Stochastic cash flow constraints and the term structure of interest

This paper attempts to provide a theoretical foundation for liquidity premia to be found in the term structure of interest rates. These premia arise from the borrowers' future availability of cash and from the lenders' future need for cash. In addition a third category of investors are active on the market: speculators who have no cash constraint and take positions on the basis of their expectations of future spot rates only. The interaction between these three groups yields an equilibrium term structure which is tested empirically; the test produces estimates of the relative weights of the groups in the determination of liquidity premia. Analysis of these weights indicates that there exists some market segmentation between bonds of different maturities.     

Finite Prandtl number 2-D convection at high Rayleigh numbers

Finite Prandtl number thermal convection is important to the dynamics of planetary bodies in the solar system. For example, the complex geology on the surface of the Jovian moon Europa is caused by a convecting, brine-rich global ocean that deforms the overlying icy “lithosphere”. We have conducted a systematic study on the variations of the convection style, as Prandtl numbers are varied from 7 to 100 at Rayleigh numbers 106 and 108. Numerical simulations show that changes in the Prandtl number could exert significant effects on the shear flow, the number of convection cells, the degree of layering in the convection, and the number and size of the plumes in the convecting fluid. We found that for a given Rayleigh number, the convection style can change from single cell to layered convection, for increasing Prandtl number from 7 to 100. These results are important for determining the surface deformation on the Jovian moon Europa. They also have important implications for surface heat flow on Europa, and for the interior heat transfer of the early Earth during its magma ocean phase. Electronic Supplementary Material is available if you access this article at http://dx.doi.org/10.1007/s10069-002-0004-4. On that page (frame on the left side), a link takes you directly to the supplementary material.     

Effort-satisfaction analysis

This method has been developed to enable the analysis of qualitative problems forming a system, in which their states are expressed in terms of satisfaction indices. It is a means of reorganising data obtained from human judgement on partial relations between specific problems, so that a judgement of the system as a whole may be derived. The E-S analysis indicates the changes in the satisfaction indices when additional efforts are made. It also shows the way in which efforts should be distributed to reach an optimum level of the satisfaction indices. The usefulness of this method is shown by an example of planning a research project.     

The diffusion of medical technology: a "prisoner's dilemma" trap?

Medical technology diffusion and its effect on the modern hospital and on the rising costs of medical care is an issue which receives considerable attention from economists and policy analysts. In this paper a different approach is used to understand this phenomenon. We present the decision of a single hospital, whether or not to adopt an advanced technology system, using the concept of a noncooperative, nonzero sum game. Such presentation provides us with more insight on the conflict in which hospitals find themselves; the "catch" which pushes them to purchase more and more sophisticated and expensive technology in the hope that they will be able to successfully compete with other hospitals. The situation is further complicated by the existence of another "hidden" player--society, whose goals may differ from those of any individual hospital and even from the collective interests of the hospital sector. Possible conflicts that may exist and suggested solutions for each participant are presented and their policy implication are discussed.     

Stakeholder analysis for R&D project management

R&D projects affect the interests of different stakeholders in different ways. Understanding the stakeholders and analysing their interests helps in the better management of R&D projects. In this paper we discuss a methodology to systematically analyse the stakeholders of R&D projects. This methodology includes Freeman's (1984) three levels of analysis: rational, process and transactional. Based on these three levels, the stakeholder management capability of an R&D project is determined. The final stage is based on Mitchell et al . (1997) approach to analysing the dynamics of stakeholders. This methodology is illustrated using a New Zealand case relating to a road pricing R&D project.     

The Inter-Temporal Behavior of Informed and Uninformed Traders

The purpose of this study is to investigate the inter-temporal trading behavior of informed and uninformed investors. We estimate a variation of the market microstructure model developed in Easley, Keifer, O'Hara, and Paperman (1996) and document the day-of-the-week pattern in informed and uninformed trading, as well as the probability of an information event and the probability of bad news. Using bootstrapped distributions, we show that the probability of trading against informed investors follows a U-shape pattern from Monday to Friday. Cross-sectional regression results suggest that inter-temporal patterns between informed and uninformed traders can generate observed patterns in liquidity provision costs.