Hedging under liquidity constraints

Although risk management can be justified by financial distress, the theoretical models usually contain hedging instruments free of funding risk. In practice, management of the counterparty risk in derivative transactions is of enhanced importance, consequently not only is trading on exchanges subject to the presence of a margin account, but also in bilateral (OTC) agreements parties will require margins or collateral from their partners in order to hedge the mark-tomarket loss of the transaction. The aim of this paper is to present and compare two models where the financing need of the hedging instrument also appears, influencing the hedging strategy and the optimal hedging ratio. Both models contain the same source of risk and optimisation criterion, but the liquidity risk is modelled in different ways. In the first model, there is no additional financing resource that can be used to finance the margin account in case of a margin call, which entails the risk of liquidation of the hedging position. In the second model, the financing is available but a given credit spread is to be paid for this, so hedging can become costly.

Financial constraints on research and development

This dissertation examines whether-there exists financial constraints and, if so, their implications for investment in research and development expenditures. It develops a theoretical model of credit rationing and research and development in which both are determined simultaneously and endogenously. The model provides a useful tool to examine different policies that may help alleviate the negative the effect of financial constraints faced by firms.^ The empirical evidence presented deals with two different cases, namely, the motor vehicle industry in Germany (1970-1990) and the electrical machinery industry In Spain (1975-1990).^ The innovation in the empirical analysis is that it follows a novel approach to identify events that allow us to isolate the effect of financial constraints in the determination of research and development.^ Further, empirical evidence is presented to show that in the above two cases financial constraints affect investment in physical capital as well.^ The empirical evidence presented supports the results of the theoretical model developed in this dissertation, showing that financial constraints negatively affect the rate of growth of innovation by reducing the intensity of research and development activity. ^

A theory of constraints service systems improvement method: Case of the airline turnaround problem

This dissertation develops a process improvement method for service operations based on the Theory of Constraints (TOC), a management philosophy that has been shown to be effective in manufacturing for decreasing WIP and improving throughput. While TOC has enjoyed much attention and success in the manufacturing arena, its application to services in general has been limited. The contribution to industry and knowledge is a method for improving global performance measures based on TOC principles. The method proposed in this dissertation will be tested using discrete event simulation based on the scenario of the service factory of airline turnaround operations. To evaluate the method, a simulation model of aircraft turn operations of a U.S. based carrier was made and validated using actual data from airline operations. The model was then adjusted to reflect an application of the Theory of Constraints for determining how to deploy the scarce resource of ramp workers. The results indicate that, given slight modifications to TOC terminology and the development of a method for constraint identification, the Theory of Constraints can be applied with success to services. Bottlenecks in services must be defined as those processes for which the process rates and amount of work remaining are such that completing the process will not be possible without an increase in the process rate. The bottleneck ratio is used to determine to what degree a process is a constraint. Simulation results also suggest that redefining performance measures to reflect a global business perspective of reducing costs related to specific flights versus the operational local optimum approach of turning all aircraft quickly results in significant savings to the company. Savings to the annual operating costs of the airline were simulated to equal 30% of possible current expenses for misconnecting passengers with a modest increase in utilization of the workers through a more efficient heuristic of deploying them to the highest priority tasks. This dissertation contributes to the literature on service operations by describing a dynamic, adaptive dispatch approach to manage service factory operations similar to airline turnaround operations using the management philosophy of the Theory of Constraints.

Seagrass sediments as a global carbon sink: Isotopic constraints

Seagrass meadows are highly productive habitats found along many of the world's coastline, providing important services that support the overall functioning of the coastal zone. The organic carbon that accumulates in seagrass meadows is derived not only from seagrass production but from the trapping of other particles, as the seagrass canopies facilitate sedimentation and reduce resuspension. Here we provide a comprehensive synthesis of the available data to obtain a better understanding of the relative contribution of seagrass and other possible sources of organic matter that accumulate in the sediments of seagrass meadows. The data set includes 219 paired analyses of the carbon isotopic composition of seagrass leaves and sediments from 207 seagrass sites at 88 locations worldwide. Using a three source mixing model and literature values for putative sources, we calculate that the average proportional contribution of seagrass to the surface sediment organic carbon pool is ∼50%. When using the best available estimates of carbon burial rates in seagrass meadows, our data indicate that between 41 and 66 gC m−2 yr−1 originates from seagrass production. Using our global average for allochthonous carbon trapped in seagrass sediments together with a recent estimate of global average net community production, we estimate that carbon burial in seagrass meadows is between 48 and 112 Tg yr−1, showing that seagrass meadows are natural hot spots for carbon sequestration.

Modes of sapropel formation in the eastern Mediterranean: some constraints based on pyrite properties

Pyrite formation within and directly below sapropels in the eastern Mediterranean was governed by the relative rates of sulphide production and Fe liberation and supply to the organic-rich layers. At times of relatively high [SO4]2- reduction, sulphide could diffuse downward from the sapropel and formed pyrite in underlying sediments. The sources of Fe for pyrite formation comprised detrital Fe and diagenetically liberated Fe(II) from sapropel-underlying sediments. In organic-rich sapropels, input of Fe from the water column via Fe sulphide formation in the water may have been important as well. Rapid pyrite formation at high saturation levels resulted in the formation of framboidal pyrite within the sapropels, whereas below the sapropels slow euhedral pyrite formation at low saturation levels occurred. d34S values of pyrite are -33 per mil to -50 per mil. Below the sapropels d34S is lower than within the sapropels, as a result of increased sulphide re-oxidation at times of relatively high sulphide production and concentration when sulphide could escape from the sediment. The percentage of initially formed sulphide that was re-oxidized was estimated from organic carbon fluxes and burial efficiencies in the sediment. It ranges from 34% to 80%, varying significantly between sapropels. Increased palaeoproductivity as well as enhanced preservation contributed to magnified accumulation of organic matter in sapropels.

Patch selection behaviour in the presence of environmental constraints

Habitat selection behaviour is the primary way in which organisms are able to regulate encounters with their biotic and abiotic environment. An individual chooses an area that best meets their current needs, particularly regarding safety and the presence of high-quality food. Several physical aspects of the environment can make it difficult for individuals to assess the relative habitat quality of the areas available, thus leading to suboptimal habitat selection. In this thesis, I investigated the way in which two aquatic habitat constraints - obstacles to movement between patches and turbidity - affected the ability of fish to make optimal patch choices, using threespine stickleback Gasterosteus aculeatus as a model species. Laboratory experiments showed that when movement between patches was hindered by increasingly challenging obstacles, groups of stickleback did not move as freely between the patches, and thus had greater deviations from the predictions of the Ideal Free Distribution (IFD). I also demonstrated that, unlike other species, stickleback do not use turbid environments to avoid predator detection. A trend was seen towards avoidance of a turbid food patch regardless of risk level, although this was not statistically significant. As expected, the stickleback avoided feeding in the presence of a predator regardless of water clarity. Overall, I found that both turbidity and movement constraints can have significant impacts on patch use and distribution in the threespine stickleback. Both turbidity and ease of transit will impact the distribution of ecologically important species like the threespine stickleback, and therefore should be taken into account when studying habitat selection in the wild.

Far-infrared constraints on the contamination by dust-obscured galaxies of high-z dropout searches

The spectral energy distributions (SED) of dusty galaxies at intermediate redshift may look similar to very high-redshift galaxies in the optical/near infrared (NIR) domain. This can lead to the contamination of high-redshift galaxy searches based on broad-band optical/NIR photometry by lower redshift dusty galaxies because both kind of galaxies cannot be distinguished. The contamination rate could be as high as 50%. This work shows how the far-infrared (FIR) domain can help to recognize likely low-z interlopers in an optical/NIR search for high-z galaxies. We analyze the FIR SEDs of two galaxies that are proposed to be very high-redshift (z > 7) dropout candidates based on deep Hawk-I/VLT observations. The FIR SEDs are sampled with PACS/Herschel at 100 and 160 μm, with SPIRE/Herschel at 250, 350 and 500 μm and with LABOCA/APEX at 870 μm. We find that redshifts > 7 would imply extreme FIR SEDs (with dust temperatures >100 K and FIR luminosities >10^13 L_⊙). At z ~ 2, instead, the SEDs of both sources would be compatible with those of typical ultra luminous infrared galaxies or submillimeter galaxies. Considering all available data for these sources from visible to FIR we re-estimate the redshifts and find z ~ 1.6–2.5. Owing to the strong spectral breaks observed in these galaxies, standard templates from the literature fail to reproduce the visible-to-near-IR part of the SEDs even when additional extinction is included. These sources strongly resemble dust-obscured galaxies selected in Spitzer observations with extreme visible-to-FIR colors, and the galaxy GN10 at z = 4. Galaxies with similar SEDs could contaminate other high-redshift surveys.

New constraints on micro-seismicity and stress state in the western part of the North Anatolian Fault Zone : Observations from a dense seismic array

Major funding was provided by the UK Natural Environment Research Council (NERC) under grant NE/I028017/1 and partially supported by Boğaziçi University Research Fund (BAP) under grant 6922. We would like to thank all the project members from the University of Leeds, Boğaziçi University, Kandilli Observatory, Aberdeen University and Sakarya University. I would also like to thank Prof. Ali Pinar and Dr. Kıvanç Kekovalı for their valuable comments. Some of the figures were generated by GMT software (Wessel and Smith, 1995).

New constraints on micro-seismicity and stress state in the western part of the North Anatolian Fault Zone : Observations from a dense seismic array

Major funding was provided by the UK Natural Environment Research Council (NERC) under grant NE/I028017/1 and partially supported by Boğaziçi University Research Fund (BAP) under grant 6922. We would like to thank all the project members from the University of Leeds, Boğaziçi University, Kandilli Observatory, Aberdeen University and Sakarya University. I would also like to thank Prof. Ali Pinar and Dr. Kıvanç Kekovalı for their valuable comments. Some of the figures were generated by GMT software (Wessel and Smith, 1995).

Constraints on community participation in salmon fisheries management in Northwest Russia

Acknowledgements Many parties contributed to making this paper a reality. This research was supported by the European Social and Research Council, grant ESRC ES/K006428/1. The author is particularly grateful to the grant’s holder, Professor David Anderson from the Department of Anthropology, University of Aberdeen, for his various support throughout this research. The Barents Center of the Humanities at Kola Science Center of the Russian Academy of Sciences in Apatity provided important institutional support. Officials from several fisheries management institutions of Arkhangelsk oblast, including Shiriaev Igor Alekseevich from Dvinsko-Pechorskoe Territorial Management Board, Skovorod’ko Artem Aleksandrovich from the Northern Basin Directorate of Fisheries and Water Biological Resources Conservation (Sevrybvod) and Korotenkov Aleksei Anatol’evich from the Fishing Industry Agency of Arkhangelsk oblast were very supportive and shared their knowledge wherever possible. Scholars Studenov Igor Ivanovich and Stasenkov Vladimir Aleksandrovich at Northern branch of the Knipovich Polar Research Institute of Marine Fisheries and Oceanography (SevPINRO) in Arkhangelsk provided their invaluable expertise on marine fisheries. Chairmen of several fishing collective farms – Tuchin Sergei Viktorovich, Samoilov Sergei Nikolaevich and Seliverstova Marina Nikolaevna – offered a great administrative support. Local residents of several villages in Mezen region were extremely generous and hospitable, providing places to stay, warm clothes, food, endless cups of tea, and most valuably, sparing their time. Finally, Natalie Wahnsiedler was a regular companion during fieldwork and a great source of inspiration for this research.

When does female multiple mating evolve to adjust inbreeding? : Effects of inbreeding depression, direct costs, mating constraints, and polyandry as a threshold trait

Peer reviewed

Constraints on syn-rift intrabasinal horst development from alluvial-fan and aeolian deposits (Triassic, Fundy Basin, Nova Scotia).

Peer reviewed

Constraints on synrift intrabasinal horst development from alluvial fan and aeolian deposits (Triassic, Fundy Basin, Nova Scotia)

From: Ventra, D. & Clarke, L. E. (eds) Geology and Geomorphology of Alluvial and Fluvial Fans: Terrestrial and Planetary Perspectives. Geological Society, London, Special Publications, 440, http://doi.org/10.1144/SP440.8 # 2016 The Author(s). Published by The Geological Society of London. All rights reserved

When does female multiple mating evolve to adjust inbreeding? : Effects of inbreeding depression, direct costs, mating constraints, and polyandry as a threshold trait

Ackowledgements: This work was funded by a European Research Council Starting Grant to JMR. All simulations were performed using the Maxwell computing cluster at the University of Aberdeen