Auditing as a Signal in Small Business Lending

This paper models the borrowing decision of a small firm seeking a bank loan when it can optionally hire, at a cost, an independent external auditor to convey its risk characteristics to lenders. The analysis shows that a necessary condition for a potential borrower to prefer having an audit to not having an audit is that the borrower’s debt to equity ratio must be above a certain minimum cut-off value. For observed audit cost functions, this cut-off debt-equity ratio is higher for smaller initial size firms. Such firms will forego an audit even if they are of low risk, and potentially face loan denial and higher interest rate. Additionally, the cutoff debt-equity ratio is an increasing function of audit cost. Hence smaller audit costs may allow more high quality small firms to reveal their types to the banks, thus leading to a more partially separating equilibrium. The model suggests a number of interesting empirical questions for further study

Radiation reaction in the 2.5PN waveform from inspiralling binaries in circular orbits

In this Comment we compute the contributions of the radiation reaction force in the 2.5 post-Newtonian (PN) gravitational wave polarizations for compact binaries in circular orbits. (i) We point out and correct an inconsistency in the derivation of Arun, Blanchet, Iyer, and Qusailah. (ii) We prove that all contributions from radiation reaction in the 2.5PN waveform are actually negligible since they can be absorbed into a modification of the orbital phase at the 5PN order.Comment: 7 pages, no figures, submitted to CQ

The transient response of global-mean precipitation to increasing carbon dioxide levels

The transient response of global-mean precipitation to an increase in atmospheric carbon dioxide levels of 1% yr(-1) is investigated in 13 fully coupled atmosphere-ocean general circulation models (AOGCMs) and compared to a period of stabilization. During the period of stabilization, when carbon dioxide levels are held constant at twice their unperturbed level and the climate left to warm, precipitation increases at a rate of similar to 2.4% per unit of global-mean surface-air-temperature change in the AOGCMs. However, when carbon dioxide levels are increasing, precipitation increases at a smaller rate of similar to 1.5% per unit of global-mean surface-air-temperature change. This difference can be understood by decomposing the precipitation response into an increase from the response to the global surface-temperature increase (and the climate feedbacks it induces), and a fast atmospheric response to the carbon dioxide radiative forcing that acts to decrease precipitation. According to the multi-model mean, stabilizing atmospheric levels of carbon dioxide would lead to a greater rate of precipitation change per unit of global surface-temperature change

R. K. Narayan’s The Bachelor of Arts: Self-Realization in Hindu Traditional Family

The Bachelor of Arts (1935) is one of R. K. Narayan’s best Indian novels written in English designed with the intent to show a mirror to the society of the false love, attractions and reality. It bespeaks of the key character’s Chandran’s struggle and determination to live a second life after much retrospection. What Narayan endeavors and aims to do in this novel is to set right the societal issues and check before it slips out of the clutch. Chandran is shown both as a real man and everyman because of his realistic attributes. Thus, Narayan depicts the problems of Chandran as everyman’s. Chandran’s life is categorized into three stages in the first term as student in the last year of his college life, in the second term as a romantic lover and in the third term as a sanyasi. For Narayan, life is full of charm; one has to only choose the right dose of happiness and joy to make a pleasurable living

Quantized Orbits and Resonant Transport

A tight binding representation of the kicked Harper model is used to obtain an integrable semiclassical Hamiltonian consisting of degenerate "quantized" orbits. New orbits appear when renormalized Harper parameters cross integer multiples of $\pi/2$. Commensurability relations between the orbit frequencies are shown to correlate with the emergence of accelerator modes in the classical phase space of the original kicked problem. The signature of this resonant transport is seen in both classical and quantum behavior. An important feature of our analysis is the emergence of a natural scaling relating classical and quantum couplings which is necessary for establishing correspondence.Comment: REVTEX document - 8 pages + 3 postscript figures. Submitted to Phys.Rev.Let