Does Finance Bolster Superstar Companies? Banks, Venture Capital, and Firm Size in Local U.S. Markets

We study the relative effect of venture capital and bank finance on large manufacturing firms in local U.S. markets. Theory predicts that with venture capital, the firm size distribution should become more stretched-out to the right, but it’s ambiguous on the effect of banks on large firms. The empirical evidence suggests that while the average size of firms in the top bin of the firm size distribution has remained unaffected by banking sector developments, it has increased with venture capital investment. We argue that this is due to the emergence of new corporate giants rather than the growth of existing ones. JEL Classification: G24, J24, L11banking, firm size, Venture Capital

Does the euro make a difference? Spatio-temporal transmission of global shocks to real effective exchange rates in an infinite VAR

This paper provides evidence on whether the creation of the euro has changed the way global turbulences affect euro area and other economies. Specifically, it considers the impact of global shocks on the competitiveness of individual euro area countries and assesses whether their responses to such shocks have converged, as well as to what pattern. Technically, the paper applies a newly developed methodology based on infinite VAR theory featuring a dominant unit to a large set of over 60 countries' real effective exchange rates, including those of the individual euro area economies, and compares impulse response functions to the estimated systems before and after EMU with respect to three types of shocks: a global US dollar shock, generalised impulse response function shocks and a global shock to risk aversion. Our results show that the way euro area countries' real effective exchange rates adjust to these shocks has converged indeed, albeit to a pattern that depends crucially on the nature of the shock. This result is noteworthy given the apparent divergence in competitiveness indicators of these countries in the first ten years of EMU, which suggests that this diverging pattern is unlikely to be due to global external shocks with asymmetric effects but rather to other factors, such as country-specific domestic shocks. JEL Classification: C21, C23euro, High-Dimensional VAR, Identification of Shocks, Real Effective Exchange Rates, Weak and Strong Cross Sectional Dependence

Have euro area and EU economic governance worked? Just the facts

We test whether two key elements of the EU and euro area economic governance framework, the Stability and Growth Pact and the Lisbon Strategy, have had any impact on macroeconomic outcomes. We test this proposition using a difference-in-difference approach on a panel of over 30 countries, some of which are non-EU (control group). Hence, the impact of the EU economic governance pillars is evaluated based on both the performance before and after their application as well as against the control group. We find strong and robust evidence that neither the Stability and Growth Pact nor the Lisbon Strategy have had a significant beneficial impact on fiscal and economic performance outcomes. We conclude that a profound reform of these pillars is needed to make them work in the next decade. JEL Classification: E62, E63, H63, O43euro area, European Union, governance, institutions, Lisbon Strategy, Stability and Growth Pact

Human Rights Violations After 9/11 and the Role of Constitutional Constraints

human rights, terrorism, 9/11, checks and balances, constitutions, constitutional courts

Discourse comprehension in L2: Making sense of what is not explicitly said

Using ERPs, we tested whether L2 speakers can integrate multiple sources of information (e.g., semantic, pragmatic information) during discourse comprehension. We presented native speakers and L2 speakers with three-sentence scenarios in which the final sentence was highly causally related, intermediately related, or causally unrelated to its context; its interpretation therefore required simple or complex inferences. Native speakers revealed a gradual N400-like effect, larger in the causally unrelated condition than in the highly related condition, and falling in-between in the intermediately related condition, replicating previous results. In the crucial intermediately related condition, L2 speakers behaved like native speakers, however, showing extra processing in a later time-window. Overall, the results show that, when reading, L2 speakers are able to process information from the local context and prior information (e.g., world knowledge) to build global coherence, suggesting that they process different sources of information to make inferences online during discourse comprehension, like native speakers.This work was supported by grants from the Spanish Government (PSI2011-23033, CONSOLIDER-INGENIO2010 CSD2007-00048, ECO2011-25295, and ECO2010-09555-E), from the Catalan Government (SGR 2009-1521) and from the Grup de Recerca en Neurociència Cognitiva (GRNC) - 2014SGR1210. It has also received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 613465

Experimental Study of Machine-Learning-Based Detection and Identification of Physical-Layer Attacks in Optical Networks

Optical networks are critical infrastructure supporting vital services and are vulnerable to different types of malicious attacks targeting service disruption at the optical layer. Due to the various attack techniques causing diverse physical- layer effects, as well as the limitations and sparse placement of optical performance monitoring devices, such attacks are difficult to detect, and their signatures are unknown. This paper presents a Machine Learning (ML) framework for detection and identification of physical-layer attacks, based on experimental attack traces from an operator field-deployed testbed with coherent receivers. We perform in-band and out-of-band jamming signal insertion attacks, as well as polarization modulation attacks, each with varying intensities. We then evaluate 8 different ML classifiers in terms of their accuracy, and scalability in processing experimental data. The optical parameters critical for accurate attack identification are identified and the generalization of the models is validated. Results indicate that Artificial Neural Networks (ANNs) achieve 99.9% accuracy in attack type and intensity classification, and are capable of processing 1 million samples in less than 10 seconds

Synthesis of Asymmetric Curcumin Analogues from CullilawanOil using Conventional and Microwave Method

AbstractAsymmetric curcumin analogues as potential anticancer compounds. The purpose of this study was to synthesize product 5-benzo[1,3]dioxol-5-yl-1-phenyl-penta-2,4-dien-1-one uses the method conventional and microwaves. Product 5-benzo[1,3]dioxol-5-yl-1-phenyl-penta-2,4-dien-1-one can be synthesized from the cullilawan oils with several stages, among others; isolation safrole, isomerization, oxidation and condensation reactions. Isolation of safrole from cullilawanoils performed using NaOH solution and purified using distillation fractionation pressure reduction produces 19.30% safrole are tested for purity by GCMS and for the identification of the structure is done by using FTIR and 1H-NMR. The safrole isomerization performed using KOH without solvent at a temperature of 120oC for 8hours resulted isosafrole (91.53%) which consists of cis-isosafrol and trans-isosafrol. Oxidation isosafrole performed using KMnO4 in acidic conditions using a phase transfer catalyst tween 80 at a temperature of < 30oC and separation by silica gel resulted in 65.63% piperonal were tested with the GCMS and identification using FTIR and 1H-NMR. Products asymmetrical curcumin analogous made in the condition alkaline by conventional methods for three hours produce 99.55%, a method of microwaves in 140 watts for two minutes produce 82.82%