillers on IR20 produced transgenic seeds similar to Pokkali in husk colour and which germinated well in 0.2 M NaCl and had a 4-6-fold higher proline content.

Exact solution for the unsteady flow and heat transfer between eccentrically rotating disks

The unsteady heat transfer associated with flow due to eccentrically rotating disks considered by Ramachandra Rao and Kasiviswanathan (1987) is studied via reformulation in terms of cylindrical polar coordinates. The corresponding exact solution of the energy equation is presented when the upper and lower disks are subjected to steady and unsteady temperatures. For an unsteady flow with nonzero mean, the energy equation can be solved by prescribing the temperature on the disk as a sum of steady and oscillatory parts

Transient Momentum and Enthalpy Transfer in Packed Beds at High Reynolds Numbers

An experimental study for transient temperature response and pressure drop in a randomly packed bed at high Reynolds numbers is presented.The packed bed is used as a compact heat exchanger along with a solid-propellant gas generator, to generate room-temperature gases for use in control actuation, air bottle pressurization, etc. Packed beds of lengths 200 and 300 mm were characterized for packing-sphere-based Reynolds numbers ranging from 0.8 x 10(4) to 8.5 x 10(4).The solid packing used in the bed consisted of phi 9.5 mm steel spheres. The bed-to-particle diameter ratio was with the average packed-bed porosity around 0.43. The inlet flow temperature was unsteady and a mesh of spheres was used at either end to eliminate flow entrance and exit effects. Gas temperature and pressure were measured at the entry, exit,and at three axial locations along centerline in the packed beds. The solid packing temperature was measured at three axial locations in the packed bed. A correlation based on the ratio of pressure drop and inlet-flow momentum (Euler number) exhibited an asymptotically decreasing trend with increasing Reynolds number. Axial conduction across the packed bed was found to he negligible in the investigated Reynolds number range. The enthalpy absorption rate to solid packing from hot gases is plotted as a function of a nondimensional time constant for different Reynolds numbers. A longer packed bed had high enthalpy absorption rate at Reynolds number similar to 10(4), which decreased at Reynolds number similar to 10(5). The enthalpy absorption plots can be used for estimating enthalpy drop across packed bed with different material, but for a geometrically similar packing.

Three-Dimensional Unsteady Flow With Heat and Mass Transfer Over a Continuous Stretching Surface

A numerical solution of the unsteady boundary layer equations under similarity assumptions is obtained. The solution represents the three-dimensional unsteady fluid motion caused by the time-dependent stretching of a flat boundary. It has been shown that a self-similar solution exists when either the rate of stretching is decreasing with time or it is constant. Three different numerical techniques are applied and a comparison is made among them as well as with earlier results. Analysis is made for various situations like deceleration in stretching of the boundary, mass transfer at the surface, saddle and nodal point flows, and the effect of a magnetic field. Both the constant temperature and constant heat flux conditions at the wall have been studied.

Correlation between stick-slip frictional sliding and charge transfer

A decade ago, Budakian and Putterman [Phys. Rev. Lett. 85, 1000 (2000)] ascribed friction to the formation of bonds arising from contact charging when a gold tip of a surface force apparatus was dragged on polymethylmethacrylate surface. We propose a stick-slip model that captures the observed correlation between stick-slip events and charge transfer, and the lack of dependence of the scale factor connecting the force jumps and charge transfer on normal load. Here, stick-slip dynamics arises as a competition between the viscoelastic and plastic deformation time scales and that due to the pull speed with contact charging playing a minor role. Our model provides an alternate basis for explaining most experimental results without ascribing friction to contact charging.

Spectroscopic, microscopic and first rheological investigations in charge-transfer interaction induced organogels

This article describes two-component charge-transfer interaction mediated organogels (CT-gels) derived from anthracene carboxamides obtained from 2-amino 2-hydroxymethyl-1,3-propanediol (TRIS), and 2,3-dialkoxyanthracenes as donors, with 2,4,7-trinitrofluorenone (TNF) as the common acceptor. We demonstrate the versatility of TNF as an electron acceptor in the formation of these gels. The effect of subtle changes in the donor structure on the gelation ability has been investigated by varying the alkyl chain length in the dialkoxyanthracene donors, and by varying the position of the TRIS substituent in the anthracene carboxamide donors. Distinct differences have been observed in the nature of the CT-gels based on these two kinds of anthracene donors. It has been reported in the literature that 2,3-dialkoxyanthracenes form gels on their own in various aliphatic hydrocarbons and alcohols for linear alkyl chains bearing at least 6mcarbon atoms (C-6). In the present study, it is shown that themCT-complex of these molecules with TNF is able to gel many alcoholic and a few hydrocarbon solvents. Also, in the presence of TNF, the 2,3-dialkoxyanthracenes (C-4-C-5) which were non-gelators on their own at ambient temperatures, form CT-gels in a number of alcohols. The other series of gelators discussed, the anthracene carboxamides, require the mandatory presence of TNF to form gels. This donor-acceptor complex forms gels in various aliphatic alcohols. Interestingly, the formation of these CT-gels requires rapid cooling in most of the cases. Thermal stability studies with both types of CT-gels indicate an optimum stoichiometry of 1 : 1 between the donor and the acceptor. Dynamic rheological experiments reveal these gels as viscoelastic soft materials, with the mechanical strength of these gels depending on the amount of TNF present. This provides a means to tune the strength of the gel by varying the doping concentration of the acceptor.

Synthesis of both enantiomers of 1-phenylethane-1,2-diol via chirality transfer from bile acid derivatives

Both enantiomers of 1-phenylethane-1,2-diol were synthesized with good to excellent enantioselectivities via selective reduction of the phenylglyoxalates derived from bile acids, followed by reductive cleavage. (C) 2000 Elsevier Science Ltd. All rights reserved.