Efficient Mortgage Default Option Exercise: Evidence from Loss Severity

This paper extends options-based mortgage default theory to include transaction costs. When transaction costs are considered, the rational borrower will default only when the value of the collateral falls below the mortage value by an amount equal to the net transaction costs. Since, for most borrowers, net transaction costs are positive, standard measures of equity may be significantly negative by the time the rational borrower exercises the default option. This research shows theoretically and empirically the effects of frictions on the individual strike price. The addition of transaction costs to the theory provides several testable implications for equity loss severity. First, the longer the foreclosure process and the period of free rent to the borrower, the lower the severity. Second, severity will be smaller when bankruptcy has been declared. Third, severity is decreasing in the contract decreasing function of the probability of a deficiency judgment. The empirical results, using servicing and foreclosure data from a large northeastern thrift, support the theoretical model.

Prompt Application-Transparent Transaction Revalidation in Software Transactional Memory

Software Transactional Memory (STM) allows encapsulating shared-data accesses within transactions, executed with atomicity and isolation guarantees. The assessment of the consistency of a running transaction is performed by the STM layer at specific points of its execution, such as when a read or write access to a shared object occurs, or upon a commit attempt. However, performance and energy efficiency issues may arise when no shared-data read/write operation occurs for a while along a thread running a transaction. In this scenario, the STM layer may not regain control for a considerable amount of time, thus not being able to early detect if such transaction has become inconsistent in the meantime. To tackle this problem we present an STM architecture that, thanks to a lightweight operating system support, is able to perform a fine-grain periodic (hence prompt) revalidation of running transactions. Our proposal targets Linux and x86 systems and has been integrated with the open source TinySTM package. Experimental results with a port of the TPC-C benchmark to STM environments show the effectiveness of our solution

SUPERVISION AND TRANSACTION COSTS: EVIDENCE FROM RICE FARMS IN BICOL, THE PHILIPPINES

Labor markets in all economies are subject to transaction costs associated with recruiting, monitoring and supervising workers. The level of transaction costs affects labor and land contract choices and family labor advantages. Rural labor markets in developing economies, where institutions such as labor and contract law and formal employment assistance mechanisms are not in place, are regarded to be particularly sensitive to transaction cost conditions. A number of studies of contract choice support this contention. The inherent difficulty of measuring transaction costs, however, has limited studies on this topic. In this paper, we analyze supervision activities reported in a cross-section survey of rice farmers in the Bicol region of the Philippines. This survey is unique because it provides supervision data at the farm task level in addition to information on production activities and household characteristics over a range of institutional conditions. It also provides barangay (village) level variables that help us to quantify institutional conditions. The data show that family workers either work or supervise, but do not do both at the same time. This is consistent with a simple optimization model in which supervision intensity increases the productivity of hired workers, which is assumed to be lower than that of family members due to the transaction costs. The model predicts that supervision intensity will increase with transaction costs. We use different institutional conditions to proxy for transaction costs, and estimate the demand for supervision time for four different classes of rice production tasks. The estimation strategy controls for selectivity due to two sources: not all farms use hired labor, and not all farms that use hired labor actually supervise. The results indeed show a positive effect of transaction costs on supervision intensity. We then extend the analysis to a farm efficiency specification to test the proposition that supervision activities improve farm efficiency. This framework allows us to relate institutional conditions to farm efficiency directly and indirectly through their effect on supervision activities. We find that transaction costs have a negative direct effect on farm efficiency, but this is partially offset by increased supervision intensity which enhances efficiency. The results enable us to associate institutional conditions with transaction costs and to draw policy inferences regarding the value of improved institutional conditions.Crop Production/Industries,

Elements for Response Time Statistics in ERP Transaction Systems

We present some measurements and ideas for response time statistics in ERP systems. It is shown that the response time distribution of a given transaction in a given system is generically a log-normal distribution or, in some situations, a sum of two or more log-normal distributions. We present some arguments for this form of the distribution based on heuristic rules for response times, and we show data from performance measurements in actual systems to support the log-normal form. Deviations of the log-normal form can often be traced back to performance problems in the system. Consequences for the interpretation of response time data and for service level agreements are discussed.Comment: revtex, twocolumn, 8 pages, 13 figures. figures replaced by coloured version

Creating a Representation of Items and Version that Support Efficient Evaluation of the Transaction-Time Axis in XML-Based Databases

This project was developed to create a platform for implementing the features and query support provided by the transaction time axis (tt-axis). The basis for this platform is a new numbering plan called item version timestamp level numbering (IVTLN), and it extends an existing numbering plan, namely, dewey level numbering (DLN), by including version and timestamp information. Thus, the transaction time axis provides a temporal perspective for XML nodes in addition to non-temporal axes like the ancestor and descendant axes. This project provides an efficient, extensible, and comprehensible platform for the implementation of the new numbering plan and the services provided by the transaction time axis

S-Store: Streaming Meets Transaction Processing

Stream processing addresses the needs of real-time applications. Transaction processing addresses the coordination and safety of short atomic computations. Heretofore, these two modes of operation existed in separate, stove-piped systems. In this work, we attempt to fuse the two computational paradigms in a single system called S-Store. In this way, S-Store can simultaneously accommodate OLTP and streaming applications. We present a simple transaction model for streams that integrates seamlessly with a traditional OLTP system. We chose to build S-Store as an extension of H-Store, an open-source, in-memory, distributed OLTP database system. By implementing S-Store in this way, we can make use of the transaction processing facilities that H-Store already supports, and we can concentrate on the additional implementation features that are needed to support streaming. Similar implementations could be done using other main-memory OLTP platforms. We show that we can actually achieve higher throughput for streaming workloads in S-Store than an equivalent deployment in H-Store alone. We also show how this can be achieved within H-Store with the addition of a modest amount of new functionality. Furthermore, we compare S-Store to two state-of-the-art streaming systems, Spark Streaming and Storm, and show how S-Store matches and sometimes exceeds their performance while providing stronger transactional guarantees

THE IMPOSSIBILITY OF REVIVING DINAR AND DIRHAM CURRENCY SYSTEM IN THE MODERN ECONOMY WORLD

This study proves that in the discourse of fiqh, Islamic history, and Islamic banking the position of the concept of reviving the currency of dirham and dinar is very weak.Indicators that justify the conclusion of this study are: (1) there is a correspondence with historical evidence of inflation in the Islamic world, (2) there is correspondence with thoughts of fiqh, (3) there is a correspondence with modern syariah financial concept, and (4) there is a correspondence with Islamic banking attitude.This study is written to challenge the idea of Ahmad Hasan, Hifzu Rab, Khan-Mirakhor, Meera-Larbani, and ‘Umar Vadillo who state that inflation problem in Islamic world is best solved by reapplying the currencies of dinar and dirham as bases of transaction mediation. The inaccuracy of conclusion of the modern Islamic economist figures was shown by many historical facts showing the turmoil in values of these two gold bills in time of inflation. Other reasons for the fragility of these two currencies are;(i) lack of support of the fiqh expert in strengthening these currency systems as way out of the inflation-affected transaction, (ii)lack of support of fiqh experts to urge Islamic worlds to use only dinar and dirham as official currency,(iii) lack of support of Islamic banking experts to revive the use of dinar and dirham as transaction bases and remedy for inflation-affected transaction. The facts showed that the chosen system taken by fiqh and Islamic banking experts in settling the inflation-affected transaction was the strengthening of mu‘âmalah transaction system instead of alternating the currency system. The outcome of the strengthening the mu‘âmalah transaction system is a concept of price adjustment.The concept of price adjustment gives a strong implication to modern Islamic banking as an instrument of the mu‘âmalah transaction system support when facing inflation cases.Keywords: inflation, islamic banking, dinar, dirha