Quantum Coins

One of the earliest cryptographic applications of quantum information was to create quantum digital cash that could not be counterfeited. In this paper, we describe a new type of quantum money: quantum coins, where all coins of the same denomination are represented by identical quantum states. We state desirable security properties such as anonymity and unforgeability and propose two candidate quantum coin schemes: one using black box operations, and another using blind quantum computation.Comment: 12 pages, 4 figure

Agency Conflicts, Asset Substitution, and Securitization

Asset-backed securities represent one of the largest and fastest growing financial markets. Under securitization, agents perform functions (for fees) that would alternatively be performed by a vertically integrated lender with ownership of a whole loan. We examine how outsourcing impacts performance using data on 357 commercial mortgage-backed securities deals with over 46,000 individual loans. To alleviate agency conflicts in managing troubled loans, underwriters often sell the first-loss position to the special servicer, the party who is charged with handling delinquencies and defaults. When holding the first-loss position, special servicers appear to behave more efficiently, making fewer costly transfers of delinquent loans to special servicing, but liquidating a higher percentage of loans that are referred to special servicing. Special servicers are also more likely to own the first loss position in deals that require additional effort (deals with higher delinquencies). Market pricing reflects the existence of agency costs. Despite the apparent reduction of agency costs, the first-loss position is increasingly owned by a party other than the special servicer. We pose a number of explanations, including conflicts between junior and senior securities holders (the asset substitution problem) and risk aversion among special servicers. Consistent with asset substitution, we show that special servicers delay liquidation when they hold the first-loss position in deals with more severe delinquency problems.

Financial Contracts and the Management of Carbon Emissions in Small Scale Plantation Forests

Under the New Zealand Emissions Trading Scheme, foresters can obtain carbon units as their forests sequester carbon. If they sell these units as they are earned, the units must be repurchased when the forest is harvested, exposing foresters to price risk. This paper examines the way forward markets, futures markets, and carbon lending markets could be used to manage this risk. It argues that carbon lending markets are likely to be the most convenient form for foresters, as they allow the total returns from forestry investments to be increased with minimal risk. The carbon units can be lent to industrial firms or developers of new forests to minimise the carbon risk they face if they make carbon reducing investments.carbon banking, carbon forward markets, forest sequestation

The Basic Public Finance of Public-Private Partnerships

Public-private partnerships (PPPs) cannot be justified because they free public funds. When PPPs are desirable because the private sector is more efficient, the contract that optimally trades demand risk, user-fee distortions and the opportunity cost of public funds is characterized by a minimum revenue guarantee and a cap on the firm's revenues. Yet income guarantees and revenue sharing arrangements observed in practice differ fundamentally from those suggested by the optimal contract. The optimal contract can be implemented via a competitive auction with realistic informational requirements; and risk allocation under the optimal contract suggests that PPPs are closer to public provision than to privatization.Bundling, cost of public funds, subsidies, minimum revenue guarantees,revenue and profit caps, Demsetz auctions

Factoring as a special means of financing smes’ activities – the case of enterprises in the Lodz area

The article considers the usefulness of factoring as a short-term instrument allowing enterprises to finance their activities. Suppliers choosing factoring can offer buyers extended debt payment periods, improve their liquidity, as well as gaining access to additional services offered by factors. This analysis focuses on the benefits, usefulness and weaknesses of factoring, including the business effects of this facility and the prospects of its development. An attempt is made to demonstrate that factoring has a great potential for growth as a source of short-term funding for small- and medium-sized enterprises (SMEs). Two methods are used to this end: a review of the pertinent Polish and foreign literature including research articles, and a questionnaire survey of 20 SMEs with relevant experience in using this facility. The analysis of the usefulness and cost- effectiveness of factoring shows that in the period 2010–2014 in which market instabilities were observed factoring was a useful and frequently employed means of short-term funding

IDENTIFICATION AND AN L.P. ANALYSIS OF ALTERNATIVE PLANS FOR DAIRY FARM ADJUSTMENT IN SOUTH-EASTERN MINNESOTA

Livestock Production/Industries,

The welfare cost of inflation

Inflation (Finance) ; Welfare

Card-Based Remittances: A Closer Look at Supply and Demand

Analyzes the supply and demand for card-based transfers among Latin American and Caribbean immigrants sending remittances. Outlines card features and fee structures, and examines usage by country of origin, legal status, location, and card type

Transfer of Sulfur from IscS to IscU during Fe/S Cluster Assembly

The cysteine desulfurase enzymes NifS and IscS provide sulfur for the biosynthesis of Fe/S proteins. NifU and IscU have been proposed to serve as template or scaffold proteins in the initial Fe/S cluster assembly events, but the mechanism of sulfur transfer from NifS or IscS to NifU or IscU has not been elucidated. We have employed [35S]cysteine radiotracer studies to monitor sulfur transfer between IscS and IscU from Escherichia coli and have used direct binding measurements to investigate interactions between the proteins. IscS catalyzed transfer of 35S from [35S]cysteine to IscU in the absence of additional thiol reagents, suggesting that transfer can occur directly and without involvement of an intermediate carrier. Surface plasmon resonance studies and isothermal titration calorimetry measurements further revealed that IscU binds to IscS with high affinity (Kd ~2 µM) in support of a direct transfer mechanism. Transfer was inhibited by treatment of IscU with iodoacetamide, and 35S was released by reducing reagents, suggesting that transfer of persulfide sulfur occurs to cysteinyl groups of IscU. A deletion mutant of IscS lacking C-terminal residues 376-413 (IscSDelta 376-413) displayed cysteine desulfurase activity similar to the full-length protein but exhibited lower binding affinity for IscU, decreased ability to transfer 35S to IscU, and reduced activity in assays of Fe/S cluster assembly on IscU. The findings with IscSDelta 376-413 provide additional support for a mechanism of sulfur transfer involving a direct interaction between IscS and IscU and suggest that the C-terminal region of IscS may be important for binding IscU