cssi/SciSciGPT-SciSciNet huggingface dataset:
Optimal replenishment rate for inventory systems with compound Poisson demands and lost sales: a direct treatment of time-average cost

Supply contracts are designed to minimize inventory costs or to hedge against undesirable events (e.g., shortages) in the face of demand or supply uncertainty. In particular, replenishment terms stipulated by supply contracts need to be optimized with respect to overall costs, profits, service levels, etc. In this paper, we shall be primarily interested in minimizing an inventory cost function with respect to a constant replenishment rate. Consider a single-product inventory system under continuous review with constant replenishment and compound Poisson demands subject to lost-sales. The system incurs inventory carrying costs and lost-sales penalties, where the carrying cost is a linear function of on-hand inventory and a lost-sales penalty is incurred per lost sale occurrence as a function of lost-sale size. We first derive an integro-differential equation for the expected cumulative cost until and including the first lost-sale occurrence. From this equation, we obtain a closed form expression for the time-average inventory cost, and provide an algorithm for a numerical computation of the optimal replenishment rate that minimizes the aforementioned time-average cost function. In particular, we consider two special cases of lost-sales penalty functions: constant penalty and loss-proportional penalty. We further consider special demand size distributions, such as constant, uniform and Gamma, and take advantage of their functional form to further simplify the optimization algorithm. In particular, for the special case of exponential demand sizes, we exhibit a closed form expression for the optimal replenishment rate and its corresponding cost. Finally, a numerical study is carried out to illustrate the results.
Microwave Loss Reduction in Cryogenically Cooled Conductors

Measurements of microwave attenuation at room temperature and 4.2 K have been performed on some conductors commonly used in receiver input circuits. The reduction in loss on cooling is substantial, particularly for copper and plated gold, both of which showed a factor of 3 loss reduction. Copper passivated with benzotriazole shows the same loss as without passivation. The residual resistivity ratio between room temperature and 4.2 K, deduced from the measurements using the classical skin effect formula, was smaller than the measured DC value to a degree consistent with conduction in the extreme anomalous skin effect regime at cryogenic temperatures. The measurements were made in the 5–10 GHz range. The materials tested were: aluminum alloys 1100-T6 and 6061-O, C101 copper, benzotriazole treated C101 copper, and brass plated with electroformed copper, Pur-A-Gold 125-Au soft gold, and BDT200 bright gold.
Regulatory focus as a predictor of attitudes toward partitioned and combined pricing

Abstract Partitioned pricing is a widely used pricing strategy, but little is known about the buyer characteristics that influence its effectiveness. The current research contributes to the pricing literature by investigating the impact of regulatory focus on the perceived attractiveness of partitioned and combined pricing. In four studies, we hypothesized and found support for the idea that promotion focused individuals perceive partitioned prices to be more attractive than combined prices, while prevention focused individuals do not differentiate between the two pricing types. Our results also show that regulatory focus influences consumers' information processing style, which in turn leads to important differences in attitudes towards partitioned and combined pricing. Specifically, promotion focused consumers are more likely to engage in global processing and global processing is linked to preferences for partitioned (versus combined) prices.
The economics of faking ecstasy.

In this paper, we develop a signaling model of rational lovemaking. In the act of lovemaking, a man and a woman send each other possibly deceptive signals about their true state of ecstasy. For example, if one of the partners is not in ecstasy, then he or she may decide to fake it. The model predicts that (1) a higher cost of faking lowers the probability of faking; (2) middle-aged and old men are more likely to fake than young men; (3) young and old women are more likely to fake than middle-aged women; and (4) love, formally defined as a mixture of altruism and demand for togetherness, increases the likelihood of faking. The predictions are tested with data from the 2000 Orgasm Survey. Besides supporting the model's predictions, the data also reveal an interesting positive relationship between education and the tendency to fake in both men and women. (JEL D82, J16)
Law, Trade and the Asian Miracle

In previous work (Berkowitz, Moenius and Pistor, 2006), we have shown that countries with high quality legal institutions specialize in exporting complex products whose characteristics are difficult to fully specify in contracts. The miracle growth in the “Asian Nine” (China, Hong Kong, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan and Thailand) during the latter half of the past century has been accompanied by a remarkable increase in complex goods exports and an increase in the ratio of complex to simple goods exports. We test our theory for the Asian Nine and find that good institutions have a substantially stronger than average impact on complex and simple goods trade in those countries. In countries outside the Asian Nine gains in the perceived quality of institutions spur complex exports primarily by lowering the domestic costs of producing complex goods. However, in the Asian Nine good institutions also substantially lower transaction costs of importing and exporting complex goods.
INFORMATION AND NOISE IN FINANCIAL MARKETS: EVIDENCE FROM THE E‐MINI INDEX FUTURES

I examine the informational contributions and effects on transitory volatility of trades initiated by different types of traders in three actively traded index futures markets. The results show that trades initiated by exchange member firms account for more than 60% of price discovery during the trading day. These institutional trades appear to be more informative than trades of individual exchange members or off-exchange traders. I also find that off-exchange traders introduce more noise into the prices than do exchange members. My findings provide new evidence on the role of different types of traders in the price formation process. I examine the roles of different types of traders in the price discovery process and their effect on transitory volatility in index futures markets. First, I analyze the relative information content of trades initiated by individual exchange members, exchange member firms, and off-exchange traders in three E-mini index futures markets. Kurov and Lasser (2004) use Hasbrouck’s (1995) information share approach to show that individual exchange members make larger informational contributions than off-exchange traders or clearing member firms. Consistent with Kurov and Lasser, I find that the informational contributions of off-exchange traders are relatively small. However, the results also show that exchange member firms contribute significantly more to price discovery than do individual members or offexchange traders. Trades of exchange member firms appear to be more informative than trades of other traders. These results show that institutional traders now play a dominant informational role in electronic index futures markets.
Private patent protection in the theory of Schumpeterian growth

Abstract We develop a Schumpeterian growth model with privately optimal intellectual property rights (IPRs) enforcement and investigate the implications for intellectual property and R&D policies. In our setting, successful innovators undertake costly rent protection activities (RPAs) to enforce their patents. RPAs deter innovators who seek to discover higher quality products and thereby replace the patent holder. RPAs also deter imitators who seek to capture a portion of the monopoly market by imitating the patent holder's product. We investigate the role of private IPR protection by considering the impact of subsidies to RPAs on economic growth and welfare. We find that a larger RPA subsidy raises the innovation rate if and only if the ease of imitation is above a certain level. With regards to welfare, we find that depending on the parameters it may be optimal to tax or subsidize RPAs. Thus a prohibitively high taxation of RPAs is not necessarily optimal. We also show that the presence of imitation strengthens the case for subsidizing R&D.
How Do Social Security and Income Affect the Living Arrangements of the Elderly?: Evidence from Reforms in Mexico and Uruguay

It has been shown that the social security system and other sorts of government transfers have helped poor elderly people, such as widows, to live alone in the U.S. This paper investigates whether government financial support contributed to the increase in the probability of the vulnerable elderly living alone in Latin American countries as well. Specifically, the countries that in the 1980s experienced government reforms favorable to the vulnerable elderly, Mexico and Uruguay, are examined. It is concluded that the improvement of educational attainment was mainly responsible for helping the elderly poor to live alone in rural areas in Mexico, and not the government system. On the other hand, in Uruguay, for unmarried elderly females, the increase in social security income explains most of the increase in the probability of living alone.
Reconciliation, You've Got to Be Dreaming: Exploring Methodologies for Monitoring and Achieving Aboriginal Reconciliation in Australia by 2030

This article compares and contrasts the deliverables of the Australian Reconciliation Barometer and a new methodology, reconciliation process analysis, for measuring progress toward Aboriginal reconciliation. Reconciliation process analysis draws heavily on visioning and backcasting to explore the cumulative impact of the innumerable reconciliatory gestures underway in Australia to highlight where the parties stand in relation to tipping points and shared goals for the future. The joint application of these complementary methodologies will identify not only the trajectory of Australia's reconciliatory project but, more important, the buy-in of indigenous Australians to an ultimate vision of closure and healing.
X-Ray Emission from Early-Type Galaxies: A Complete Sample Observed by ROSAT

To test the cooling flow model of early-type galaxies, we obtained a complete magnitude-limited sample of 34 early-type galaxies, observed with the PSPC and the HRI on ROSAT. The X-ray-to-optical distribution of galaxies implies a lower envelope, which is consistent with the stellar emission inferred from Cen A. When this stellar component is removed, the gaseous emission is related to the optical luminosity by LX ∝ LBm, where m = 3.0-3.5, which is significantly steeper than the standard theory (m = 1.7). The dispersion about the correlation is large, with a full range of 30-100 in LX for fixed LB. The X-ray temperature is related to the velocity dispersion temperature as TX ∝ Tσn, where n=1.43±0.21, although for several galaxies, TX is about twice Tσ. The excessively hot galaxies are generally the most luminous and are associated with the richest environments. We suggest a model whereby the environment influences the X-ray behavior of these galaxies: early-type galaxies attempt to drive partial or total galactic winds, which can be stifled by the pressure of their environment. Stifled winds should lead to hotter and higher luminosity systems, which would occur most commonly in the richest environments, as observed.
Does Voluntary Adoption of a Clawback Provision Improve Financial Reporting Quality

We examine whether financial reporting quality improves after firms voluntarily adopt a compensation clawback clause. Clawback clauses allow companies to recoup excess incentive pay in the event of an accounting restatement, and are intended to ex ante deter managers from publishing misstated accounting information and ex post penalize managers who do so. For the period 2007 – 2009, our difference-indifference analysis reveals significant improvements in both actual and perceived financial reporting quality following clawback adoption, relative to a propensity-matched set of control firms. We also find an increase in compensation for CEOs subject to new clawback provisions, as well as an increase in the sensitivity of cash compensation to accounting performance. Overall, our findings suggest that voluntarily adopting a clawback provision tends to improve a firm’s financial reporting quality. In the cross-section, our findings indicate clawback policies that apply to restatements involving intentional and unintentional restatements are incrementally more effective than policies that apply only to restatement that involve fraud.
Measuring the Cyclicality of Real Wages: How Important is Composition Bias?

In the period since the 1960s, as in other periods, aggregate time series on real wages have displayed only modest cyclicality. Macroeconomists therefore have described weak cyclicality of real wages as a salient feature of the business cycle. Contrary to this conventional wisdom, our analysis of longitudinal microdata indicates that real wages have been substantially procyclical since the 1960s. We show that the true procyclicality of real wages is obscured in aggregate time series because of a composition bias: the aggregate statistics are constructed in a way that gives more weight to low-skill workers during expansions than during recessions.
Promises and Lies: Restoring Violated Trust

Trust is critical for organizations, effective management, and efficient negotiations, yet trust violations are common. Prior work has often assumed trust to be fragile—easily broken and difficult to repair. We investigate this proposition in a laboratory study and find that trust harmed by untrustworthy behavior can be effectively restored when individuals observe a consistent series of trustworthy actions. Trust harmed by the same untrustworthy actions and deception, however, never fully recovers—even when deceived participants receive a promise, an apology, and observe a consistent series of trustworthy actions. We also find that a promise to change behavior can significantly speed the trust recovery process, but prior deception harms the effectiveness of a promise in accelerating trust recovery.
The Mitigating Effect of Audit Committee Financial Expertise on the Voluntary Adoption of Clawback Policies

The Mitigating Effect of Audit Committee Financial Expertise on the Voluntary Adoption of Clawback Policies
Climate-Science Communication and the Measurement Problem

This article examines the science-of-science-communication measurement problem. In its simplest form, the problem reflects the use of externally invalid measures of the dynamics that generate cultural conflict over risk and other policy-relevant facts. But at a more fundamental level, the science-of-science-communication measurement problem inheres in the phenomena being measured themselves. The “beliefs” individuals form about a societal risk such as climate change are not of a piece; rather they reflect the distinct clusters of inferences that individuals draw as they engage information for two distinct ends: to gain access to the collective knowledge furnished by science and to enjoy the sense of identity enabled by membership in a community defined by particular cultural commitments. The article shows how appropriately designed “science comprehension” tests—one general and one specific to climate change—can be used to measure individuals’ reasoning proficiency as collective-knowledge acquirers independently of their reasoning proficiency as cultural-identity protectors. Doing so reveals that there is in fact little disagreement among culturally diverse citizens on what science knows about climate change. The source of the climate-change controversy and like disputes over societal risks is the contamination of the science-communication environment with forms of cultural status competition that make it impossible for diverse citizens to express their reason as both collective-knowledge acquirers and cultural-identity protectors at the same time.
A review of marketing–operations interface models: From co-existence to coordination and collaboration

Abstract Marketing and operations are two key functional areas that contribute to the success of a firm. By acquiring and analyzing information regarding customers and competitors, marketing can be viewed an external-focused functional area that determines “what” kind of products (or services) a company should provide through “which” channel at “what” price. By viewing this marketing plan as the “demand” from an internal customer, operations is by-and-large an internal-focused functional area that examines “how” to deliver this demand by using internal or external resources. Due to their inherent roles and responsibilities, coordination and collaborations between marketing and operations areas can be difficult in practice. As such, the conflict between marketing and operations arises when the operation's “supply” does not meet the marketing's “demand.” Over the last two decades, researchers have developed different quantitative models to examine the issue of coordination/collaboration in the context of marketing operations interfaces. The intent of this paper is two-fold. We present a unified framework for classifying various marketing–operations interface models that may serve as a guide to navigate through the sea of research articles in this important area. Also, by examining some missing gaps, we discuss some topics for potential future research.
The False Choice between Race and Class and Other Affirmative Action Myths

A Renewed Interest in Class Immobility and Higher Education 992 Kahlenberg and Sander: Why We Do Not Have to Choose Between Race and Class 1000 III. Three Vantage Points on Socioeconomic Disadvantage as Diversity 1014 A. Diversity in Case Law: An Early Nod to Class ... 1014 1. Bakke’s Capacious Definition of “Diversity” ... 1014 2. Hopwood, Grutter, and Gratz: Limiting Diversity to Race and Ethnicity 1020 3. Souter’s Dissent in Gratz: Suggesting a Quid Pro Quo Between Race and Class. 1022 4. Fisher v. University of Texas at Austin: Turning the Value of Socioeconomic Diversity on its Head. 1024 5. Conclusion 1026
Herding among Investment Newsletters: Theory and Evidence

A model is developed which implies that if an analyst has high reputation or low ability, or if there is strong public information that is inconsistent with the analyst's private information, she is likely to herd. Herding is also common when informative private signals are positively correlated across analysts. The model is tested using data from analysts who publish investment newsletters. Consistent with the model's implications, the empirical results indicate that a newsletter analyst is likely to herd on Value Line's recommendation if her reputation is high, if her ability is low, or if signal correlation is high. HERD BEHAVIOR IS OFTEN SAID TO OCCUR when many people take the same action, perhaps because some mimic the actions of others. Herding has been theoretically linked to many economic activities, such as investment recommendations (Scharfstein and Stein (1990)), price behavior of IPOs (Welch (1992)), fads and customs (Bikhchandani, Hirshleifer, and Welch (1992)), earnings forecasts (Trueman (1994)), corporate conservatism (Zwiebel (1995)), and delegated portfolio management (Maug and Naik (1995)). This paper adds to the herding literature by developing and empirically testing a model that examines the incentives investment advisors face when deciding whether to herd. In particular, the paper tests whether economic conditions and agents' individual characteristics affect their likelihood of herding. The results are interpreted as a test of the predictions of the general class of cascade and herding models.1
Classification of Cyber Conflict

This article examines the classification of conflicts consisting of only cyber operations under international humanitarian law. ‘International armed conflicts’ are those that are ‘armed’ and ‘international’. The article contends that the former criterion is met when cyber operations amount to an ‘attack’ because they injure individuals or damage objects, whereas the latter requires that the operations be between or attributable to States. ‘Non-international armed conflict’ occurs when hostilities between a State and an ‘organized’ armed group reach a particular level of intensity. To be sufficiently intense, such cyber operations must be ‘protracted’; isolated incidents do not suffice. Intensity also requires that the level of violence exceed that of riots or civil disturbances. Injury or damage is not alone sufficient. Cyber operations conducted by individuals cannot qualify because they are insufficiently ‘organized’. Groups organized on-line may be assessed on a case-by-case basis, but the traditional organization criteria render it difficult for them to qualify. The article concludes that while cyber exchanges may sometimes amount to international armed conflict, classification as non-international armed conflict is problematic.
Reporting on the Past: A New Approach to Improving Accounting Today

In the last few years the financial accounting model has been attacked on a number of fronts. Some argue that the model reports irrelevant information in today's knowledge‐based economy, while others argue that the model's reporting discretion makes the results unreliable. Accruals allow the model to report wealth creation or depletion in a more timely manner, yet they also allow abuse when the underlying estimates are intentionally distorted. But surprisingly, the accuracy of the estimates underlying the accruals is never examined; rather current accruals are mixed together with the reversals of prior accruals. I propose that the financial reporting model be amended to report on the ex post accuracy of a firm's prior estimates. Doing so will identify firms that have abused their reporting discretion in the past and provide valuable information about the expected credibility of the firm's disclosures in the present. Firms will also have a greater incentive to make accurate estimates and accruals if they k...
Does Work Law Have a Future if the Labor Market Does Not

Author(s): Zatz, Noah | Abstract: This Essay is based on the 37th Annual Kenneth M. Piper Lecture. It offers a new perspective on the much-discussed “future of work.” That discussion typically highlights changes within the labor market that undermine the employment relationship’s role as the bedrock for work regulation. But might something even deeper be afoot, namely the disintegration of “the labor market” itself? Several recent developments challenge the legal construction of employment as occurring wholly inside a distinctive, and distinctively economic, market sphere. The Essay considers Uber and the relationship between work and “sharing,” Hobby Lobby and the relationship between work and religion, the unrest in Ferguson and the relationship between work and criminal justice, and Friedrichs and the relationship between work and politics. Each presents a conservative challenge to labor and employment law by blurring the boundaries between the labor market and other spheres, not by purging the labor market of noneconomic intrusions in the manner of laissez faire. This development presents a conundrum for traditional labor and employment law, which simultaneously defines its object in market terms while aspiring to reshape it by incorporating certain nonmarket values.
Markets versus spillovers in outflows of university research

Abstract A substantial body of research has examined the contributions of university research to regional economic development and technological innovation. This literature suggests that the channels through which university-based research affects regional economic or innovative activity may be divided into two broad categories—knowledge “spillovers” (i.e., positive externalities from university research) and “market-mediated” channels such as technology licensing or various types of employment relationships between academic scientists and firms. Yet little research has compared the geographic incidence of these market and nonmarket channels of interaction. This paper compares the localization of knowledge flows from university inventions through market contracts (licenses) and nonmarket “spillovers” exemplified by patent citations. We find knowledge flows through market transactions to be more geographically localized than those operating through nonmarket spillovers. Moreover, the differential effects of distance on licenses and citations are most pronounced for exclusively licensed university patents. We interpret these findings as reflecting the incomplete nature of licensing contracts and the need for licensees to maintain access to inventor knowhow for many university inventions. Such access appears to be less important for inventions that are nonexclusively licensed.
Photonic Dirac monopoles and skyrmions: spin-1 quantization

We introduce the concept of a photonic Dirac monopole, appropriate for photonic crystals, metamaterials and 2D materials, by utilizing the Dirac-Maxwell correspondence. We start by exploring the vacuum where the reciprocal momentum space of both Maxwell’s equations and the massless Dirac equation (Weyl equation) possess a magnetic monopole. The critical distinction is the nature of magnetic monopole charges, which are integer valued for photons but half-integer for electrons. This inherent difference is directly tied to the spin and ultimately connects to the bosonic or fermionic behavior. We also show the presence of photonic Dirac strings, which are line singularities in the underlying Berry gauge potential. While the results in vacuum are intuitively expected, our central result is the application of this topological Dirac-Maxwell correspondence to 2D photonic (bosonic) materials, as opposed to conventional electronic (fermionic) materials. Intriguingly, within dispersive matter, the presence of photonic Dirac monopoles is captured by nonlocal quantum Hall conductivity–i.e., a spatiotemporally dispersive gyroelectric constant. For both 2D photonic and electronic media, the nontrivial topological phases emerge in the context of massive particles with broken time-reversal symmetry. However, the bulk dynamics of these bosonic and fermionic Chern insulators are characterized by spin-1 and spin-½ skyrmions in momentum space, which have fundamentally different interpretations. This is exemplified by their contrasting spin-1 and spin-½ helically quantized edge states. Our work sheds light on the recently proposed quantum gyroelectric phase of matter and the essential role of photon spin quantization in topological bosonic phases.
The Wolf at the Door: The Impact of Hedge Fund Activism on Corporate Governance

Hedge fund activism has increased almost hyperbolically. Although some view this trend optimistically as a means for bridging the separation of ownership and control, we review the evidence and find it far more mixed. In particular, engagements by activist hedge funds appear to be producing a significant externality: severe cut-backs in long-term investment (and particularly a reduction in investment in research and development) by both the targeted firms and other firms not targeted but still deterred from making such investments. We begin by surveying the regulatory and institutional developments that have reduced the costs and increased the expected payoff from activism for activist investors. We give particular attention to new tactics (including the formation of â€œwolf packsâ€ â€”loose associations of activist funds that do not constitute a â€œgroupâ€ under the Williams Act) and new institutional structures (such as the alliance between an activist hedge fund and a strategic bidder struck in the recent Allergan takeover battle). Then, we survey the empirical evidence on how the investment horizons of firms are changing. Next, we review prior studies on the impact of activism, looking successively at (1) who are the targets of activism?; (2) does hedge fund activism create real value?; (3) what are the sources of gains from activism?; and (4) do the targets of activism experience post-intervention changes in real variables? We find the evidence decidedly mixed on most questions. Finally, we examine the policy levers that could encourage or curb hedge fund activism and consider the feasibility of reforms (including with respect to the law on insider trading). In particular, we consider possible private ordering responses, including new defensive tactics. Our policy preference is to find the least restrictive alternative.
Is OSHA Unconstitutional

MAGINE that Congress creates a federal agency to deal with a large problem, one that involves a significant part of the national economy. Suppose that Congress instructs the agency: Do what you believe is best. Act reasonably and appropriately. Adopt the legal standard that you prefer, all things considered. Suppose, finally, that these instructions lack clear contextual referents, such as previous enactments or judicial understandings, on which the agency might build. I
Corporate governance when founders are directors

Abstract We examine chief executive officer (CEO) compensation, CEO retention policies, and mergers and acquisition (M&A) decisions in firms in which founders serve as a director with a nonfounder CEO (founder-director firms). We find that founder-director firms offer a different mix of incentives to their CEOs than other firms. Pay-for-performance sensitivity for nonfounder CEOs in founder-director firms is higher and the level of pay is lower than that of other CEOs. CEO turnover sensitivity to firm performance is also significantly higher in founder-director firms compared with nonfounder firms. Overall, the evidence suggests that boards with founder-directors provide more high-powered incentives in the form of pay and retention policies than the average US board. Stock returns around M&A announcements and board attendance are also higher in founder-director firms compared with nonfounder firms.
The investor recognition hypothesis in a dynamic general equilibrium: Theory and evidence

This article analyzes a dynamic general equilibrium under a generalization of Merton’s (1987) investor recognition hypothesis. A class of informationally constrained investors is assumed to implement only a particular trading strategy. The model implies that, all else being equal, a risk premium on a less visible stock need not be higher than that on a more visible stock with a lower volatility—contrary to results derived in a static meanvariance setting. A consumption-based capital asset pricing model (CAPM) augmented by the generalized investor recognition hypothesis emerges as a viable contender for explaining the cross-sectional variation in unconditional expected equity returns. A fundamental question in financial economics is how frictions affect equilibrium in capital markets. The real-world frictions that motivate our analysis are information costs. In a world of costly information, some investors will have incomplete information. Therefore we ask, first, how equity portfolios of informationally constrained investors can be characterized, and second, how the presence of these investors affects equilibrium. We formulate the answer to the first question as a hypothesis; our premise is that the aggregate portfolio of informationally constrained investors combines a direct investment in visible stocks with funds whose management is entrusted to others (who may possess more information). The main objective of this article is to develop a model that can accommodate our premise, thereby offering a detailed answer to the second question. The joint validity of the premise and the model is then evaluated empirically. Merton (1987), using a static mean-variance model, advanced the investor recognition hypothesis (IRH) to describe the portfolio formation of informationally constrained investors. In its pure static version, the IRH states that This article is based on my dissertation at the Wharton School of the University of Pennsylvania. I thank my committee members—Suleyman Basak (the chair), Andrew Abel, Shmuel Kandel, Richard Kihlstrom, Craig MacKinlay, Robert Stambaugh—as well as Simon Benninga, Domenico Cuoco, Bernard Dumas (the editor), Roger Edelen, Chrisopher Gadarowski, Sanford Grossman, Burton Hollifield, Gur Huberman, Srinivasa Varadhan, and two anonymous referees for helpful comments and suggestions. I am also grateful to seminar
Harvesting in an eight-species ecosystem

Abstract The theory for a general equilibrium ecosystem model that can include large number of interacting species is presented. Features include: (1) individual plants and animals are assumed to behave as if they are maximizing their net energy intake, (2) short- and long-run equilibriums are obtained, (3) species’ population adjustments depend on individual net energies. The theory is applied using simulations of an eight-species Alaskan marine ecosystem for which a “natural” equilibrium is calculated. Humans are introduced by adding a regulated open access fishery that harvests one of the species. Fishing impacts the fish population as well as the populations of other species, including Stellar sea lions, an endangered species. The sensitivity of fish and nonfish species populations to harvesting are calculated.
Bringing Financial Stability into Monetary Policy

This paper arms central bank policy makers with ways to think about interactions between financial stability and monetary policy. We frame the issue of whether to integrate financial stability into monetary policy operating rules by appealing to the observation that in actual economies financial markets are incomplete. Incomplete markets create financial market frictions that prevent economic agents from perfectly sharing risk; in the absence of frictions, financial (in)stability would be of no concern. Overcoming these frictions to improve risk sharing across economic agents is, in our view, the intent of policies geared toward ensuring financial stability. There are many definitions of financial stability. Although the definitions share the notion that financial stability becomes an issue for policy makers when a breakdown in risk-sharing arrangements in financial markets has a negative effect on real economic activity, we give several examples that show this notion is too general for thinking about the role that monetary policy might have in smoothing shocks to financial stability. Examples include statistical models that seek to separate “good” from “bad” changes in private-sector debt aggregates, new Keynesian policy prescriptions grounded in neoWicksellian natural rate rules, and a historical episode involving the 1920s Federal Reserve. These examples raise a cautionary flag for policy attempts to control both the growth and the composition of debt that financial markets produce. We conclude with some advice for revising central banks’ Monetary Policy Reports.
Out-of-Priority Water Use: Adding Flexibility to the Water Appropriation System

This article examines the different ways that state laws have adapted to allow out-of-priority water uses.
Jefferson’s “Laws of Nature”: Newtonian Influence and the Dual Valence of Jurisprudence and Science

Thomas Jefferson appears to have conceived of natural law rather differently from his predecessors—namely Saint Thomas Aquinas, Richard Hooker, Hugo Grotius, Samuel von Pufendorf, John Locke, and, among others, William Blackstone. This particular pedigree looked to divine decree or moral order to anchor natural law philosophy. But Jefferson’s various writings, most notably the Declaration and Notes on the State of Virginia, champion the thinking of a natural historian, a man who celebrated reason and scientific method, who extolled fact over fancy, material over the immaterial, observation over superstition, and experiment over divine revelation. They reveal, in other words, an Enlightenment homme du monde, a veritable encyclopedia of knowledge, able to discourse on any number of topics and to confront, as it were, his overseas counterparts, George Louis Leclerc and Comte de Buffon. Jefferson’s jurisprudence pivots on the dual valence of law and science. Jurisprudents have mostly ignored the sometime symbiotic relationship of law and science, just as they have downplayed or altogether ignored Jefferson’s unique contributions to legal philosophy. How does Jefferson’s natural philosophy conceptualize law? Science is all about studying objects and predicting their behaviors. If law is more than bills or statutes or glorified pieces of paper—if it is intangible but somehow immanent—how does one collect or observe it in nature? What is its ontology? Its epistemology? How do we discover it? How do we experiment with it? In what way is it, as Jefferson apparently believed, innate to humankind? This chapter considers these questions while arguing for the inclusion of Jefferson into what I call the “natural law canon” of jurisprudence. I submit that Jefferson’s ideas about nature are tied to his ideas about reason and that his scientific approach to jurisprudence was not only innovative but nearly unprecedented. I have divided the chapter into two sections: the first dealing with Jefferson as a counteractive force to the positivist jurisprudence of Jeremy Bentham and John Austin, and the second dealing with such issues of materiality, reason, and experiment that make Jefferson’s jurisprudence truly distinctive. I am less concerned with tracing snippets of Jefferson’s writing back to Newton’s precise works or quotes than I am with demonstrating how Jefferson’s jurisprudence appropriates science, what makes that appropriation unique, and why that appropriation matters to a twenty-first-century audience. These concerns place Jefferson in the pragmatic tradition of libertarianism.
Why Do Large Firms' Prices Anticipate Earnings Earlier than Small Firms' Prices?*

This paper presents evidence that the positive association between firm size and price leads of earnings is not solely a function of private search incentives for firm-specific information. Specifically, we find that small-firm prices also lag large-firm prices with respect to industry-wide information. Our empirical analysis extends Collins, Kothari, and Rayburn 1987 and Freeman 1987, who document that security-price leads of earnings are positively associated with market capitalization. In particular, we examine the association between firm size and the timing of security returns for two components of annual earnings changes: the average change for a firm's industry and the firm's idiosyncratic change. We find that large firms' prices have a longer lead than small firms' prices with respect to both components. Large firms' early lead on industry-wide earnings suggests that returns of large firms predict returns of same-industry small firms. To test this implication, we construct a portfolio of long (short) positions in small firms when the prior month's returns of large firms in their industry are above (below) average for large firms in other industries. This zero investment portfolio earns 4.5 percent over 12 months.
The Marriage Contract in Fine Art

This paper studies the depiction of the marriage contract in Dutch, French and English genre paintings from the 14th to 18th centuries. Increasingly, scholars have recognized that visual imagery influences the development of legal norms and institutions. During the period studied several genre artists produced paintings that dealt with themes that were central to the issues surrounding the marriage laws, such as the rights of women or whether marriage is a sacrament or a contract. Interestingly, many of the themes depicted in the collective body of marriage contract art echoes and amplifies the issues surrounding the rights of women and the scope of the marriage contract in the writings of John Locke and Jean-Jacques Rousseau. Although it is impossible to measure the impact this collective body of work had on changing the law, the artistic and legal themes expressed in these paintings illustrates the “pre-formative” role of art in terms of signaling where change may occur in our legal norms and institutions. This analysis of the depiction of the formation of the marriage contract may also be of some interest to family law scholars given the renewed interest in the historical foundation of marriage law as a result of the debate over same-sex marriage. The analysis of visual representation of the marriage contract yields another data point for marriage scholars researching the history and origin of society’s conception of marriage as either a contract or a sacrament.
Birth Control Sabotage as Domestic Violence: A Legal Response

This Comment responds to a series of recent studies linking domestic violence to birth control sabotage—a phenomenon where male partners destroy or manipulate contraceptive devices to force pregnancy, attempting to hold their female partners captive in a violent relationship. Birth control sabotage can take many forms, including the destruction of birth control, the piercing of condoms, or the forceful removal of contraceptive vaginal rings or intrauterine devices. Its existence raises two questions: what legal remedies are available to victims of birth control sabotage, and what policy steps should be taken to limit its occurrence? The absence of legal scholarship resolving these questions is glaring, and virtually no legal scholarship addresses the intersection of birth control sabotage and domestic violence. This Comment contends, first, that the recent studies linking birth control sabotage and domestic violence provide a sufficient justification for labeling sabotage as an intentional, fraudulent misrepresentation tort claim. Second, this Comment normatively argues that state legislatures ought to act quickly to criminalize birth control sabotage. As sabotage can now be understood as an act of violence in continuing domestic violence, criminalization and incarceration are crucial in preventing further abuse. While legal remedies for birth control sabotage have been severely limited in the past, creative attorneys and motivated legislators should address this important issue to improve the lives of survivors and their families.
ALEVIS UNDER LAW: THE POLITICS OF RELIGIOUS FREEDOM IN TURKEY

Proponents of minority rights are calling for urgent measures to protect the Copts in Egypt, the Ahmadiyya in Pakistan, and the Baha'i in Iran to secure religious diversity, shield minority populations from discriminatory practices, and prevent the outbreak of religious violence. State governments, international organizations, nongovernmental organizations, and international tribunals promote religious liberalization as the antidote to the violence and discord that is often attributed to these divisions. Enshrined in international agreements and promoted by a small army of experts and authorities, legal protections for religious minorities are heralded as the solution to the challenges of living with social and religious diversity. This article examines how the complexities and ambivalences of ordinary religious belonging are translated and transformed through the process of becoming legalized and governmentalized. It documents the risks of adopting religion as a category to draw together individuals and communities as corporate bodies that are depicted as in need of legal protection to achieve their freedom. The argument is developed through an extended case study of the legal status of the Alevis in Turkey, a community and a category formally constituted as a single whole as part of the Turkish nation-building project. It evaluates two legal constructions of Alevism by the Turkish state and the European Court of Human Rights. While premised on differing assumptions about Alevism, both erase the indeterminacy and open-endedness surrounding Alevism as a lived tradition embedded in a broader field of social and cultural practices, while bolstering the role of the state in defining and overseeing Turkish religiosities.
Managerial Risk-Taking Incentives and Executive Stock Option Repricing: A Study of US Casino Executives

I examine the relation between managerial incentives from holdings of company stock and options and stock option repricing. Because options provide incentives to increase both risk and stock price, firms must realize that as options go underwater, executives might face incentives to invest in risky, negative NPV projects. Repricing may alleviate such incentives. I examine repricing activity by firms in the U.S. gaming industry and find that risk-taking incentives from options are positively related to the incidence of executive option repricing. The results support the hypothesis that repricing assists firms in alleviating excessive risk-taking incentives of senior management.
Philosophy and Disagreement

El desacuerdo que encontramos tanto en la historia como en la practica contemporanea de la filosofia es un fenomeno mal entendido. En este trabajo hago un esbozo y aduzco los motivos del problema del desacuerdo, argumentando que los “casos dificiles” de desacuerdo nos confrontan con un problema sin resolver y al parecer sin posibilidad de resolverse, que pone en duda la racionalidad del discurso filosofico, y con lo cual surge el espectro de una preocupante forma de escepticismo metafilosofico. Examino varias respuestas y tentativas de evasiones, aunque ninguna de ellas es particularmente satisfactoria. Asi, el espectro sigue sin ser exorcizado
Robust trend inference with series variance estimator and testing-optimal smoothing parameter

Abstract The paper develops a novel testing procedure for hypotheses on deterministic trends in a multivariate trend stationary model. The trends are estimated by the OLS estimator and the long run variance (LRV) matrix is estimated by a series type estimator with carefully selected basis functions. Regardless of whether the number of basis functions K is fixed or grows with the sample size, the Wald statistic converges to a standard distribution. It is shown that critical values from the fixed- K asymptotics are second-order correct under the large- K asymptotics. A new practical approach is proposed to select K that addresses the central concern of hypothesis testing: the selected smoothing parameter is testing-optimal in that it minimizes the type II error while controlling for the type I error. Simulations indicate that the new test is as accurate in size as the nonstandard test of Vogelsang and Franses (2005) and as powerful as the corresponding Wald test based on the large- K asymptotics. The new test therefore combines the advantages of the nonstandard test and the standard Wald test while avoiding their main disadvantages (power loss and size distortion, respectively).
Racial Discrepancy in Mortgage Interest Rates

Existing research on racial discrimination in mortgage lending has overwhelmingly focused on whether black applicants are more likely to be denied for credit than comparable white applicants. This study investigates whether the approved black applicants are likely charged higher interest rates than their white counterparts. Using data from three waves of the U.S. Survey of Consumer Finance, our results suggest that black borrowers on average pay about 29 basis points more than comparable white borrowers. We also find that rate disparity mainly occurs to young borrowers with low education as well as those borrowers whose income and credit disqualify them for prime lending rates. Furthermore, among borrowers in the higher rate groups, black women seem to receive much more disparate treatment than black men. We conclude that, while the racial disparity in mortgage rates is widespread between black and white borrowers, it is the more financially vulnerable black women who suffer the most.