Real Options Theory for Law Makers

The formulation of legal rules is a challenging issue for lawmakers. Trade-offs are inevitable between providing more guidance by specific rules and enlarging the scope by general rules. Using real options theory we show that the degree of precision should be considered as a degree of flexibility which increases the value of the text. Thus, we derive a normative principle for a draftsman to choose between rules versus standards and to decide when the law should be enacted. In highly innovating environments, delaying the enactment allows lawmakers to obtain more information. Therefore, the lower the degree of precision of the law, the shorter the delay.degree of precision ; flexibility ; obsolescence ; rulemaking

Real Options Theory for Law Maker.

In rapidly changing areas of law, the writing of rules is a challenging issue for lawmakers. Obsolescence impede law to capture the objective of an underlying policy. The legislator, the judge and the regulator are considered as producers of law who have to decide whether or not to invest in a particular type of law. In order to get more information on the context, lawmakers may also choose to wait before investing in law. Using the real options framework, we show that the degree of precision should be considered as a degree of flexibility of legal rules and we describe how it affects the value of the investment. We then analyze the trade-off between waiting and reducing the degree of precision and we show that the degree of precision of legal rules positively affects the value of waiting in lawmaking.Obsolescence, Rulemaking, Degree of Precision, Real Options.

The Heckman-Opdam Markov processes

We introduce and study the natural counterpart of the Dunkl Markov processes in a negatively curved setting. We give a semimartingale decomposition of the radial part, and some properties of the jumps. We prove also a law of large numbers, a central limit theorem, and the convergence of the normalized process to the Dunkl process. Eventually we describe the asymptotic behavior of the infinite loop as it was done by Anker, Bougerol and Jeulin in the symmetric spaces setting in \cite{ABJ}

Risk-sharing or risk-taking? Counterparty risk, incentives and margins

We analyze optimal hedging contracts and show that although hedging aims at sharing risk, it can lead to more risk-taking. News implying that a hedge is likely to be loss-making undermines the risk-prevention incentives of the protection seller. This incentive problem limits the capacity to share risks and generates endogenous counterparty risk. Optimal hedging can therefore lead to contagion from news about insured risks to the balance sheet of insurers. Such endogenous risk is more likely to materialize ex post when the ex ante probability of counterparty default is low. Variation margins emerge as an optimal mechanism to enhance risk-sharing capacity. Paradoxically, they can also induce more risk-taking. Initial margins address the market failure caused by unregulated trading of hedging contracts among protection sellers. JEL Classification: G21, G22, D82.Insurance, moral hazard, counterparty risk, margin requirements, derivatives.

Hybrid resonance of Maxwell's equations in slab geometry

Hybrid resonance is a physical mechanism for the heating of a magnetic plasma. In our context hybrid resonance is a solution of the time harmonic Maxwell's equations with smooth coefficients, where the dielectric tensor is a non diagonal hermitian matrix. The main part of this work is dedicated to the construction and analysis of a mathematical solution of the hybrid resonance with the limit absorption principle. We prove that the limit solution is singular: it is constituted of a Dirac mass at the origin plus a principle value and a smooth square integrable function. The formula obtained for the plasma heating is directly related to the singularity.Comment: This published version has been edited to improve the presentation of the result

Letter from Presentation de Marie to Association des Vigilants

A letter from Sister Marie Bruno of Presentation de Marie to Oliver V. Pelletier, President of Association des Vigilants, concerniing the Festival de la Bonne Chanson. The letter is undated and could correspond to either the 1940 or 1946 Festival de la Bonne Chanson.https://digitalcommons.usm.maine.edu/fac-festival-bonne-chanson/1039/thumbnail.jp

Usefulness of EQ-5D in Assessing Health Status in Primary Care Patients with Major Depressive Disorder

Objectives Major depressive disorder (MDD) is a prevalent psychiatric disorder associated with impaired patient functioning and reductions in health-related quality of life (HRQL). The present study describes the impact of MDD on patients' HRQL and examines preference-based health state differences by patient features and clinical characteristics. Methods 95 French primary care practitioners recruited 250 patients with a DSM-IV diagnosis of MDD for inclusion in an eight-week follow-up cohort. Patient assessments included the Montgomery Asberg Depression Rating Scale (MADRS), the Clinical Global Impression of Severity (CGI), the Short Form-36 Item scale (SF-36), the Quality of Life Depression Scale (QLDS) and the EuroQoL (EQ-5D). Results The mean EQ-5D utility at baseline was 0.33, and 8% of patients rated their health state as worse than death. There were no statistically significant differences in utilities by demographic features. Significant differences were found in mean utilities by level of disease severity assessed by CGI. The different clinical response profiles, assessed by MADRS, were also revealed by EQ-5D at endpoint: 0.85 for responders remitters, 0.72 for responders non-remitter, and 0.58 for non-responders. Even if HRQL and EQ-5D were moderately correlated, they shared only 40% of variance between baseline and endpoint. Conclusions Self-reported patient valuations for depression are important patient-reported outcomes for cost-effectiveness evaluations of new antidepressant compounds and help in further understanding patient compliance with antidepressant treatment

An ageing elasto-viscoplastic model for ceramics

This work has been achieved in the framework of the PLEIADES project, financially supported by CEA (Commissariat à l’Énergie Atomique et aux Énergies Alternatives), EDF (Électricité de France) and AREVA.A model reproducing strain softening behavior in ceramic materials is proposed, base on a critical treatment of previous mechanical experimental results on uranium dioxide. The main hypothesis is that the strain softening phenomenon is related to an ageing process, where some point defects move towards the dislocations and modify their velocity. This is different from most of models used up to now, as they were based on the hypothesis that only the initial lack of dislocations was responsible of the strain softening behavior. A model is first developed in a simple 1D framework. Evolution of the mechanical behavior with strain rate and temperature is well reproduced by this model. Then, the 1D model is extended to a 3D mechanical model, and mechanical compressive tests on UO2 pellets are simulated. The 3D model well reproduces the observed asymmetrical shape of the compressed pellet if one considers that the material is not initially perfectly homogeneous, which highlights the importance of accounting for spatial heteregeneity of materials in models

Statistical Analysis of Survival Data

The terminology and ideas involved in the statistical analysis of survival data are explained including the survival function, the probability density function, the hazard function, censored observations, parametric and nonparametric estimations of these functions, the product limit estimation of the survival function, and the proportional hazards estimation of the hazard function with explanatory variables. In Appendix A these ideas are applied to the actual analysis of the survival data for 54 cervical cancer patients