bluuebunny/crossref_metadata_2025 huggingface dataset:
ESTIMATING THE TAX BENEFITS OF DEBT
Authors: Graham John
Published: April 2005

The standard approach to valuing interest tax shields assumes that full tax benefits are realized on every dollar of interest deduction in every scenario. The approach presented in this paper takes account of the possibility that interest tax shields cannot be used in some scenarios, in part because of variations in the firm's profitability. Because of the dynamic nature of the tax code (e.g., tax‐loss carrybacks and carryforwards), it is necessary to consider past and future taxable income when estimating today's effective marginal tax rate. The paper uses a series of numerical examples to show that (1) the incremental value of an extra dollar of interest deduction is equal to the marginal tax rate appropriate for that dollar; and (2) a firm's effective marginal tax rate (and therefore the marginal benefit of incremental interest deductions) can actually decline as the firm takes on additional debt.

Based on marginal benefit functions for thousands of firms from 1980–1999, the author concludes that the tax benefits of debt averaged approximately 10% of firm value during the 1980s, while declining to around 8% in the 1990s. By taking maximum advantage of the interest tax shield, the average firm could have increased its value by approximately 15% over the 1980s and 1990s, suggesting that the consequences of being underlevered are significant. Surprisingly, many of the companies that appear best able to service debt (i.e., those with the lowest apparent costs of debt) use the least amount of debt, on average. Treasurers and CFOs should critically reevaluate their companies' debt policies and consider the benefits of additional leverage, even if taking on more debt causes their credit ratings to slip a notch.
THE RISE OF FUTURE FLOW ASSET SECURITIZATIONS
Authors: Gandy Steven L. , Festa Jerome F.
Published: April 2005

Since their debut in 1987, future flow asset securitizations (FFS) have found growing acceptance in markets worldwide. FFS are defined simply as the forward sale of hard currency receivables to be generated in the future through normal business operations by an exporter of goods or services. The most widely used receivables include export receivables for corporations, and credit card vouchers, electronic transfers, and paper‐based remittances for financial institutions. While companies in emerging markets have led the way in embracing FFS, the instrument's versatility has also made it valuable in industrialized countries where both companies and governments have begun to employ these structures for a variety of purposes.

This article surveys the use of future flow asset securitizations in both emerging and highly developed markets, outlines its basic structure and applications, and evaluates the benefits of the structure to each party to the transaction. Among the most significant advantages in emerging markets is the financial discipline that countries and companies alike must practice in order to qualify for a future flow asset securitization. The authors present three cases where FFS have been employed successfully by companies in Brazil, Mexico, and Turkey.

The risk management features of FFS make this instrument particularly valuable in times of economic stress. In fact, no investment‐grade FFS transactions have defaulted, despite volatile economic conditions in many countries where FFS have been issued. The authors predict that FFS will continue to find broad applications in a wide variety of markets.
WHY ISSUE TRACKING STOCK? INSIGHTS FROM A COMPARISON WITH SPIN‐OFFS AND CARVE‐OUTS
Authors: Chemmanur Thomas J. , Paeglis Imants
Published: April 2005

In recent years, tracking stocks, which amount to a new form of corporate restructuring, have been gaining in popularity. In 1999 alone, 17 companies announced new tracking stock issues, and by February 2000 there were 40 tracking stocks trading in the U.S. equity markets. Why have tracking stocks become so popular in recent years? In this article, the authors present new evidence on the effectiveness of tracking stock issues in creating shareholder value as compared to the record of two other closely related forms of corporate restructuring—spin‐offs and equity carve‐outs.

The authors find that the parents and subsidiaries of tracking‐stock firms are more “related” than those that undertake the other two forms of corporate restructuring, that there is a positive announcement effect (similar in size to that of spin‐offs but greater than that of equity carve‐outs) on stock prices, and that the number of analysts following the firm increases following the issuance of tracking stock. These findings are interpreted as suggesting that the main corporate motives for issuing tracking stock are the valuation benefits from providing investors with more information about the newly listed subsidiary, while at the same time preserving the existing synergies between the business units involved.

This maintenance of existing synergies, however, appears to have come at a significant price. Under the tracking stock structure, there seem to be no benefits attributable, as in the case of spin‐offs, to improvements in corporate governance. While spinoffs significantly increase the probability that the parents or subsidiaries will later be taken over (with its disciplining effect on management), there is no such increase in takeover probability for firms issuing tracking stock. Consistent with this difference, the authors find that the market‐adjusted two‐year holding period return for tracking stock parents and subsidiaries is significantly lower than the corresponding return for spinoffs and their corporate parents.
COMPETITION AND REGULATION IN THE U.K. ELECTRICITY INDUSTRY (WITH A BRIEF LOOK AT CALIFORNIA)
Authors: Littlechild Stephen C.
Published: April 2005

In this article, the U.K.'s Director General of Electricity Supply from 1989 to 1998 assesses the effects of deregulation and competition on the U.K. electricity industry after about a decade. Expansion of existing competitors, new entry, and further restructuring have reduced the aggregate share of the largest two generation companies from nearly 80% to 26%. Efficiency has improved and wholesale prices have fallen after an initial increase. Voluntary bilateral contracts markets are about to replace the mandatory “Pool,” with centralised control limited to physically balancing the system and settling contract imbalances. Retail supply competition has been active for large industrial customers since the beginning, and 80% of them now buy from another supplier. The market for residential customers opened in early 1999, and already nearly a quarter of them have chosen another supplier. Incentive price controls on transmission and distribution have stimulated increased efficiency and significantly reduced use‐of‐system charges. Overall, prices for all classes of customers have fallen by 25–35% in real terms since privatisation, and quality of service has improved.

California has adopted a policy that is similar in many respects, but with very different results. The problems there have stemmed partly from less favourable demand and supply conditions, but also from significant policy differences, including barriers to building new capacity, obstacles to the use of long‐term supply (or hedging) contracts, retail price controls at untenable levels, and the requirement that (after a transition period) utilities pass through wholesale spot prices directly to their customers. Changes in such policies will eventually enable both producers and consumers in California to benefit from competition.
A COMPARABLES APPROACH TO MEASURING CASHFLOW‐AT‐RISK FOR NON‐FINANCIAL FIRMS
Authors: Stein Jeremy C. , Usher Stephen E. , LaGattuta Daniel , Youngen Jeff
Published: April 2005

Cashflow‐at‐Risk (C‐FaR) is an attempt to create an analogue to Value at Risk (VaR) that can be used by non‐financial firms to quantify various kinds of risk exposures, including interest rate, exchange rate, and commodity price risks. There are two basic ways to attack this problem. One is from the “bottom up,” which involves building a detailed model of all of a company's specific exposures. The C‐Far approach presented here is a “top‐down” method of comparables that looks directly at the ultimate item of interest—the companies' cashflows. The fundamental challenge facing the top‐down strategy is that, for any one company, there is not enough data on its own cashflows to make precise statements about the likelihood of rare events. To get around this problem, the authors match a target company with a large set of comparable companies that are expected to have similar cashflow volatility. The comparables are chosen to be close to the target company on four dimensions: (1) market cap; (2) profitability; (3) industry risk; and (4) stock price volatility.

C‐FaR can be useful to managers addressing a variety of corporate finance decisions. For example, by providing estimates of the probability of financial distress, the C‐FaR method can be used in conjunction with capital structure data to help formulate debt‐equity tradeoffs in a more precise, quantifiable fashion. It can also be used to evaluate a firm's overall risk management strategy, including the expected benefits of using derivatives to hedge commodity‐price exposures or the purchase of insurance policies. Moreover, C‐FaR may even have a use in investor relations: by disclosing the results of a comparables‐based C‐FaR analysis ahead of time, a company may be able to cushion earnings shocks by furnishing investors or analysts with credible, objective estimates of what is likely to happen to their cash flows under different economic scenarios.
VALUING PUD RESERVES: A PRACTICAL APPLICATION OF REAL OPTION TECHNIQUES
Authors: McCormack John , Sick Gordon
Published: April 2005

Discounted Cash Flow (DCF) tools are fundamental to engineering and financial analysis in the oil industry, are well understood by managers, and generally provide accurate valuations of developed hydrocarbon reserves. Unfortunately, DCF techniques systematically undervalue proven undeveloped reserves (PUDs), may encourage premature development of certain reserves, and fail to identify important risk management opportunities. Real option valuation models overcome these shortcomings by providing a more complete picture of not only reserve values, but also of the drivers of that value.

The authors of this paper collaborated in developing a PUD real option model for a large U.S. E&P company (referred to as “XYZ Petroleum”). Based on an analysis of XYZ's drilling costs and other major inputs over a 12‐year period, the authors show that PUDs are rich sources of option value. In addition to the volatility of oil and gas prices, a somewhat more surprising contributor to option value was the lack of correlation (which came as a surprise to XYZ's managers) between development costs and oil prices. During certain periods, the economic value of a PUD was more than twice the NPV estimated by static DCF techniques. In addition to valuing PUDs and explaining why undeveloped reserves are usually valued at more than their DCF value, the model can also be used to tell managers when is the value‐maximizing time to drill—or, alternatively, how much value is likely to be forfeited if managers choose to drill too soon.
GOLF TOURNAMENTS AND CEO PAY—UNRAVELING THE MYSTERIES OF EXECUTIVE COMPENSATION
Authors: Martin John
Published: April 2005

Leading financial economists and activist institutional investors have long argued that the proper alignment of manager and shareholder interests requires the use of performance based compensation. Partly in response to these pressures, and in combination with a change in the tax code that encourages performance‐based pay, corporate boards have dramatically increased their use of stock grants and executive stock options. Combine this development with the longest bull market in U.S. financial history, and the result is unprecedented levels of CEO pay at the close of the 20th century. This review of executive compensation reveals that the economic theory of tournaments may provide a rationale for the pattern, if not the level, of executive pay. Specifically it finds that the total compensation of the five highestpaid executives in a cross‐section of new and old‐economy firms is very similar to the pattern of payouts to players in a golf tournament. The author also reports that recent studies show a significant increase in the pay‐for‐performance correlation throughout the 1990s. But whether that correlation is as high as it should be, and whether current levels of CEO pay are socially “optimal,” are questions that remain unanswered.
CIVC PARTNERS ROUNDTABLE ON MANAGING PRIVATE EQUITY INVESTMENTS IN TURBULENT ECONOMIC TIMES
Authors: BOLIN LORI
Published: April 2005

This roundtable brings together four representatives of CIVC Partners to discuss strategies for private equity investing in the current economic environment. As one of the seven private equity investment arms of Bank of America, CIVC Partners manages over $700 million in private equity capital provided exclusively by the bank. CIVC's primary investment focus is leveraged buyouts and growth equity investments in mid‐sized corporations in North America.

Following a brief report on the state of the private equity market, the discussion begins with an “open book examination” of CIVC's response to the current market reality. From the fundamentals of their investment strategy to the pursuit of “relative values,” CIVC's partners explain how their approach attempts to deal with the reduced margin for error in equity investing. In the second half of the discussion, the partners describe their focus on portfolio company investing and the importance of the due diligence process in contributing to their track record.
TOWARD A MORE COMPLETE MODEL OF OPTIMAL CAPITAL STRUCTURE
Authors: Heine Roger , Harbus Fredric
Published: April 2005

Most corporate finance practitioners understand the trade‐off involved in making effective use of debt capacity while safeguarding the firm's ability to execute its business strategy without disruption. But quantifying that trade‐off to arrive at an optimal level of debt can be a complicated and challenging task. This paper develops a simulation model of capital structure that starts by generating multiple estimates of market rates (LIBOR, currency rates) and corresponding company operating cash flows. To arrive at an optimal capital structure, the model then incorporates the shareholder value effects of alternative financing decisions by directly measuring the costs of financial distress, including the costs of missed investment opportunities and higher working capital requirements.

The model generates both a target credit rating and a lower fallback rating that permits a higher level of debt to maintain investments and dividends when operating cash flows are weak. As the model shows, companies with volatile cash flows and significant investment opportunities can add substantial shareholder value by establishing a fallback credit rating that is one or two notches below the target rating. The model also optimizes the mix of fixed versus floating debt, the maturity structure, and the currency composition. Another distinctive feature of the model is its ability to estimate the expected cost of alternative liability structures that can provide the liquidity insurance necessary to sustain the firm through periods of severe stress. This cost turns out to be quite small relative to the total market capitalization of the average firm.
RETURNS ON PROJECT‐FINANCED INVESTMENTS: EVOLUTION AND MANAGERIAL IMPLICATIONS
Authors: Esty Benjamin
Published: April 2005

In the past, project finance was used primarily to fund relatively low‐risk natural resource projects with highly predictable cash flows. Today project finance is used for a wide range of assets, such as satellite telecommunications systems, amusement parks, and microprocessor factories, and in developing as well as developed countries. The author explores how the evolution into riskier assets has changed expected returns on project‐financed investments. Higher return variability and greater failure rates have caused project debt capacities to fall. What is notable about project‐financed investments, however, is that the best returns are not very high. And because the nature of most projects limits the upside potential, a much higher fraction of project‐financed investments must be successful for capital providers to earn acceptable returns on their investments.

The move into riskier assets has also led to increased emphasis on the risk management role of project finance; that is, through careful structure and design, a firm can use project finance to reduce the collateral damage caused by a failing investment and also to limit sovereign risks. But even so, the author suggests that the original structures were never designed to handle projects with significant asset risk. For this reason, in cases of riskier projects, single‐asset project loans are likely to be replaced by either traditional corporate financing vehicles or hybrid structures involving elements of both project and corporate finance. One example of such hybrid financing is Calpine's revolving construction facilities that are used to finance portfolios of merchant power plants.
HIGH‐TECH IPOS: A TALE OF TWO CONTINENTS
Authors: Aaij Sybren , Brounen Dirk
Published: April 2005

The typical price behavior of an initial public offering (IPO), consisting of a price upsurge on the first trading day followed by subpar performance in the (longer‐run) after‐market, is one of the most intriguing puzzles in corporate finance. This study focuses on high‐tech IPOs in Europe and the U.S. over the period 1998–2001, both to compare the European and U.S. IPO markets and to determine how the price behavior of high‐tech IPOs compares to that of IPOs in general. Average initial‐day returns were 39% and 64% for the European and U.S. samples, respectively. The median returns were significantly lower, however, indicating that the sample averages are affected by a small group of exceptionally strong performers. But, for the first full year of trading, the median market‐adjusted returns were negative for both samples. Not surprisingly, this substandard aftermarket performance was most apparent in companies that failed to generate operating profits.

As with IPOs in general, high‐tech IPOs showed higher initial‐day returns in “hot” markets than in “cold.” Strong first‐day performance was a good predictor of IPO volume in the high‐tech market, with strong first‐day returns triggering a flood of IPOs in subsequent months. Overall, then, the authors' study concludes that the price behavior of high‐tech IPOs provides an exaggerated version of the general tendency of IPOs to be underpriced initially but underperform over the longer term.
INTEGRATING RISK MANAGEMENT AND CAPITAL MANAGEMENT
Authors: Shimpi Prakash
Published: April 2005

Capital management and risk management are two sides of the same coin. But by treating them separately, the conventional theory and practice of corporate finance fails to account for important connections between them. Moreover, an exclusive focus on debt and equity ignores the full range of capital resources available to a corporation, thus distorting management's view of the firm's cost of capital (and its return on equity).

An understanding of the role of corporate capital–including off‐balance sheet as well as paid‐up capital—and its relationship to the riskiness of a firm's activities provides the foundation on which the author builds a corporate finance framework that ties together both the insurance and capital markets. This framework, called the “Insurative Model,” captures the economics of both conventional insurance and corporate finance instruments and embraces a wide variety of solutions and instruments—be they debt, equity, insurance, derivative, contingent capital, or any other—and allows managers to evaluate their effectiveness in a consistent, unified way.

The Insurative Model demonstrates that a company's decisions on insurance and risk retention can be just as important as its decisions about its debt‐equity mix. In fact, the determination of a firm's optimal debt‐equity ratio should be the last in a series of capital and risk management decisions. Earlier decisions should address risk retention, risk transfer, and the optimal amounts and structure of off‐balance‐sheet capital used to support the company's retained risks.
REVISITING MARKET EFFICIENCY: THE STOCK MARKET AS A COMPLEX ADAPTIVE SYSTEM
Authors: Mauboussin Michael J.
Published: April 2005

Well‐functioning financial markets are key to efficient resource allocation in a capitalist economy. While many managers express reservations about the accuracy of stock prices, most academics and practitioners agree that markets are efficient by some reasonable operational criterion. But if standard capital markets theory provides reasonably good predictions under “normal” circumstances, researchers have also discovered a number of “anomalies”—cases where the empirical data appear sharply at odds with the theory. Most notable are the occasional bursts of extreme stock price volatility (including the recent boom‐and‐bust cycle in the NASDAQ) and the limited success of the Capital Asset Pricing Model in accounting for the actual risk‐return behavior of stocks.

This article addresses the question of how the market's efficiency arises. The central message is that managers can better understand markets as a complex adaptive system. Such systems start with a “heterogeneous” group of investors, whose interaction leads to “self‐organization” into groups with different investment styles. In contrast to market efficiency, where “marginal” investors are all assumed to be rational and well‐informed, the interaction of investors with different “decision rules” in a complex adaptive system creates a market that has properties and characteristics distinct from the individuals it comprises. For example, simulations of the behavior of complex adaptive systems suggest that, in most cases, the collective market will prove to be smarter than the average investor. But, on occasion, herding behavior by investors leads to “imbalances”—and, hence, to events like the crash of '87 and the recent plunge in the NASDAQ. In addition to its grounding in more realistic assumptions about the behavior of individual investors, the new model of complex adaptive systems offers predictions that are in some respects more consistent with empirical findings. Most important, the new model accommodates larger‐than‐normal stock price volatility (in statistician's terms, “fat‐tailed” distributions of prices) far more readily than standard efficient market theory. And to the extent that it does a better job of explaining volatility, this new model of investor behavior is likely to have implications for two key areas of corporate financial practice: risk management and investor relations. But even so, the new model leaves one of the main premises of modern finance theory largely intact–that the most reliable basis for valuing a company's stock is its discounted cash flow.
THE DETERMINANTS OF SELECTIVE EXCHANGE RISK MANAGEMENT–EVIDENCE FROM GERMAN NON‐FINANCIAL CORPORATIONS
Authors: Glaum Martin
Published: April 2005

Survey studies of both corporate exchange risk management and the corporate use of derivatives in general have shown considerable variation in managerial practices. Some firms do not hedge open positions at all, and some hedge their exposures completely. Most companies, however, hedge only those positions on which they expect a currency loss, while leaving open positions on which they expect a currency gain—a practice known as “selective hedging.” Finally, there is a small minority of firms that engage in outright speculation, deliberately creating risk exposures in addition to those arising from their normal business operations.

Such findings are consistent with survey studies that suggest that a majority of corporate financial managers appear to believe that they are able to “beat the market”—a belief that, of course, is inconsistent with efficient markets theory. So why do some companies follow selective risk management strategies while other firms hedge open positions without recourse to exchange rate forecasts?

In an attempt to answer this question, the author surveyed 74 German non‐financial companies about their exchange risk management practices. He found that highly levered firms were less likely to take bets in the currency markets, while bank‐controlled firms were more likely to use a selective risk management strategy. There was a negative relationship between profitability and the use of selective hedging—a finding that could be interpreted as suggesting that selective hedging does not generally benefit the firm's shareholders. Finally, there was a weak tendency for larger firms to be more inclined to use forecasts in their foreign exchange risk management.
VALUE MAXIMIZATION AND STAKEHOLDER THEORY: COMPATIBLE OR NOT?
Authors: Wallace James S.
Published: April 2005

Complicating the current corporate governance controversy is a major disagreement about the fundamental purpose of the corporation. There are two main views on what should constitute the principal goal of the firm. Most economists tend to endorse value maximization—that is, maximization of the value of the firm's debt plus equity—or a version of value maximization known as “value‐based management” (VBM) that aims to maximize shareholder value. The main challenger is “stakeholder theory,” which argues that the corporation exists to benefit not just investors but all its major constituencies—employees, customers, suppliers, the local community, and the federal government, as well as shareholders. Thus, whereas the success of a corporation under VBM could be assessed simply by its long‐run return to shareholders, under stakeholder theory a company's success would be judged by taking account of its contributions to all its stakeholders.

Using statistical analysis of various measures of corporate success in satisfying non‐investor stakeholders, the author investigates whether a broader focus on multiple stakeholders is necessarily inconsistent with the pursuit of long‐term shareholder value. His main findings in fact suggest just the opposite—namely, that long‐term value creation appears to be a necessary condition for maintaining corporate investment in stakeholder relationships. More specifically, the author's study shows that companies with higher levels of value creation tend to have stronger reputations for treating stakeholders well while companies that create little value end up shortchanging not just their shareholders but all their constituencies. For profitable companies that have previously failed to devote the optimal level of resources to their non‐investor stakeholders, the message of this article is that investing in stakeholders can add value—and, in fact, it pays for companies to spend an additional dollar on stakeholder relationships as long as the present value of the expected (long‐run) return is at least a dollar.
GENERALIZED RELATIVE CARDINALITIES OF FUZZY SETS
Authors: PILARSKI DANIEL
Published: April 2005

The subject of this paper is a generalized approach to relative scalar cardinalities of fuzzy sets. In the main part of the paper, we discuss basic properties of triangular norm-based relative cardinality such as valuation property, the cartesian product rule and complementary rule. Examples of cardinalities satisfying those properties are also given.
FUZZY ARITHMETIC BASED ON BOUNDARY WEAK T-NORMS
Authors: URBAŃSKI MICHAŁ K. , WASOWSKI JANUSZ
Published: April 2005

In this paper we propose the new extended class of t-norm operators called the boundary weak. The aim of the extension of this operator is that the sum of the fuzzy numbers in the arithmetic based on such t-norm gives the more narrow fuzzy number if compared to arithmetic based on standard t-norm. This extension is based on the replacement of the condition T(x,1)=x by the weaker one: T(x,1)≤x, for x∈[0,1].
Inflammation – A New Therapeutic Target in Pneumonia
Authors: Cazzola Mario , Matera Maria Gabriella , Pezzuto Gabriella
Published: April 2005

Inflammation is a hallmark of pneumonia. Therefore, managing inflammation is an attractive adjunct to targeted antibiotic therapy, mainly in severe pneumonia. Recent investigations indicate that glucocorticoids given in physiological doses (from 10-fold to 100-fold less than doses administered in the past) could be of benefit. We could also manage inflammation by administering or influencing cytokines. A major concern is that drugs designed to target a single cytokine or receptor could prove ineffective due to the redundancy of signaling pathways involved. This may require selection of drugs with broad activity or the targeting of molecules common to inflammatory signaling pathways. Drugs affecting multiple molecules or key inflammatory pathway intermediates could be more effective, but their use will need to be weighed against the risk of impairing innate immunity. Indirect approaches to manage inflammation, such as neutralizing cytotoxic substances in the lung (e.g., inhibiting, neutralizing and eliminating endotoxin), could be used in combination with other approaches. Ideally, potential treatment of life-threatening bacterial pneumonia will combine immunoadjuvant and conventional antibiotic therapy, although intense clinical research with immunotherapy has not yet yielded a successful treatment adjunct. We believe that compounds capable of stimulating early host defense and microbial clearance, but not the later phases of inflammatory tissue injury associated with sepsis, may be advantageous.
There Is No Relationship between Chronic Obstructive Pulmonary Disease and Obstructive Sleep Apnea Syndrome: A Population Study
Authors: Bednarek Michal , Plywaczewski Robert , Jonczak Luiza , Zielinski Jan
Published: April 2005

Background: Both chronic obstructive pulmonary disease (COPD) and obstructive sleep apnea syndrome (OSAS) are common diseases. Some recent studies suggest an increased prevalence of COPD among subjects with OSAS. Objectives: The study objective was to evaluate whether there is an epidemiological relationship between COPD and OSAS in a random population sample. Materials and Methods: The study population, 356 males (53%) and 320 females, mean age 56.6 ± 8.2 years (range 41–72), was selected from a voting list for parliamentary election in Warsaw. The investigation included lung diseases and smoking history with polysomnography and spirometry. Results: OSAS was diagnosed in 76 subjects (11.3%), 59 males (8.8%) and 17 females (2.5%), mean apnea/hypopnea index (AHI) was 25.3 ± 16.1, mean overnight SaO2 92.1 ± 3.3%, minimum SaO2 76.9 ± 9.4%, and SaO2 <90% = 18.9 ± 23.9% of total sleep time. COPD was diagnosed in 72 subjects (10.7%), 39 males and 33 females. Severity of airflow limitation was assessed according to European Respiratory Society (ERS) guidelines: mild in 70%, moderate in 22%, and severe in 8%. In 7 subjects (9.2% of OSAS population, 1% of total population) OSAS and COPD overlapped. Polysomnographic variables were compared between overlap (overlap syndrome, OS) and OSAS subjects. In the OS mean AHI was 19.0 versus 25.3 in OSAS (nonsignificant), mean SaO2 89.6 versus 92.3% in OSAS (p < 0.005), and time spent in SaO2 <90% was 25.4 versus 18.2% in OSAS (p = 0.04). Conclusions: COPD in subjects with OSAS was as frequent as in the general population. In the OS group mean arterial blood saturation was lower and time spent in desaturation was longer than in OSAS. The presented data suggest a more severe course of sleep-disordered breathing in subjects with coexisting COPD.
A New Parameter in the Detection of Tuberculosis Activity: Reactive Oxygen Metabolites
Authors: Ceylan Erkan , Gülsün Abdullah , Gencer Mehmet , Aksoy Nurten
Published: April 2005

Background and Objectives: In countries with a high frequency of tuberculosis, there are problems not only with active lung tuberculosis but also with past lung tuberculosis. Cases with sequel tuberculosis very frequently present with complaints like tuberculosis, and it is very hard to determine whether it is a sequel tuberculosis complication or reactivation of tuberculosis. In this study, we measured the serum reactive oxygen metabolite (ROM) levels of patients with active pulmonary tuberculosis and healthy controls, and investigated if these metabolites can be used as a criterion for differentiation between active pulmonary tuberculosis and sequel pulmonary tuberculosis. Methods: 40 patients with active tuberculosis, 35 patients with sequel pulmonary tuberculosis and 30 healthy control subjects with a similar age range and sex distribution were included in the study. Serum total ROM levels were detected in the patients and control group. Results: Mean serum ROM values were 994 ± 236, 551 ± 135 and 236 ± 59 U/l among active lung tuberculosis cases, sequel lung tuberculosis cases and the healthy control group, respectively. As a result of these findings, serum ROM levels of active lung tuberculosis cases and sequel lung tuberculosis cases were significantly higher than those of the control group (both p < 0.001). The serum ROM levels of active lung tuberculosis cases were also significantly higher than those of sequel lung tuberculosis cases (p < 0.001). Conclusions: In the light of our findings, it may be assumed that serum total ROM values can be used as an activity criterion in the differentiation of active lung tuberculosis and sequel lung tuberculosis.
Expression of Matrix Metalloproteinase-9 in Pleural Effusions of Tuberculosis and Lung Cancer
Authors: Park Kwang Joo , Hwang Sung Chul , Sheen Seung Soo , Oh Yoon Jung , Han Jae Ho , Lee Kyi Beum
Published: April 2005

Background: Matrix metalloproteinase (MMP)-9 has been implicated in the development of pleural effusions. Objectives: The aim of this study was to assess the expression of MMP-9 in pleural effusions of tuberculosis, lung cancer and transudates. Methods: Ninety-one patients (37 tuberculous pleural effusions, 42 malignant pleural effusions of lung cancer and 12 transudates) were included. Concentrations of pleural fluid MMP-9 and tissue inhibitors of matrix metalloproteinase (TIMP)-1 were determined by immunoassay. We also investigated the cellular localization of MMP-9 and TIMP-1 by reverse-transcriptase polymerase chain reaction on lymphocytes from pleural effusions and by immunohistochemical analysis of pleural tissues. Results: Pleural fluid MMP-9 levels, MMP-9/total protein and MMP-9/TIMP-1 ratios were significantly higher in tuberculous pleural effusions, whilst TIMP-1 levels were similar in the three groups. MMP-9 levels positively correlated with TIMP-1 and lactate dehydrogenase levels, and negatively with pH and glucose levels in pleural effusions. MMP-9 mRNA expression in lymphocytes tended to be higher in malignant pleural effusions of lung cancer than in the other groups without reaching statistical significance. The strongest immunoreactivity for MMP-9 was observed in epithelioid cells of tuberculous pleural tissues. Much lower levels of MMP-9 expression were found in tumor cells of pleural tissues. Conclusions: MMP-9 is increased in tuberculous pleural effusions compared with transudates and malignant pleural effusions of lung cancer and is produced predominantly by epithelioid cells in the granulomas of tuberculous pleural tissues.
Catecholamine Clearance from Alveolar Spaces of Rat and Human Lungs
Authors: Sakuma Tsutomu , Gu Xiu , Sugita Makoto , Sagawa Motoyasu , Sakuda Maki , Toga Hirohisa
Published: April 2005

Background: Although aerosolized β-adrenergic agonists have been used as a therapy for the resolution of pulmonary edema, the mechanisms of catecholamine clearance from the alveolar spaces of the lung are not well known. Objective: To determine whether catecholamine clearance from the alveolar spaces is correlated with the fluid transport capacity of the lung. Methods: Albumin solution containing epinephrine (10–7M) or norepinephrine (10–7M) was instilled into the alveolar spaces of isolated rat and human lungs. Alveolar fluid clearance rate was estimated by the progressive increase in the albumin concentration over 1 h. Catecholamine clearance rate was estimated by the changes in catecholamine concentration and alveolar fluid volume over 1 h. Results: The norepinephrine clearance rate was faster than the epinephrine clearance rate in the rat and human lungs. In the rat lungs, amiloride (a sodium channel blocker) caused a greater decrease in alveolar fluid clearance and epinephrine clearance rate than propranolol (a nonselective β-adrenergic antagonist). Although propranolol and phentolamine (an α-adrenergic antagonist), and 5-(N-ethyl-N-isoprophyl)amiloride (a Na+/H+ antiport blocker) changed neither the alveolar fluid clearance nor the norepinephrine clearance rate, amiloride and benzamil (a sodium channel blocker) decreased both clearance rates. As in the rat lungs, amiloride decreased alveolar fluid and norepinephrine clearance rates in the human lungs. Conclusion: These results indicate that the catecholamine clearance rate from the alveolar spaces is correlated with alveolar fluid clearance in rat and human lungs.
Cheyne-Stokes Respiration in Congestive Heart Failure: Continuous Positive Airway Pressure of 5–8 cm H2O for 1 Year in Five Cases
Authors: Yasuma Fumihiko
Published: April 2005

Five adult patients with congestive heart failure (CHF) due to dilated cardiomyopathy complicated by Cheyne-Stokes respiration/central sleep apnea (CSR/CSA) were treated with continuous positive airway pressure (CPAP) with an initial pressure of 5 cm H2O. Four patients were followed up for 12 months with CPAP of 5 cm H2O. The rest, a 93-year-old patient, was followed up for 30 months, and the CPAP was reset at 8 cm H2O due to worsened cardiac function after 6 months and it was reset at 6 cm H2O due to dryness of the nose after 23 months. For all the patients with nightly CPAP use for 6.0 ± 1.4 h per day for a year, frequency of CSR/CSA was significantly reduced after 3 and 12 months with CPAP (p < 0.05). Moreover, their symptoms, cardiac function and sleep quality were significantly improved after 3 months (p < 0.05), and were maintained above the pre-CPAP levels after 12 months, except for the oldest patient whose cardiac function tended to deteriorate. The results suggest that CSR/CSA in CHF can be treated with CPAP set at a lower pressure than the conventional method, and that CPAP at 5–8 cm H2O is often effective in eliminating CSR/CSA, improving sleep quality, and presumably maintaining cardiac function.
Stroboscopic-Cine MRI Data on Korean Coronal Plosives and Affricates: Implications for Their Place of Articulation as Alveolar
Authors: Kim Hyunsoon
Published: April 2005

The present study aimed to explore the place of articulation of the Korean (pulmonic egressive) lenis, aspirated and fortis affricates /c, ch, c’/ in comparison with that of the coronal plosive counterparts /t, th, t’/. For this purpose, a stroboscopiccine magnetic resonance imaging (MRI) experiment was conducted to examine not only where oral contact and constriction occur during oral closure and at its release, but also which part of the tongue is involved and how the apex, the blade and the body of the tongue are positioned as a function of time. Based on the results of the MRI experiment, we propose that the affricates should be classified as alveolar like the plosives but that they could be different in tongue shapes during oral closure and at its release: the affricates are laminal and the plosives are apical or apico-laminal. This distinction is associated with correlated variations in tongue body position (measured as pharyngeal width) and tongue blade position: tongue body position is more fronted with a relatively higher tongue blade position in affricates than in plosives. It is proposed that the gestural differences between the two types of stops serve to enhance the auditory contrast between the [+strident] affricates and the [–strident] plosives.
Local Gene Transduction of Cyclooxygenase-1 Increases Blood Flow in Injured Atherosclerotic Rabbit Arteries
Authors: Liu Qi , Chen Zhi-Qiang , Bobustuc George C. , McNatt Janice M. , Segall Harry , Pan Su , Willerson James T. , Zoldhelyi Pierre
Published: April 2005

Background—

Cyclooxygenase-1 (COX-1) is the rate-limiting component in the synthesis of prostacyclin (PGI
2
), an important vasodilator and antithrombotic molecule. In balloon-injured, atherosclerosis-free porcine arteries, COX-1 gene transduction increases PGI
2
production, induces durable vasodilation, and reduces thrombus formation. We tested the effectiveness of COX-1 local gene transduction for the prevention of postangioplasty restenosis in atherosclerotic arteries in a hypercholesterolemic rabbit model.

Methods and Results—

We injured 1 carotid artery in 43 Watanabe heritable hyperlipidemic rabbits and performed local gene transduction using a viral vector containing the COX-1 gene (AdCOX-1, n=22) or no genes (Adnull, n=21). Three days later, AdCOX-1–treated arteries stimulated with arachidonic acid produced 100% more PGI
2
(
P
<0.01), 400% more prostaglandin E
2
(PGE
2
) (
P
<0.01), 400% more prostaglandin E
1
(PGE
1
) (
P
<0.01), and 250% more cAMP (
P
<0.05) than Adnull-treated arteries. Twenty-eight days after treatment, Doppler sonography showed that blood flow velocity was preserved in AdCOX-1–treated arteries (ratio 0.92, injured compared with contralateral uninjured carotid artery) but reduced in Adnull-treated arteries (ratio 0.39), suggesting that AdCOX-1 prevented restenosis after injury. COX-1–transduced arteries also showed 80% greater lumen area 28 days after injury (
P
<0.01).

Conclusions—

The effectiveness of COX-1 in preventing restenosis and preserving normal blood flow 28 days after injury results from increased lumen area caused by durable vasodilation. COX-1 efficacy correlates with an early increase in the production of PGI
2
, PGE
2
, PGE
1
(known to cause vasodilation), and cAMP. These results demonstrate for the first time that COX-1 gene transduction is an effective treatment for the prevention of postangioplasty restenosis of atherosclerotic arteries under clinically relevant conditions.
Rule Extraction from Recurrent Neural Networks: ATaxonomy and Review
Authors: Jacobsson Henrik
Published: April 2005

Rule extraction (RE) from recurrent neural networks (RNNs) refers to finding models of the underlying RNN, typically in the form of finite state machines, that mimic the network to a satisfactory degree while having the advantage of being more transparent. RE from RNNs can be argued to allow a deeper and more profound form of analysis of RNNs than other, more or less ad hoc methods. RE may give us understanding of RNNs in the intermediate levels between quite abstract theoretical knowledge of RNNs as a class of computing devices and quantitative performance evaluations of RNN instantiations. The development of techniques for extraction of rules from RNNs has been an active field since the early 1990s. This article reviews the progress of this development and analyzes it in detail. In order to structure the survey and evaluate the techniques, a taxonomy specifically designed for this purpose has been developed. Moreover, important open research issues are identified that, if addressed properly, possibly can give the field a significant push forward.
An Ensemble of Cooperative Extended Kohonen Maps for Complex Robot Motion Tasks
Authors: Low Kian Hsiang , Leow Wee Kheng , Ang Marcelo H.
Published: April 2005

Self-organizing feature maps such as extended Kohonen maps (EKMs) have been very successful at learning sensorimotor control for mobile robot tasks. This letter presents a new ensemble approach, cooperative EKMs with indirect mapping, to achieve complex robot motion. An indirect-mapping EKM self-organizes to map from the sensory input space to the motor control space indirectly via a control parameter space. Quantitative evaluation reveals that indirect mapping can provide finer, smoother, and more efficient motion control than does direct mapping by operating in a continuous, rather than discrete, motor control space. It is also shown to outperform basis function neural networks. Furthermore, training its control parameters with recursive least squares enables faster convergence and better performance compared to gradient descent. The cooperation and competition of multiple self-organized EKMs allow a nonholonomic mobile robot to negotiate unforeseen, concave, closely spaced, and dynamic obstacles. Qualitative and quantitative comparisons with neural network ensembles employing weighted sum reveal that our method can achieve more sophisticated motion tasks even though the weighted-sum ensemble approach also operates in continuous motor control space.
The Ecological Footprint Intensity of National Economies
Authors: York Richard , Rosa Eugene A. , Dietz Thomas
Published: April 2005

At least three perspectives—industrial ecology (IE), ecological modernization theory (EMT), and the “environmental Kuznets curve” (EKC)—emphasize the potential for sustainability via refinements in production systems that dramatically reduce the environmental impacts of economic development. Can improvements in efficiency counterbalance environmental impacts stemming from the scale of production? To address this question we analyze cross‐national variation in the ecological footprint (EF) per unit of gross domestic product (GDP). The EF is a widely recognized indicator of human pressure on the environment. The EF of a nation is the amount of land area that would be required to produce the resources it consumes and to absorb the wastes it generates. The most striking finding of our analyses is that there is limited variation across nations in EF per unit of GDP. This indicates limited plasticity in the levels of EF intensity or eco‐efficiency among nations, particularly among affluent nations. EF intensity is lowest (ecoefficiency is highest) in affluent nations, but the level of efficiency in these nations does not appear to be of sufficient magnitude to compensate for their large productive capacities. These results suggest that modernization and economic development will be insufficient, in themselves, to bring about the ecological sustainability of societies.
Economic Incentives, Ideas, and the End of the Cold War: Gorbachev and German Unification
Authors: Forsberg Tuomas
Published: April 2005

Focusing on Gorbachev and German unification, this article shows how the effectiveness of economic aid depends on ideas decision-makers hold about economics and identity. German economic statecraft worked in securing Gorbachev's support for German unification solely because of a specific set of ideas that animated Soviet decision-makers during that period. The weakness of the Soviet economy made economic assistance from Germany attractive, but Gorbachev did not bargain hard over the amount of aid because he thought it would ruin an anticipated close partnership with Germany in the future. The importance of the German economic incentives lay in their role as trust-building measures. In contrast, Japan's effort to use economic aid to persuade Soviet leaders to return the Kurile Islands during the same period failed, in part because Soviet leaders did not expect a friendly relationship with Japan. For cultural and political reasons, Soviet leaders were more oriented toward Germany and the West. The fact that Soviet leaders did not seek aid or technology from Japan a technology powerhouse and turned instead to Germany, shows that material pressures alone cannot account for the success or failure of economic incentives.