The Emergence of Captive Finance Companies and Risk Segmentation of the Consumer Loan Market:Theory and Evidence

A parental seller with market power to some degree in its product market can earn rents. In this context, there is a gain to granting credit for the purchase of the product and thus the establishment of captive finance company for expanding the sales by offering loans to consumers who need financing for purchase of durable good. This paper examines the optimal behavior of such a durable good seller and its captive finance company when the consumer loan market is segmented into captive and independent lending institutions under symmetric and imperfect information on borrower’s creditworthiness. The model presents that one critical difference for captive finance company will be its credit standard. Specifically, the model indicates that captive finance company will follow a more lenient credit standard, leading to the prediction that the likelihood of repayment of a captive loan is lower than that of a bank loan, other things equal. This prediction is tested using unique data sets drawn from a major credit bureau in the U.S. The analysis of credit bureau data shows that a captive automobile loan is less likely to be repaid than a bank automobile loan, which supports the theoretical prediction.Monopolistic Competition, Consumer Loan Market, Captive Finance Company, Differential Loan Performances

Credit Cards on Campus: Academic Inquiry, Objective Empiricism, or Advocacy Research? A Response

The authors react to the critique by Robert Manning and Ray Kirshak (in this issue) about the paper Usage of Credit Cards Received through College Student- Marketing Programs, which originally appeared in Journal of Student Financial Aid, 2004

Usage of Credit Cards Received Through College Student-Marketing Programs

This article provides benchmark measures of college student credit card usage by utilizing a pooled sample of over 300,000 recently opened credit card accounts. The analysis compares behavior over 12 months of account history for three groups of accounts: those opened by young adults through college student marketing programs; those opened through conventional marketing channels by young adults ages 18-24; and those opened through conventional channels by older adults. Results indicate that student marketed accounts have smaller balances, lower credit limits, and lower utilization rates than accounts opened by the other groups. Student accounts are more likely to be delinquent and have a higher likelihood of charge-off, but both the delinquency and charge-off rates for student accounts and non-student-marketed accounts of young adults converged within 24 months. These findings are consistent with card issuers’ statements that they establish student accounts with relatively low credit limits expecting that the large majority of new, young cardholders will learn how to manage a credit card, establish a credit history, and become longer-term customers

Involuntary Cotenants: Eminent Domain and Energy and Communications Infrastructure Growth

The spread of renewable energy mandates, new discoveries of unconventional oil and gas, and the need to harden and upgrade telecommunications infrastructure will lead to expansions in large infrastructure easements over the next decade. Many of these easements will be taken by eminent domain. In this paper we examine the problems posed by this involuntary creation of co-ownership of land. Existing eminent domain laws are insufficient to address the problems created because they allow the courts to vary only one term: price. Given difficulty in pricing many of the other terms to the easements (e.g. indemnification agreements for landowners, controlling impacts on hunting leases, or compliance efforts to control invasive species), reforms are necessary to allow courts to substitute for the bargaining process that eminent domain short circuits

Involuntary Cotenants: Eminent Domain and Energy and Communications Infrastructure Growth

The spread of renewable energy mandates, new discoveries of unconventional oil and gas, and the need to harden and upgrade telecommunications infrastructure will lead to expansions in large infrastructure easements over the next decade. Many of these easements will be taken by eminent domain. In this paper we examine the problems posed by this involuntary creation of co-ownership of land. Existing eminent domain laws are insufficient to address the problems created because they allow the courts to vary only one term: price. Given difficulty in pricing many of the other terms to the easements (e.g. indemnification agreements for landowners, controlling impacts on hunting leases, or compliance efforts to control invasive species), reforms are necessary to allow courts to substitute for the bargaining process that eminent domain short circuits

Copper-containing ceramic precursor synthesis: Solid-state transformations and materials technology

Three copper systems with relevance to materials technology are discussed. In the first, a CuS precursor, Cu4S1O (4-methylpyridine)(sub 4)- (4-MePy), was prepared by three routes: reaction of Cu2S, reaction of CuBr-SMe2, and oxidation of copper powder with excess sulfur in 4-methylpyridine by sulfur. In the second, copper powder was found to react with excess thiourea (H2NC(S)NH2) in 4-methylpyridine to produce thiocyanate (NCS(-)) complexes. Three isolated and characterized compounds are: Cu(NCS)(4-MePy)(sub 2), a polymer, (4-MePy-H)(Cu(NCS)(sub 3)(4-MePy)(sub 2)), a salt, and t-Cu(NCS)(sub 2)(4-MePy)(sub 4). Finally, an attempt to produce a mixed-metal sulfide precursor of Cu and Ga in N-methylimidazole (N-MeIm) resulted in the synthesis of a Cu-containing polymer, Cu(SO4)(N-MeIm). The structures are presented; the chemistry will be briefly discussed in the context of preparation and processing of copper-containing materials for aerospace applications

Mode of onset of torsade de pointes in congenital long QT syndrome

Objectives.We sought to describe the mode of onset of spontaneous torsade de pointes in the congenital long QT syndrome.Background.Contemporary classifications of the long QT syndrome (LQTS) refer to the congenital LQTS as “adrenergic dependent” and to the acquired LQTS as “pause dependent.” Overlap between these two categories has been recognized, and a subgroup of patients with “idiopathic pause-dependent torsade” has been described. However, it is not known how commonly torsade is preceded by pauses in the congenital LQTS.Methods.We reviewed the electrocardiograms (ECGs) of all our patients with congenital LQTS evaluated for syncope or sudden death (30 patients). Documentation of the onset of torsade de pointes was available for 15 patients. All these patients had “definitive LQTS” by accepted clinical and ECG criteria.Results.Pause-dependent torsade de pointes was clearly documented in 14 of the 15 patients (95% confidence interval 68% to 100%). The cycle length of the pause leading to torsade was 1.3 ± 0.2 times longer than the basic cycle length, and most pauses leading to torsade were unequivocally longer than the preceding basic cycle length (80% of pauses were >80 ms longer than the preceding cycle length).Conclusions.The “long-short” sequence, which has been recognized as a hallmark of torsade de pointes in the acquired LQTS, plays a major role in the genesis of torsade in the congenital LQTS as well. Our findings have important therapeutic implications regarding the use of pacemakers for prevention of torsade in the congenital LQTS

Understanding Climatic Impacts, Vulnerabilities, and Adaptation in the United States: Building a Capacity for Assessment

Based on the experience of the U.S. National Assessment, we propose a program of research and analysis to advance capability for assessment of climate impacts, vulnerabilities, and adaptation options. We identify specific priorities for scientific research on the responses of ecological and socioeconomic systems to climate and other stresses; for improvement in the climatic inputs to impact assessments; and for further development of assessment methods to improve their practical utility to decision-makers. Finally, we propose a new institutional model for assessment, based principally on regional efforts that integrate observations, research, data, applications, and assessment on climate and linked environmental-change issues. The proposed program will require effective collaboration between scientists, resource managers, and other stakeholders, all of whose expertise is needed to define and prioritize key regional issues, characterize relevant uncertainties, and assess potential responses. While both scientifically and organizationally challenging, such an integrated program holds the best promise of advancing our capacity to manage resources and the economy adaptively under a changing climate

Twenty-eight divergent polysaccharide loci specifying within- and amongst-strain capsule diversity in three strains of Bacteroides fragilis

Comparison of the complete genome sequence of Bacteroides fragilis 638R, originally isolated in the USA, was made with two previously sequenced strains isolated in the UK (NCTC 9343) and Japan (YCH46). The presence of 10 loci containing genes associated with polysaccharide (PS) biosynthesis, each including a putative Wzx flippase and Wzy polymerase, was confirmed in all three strains, despite a lack of cross-reactivity between NCTC 9343 and 638R surface PS-specific antibodies by immunolabelling and microscopy. Genomic comparisons revealed an exceptional level of PS biosynthesis locus diversity. Of the 10 divergent PS-associated loci apparent in each strain, none is similar between NCTC 9343 and 638R. YCH46 shares one locus with NCTC 9343, confirmed by mAb labelling, and a second different locus with 638R, making a total of 28 divergent PS biosynthesis loci amongst the three strains. The lack of expression of the phase-variable large capsule (LC) in strain 638R, observed in NCTC 9343, is likely to be due to a point mutation that generates a stop codon within a putative initiating glycosyltransferase, necessary for the expression of the LC in NCTC 9343. Other major sequence differences were observed to arise from different numbers and variety of inserted extra-chromosomal elements, in particular prophages. Extensive horizontal gene transfer has occurred within these strains, despite the presence of a significant number of divergent DNA restriction and modification systems that act to prevent acquisition of foreign DNA. The level of amongst-strain diversity in PS biosynthesis loci is unprecedented