Risk Pooling and the Market Crash: Lessons From Canada's Pension Plan

Defined contribution plans are now the nation’s primary private retirement income program and repository of retirement savings. About two thirds of the assets held in such plans are invested in equities, as is the case in the defined benefit plans they largely replaced. Equities can dramatically reduce the cost of providing retirement incomes, given their high expected returns. But, as illustrated by the recent market crash, equities are also risky. The resulting losses (and gains) in retirement income are also distributed very unevenly in the nation’s 401(k)-IRA system. The crash hardly affected the retirement prospects of the young: the bulk of the retirement income they will draw from 401(k)s and IRAs will come from future contributions and future returns. Those at the cusp of retirement, by contrast, are heavily exposed: retirement savings are then at their peak and there is little time to adjust work, saving, and retirement plans in response to the market crash. This concentration of risk is highly troubling, as the 401(k)-IRA system has become the nation’s primary private retirement income program, and has led to calls to reform. The challenge is to capture the higher expected returns equities offer in a way that provides reasonably secure and reliable incomes in retirement. One approach would make individual retirement accounts more secure and reliable through the use of mandates, defaults, guarantees, or risk-sharing arrangements. This brief offers a different approach, examining the Canada Pension Plan (CPP) and how it manages the risk that comes with investing retirement savings in equities...

Dewpoint temperature inversions analyzed

Dewpoint temperature inversion, with regard to other simultaneous meteorological conditions, was examined to establish the influence of meteorological variables on the variation of dewpoint temperature with height. This report covers instrumentation and available data, all the climatological features of dewpoint inversions, and specific special cases

Cardiovascular MRI in clinical trials: expanded applications through novel surrogate endpoints

Recent advances in cardiovascular magnetic resonance (CMR) now allow the accurate and reproducible measurement of many aspects of cardiac and vascular structure and function, with prognostic data emerging for several key imaging biomarkers. These biomarkers are increasingly used in the evaluation of new drugs, devices and lifestyle modifications for the prevention and treatment of cardiovascular disease. This review outlines a conceptual framework for the application of imaging biomarkers to clinical trials, highlights several important CMR techniques which are in use in randomised studies, and reviews certain aspects of trial design, conduct and interpretation in relation to the use of CMR

Two Amino Acid Residues Contribute to a Cation-π Binding Interaction in the Binding Site of an Insect GABA Receptor

Cys-loop receptor binding sites characteristically possess an "aromatic box," where several aromatic amino acid residues surround the bound ligand. A cation-π interaction between one of these residues and the natural agonist is common, although the residue type and location are not conserved. Even in the closely related vertebrate GABA_A and GABA_C receptors, residues in distinct locations perform this role: in GABA_A receptors, a Tyr residue in loop A forms a cation-π interaction with GABA, while in GABA_C receptors it is a loop B residue. GABA-activated Cys-loop receptors also exist in invertebrates, where they have distinct pharmacologies and are the target of a range of pesticides. Here we examine the location of GABA in an insect binding site by incorporating a series of fluorinated Phe derivatives into the receptor binding pocket using unnatural amino acid mutagenesis, and evaluating the resulting receptors when expressed in Xenopus oocytes. A homology model suggests that two aromatic residues (in loops B and C) are positioned such that they could contribute to a cation-π interaction with the primary ammonium of GABA, and the data reveal a clear correlation between the GABA EC_(50) and the cation-π binding ability both at Phe206 (loop B) and Tyr254 (loop C), demonstrating for the first time the contribution of two aromatic residues to a cation-π interaction in a Cys-loop receptor

The Paraldor Project

Paraldor is an experiment in bringing the power of categorical languages to lattice QCD computations. Our target language is Aldor, which allows the capture of the mathematical structure of physics directly in the structure of the code using the concepts of categories, domains and their inter-relationships in a way which is not otherwise possible with current popular languages such as Fortran, C, C++ or Java. By writing high level physics code portably in Aldor, and implementing switchable machine dependent high performance back-ends in C or assembler, we gain all the power of categorical languages such as modularity, portability, readability and efficiency.Comment: 4 pages, 2 figures, Lattice 2002 conference proceeding

The Impact of CEO Compensation Incentives on Financial Reporting Choices: Evidence from Potential Ghost Revenues Created in Mergers and Acquisitions

When an acquirer purchases a target and assumes the target’s deferred revenue liability, accounting standards codification 805 requires that the acquirer recognize the target’s deferred revenue at its estimated fair value as of the acquisition date. If the target’s deferred revenue book value exceeds its fair value, the portion of deferred revenue written down will never be recognized as revenue for the acquirer under generally accepted accounting principles (GAAP). In this study, I investigate the impact of chief executive officers’ (CEOs’) compensation incentives on the fair value measurement of deferred revenue liabilities in acquisitions. If a larger proportion of CEO cash incentive pay is based on performance metrics tied to GAAP revenue, CEOs have incentives to minimize deferred revenue write-downs because these write-downs reduce post-acquisition revenues. I predict and find that CEOs with a larger proportion of cash incentive pay based on performance metrics tied to GAAP revenue write down less deferred revenues. Additionally, I predict and find that CEOs with a larger proportion of cash incentive pay based on non-GAAP metrics that adjust for deferred revenues which would have been recognized as future revenues (i.e., ghost revenues) write down more deferred revenues. These results provide evidence that manager opportunism in fair value measurement following acquisitions extends to deferred revenue liabilities as well as assets

Time outdoors and the prevention of myopia

Recent epidemiological evidence suggests that children who spend more time outdoors are less likely to be, or to become myopic, irrespective of how much near work they do, or whether their parents are myopic. It is currently uncertain if time outdoors also blocks progression of myopia. It has been suggested that the mechanism of the protective effect of time outdoors involves light-stimulated release of dopamine from the retina, since increased dopamine release appears to inhibit increased axial elongation, which is the structural basis of myopia. This hypothesis has been supported by animal experiments which have replicated the protective effects of bright light against the development of myopia under laboratory conditions, and have shown that the effect is, at least in part, mediated by dopamine, since the D2-dopamine antagonist spiperone reduces the protective effect. There are some inconsistencies in the evidence, most notably the limited inhibition by bright light under laboratory conditions of lens-induced myopia in monkeys, but other proposed mechanisms possibly associated with time outdoors such as relaxed accommodation, more uniform dioptric space, increased pupil constriction, exposure to UV light, changes in the spectral composition of visible light, or increased physical activity have little epidemiological or experimental support. Irrespective of the mechanisms involved, clinical trials are now underway to reduce the development of myopia in children by increasing the amount of time they spend outdoors. These trials would benefit from more precise definition of thresholds for protection in terms of intensity and duration of light exposures. These can be investigated in animal experiments in appropriate models, and can also be determined in epidemiological studies, although more precise measurement of exposures than those currently provided by questionnaires is desirable