Innovative experiences in access to finance : market friendly roles for the visible hand ?

Interest in access to finance has increased significantly in recent years, as growing evidence suggests that lack of access to credit prevents lower-income households and small firms from financing high return investment projects, having an adverse effect on growth and poverty alleviation. This study describes some recent innovative experiences to broaden access to credit. These experiences are consistent with an emerging new view that recognizes a limited role for the public sector in financial markets, but contends that there might be room for well-designed, restricted interventions in collaboration with the private sector to foster financial development and broaden access. The authors illustrate this view with several recent experiences inLatin America and then discuss some open policy questions about the role of the public and private sectors in driving these financial innovations.Debt Markets,Banks&Banking Reform,,Emerging Markets,Bankruptcy and Resolution of Financial Distress

The impact of EMU on growth and employment

This study addresses and evaluates the impacts of the introduction of the euro on both actual and potential output and employment. In order to achieve this, a descriptive and analytical examination of developments before and after the launch of the euro is undertaken, with comparisons drawn between countries that are EMU members and non-EMU members. There are several channels through which the euro may have affected growth and employment: greater transparency and its impact on competitiveness and the effectiveness of the single market; integration of financial markets, which may raise productivity; and a more stable macroeconomic environment, which affects risk and investment decisions. We analyse the impact of each of these channels on the drivers of growth, after controlling for factors such as workforce skills, research base, openness, demographic developments and structural reform on the evolution of output. The central result of our study is that EMU affects output growth directly and also promotes reductions in output and real effective exchange rate volatility and thereby influences the accumulation of productive capital. Many potential concerns preceding the launch of the euro seem to have been unfounded, and our work suggests that the effects of EMU that we observe have been beneficial for economic growth and employment overall. Our analysis suggests that the direct positive effects of EMU are likely to be larger in the core countries, despite their recent slow growth, and that EMU may lead to agglomeration of activities.EMU, euro, euro and growth, euro and employment

Consciousness as a State of Matter

We examine the hypothesis that consciousness can be understood as a state of matter, "perceptronium", with distinctive information processing abilities. We explore five basic principles that may distinguish conscious matter from other physical systems such as solids, liquids and gases: the information, integration, independence, dynamics and utility principles. If such principles can identify conscious entities, then they can help solve the quantum factorization problem: why do conscious observers like us perceive the particular Hilbert space factorization corresponding to classical space (rather than Fourier space, say), and more generally, why do we perceive the world around us as a dynamic hierarchy of objects that are strongly integrated and relatively independent? Tensor factorization of matrices is found to play a central role, and our technical results include a theorem about Hamiltonian separability (defined using Hilbert-Schmidt superoperators) being maximized in the energy eigenbasis. Our approach generalizes Giulio Tononi's integrated information framework for neural-network-based consciousness to arbitrary quantum systems, and we find interesting links to error-correcting codes, condensed matter criticality, and the Quantum Darwinism program, as well as an interesting connection between the emergence of consciousness and the emergence of time.Comment: Replaced to match accepted CSF version; discussion improved, typos corrected. 36 pages, 15 fig

Quantum machine learning: a classical perspective

Recently, increased computational power and data availability, as well as algorithmic advances, have led machine learning techniques to impressive results in regression, classification, data-generation and reinforcement learning tasks. Despite these successes, the proximity to the physical limits of chip fabrication alongside the increasing size of datasets are motivating a growing number of researchers to explore the possibility of harnessing the power of quantum computation to speed-up classical machine learning algorithms. Here we review the literature in quantum machine learning and discuss perspectives for a mixed readership of classical machine learning and quantum computation experts. Particular emphasis will be placed on clarifying the limitations of quantum algorithms, how they compare with their best classical counterparts and why quantum resources are expected to provide advantages for learning problems. Learning in the presence of noise and certain computationally hard problems in machine learning are identified as promising directions for the field. Practical questions, like how to upload classical data into quantum form, will also be addressed.Comment: v3 33 pages; typos corrected and references adde

Using Financial Market Information to Enhance Canadian Fiscal Policy

In this article we argue that the evaluation and implementation of Canadian fiscal policy could be significantly improved through the systematic use of information provided by global financial markets. In particular, we show how the information contained in internationally traded asset returns can be used to (1) provide a more meaningful cyclical-adjustment of the budget deficit, (2) assess the sustainability of the public debt, and (3) reduce the risk of the debt becoming unsustainable without having to run excessively large surpluses.Public debt, cyclically-adjusted deficit, sustainability, hedging

Evolution in the Volumetric Type Ia Supernova Rate from the Supernova Legacy Survey

We present a measurement of the volumetric Type Ia supernova (SN Ia) rate (SNR_Ia) as a function of redshift for the first four years of data from the Canada-France-Hawaii Telescope Supernova Legacy Survey (SNLS). This analysis includes 286 spectroscopically confirmed and more than 400 additional photometrically identified SNe Ia within the redshift range 0.1 ≤ z ≤ 1.1. The volumetric SNR_Ia evolution is consistent with a rise to z ~ 1.0 that follows a power law of the form (1+z)^α, with α = 2.11 ± 0.28. This evolutionary trend in the SNLS rates is slightly shallower than that of the cosmic star formation history (SFH) over the same redshift range. We combine the SNLS rate measurements with those from other surveys that complement the SNLS redshift range, and fit various simple SN Ia delay-time distribution (DTD) models to the combined data. A simple power-law model for the DTD (i.e., ∝ t^(–β)) yields values from β = 0.98 ± 0.05 to β = 1.15 ± 0.08 depending on the parameterization of the cosmic SFH. A two-component model, where SNR_Ia is dependent on stellar mass (M_stellar) and star formation rate (SFR) as SNR_(Ia)(z) = A × M_(stellar)(z) + B × SFR(z), yields the coefficients A = (1.9 ± 0.1) × 10^(–1)4 SNe yr^(–1) M^(–1)_☉ and B = (3.3 ± 0.2) × 10^(–4) SNe yr^(–1) (M_☉ yr^(–1))^(–1). More general two-component models also fit the data well, but single Gaussian or exponential DTDs provide significantly poorer matches. Finally, we split the SNLS sample into two populations by the light-curve width (stretch), and show that the general behavior in the rates of faster-declining SNe Ia (0.8 ≤ s < 1.0) is similar, within our measurement errors, to that of the slower objects (1.0 ≤ s < 1.3) out to z ~ 0.8

Windows of technological opportunity: do technological booms influence the relationship between firm size and innovativeness?

Many papers have been written about the effect of firm size on innovativeness, revealing a positive, a negative or a mixed impact. To this day, the so-called Schumpeterian hypothesis of the above-average innovativeness of large firms has been neither confirmed nor rejected, often because of insufficient data or a too-short observation period. Many studies concentrate only on a specific region or a specific sector, or they analyze a very short time period. Windows of technological opportunities, providing technological booms for both firms and sectors, have not yet been investigated. An analysis of Germany’s chemical, metal and electronic-engineering sectors between 1877 and 1932 reveals that the sector-specific long-term relationship between firm size and innovativeness is negative, except during times of specific technological booms. In combination with firm-specific characteristics, this new aspect can contribute to a better understanding of the long-term relationship between firm size and innovativeness. --Effect of firm size on innovativeness,technological boom,Schumpeterian hypothesis

Evolution in the Volumetric Type Ia Supernova Rate from the Supernova Legacy Survey

We present a measurement of the volumetric Type Ia supernova (SN Ia) rate (SNR_Ia) as a function of redshift for the first four years of data from the Canada-France-Hawaii Telescope (CFHT) Supernova Legacy Survey (SNLS). This analysis includes 286 spectroscopically confirmed and more than 400 additional photometrically identified SNe Ia within the redshift range 0.1<z<1.1. The volumetric SNR_Ia evolution is consistent with a rise to z~1.0 that follows a power-law of the form (1+z)^alpha, with alpha=2.11+/-0.28. This evolutionary trend in the SNLS rates is slightly shallower than that of the cosmic star-formation history over the same redshift range. We combine the SNLS rate measurements with those from other surveys that complement the SNLS redshift range, and fit various simple SN Ia delay-time distribution (DTD) models to the combined data. A simple power-law model for the DTD (i.e., proportional to t^-beta) yields values from beta=0.98+/-0.05 to beta=1.15+/-0.08 depending on the parameterization of the cosmic star formation history. A two-component model, where SNR_Ia is dependent on stellar mass (Mstellar) and star formation rate (SFR) as SNR_Ia(z)=AxMstellar(z) + BxSFR(z), yields the coefficients A=1.9+/-0.1 SNe/yr/M_solar and B=3.3+/-0.2 SNe/yr/(M_solar/yr). More general two-component models also fit the data well, but single Gaussian or exponential DTDs provide significantly poorer matches. Finally, we split the SNLS sample into two populations by the light curve width (stretch), and show that the general behavior in the rates of faster-declining SNe Ia (0.8<s<1.0) is similar, within our measurement errors, to that of the slower objects (1.0<s<1.3) out to z~0.8.Comment: Accepted in A

A fast immersed boundary method for external incompressible viscous flows using lattice Green's functions

A new parallel, computationally efficient immersed boundary method for solving three-dimensional, viscous, incompressible flows on unbounded domains is presented. Immersed surfaces with prescribed motions are generated using the interpolation and regularization operators obtained from the discrete delta function approach of the original (Peskin's) immersed boundary method. Unlike Peskin's method, boundary forces are regarded as Lagrange multipliers that are used to satisfy the no-slip condition. The incompressible Navier-Stokes equations are discretized on an unbounded staggered Cartesian grid and are solved in a finite number of operations using lattice Green's function techniques. These techniques are used to automatically enforce the natural free-space boundary conditions and to implement a novel block-wise adaptive grid that significantly reduces the run-time cost of solutions by limiting operations to grid cells in the immediate vicinity and near-wake region of the immersed surface. These techniques also enable the construction of practical discrete viscous integrating factors that are used in combination with specialized half-explicit Runge-Kutta schemes to accurately and efficiently solve the differential algebraic equations describing the discrete momentum equation, incompressibility constraint, and no-slip constraint. Linear systems of equations resulting from the time integration scheme are efficiently solved using an approximation-free nested projection technique. The algebraic properties of the discrete operators are used to reduce projection steps to simple discrete elliptic problems, e.g. discrete Poisson problems, that are compatible with recent parallel fast multipole methods for difference equations. Numerical experiments on low-aspect-ratio flat plates and spheres at Reynolds numbers up to 3,700 are used to verify the accuracy and physical fidelity of the formulation.Comment: 32 pages, 9 figures; preprint submitted to Journal of Computational Physic