Does liquidity constraints matter for Ricardian equivalence?

The paper analysis a general equilibrium model with two periods, several households and a government that has to finance some expenditures in the first period. Households may have some private information either about their type (adverse selection) or about some action levei chosen in the first period that affects the probability of certain states of nature in the second period (moral hazard). Trade of financiai assets are intermediated by a finite collection of banks. Banks objective functions are determined in equilibrium by shareholders. Due to private information it may be optimal for the banks to introduce constraints in the set of available portfolios for each household as wellas household specific asset prices. In particular, households may face distinct interest rates for holding the risk-free asset. The government finances its expenditures either by taxing households in the first period or by issuing bonds in the first period and taxing households in the second period. Taxes may be state-dependent. Suppose government policies are neutml: i) government policies do not affect the distribution of wealth across households; and ii) if the government decides to tax a household in the second period there is a portfolio available for the banks that generates the Mme payoff in each state of nature as the household taxes. Tben, Ricardian equivalence holds if and only if an appropriate boundary condition is satisfied. Moreover, at every free-entry equilibrium the boundary condition is satisfied and thus Ricardian equivalence holds. These results do not require any particular assumption on the banks' objective function. In particular, we do not assume banks to be risk neutral.

Nonlinear pricing beyond the demand profile approach

Wilson [16] introduced a general methodology to deal with monopolistic pricing in situations where customers have private information on their tastes (‘types’). It is based on the demand profile of customers: For each nonlinear tariff by the monopolist the demand at a given level of product (or quality) is the measure of customers’ types whose marginal utility is at least the marginal tariff (‘price’). When the customers’ marginal utility has a natural ordering (i.e., the Spence and Mirrlees Condition), such demand profile is very easy to perform. In this paper we will present a particular model with one-dimensional type where the Spence and Mirrlees condition (SMC) fails and the demand profile approach results in a suboptimal solution for the monopolist. Moreover, we will suggest a generalization of the demand profile procedure that improves the monopolist’s profit when the SMC does not hold.

Bank relationships: effect on the availability and marginal cost of credit for firms in Argentina

The paper provides evidence on what affects at the margin the cost and availability of bank credit for firms in Argentina. We study in particular how banks use different pieces of private and public information to screen firms and overcome informational asymmetries in the credit market. Some private information is transferable, like balance sheet data. Private information generated in relationships is not. To capture the closeness of bank relationships, we resort to the concentration of bank credit and the number of credit lines in a bank. We also consider public information available in the Central de Deudores. The cost of credit is measured using overdrafts, the most expensive line of credit, at the bank that charges the highest rate for overdrafts. We find that the cost of credit is smaller for a firm with a close relationship to the marginal bank. Firms with large assets, a high sales/assets ratio, and a low debt/assets ratio pay a lower interest rate at the margin. A good credit history (no debt arrears and no bounced checks) and collateral also reduce the marginal interest rate. The availability of credit is measured by unused credit lines as a proportion of total liabilities with the main bank. The availability of credit depends positively on a close relationship with the main bank. Large assets, a high return over assets, a high sales/assets ratio, a low debt/assets ratio, a good credit history, and collateral lead to higher credit availability. Our measure of unused credit lines is less ambiguous than traditional measures like leverage, which may indicate financial distress rather than availability of credit.

Informational synergies in consumer credit

Lenders can tap into multiple sources of private information to assess consumer credit risk but little is known about the informational synergies between these sources. Using unique panel data on checking accounts and credit card accounts from the same customers during 2007-2014, we find that activity measures from both account types contain information beyond credit scores and other controls. Checking accounts display warning indications earlier and more accurately than credit card accounts. We also investigate the consistency of information, the reasons for defaults, and selection effects. The evidence highlights sizeable informational synergies that lenders can use to manage credit relationships.

Optimal Mirrleesian taxation in non-competitive labor markets

We study optimal labor income taxation in non-competitive labor markets. Firms offer screening contracts to workers who have private information about their productivity. A planner endowed with a Paretian social welfare function tries to induce allocations that maximize its objective. We provide necessary and sufficient conditions for implementation of constrained efficient allocations using tax schedules. All allocations that are implementable by a tax schedule display negative marginal tax rates for almost all workers. Not all allocations that are implementable in a competitive setting are implementable in this noncompetitive environment.

Limited liability and non-responsiveness in moral hazard and adverse selection problems

This work analyses the optimal menu of contracts offered by a risk neutral principal to a risk averse agent under moral hazard, adverse selection and limited liability. There are two output levels, whose probability of occurrence are given by agent’s private information choice of effort. The agent’s cost of effort is also private information. First, we show that without assumptions on the cost function, it is not possible to guarantee that the optimal contract menu is simple, when the agent is strictly risk averse. Then, we provide sufficient conditions over the cost function under which it is optimal to offer a single contract, independently of agent’s risk aversion. Our full-pooling cases are caused by non-responsiveness, which is induced by the high cost of enforcing higher effort levels. Also, we show that limited liability generates non-responsiveness.

Combating shoulder-surfing: a hidden button gesture based scheme

This project describes an authentication technique that is shoulder-surfing resistant. Shoulder surfing is an attack in which an attacker can get access to private information by observing the user’s interaction with a terminal, or by using recording tools to record the user interaction and study the obtained data, with the objective of obtaining unauthorized access to a target user’s personal information. The technique described here relies on gestural analysis coupled with a secondary channel of authentication that uses button pressing. The thesis presents and evaluates multiple alternative algorithms for gesture analysis, and furthermore assesses the effectiveness of the technique.

The secret life of software applications

One of the most undervalued problems by smartphone users is the security of data on their mobile devices. Today smartphones and tablets are used to send messages and photos and especially to stay connected with social networks, forums and other platforms. These devices contain a lot of private information like passwords, phone numbers, private photos, emails, etc. and an attacker may choose to steal or destroy this information. The main topic of this thesis is the security of the applications present on the most popular stores (App Store for iOS and Play Store for Android) and of their mechanisms for the management of security. The analysis is focused on how the architecture of the two systems protects users from threats and highlights the real presence of malware and spyware in their respective application stores. The work described in subsequent chapters explains the study of the behavior of 50 Android applications and 50 iOS applications performed using network analysis software. Furthermore, this thesis presents some statistics about malware and spyware present on the respective stores and the permissions they require. At the end the reader will be able to understand how to recognize malicious applications and which of the two systems is more suitable for him. This is how this thesis is structured. The first chapter introduces the security mechanisms of the Android and iOS platform architectures and the security mechanisms of their respective application stores. The Second chapter explains the work done, what, why and how we have chosen the tools needed to complete our analysis. The third chapter discusses about the execution of tests, the protocol followed and the approach to assess the “level of danger” of each application that has been checked. The fourth chapter explains the results of the tests and introduces some statistics on the presence of malicious applications on Play Store and App Store. The fifth chapter is devoted to the study of the users, what they think about and how they might avoid malicious applications. The sixth chapter seeks to establish, following our methodology, what application store is safer. In the end, the seventh chapter concludes the thesis.

Privacy Panel: Usable and Quantifiable Mobile Privacy

The ever increasing popularity of apps stems from their ability to provide highly customized services to the user. The flip side is that in order to provide such services, apps need access to very sensitive private information about the user. This leads to malicious apps that collect personal user information in the background and exploit it in various ways. Studies have shown that current app vetting processes which are mainly restricted to install time verification mechanisms are incapable of detecting and preventing such attacks. We argue that the missing fundamental aspect here is a comprehensive and usable mobile privacy solution, one that not only protects the user's location information, but also other equally sensitive user data such as the user's contacts and documents. A solution that is usable by the average user who does not understand or care about the low level technical details. To bridge this gap, we propose privacy metrics that quantify low-level app accesses in terms of privacy impact and transforms them to high-level user understandable ratings. We also provide the design and architecture of our Privacy Panel app that represents the computed ratings in a graphical user-friendly format and allows the user to define policies based on them. Finally, experimental results are given to validate the scalability of the proposed solution.

Expectations, and Credibility in a Model of Monetary Policy

Recent monetary history has been characterized by monetary authorities which have been, alternatively hard and soft on inflation. In a vintage capital framework, investment decisions are not easily reversed. Therefore, expectations of policy as well as current policy are important to the investment decision. Here, a vintage capital model is used to assess the value of central bank credibility for a policy change. Policy in this model is assumed to be private information of the central banker. Agents learn about that policy which to study the ensuing transitional dynamics following a change in monetary policy regime.

Search, Seizure and (False?) Arrest: An Analysis of Fourth Amendment Remedies when Police can Plant Evidence

The Fourth Amendment prohibits unreasonable searches and seizures in criminal investigations. The Supreme Court has interpreted this to require that police obtain a warrant prior to search and that illegally seized evidence be excluded from trial. A consensus has developed in the law and economics literature that tort liability for police officers is a superior means of deterring unreasonable searches. We argue that this conclusion depends on the assumption of truth-seeking police, and develop a game-theoretic model to compare the two remedies when some police officers (the bad type) are willing to plant evidence in order to obtain convictions, even though other police (the good type) are not (where this type is private information). We characterize the perfect Bayesian equilibria of the asymmetric-information game between the police and a court that seeks to minimize error costs in deciding whether to convict or acquit suspects. In this framework, we show that the exclusionary rule with a warrant requirement leads to superior outcomes (relative to tort liability) in terms of truth-finding function of courts, because the warrant requirement can reduce the scope for bad types of police to plant evidence

Bounding ATE with ITT

We propose the bounds on ATE using intention-to-treat (ITT) estimator when there are compliers/noncompliers in randomized trials. The bounds are given as ITTNACE, (2) noncompliers' average treatment effect (NACE) is nonnegative. We give an example of poverty impacts of health insurance, and effects of adverse selection and moral hazard of health insurance.

Some notes on the spatial representations

There are conventional methods to calculate the centroid of spatial units and distance among them with using Geographical Information Systems (GIS). The paper points out potential measurement errors of this calculation. By taking Indian district data as an example, systematic errors concealed in such variables are shown. Two comparisons are examined; firstly, we compare the centroid obtained from the spatial units, polygons, and the centre of each city where its district headquarters locates. Secondly, between the centres represented in the above, we calculate the direct distances and road distances obtained from each pair of two districts. From the comparison between the direct distances of centroid of spatial units and the road distances of centre of district headquarters, we show the distribution of errors and list some caveats for the use of conventional variables obtained from GIS.

Tecnología cloud para el hogar digital

El mundo tecnológico está cambiando hacia la optimización en la gestión de recursos gracias a la poderosa influencia de tecnologías como la virtualización y la computación en la nube (Cloud Computing). En esta memoria se realiza un acercamiento a las mismas, desde las causas que las motivaron hasta sus últimas tendencias, pasando por la identificación de sus principales características, ventajas e inconvenientes. Por otro lado, el Hogar Digital es ya una realidad para la mayoría de los seres humanos. En él se dispone de acceso a múltiples tipos de redes de telecomunicaciones (3G, 4G, WI-FI, ADSL…) con más o menos capacidad pero que permiten conexiones a internet desde cualquier parte, en todo momento, y con prácticamente cualquier dispositivo (ordenadores personales, smartphones, tabletas, televisores…). Esto es aprovechado por las empresas para ofrecer todo tipo de servicios. Algunos de estos servicios están basados en el cloud computing sobre todo ofreciendo almacenamiento en la nube a aquellos dispositivos con capacidad reducida, como son los smarthphones y las tabletas. Ese espacio de almacenamiento normalmente está en los servidores bajo el control de grandes compañías. Guardar documentos, videos, fotos privadas sin tener la certeza de que estos no son consultados por alguien sin consentimiento, puede despertar en el usuario cierto recelo. Para estos usuarios que desean control sobre su intimidad, se ofrece la posibilidad de que sea el propio usuario el que monte sus propios servidores y su propio servicio cloud para compartir su información privada sólo con sus familiares y amigos o con cualquiera al que le dé permiso. Durante el proyecto se han comparado diversas soluciones, la mayoría de código abierto y de libre distribución, que permiten desplegar como mínimo un servicio de almacenamiento accesible a través de Internet. Algunas de ellas lo complementan con servicios de streaming tanto de música como de videos, compartición y sincronización de documentos entre múltiples dispositivos, calendarios, copias de respaldo (backups), virtualización de escritorios, versionado de ficheros, chats, etc. El proyecto finaliza con una demostración de cómo utilizar dispositivos de un hogar digital interactuando con un servidor Cloud, en el que previamente se ha instalado y configurado una de las soluciones comparadas. Este servidor quedará empaquetado en una máquina virtual para que sea fácilmente transportable e utilizable. ABSTRACT. The technological world is changing towards optimizing resource management thanks to the powerful influence of technologies such as Virtualization and Cloud Computing. This document presents a closer approach to them, from the causes that have motivated to their last trends, as well as showing their main features, advantages and disadvantages. In addition, the Digital Home is a reality for most humans. It provides access to multiple types of telecommunication networks (3G, 4G, WI-FI, ADSL...) with more or less capacity, allowing Internet connections from anywhere, at any time, and with virtually any device (computer personal smartphones, tablets, televisions...).This is used by companies to provide all kinds of services. Some of these services offer storage on the cloud to devices with limited capacity, such as smartphones and tablets. That is normally storage space on servers under the control of important companies. Saving private documents, videos, photos, without being sure that they are not viewed by anyone without consent, can wake up suspicions in some users. For those users who want control over their privacy, it offers the possibility that it is the user himself to mount his own server and its own cloud service to share private information only with family and friends or with anyone with consent. During the project I have compared different solutions, most open source and with GNU licenses, for deploying one storage facility accessible via the Internet. Some supplement include streaming services of music , videos or photos, sharing and syncing documents across multiple devices, calendars, backups, desktop virtualization, file versioning, chats... The project ends with a demonstration of how to use our digital home devices interacting with a cloud server where one of the solutions compared is installed and configured. This server will be packaged in a virtual machine to be easily transportable and usable.

Integration of multisensor hybrid reasoners to support personal autonomy in the smart home.

The deployment of the Ambient Intelligence (AmI) paradigm requires designing and integrating user-centered smart environments to assist people in their daily life activities. This research paper details an integration and validation of multiple heterogeneous sensors with hybrid reasoners that support decision making in order to monitor personal and environmental data at a smart home in a private way. The results innovate on knowledge-based platforms, distributed sensors, connected objects, accessibility and authentication methods to promote independent living for elderly people. TALISMAN+, the AmI framework deployed, integrates four subsystems in the smart home: (i) a mobile biomedical telemonitoring platform to provide elderly patients with continuous disease management; (ii) an integration middleware that allows context capture from heterogeneous sensors to program environment¿s reaction; (iii) a vision system for intelligent monitoring of daily activities in the home; and (iv) an ontologies-based integrated reasoning platform to trigger local actions and manage private information in the smart home. The framework was integrated in two real running environments, the UPM Accessible Digital Home and MetalTIC house, and successfully validated by five experts in home care, elderly people and personal autonomy.