Modeling hazardous materials risks for different train make-up plans

This paper is concerned with the problem of how to place hazardous material cars in the train assembly process so that the overall derailment risk can be minimized. The approach considers both the probability of railway cars derailing en route by position as well as the risk associated with additional operations in the rail yard using recent US FRA data. The merits of this car placement model are illustrated through a case study of a railway corridor that connects Los Angeles (CA) to Chicago (IL). The case study demonstrates that the proposed risk minimization strategy could be implemented with minimal rail yard operation cost.     

Chronic eosinophilic pneumonia

Chronic eosinophilic pneumonia is one form of eosinophilic lung disease that includes both idiopathic and known etiological cases. Chronic eosinophilic pneumonia has a characteristic clinical picture, along with a characteristic pattern on CT imaging. It is readily treatable with oral steroids, and although response is prompt with excellent resolution of the symptoms, chronic steroids are often necessary. The mortality from this disease is negligible.     

Preparing for higher inflation: Portfolio solutions using U.S. equities

Investors have always been interested in reducing inflation risk in their portfolios. However, investors face different types of inflation than those measured by the Consumer Price Index (CPI). Moreover, different asset classes can be used to hedge portfolio inflation. In this paper, we show how individual equities can be used to construct equity portfolios sensitive to customized inflation targets. We illustrate portfolios for three types of inflation: US headline CPI, Forbes Cost of Living Extremely Well Index, and the US Medical Care Price Index. We also show how alternative weighting schemes, such as minimum volatility and maximum inflation beta, can be used to construct inflation‐hedged portfolios.     

Exploring the effects of aggregation error in the estimation of consumer demand elasticities

Errors introduced by using aggregate data in estimating a consumer demand model have long been a concern. We study the effects of such errors on elasticity estimates derived from AIDS and QUAIDS models. Based on a survey of published articles, a generic parameterization of the income distribution, and the range of Gini coefficients reported for 28 OECD countries, we generate and analyze a large number of “observations” on the differences between elasticities calculated at the aggregate level and those calculated at the micro level. We suggest a procedure for evaluating the likely range of aggregation error when a model is estimated with aggregate data.     

Accountability and legitimacy in earth system governance: A research framework

Along with concerns over the effectiveness of earth system governance, ways of enhancing its accountability and legitimacy are increasingly coming to the fore in both scholarly debate and political practice. Concerns over accountability and legitimacy pertain to all levels of governance, from the local to the global, and cover the spectrum of public and private governance arrangements. This conceptual article elaborates on the sources, mechanisms and reform options relating to more accountable, legitimate and democratic earth system governance. We proceed in four steps. First, we conceptualize accountability and legitimacy in earth system governance. Second, we place questions of accountability and legitimacy within the larger context of earth system transformation, which, we argue, poses special challenges to the pursuit of accountability and legitimacy. Third, drawing on the contributions to this special section, we analyze different sources and mechanisms of accountability and legitimacy and their effects on the democratic potential and effectiveness of governance. Fourth, in concluding, we outline reform options that may help alleviate persisting deficits in the democratic potential of earth system governance.     

Financial leverage and market volatility with diverse beliefs

We study a general equilibrium model of asset trading with financial leverage, where the investors can engage in speculative trading with diverse beliefs about the asset??s fundamental value. We show that an increase in the leverage ratio causes the stock price to rise in the current period through a ??leverage effect??, and will result in more borrowing and more stock purchase that pumps the stock price higher in the subsequent period, known as the ??pyramiding effect??. There can also be a ??depyramiding effect?? when the price falls because lenders issue margin calls and force stock sales, contributing to further stock price plummeting. Price changes from depyramiding effect, however, may not take effect when margin calls are not triggered. We demonstrate that, under certain conditions, decreasing leverage ratios leads to lower stock price volatility, measured by the variation of prices caused by an exogenous shock, when the shock is unanticipated. The influences of dispersion of beliefs and available investment funds on the relation between financial leverage and market volatility are also examined. When the shock is anticipated, we demonstrate that reducing leverage ratios may not lower stock price volatility, which poses an important challenge to future studies on this issue.     

Culture and personal values: How they influence perceived service quality

This research analyzes the effects of culture and personal values on perceived service quality. Data on bank service quality are collected from 509 Canadian and 216 French users. The results confirm that power distance and uncertainty avoidance influence perceived service quality. Personal values such as self-fulfillment, self-respect, sense of accomplishment, and security also influence perceived service quality. The study findings show that the effects of personal values (micro-level variables) and culture (macro-level variable) on perceived service quality are distinct.