Home equity release for long term care financing: an improved market structure and pricing approach

Home equity release products have been promoted as a potential solution to residential long term care costs for the elderly. Unexpectedly low utilization of home equity release loans has prompted efforts to better model and price the No-Negative-Equity-Guarantee (NNEG) built into the contracts, but loan rates are still widely perceived by homeowners as being unattractive.. We propose the introduction of a new adjustable rate loan based on a regional house price index, with the NNEG being borne by a specially created intermediary. The proposed approach allows us to directly address and separately price the basis risk between individual house price returns and index returns. Additionally, it offers the opportunity to create securities based on residential real estate that would be attractive to a wider class of investors. The alternative risk-sharing mechanism creates a more transparent and simple pricing structure for the loans. We then use house sales data to demonstrate the approach. We find in our sample that it would be possible to make higher loans than seen in previous literature using standard roll-up contracts. In the most favourable scenario for our simulations, the maximum loan is 89 per cent of the appraised home value if the loan is advanced as a lump sum and 95 per cent if the loan is advanced in instalments

Maximum Likelihood Estimation and Uniform Inference with Sporadic Identification Failure

This paper analyzes the properties of a class of estimators, tests, and confidence sets (CS's) when the parameters are not identified in parts of the parameter space. Specifically, we consider estimator criterion functions that are sample averages and are smooth functions of a parameter theta. This includes log likelihood, quasi-log likelihood, and least squares criterion functions. We determine the asymptotic distributions of estimators under lack of identification and under weak, semi-strong, and strong identification. We determine the asymptotic size (in a uniform sense) of standard t and quasi-likelihood ratio (QLR) tests and CS's. We provide methods of constructing QLR tests and CS's that are robust to the strength of identification. The results are applied to two examples: a nonlinear binary choice model and the smooth transition threshold autoregressive (STAR) model.Asymptotic size, Binary choice, Confidence set, Estimator, Identification, Likelihood, Nonlinear models, Test, Smooth transition threshold autoregression, Weak identification

FLIGHT-DETERMINED STABILITY AND CONTROL DERIVATIVES OF A SUPERSONIC AIRPLANE WITH A LOW-ASPECT-RATIO UNSWEPT WING AND A TEE-TAIL

Flight-determined stability & control derivatives of supersonic aircraft with low aspect ratio unswept wing & t-tai

Space Division Multiple Access with a Sum Feedback Rate Constraint

On a multi-antenna broadcast channel, simultaneous transmission to multiple users by joint beamforming and scheduling is capable of achieving high throughput, which grows double logarithmically with the number of users. The sum rate for channel state information (CSI) feedback, however, increases linearly with the number of users, reducing the effective uplink capacity. To address this problem, a novel space division multiple access (SDMA) design is proposed, where the sum feedback rate is upper-bounded by a constant. This design consists of algorithms for CSI quantization, threshold based CSI feedback, and joint beamforming and scheduling. The key feature of the proposed approach is the use of feedback thresholds to select feedback users with large channel gains and small CSI quantization errors such that the sum feedback rate constraint is satisfied. Despite this constraint, the proposed SDMA design is shown to achieve a sum capacity growth rate close to the optimal one. Moreover, the feedback overflow probability for this design is found to decrease exponentially with the difference between the allowable and the average sum feedback rates. Numerical results show that the proposed SDMA design is capable of attaining higher sum capacities than existing ones, even though the sum feedback rate is bounded.Comment: 29 pages; submitted to IEEE Transactions on Signal Processin

System and method for moving a probe to follow movements of tissue

An apparatus is described for moving a probe that engages moving living tissue such as a heart or an artery that is penetrated by the probe, which moves the probe in synchronism with the tissue to maintain the probe at a constant location with respect to the tissue. The apparatus includes a servo positioner which moves a servo member to maintain a constant distance from a sensed object while applying very little force to the sensed object, and a follower having a stirrup at one end resting on a surface of the living tissue and another end carrying a sensed object adjacent to the servo member. A probe holder has one end mounted on the servo member and another end which holds the probe

Volume Fraction Determination in Cast Superalloys and DS Eutectic Alloys by a New Practice for Manual Point Counting

Volume fraction of a constituent or phase was estimated in six specimens of conventional and DS-eutectic superalloys, using ASTM E562-76, a new standard recommended practice for determining volume fraction by systematic manual point count. Volume fractions determined ranged from 0.086 to 0.36, and with one exception, the 95 percent relative confidence limits were approximately 10 percent of the determined volume fractions. Since the confidence-limit goal of 10 percent, which had been arbitrarily chosen previously, was achieved in all but one case, this application of the new practice was considered successful

On the interactions between molecules in an off-resonant laser beam:Evaluating the response to energy migration and optically induced pair forces

Electronically excited molecules interact with their neighbors differently from their ground-state counterparts. Any migration of the excitation between molecules can modify intermolecular forces, reflecting changes to a local potential energy landscape. It emerges that throughput off-resonant radiation can also produce significant additional effects. The context for the present analysis of the mechanisms is a range of chemical and physical processes that fundamentally depend on intermolecular interactions resulting from second and fourth-order electric-dipole couplings. The most familiar are static dipole-dipole interactions, resonance energy transfer (both second-order interactions), and dispersion forces (fourth order). For neighboring molecules subjected to off-resonant light, additional forms of intermolecular interaction arise in the fourth order, including radiation-induced energy transfer and optical binding. Here, in a quantum electrodynamical formulation, these phenomena are cast in a unified description that establishes their inter-relationship and connectivity at a fundamental level. Theory is then developed for systems in which the interplay of these forms of interaction can be readily identified and analyzed in terms of dynamical behavior. The results are potentially significant in Förster measurements of conformational change and in the operation of microelectromechanical and nanoelectromechanical devices. © 2009 American Institute of Physics